CONSERVATIONISTS CALL FOR THE END TO MILLION DOLLAR SUBSIDIES OF NATIVE FOREST LOGGING

On the back of Mike Baird’s announcement to axe public sector jobs, and the announcement of Boral on the North Coast that it has ended woodchipping because it was unable to obtain Forest Stewardship Certification (‘FSC’), conservation groups renew their call for an end to native forest logging on the South Coast.

“There is no possibility on the south coast of either the Forestry Corporation (‘FCNSW’) or South East Fibre Exports (‘SEFE’) being able to obtain FSC certification in the native forest sector” said Lisa Stone, spokesperson for South East Forest Rescue. “In our view the latest figures from the FCNSW show that the native forest sector is insolvent. We know that FCNSW native forest division incurred a $14 million loss last year ($232 million loss before tax) and a $16 million loss the year before.” This loss has been documented since 2001.

In the south east of NSW there are 11 active compartments in the whole of the Southern, Tumut and Eden Regions. As there are four workers to a compartment the total number of workers is approximately 44–50. We do not account for the 3 sawmills as they are able to use recycled and plantation wood. We do not account for the truck drivers as they are able to retool. We do not account for the 40 workers at the chipmill as SEFE is a multinational corporation and must pay their own workers out.

The overarching purpose of FCNSW is to make a profit and run the ‘business’ efficiently. This is set out in s10 of the Forestry Act 2012:

10 Objectives of Forestry Corporation
(1) The principal objectives of the Corporation are as follows:
(a) to be a successful business and, to this end:
(i) to operate at least as efficiently as any comparable businesses, and
(ii) to maximise the net worth of the State’s investment in the Corporation
Clearly incurring million dollar losses every year cannot be classified as a successful business. The provision goes on to provide that FCNSW is:
(b) to have regard to the interests of the community in which it operates,
(c) to conduct its operations in compliance with the principles of ecologically sustainable development contained in section 6(2) of the Protection of the Environment Administration Act 1991

Given most of the community on the south coast want an end to native forest logging, every compartment we have audited is in breach of licence conditions, and by error overestimating FRAMES figures and over-logging, clearly FCNSW has not been operating sustainably. Therefore FCNSW in the native forest sector are in breach of s10 and its objectives.

These vast financial losses cannot be justified. The unreasonable protection of the native forest woodchipping industry that began with the deal to approve the woodchip mill between politicians and Harris Holdings, continued through Ian MacDonald’s reign, and is still continuing, must come to an end.

Jack Gordon Beale – Liberal, Member for south coast & environment minister from 1968
Investigation into Harris-Diashowa donation to the Labor and Liberal parties:
http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22chamber%2Fhansardr%2F1988-04-27%2F0038%22
Tony Lisa, South East Forest Rescue