• Editor: This MR and defeated Notice of Motion appear to be largely based on the forensic analysis of Tasmanian Times’ pre-eminent finance analyst John Lawrence, here: Forestry Tasmania: Wilful deception and crass incompetence

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The Bosses: Forestry Minister Bryan Green, right, was not told Forestry Chief Bob Gordon, left, had been re-appointed …

The Tasmanian Greens today said it was disappointing that their call for independent forensic auditors to examine the financial books of Forestry Tasmania has been rejected by both Labor and Liberal parties voting together to defeat the move.

Greens Leader Nick McKim MP said that a Legislative Council Committee, an Auditor-General Special Report, and an independent assessment conducted by consultants URS Deloittes have all found sufficient evidence of serious concerns, but for one reason or another they have not had the scope or means to do a comprehensive forensic audit of all public monies going in and how it was expended.

“The defeat of our call for forensic auditors to go into Forestry Tasmania is a disappointing demonstration of a state of denial when it comes to the GBE’s performance and the public’s right to clear answers over where their hard-earned taxpayer funds have gone,” Mr McKim said.

“This is not a radical suggestion, it is a common-sense proposition to expose Forestry’s very opaque books to the full glare of sunlight.”

“Over $223 million of public funds have flowed from the Helsham, RFA and TFCA buckets, yet the latest Annual Report show an after tax loss of $27.6 million for the 2011-12 financial year.”

“The public deserve some answers, and it is the job of independent forensic auditors to provide them.”

“As elected representatives we are responsible for the accountable allocation and use of public monies.”

“When such a huge black hole yawns before us, clearly we have a responsibility to examine in the most transparent and rigorous manner possible how that came to be.”

“It was especially disappointing that the Liberals failed to support this call to track the expenditure of public monies, given we have heard much from them recently about the urgent need to cut what they describe as government waste, and alleged poor financial management.”

“We gave them a real-life opportunity to walk their talk, but they stumbled and failed to deliver. Millions have been wasted propping up this failed GBE, and if they were genuine about stopping the waste, they should have stood up and voted for forensic auditors to be sent into Forestry Tasmania to give the books a complete and exhaustive overhaul.”

“Whereas Labor has at least moved to recognising the need for a Strategic Review of Forestry Tasmania, and has committed to a restructure, the Liberals have yet again demonstrated the degree to which they are still stuck in a state of denial,” Mr McKim said.

Text of Greens’ motion defeated by Labor and Liberal parties today:

That the House notes:

1. Ongoing disquiet over the financial management of Forestry Tasmania, especially considering it is operating under its third Letter of Comfort from Treasury, and the large amounts of both state and federal monies provided to the GBE including;

a) An estimated $223 million coming from the Helsham, Regional Forests Agreement (RFA), and Tasmanian Forests Community Agreement (TFCA);

b) A further $110 million contingency fund provided for in the 2012-13 State Budget;

c) A further $100 million in subsidies from the Federal government over the last six years;

2. Further the GBE has lost an average of $100 million per year over the last four years;

3. The GBE has an unfunded superannuation liability of well over $100 million.

Further, that this House agrees:

4. That a forensic audit of Forestry Tasmania’s finances since 1996-7 financial year be conducted by a suitably qualified independent person or company;

5. That the terms of reference include:

a) an examination of all incoming and outgoing monies over the audit period, including monies provided through the TCFA and the RFA;

b) Whether due diligence and good governance procedure was followed by Forestry Tasmania in its commercial dealings during the audit period;

c) A detailed breakdown of public monies expended on commercial and non-commercial functions during the audit period.

d) Whether Forestry Tasmania’s use of public monies acted as a disincentive to private sector investment during the audit period;

e) Whether Forestry Tasmania ever developed a financially viable Business Plan that did not depend on public funding, or use of public forests without fair value to the Crown;

6. That the results of the audit, with redactions only as recommended by the independent auditor for commercial-in-confidence or other legitimate reasons be laid on the table of both Houses of the Tasmanian Parliament in the first sitting week of the 2013 calendar year.

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Photograph of logs for export, Burnie wharf, taken on 9/11/2012:

• DOUBTS OVER FORESTRY TAS CLAIMS OF PEELER LOG UNDERSUPPLY

Kim Booth MP
Greens Forestry Spokesperson
Thursday, 15 November 2012

The Tasmanian Greens today disputed claims of a shortage of peeler logs to supply Ta Ann Tasmania, with evidence indicating a significant number of high quality whole peelers stacked up for export on the Burnie wharf.

In Parliament today, Greens Forestry spokesperson Kim Booth MP tabled photographic evidence taken on Friday showing large piles of fresh logs, many suitable for sawmilling, stacked up on the Burnie wharf apparently ready to be exported whole.

“Forestry Tasmania claim that there is such a shortage of peeler logs that Ta Ann may have to shut its operations within a fortnight, particularly in the event of the protection of some areas of public land from logging,” Mr Booth said.

“This and other photographs show whole logs which are exactly the resource that apparently Ta Ann so desperately require, and yet Forestry Tasmania apparently want to export them whole for next to no value.”

“The Greens understand that a deal has been done with the Burnie City Council that when the wharf is full the old Tioxide yard will be used to stockpile further quantities of around 3000 tonnes per week of export peelers.

“If it’s true that there are insufficient peeler logs for Ta Ann then it would be absolute madness to export them whole, thereby potentially forcing Ta Ann into administration.”

“Either Forestry Tasmania is being dishonest about the availability of peeler logs or they are wilfully forcing Ta Ann out of business by denying them the peeler logs they claim to need.”

“Three thousand tonnes of logs for peeling and suitable for sawmilling are exported every week are three thousand tonnes of timber industry jobs exported every week by this publicly funded rogue agency.”

“The activities of this rogue agency including the ongoing export of logs and jobs cost the public purse $27 million last year alone and it must stop,” said Mr Booth.