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Forests minister admits native timber flogged at a loss
Thursday, 26 June 2008
Greens MP and freedom of information spokesperson Lee Rhiannon saysMinister Ian Macdonald has for the first time admitted that the native
forests division of Forests NSW operates at a loss. The Minister refused
to publicly release information establishing what that loss is. Hansard
of Question Time in NSW Parliament follows.
"In the NSW parliament yesterday Minister Macdonald admitted for the
first time ever that the public is losing money from selling off our
precious native timbers, underlining the senseless tragedy of logging
native forests in NSW," Ms Rhiannon said.
"Minister Macdonald refused to commit to releasing figures which show
the level of the loss carried by Forests NSW, continuing the
government's form of secrecy and unaccountability when it comes to the
economics of the native forests industry.
"For years forest campaigners have been fighting to secure this kind of
financial information using NSW's outdated and inadequate freedom of
information laws.
"In 2007 Mr Gerry Watt won a case to obtain from Forests NSW the royalty
rates it recieves from the owners of the Eden chipmill for native
timber. Mr Watt is now pursuing the release of figures outlining the
financial performance of the native forests division.
"Minster Macdonald justifies the loss by the native forests division by
pointing to employment created, while ignoring the jobs lost due to the
impact of logging on the environment, local tourism and climate change.
"The government is failing local communities by refusing to restructure
the logging industry to ensure the successful transition from native
forests to plantation timber, as has occurred in Queensland and Western
Australia.
"Sustainability is best achieved by focusing on the plantation timber
industry, eco-tourism and job creation in forest rehabilitation.
"It is a continuing tragedy that this government stands by as our native
forests are destroyed and sold below market price to boost the profits
of overseas shareholders.
"The Greens have suspected for many years that the Native Forest
Division of Forests NSW sells native timber at a far lower price than
the commercial price of the equivalent plantation timber.
"Selling native forests for a song acts as a major deterrent to
woodchippers making the important transition from native to plantation
timbers.
"The Greens will continue to call for secrecy to end when it comes to
the financial profile of the native division of Forests NSW," Ms
Rhiannon said.
For more information: Lee Rhiannon 9230 3551, 0427 861 568
Below: Hansard from Question time yesterday.
Hansard - Question Time - 25 June 2008 - NSW Upper House
NATIVE FORESTS
Ms LEE RHIANNON: I direct my question to the Minister for Primary
Industries. As the Minister responsible for Forests NSW, is the Minister
aware of the financial performance of native forests operations as
distinct from plantation operations? If so, what were the native forests
operation profit or loss in 2006-07 and the preceding four years? If the
Minister does not have this information in the House, will he agree to
release it to the public? If not, can he provide reasons why not?
Reverend the Hon. Fred Nile: This can be discussed at the estimates
committees.
The Hon. IAN MACDONALD: Yes, that quite clearly could be a question. I
have received questions along these lines over the last few years. There
is no denying the fact that the native forests operation does operate at
somewhat of a loss. That has been known for many years. Native forest
timbers in the areas under the jurisdiction of Forests NSW are quite
small compared to what they were in years gone by with massive additions
to the national estate over recent years, but I am of the view that
Forests NSW does have a small loss from its operations. This industry
has many thousands of workers and many new mills in many towns that
provide solid employment to many people. They are important contributors
to many local economies right up and down the coast, out around the
Brigalow and down in the red gum. The Government will support those
communities and will continue to have a sustainable harvest within our
forestry operations. The Government will continue to support that
industry and will not be bullied by the Greens on every area of primary
industries they can raid. Yesterday they sought to destroy coal industry
jobs. Before that they were after jobs in electricity generation and
energy and today is forestry day. They ask questions directed at the
heart of forestry jobs. The Government will not yield to the Greens'
tactics on that. The Government will continue to have a sustainable
forest products industry in the native forestry industry. The Government
has regenerated that industry with at least $130 million-odd investment
from the Commonwealth in new technology. A massive range of wonderful
products is coming from the forest products industry that did not exist
when the Coalition was in government. The industry had no value-adding
then. This Government has made it a value-added, global industry. That
is the effect of the financing, funds and assistance, put into the
native forest industries along the coast and across the State by this
Government and the Federal Government.
Ms LEE RHIANNON: I ask a supplementary question. Given the Minister's
stated commitment to sustainable harvests, is it preferable business
practice that the financial performance of its plantation operations
should be separate from its native forests operations?
The Hon. IAN MACDONALD: What would the member know about business
practice? She spends all her time coming into the House knocking
business.
Ms Lee Rhiannon: Point of order: Mr President, I draw your attention to
Standing Order 91 referring to imputations and improper motive. Once
again he is refusing to answer the question by distorting the Greens'
position and my personal position.
The Hon. IAN MACDONALD: To the point of order: I have answered the
question. I said there is a small loss but we are prepared to wear that
on the basis of protecting jobs and farmers in the bush. We are prepared
to do that. There is no question about it.
The PRESIDENT: Order! Obviously during question time the level of cut
and thrust between members is more robust than during other proceedings.
However, I remind members that Standing Order 91 (3) states that members
should not make imputations against other members.
The Hon. IAN MACDONALD: She does not have great business knowledge. I do
not think that is an imputation; it is a fact. The details of forestry
operations are contained in the report. The Greens have staff.
They can go and do their homework.
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