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Auditor General's native forests report shows debt climbing from woodchipping SE forests
Wednesday, 29 April 2009
Greens MP Lee Rhiannon says today's Auditor-General report on the logging of native forests, which reveals losses from logging native forests are set to climb from $14 million last financial year, should be a wake up call to the government to close the Eden chip mill and end woodchipping of native forests in the region."The Auditor General says Forests NSW should review its pricing to make it transparent and ensure costs are recovered (rec 8, p6). But the reality is that the downturn in the wood chip industry will make it impossible to turn these losses around," Ms Rhiannon said.
"The native forest industry managed by Forests NSW is a financial albatross. The economic downturn is only set to increase losses to the public purse from this financially unviable industry.
"The global economic crisis has hit the wood chip industry hard at the same time as the Auditor-General is asking Forests NSW to increase its profits.
"The reality is that the industry will be arguing for reduced prices and an even greater subsidy from the public purse than it is already getting.
"The NSW and Victorian governments have subsidised the Eden chip mill by approximately $8 million in 2006-2007.
"Forests NSW says it is working to achieve "a cash-neutral or better financial outcome for Native Forests Operations Branch within three years" but provides no plans for how (p7).
"The report also shows Forests NSW is long overdue in conducting reviews to estimate whether it has sufficient native timber to meet is obligations now and into the future.
"The Auditor-General criticises Forests NSW for failing to review yield estimates for the southern region due in 2004 for Eden and 2006 for Tumut and the south coast (p4).
"This report also fails to include in its economic analysis the value of the carbon stored in native forests.
"Climate change means we cannot ignore the significant environmental costs of continuing to log our native forests," Ms Rhiannon said.
For more information: 9230 3551, 0427 861 568
Auditor General's report at:
http://www.audit.nsw.gov.au/publications/reports/performance/2009/forests/forests-contents.htm
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