Government slip sells forests short
Feb 16, 2012
Hon David Ridgway MLC
Leader of the Opposition in the Legislative Council
Shadow Minister for Urban Development & Planning
Shadow Minister for Economic Development
Shadow Minister for Tourism
Government slip sells forests short
The Weatherill Labor Government has unintentionally revealed that South-East forest rotations may be slashed by as much as 34 per cent, threatening a sustainable, high-profit, mature product going to market after the forward sale.
The Labor Government is forward-selling forest products in the South-East in a cash grab to solve its immediate Budget bottom-line.
But local timber companies and industry specialists fear the sale will cost jobs and may even lead to unprocessed logs being exported without being value-added.
“The other worry is that the new owner could come along and harvest the resource years before it’s normally due - in other words, take the money and run,” Legislative Council Opposition Leader David Ridgway said today.
Mr Ridgway has revealed the contents of an email written by Forestry SA Chief Executive Islay Robertson.
He writes, “Last year’s area weighted rotation length was 38 years. For the current rotation the average clearfall age will drop to and stay between 32-35 years.”
Rotation length is the time between harvesting timber crops. A shorter rotation means more juvenile trees are cut.
On Tuesday, Forestry Minister Gago told Parliament she did not know what rotation length had been agreed to in the forward sale.
The Minister said she thought it was about 30 years but that she would check.
Later that day she came back to Parliament with an answer. She said the rotation length will be “about 25 to 30 years”.
“The timber industry is shocked by this admission, made for the first time by any Government Minister. Neither the Premier nor the Treasurer nor Rory McEwen had let that number slip before,” Mr Ridgway said.
“The worry is that a quick rotation means new owners will be able to rip their profits out early and quickly at the expense of a sustainable, high-profit, mature product with average rotations of 38 years.
“If not done for a quick buck, why the change?
“We’ve got the weakest Minister for Forests in 10 years, a Minister who admitted she didn’t even know what the rotation period is.
“She’s like a Police Minister who doesn’t know the speed limit,” Mr Ridgway said.