❓ Hon Diane Evers questions the Minister for Forestry regarding Forest Products Commission contracts for native forest logs, specifically concerning domestic processing, value-adding, and onselling practices. The Minister confirms domestic processing requirements but clarifies variations in value-adding percentages and restrictions on onselling and log processing.
AnsweredQoN 944Legislative Council
QuestionView source ↗
FOREST PRODUCTS
COMMISSION — CONTRACTS OF SALE
944. Hon DIANE EVERS to the minister representing the
Minister for Forestry:
I
refer to the Forest Products Commission contracts to supply native forest logs
in excess of 10 000 tonnes per annum to sawmills.
(1) Do the
contracts require 100 per cent domestic processing of logs supplied by the FPC?
(a) If no to (1),
please advise the percentages and tonnes for each sawmill.
(2) Are all
sawmills required to value-add 100 per cent of the logs they receive?
(a) If no to (2),
what percentage is each sawmill required to value-add?
(3) Are any
sawmills permitted to onsell logs to other native forest sawmills or
processors?
(4) Are any sawmills permitted to
chip or split whole logs into woodchips or blocks and onsell them?
(a) If yes to
(4), to which sawmills can they onsell them and under what conditions?
COMMISSION — CONTRACTS OF SALE
944. Hon DIANE EVERS to the minister representing the
Minister for Forestry:
I
refer to the Forest Products Commission contracts to supply native forest logs
in excess of 10 000 tonnes per annum to sawmills.
(1) Do the
contracts require 100 per cent domestic processing of logs supplied by the FPC?
(a) If no to (1),
please advise the percentages and tonnes for each sawmill.
(2) Are all
sawmills required to value-add 100 per cent of the logs they receive?
(a) If no to (2),
what percentage is each sawmill required to value-add?
(3) Are any
sawmills permitted to onsell logs to other native forest sawmills or
processors?
(4) Are any sawmills permitted to
chip or split whole logs into woodchips or blocks and onsell them?
(a) If yes to
(4), to which sawmills can they onsell them and under what conditions?
AnswerView source ↗
I thank the member for the
question. The Minister for Forestry has provided the following answer.
(1) Yes. All
current contracts in excess of 10 000 tonnes per annum require domestic
processing.
(a) Not
applicable.
(2) No.
(a) The
requirement to value-add varies up to 70 per cent of the log timber received
depending on the customer and the grade of log supplied.
(3) Sawmills are
not permitted to onsell logs unless authorised in writing by the Forest Products
Commission.
(4) Yes.
(a) The contracts
for the supply of sawlogs prescribe a minimum level of domestic processing for
sawlogs. Other than those contracts with value-adding restriction, there are no
restrictions on the type of product that can be produced. It should be noted
that sawlog prices encourage the recovery of sawn timber and higher value
products. Low-value logs are available to processors that choose to split or
chip logs.
question. The Minister for Forestry has provided the following answer.
(1) Yes. All
current contracts in excess of 10 000 tonnes per annum require domestic
processing.
(a) Not
applicable.
(2) No.
(a) The
requirement to value-add varies up to 70 per cent of the log timber received
depending on the customer and the grade of log supplied.
(3) Sawmills are
not permitted to onsell logs unless authorised in writing by the Forest Products
Commission.
(4) Yes.
(a) The contracts
for the supply of sawlogs prescribe a minimum level of domestic processing for
sawlogs. Other than those contracts with value-adding restriction, there are no
restrictions on the type of product that can be produced. It should be noted
that sawlog prices encourage the recovery of sawn timber and higher value
products. Low-value logs are available to processors that choose to split or
chip logs.
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