❓ A WA parliamentary question on notice addresses the Forest Products Commission's (FPC) performance, focusing on drought impacts on softwood plantations, financial forecasting errors, and plantation management practices. The Minister's responses provide data on affected areas, financial losses, and mitigation strategies, while also highlighting the government's investment in new plantations.
AnsweredQoN 1022Legislative Assembly
QuestionView source ↗
(1) Is the Minister satisfied with the performance of the Forest Products Commission (FPC): (a) Does she consider the softwood plantations have been well managed when they have experienced significant damage due to drought? (2) In the budget released in May it was forecast that the FPC would operate at a profit of $2.3 million, yet it has turned out a loss of around $30 million, why this massive error on forecasting in such a short period? (3) The FPC Annual Report indicates that the reason for the loss is the extensive drought deaths experienced in the State's softwood plantations over the past year. What is the primary cause of those plantations being so vulnerable to drought damage? (4) Does the Minister have confidence that the $350 million being invested in new plantations is being well managed and will not suffer significant drought impact: (a) If so what is being done to minimise drought risk for the new plantations; and (b) Have any of the new plantations been affected by drought? (5) How many hectares of plantation were significantly affected by drought in 2024/25? How much of the value of the plantation asset reduction was due to plantation losses, and how much due to other causes (eg price reduction): (a) What were the other reasons for the plantation valuation decline? (6) Is it true that most of the plantations damaged by drought had not been thinned in a timely manner? What percentage of those affected were thinned on time in accordance with the standard thinning schedules? (7) Until 2023/24 the FPC's Key Performance Indicators specifically measured how well the plantations were being managed in terms of timeliness. Why were these very clear performance measures discontinued and replaced with generic financial measures in 2023/24? (8) In the most recent thinning KPI (from the FPC's 2022/23 Annual Report) it indicated that only 74% of plantations were thinned in accordance with the schedules. In 2019/20 the FPC reported the same poor performance in thinning the plantations. Can you detail the measures implemented to increase the rate of thinning of plantations? (9) Will the Minister request that the FPC reinstitute the thinning KPI into its annual report to ensure that it is publicly accountable for the good plantation management? (10) What was the area of plantation thinned in each of the last 6 financial years: (a) What volume of timber was produced from the thinning of plantations in each of these years? (11) With the massive expansion of plantations currently underway it is essential that those plantations are thinned in a timely manner, particularly as most are planted in the low rainfall zone and will be vulnerable to drought. Is the FPC undertaking any early planning on attracting investment in processing to use the timber to be produced from those plantations? (12) What quantity of future sawlogs has been lost in the drought damage measured in 2024/25: (a) How will this affect the viability of the two major log processors in WA?
AnswerView source ↗
Answered
16 December 2025
Responded by
Minister representing the Minister for Forestry
Response time
7 days
(1) Yes
(a) Yes.
(2) The Western Australia 2025-26 Budget Statements. Budget Paper No. 2 - Volume 2 records the estimated net profit after tax for the FPC in the financial year 2024-25 as $2,332,000. The actual net profit after tax as per the budget papers was $1,616,000.
(3) The dry summer and autumn of 2023/24 was preceded by an extended period of lower-than-average rainfall that reduced groundwater levels to critical levels in some locations. In particular, drought has significantly impacted plantations in the Mid-West which were established under the former coalition government.
(4) Yes
(a) Prior to purchasing properties, the soil and climatic conditions are assessed to determine the risk of the site being affected by drought conditions during the rotation. Climate change models that show projections of future rainfall patterns are also considered as part of this risk assessment.
(b) No
(5) In the southwest plantation region, approximately 1,500 hectares has been significantly impacted by drought and approximately 6,000 hectares were impacted in the mid-west region.
The total negative impact on the plantation valuation resulting from drought impacts was approximately $29 million.
(a) Other negative impacts on the valuation include increasing costs and the harvesting of plantations during the previous financial year.
(6) Funds are not expended on thinning in plantations with existing significant tree mortality.
(7) The FPC’s KPIs were updated in accordance with the Government Trading Enterprises Act 2023
(8) Thinning is scheduled to optimise plantation productivity and to meet market demand.
(9) No.
(10) The approximate area of plantation thinned, and volume produced in each of the last six financial years is shown below.
Financial Year
Area Thinned
(Hectares)
Volume
(m 3 )
2019-20
2,150
281,000
2020-21
2,390
312,000
2021-22
1,760
230,000
2022-23
1,760
244,000
2023-24
2,290
306,000
2024-25
2,100
301,000
(a) See above
(11) The WA Labor government’s $350 million Softwood Plantation Investment Program (SPIP) is to restore historic levels of plantations within WA for a future supply of WA timber for housing and infrastructure projects. An initiative neglected by the previous coalition government as reflected in the below table:
GOVERNMENT
YEARS
HECTARES OF PINE PLANTED
Labor
2001 – 2008
11,745
Coalition
2009 – 2016
1,404
Labor
2017 – Present
12,426
There are existing contracts for the sale of timber produced from plantations and the FPC continuously monitors future market opportunities.
(12) Modelling of future woodflows shows the impact of the 2024/25 drought on future volumes is a reduction of approximately 1 million m 3 of sawlog and veneer log over the next 20 years.
(a) There are three major softwood log processors in Western Australia. The drought impacts are not expected to affect the ability of the FPC to supply contractual commitments to Wespine or Laminex. There has been an impact on the ability of the FPC to supply Pinus pinaster logs to Wesbeam from the mid west region. This impact is being mitigated through the supply of alternative species from other regions.
(a) Yes.
(2) The Western Australia 2025-26 Budget Statements. Budget Paper No. 2 - Volume 2 records the estimated net profit after tax for the FPC in the financial year 2024-25 as $2,332,000. The actual net profit after tax as per the budget papers was $1,616,000.
(3) The dry summer and autumn of 2023/24 was preceded by an extended period of lower-than-average rainfall that reduced groundwater levels to critical levels in some locations. In particular, drought has significantly impacted plantations in the Mid-West which were established under the former coalition government.
(4) Yes
(a) Prior to purchasing properties, the soil and climatic conditions are assessed to determine the risk of the site being affected by drought conditions during the rotation. Climate change models that show projections of future rainfall patterns are also considered as part of this risk assessment.
(b) No
(5) In the southwest plantation region, approximately 1,500 hectares has been significantly impacted by drought and approximately 6,000 hectares were impacted in the mid-west region.
The total negative impact on the plantation valuation resulting from drought impacts was approximately $29 million.
(a) Other negative impacts on the valuation include increasing costs and the harvesting of plantations during the previous financial year.
(6) Funds are not expended on thinning in plantations with existing significant tree mortality.
(7) The FPC’s KPIs were updated in accordance with the Government Trading Enterprises Act 2023
(8) Thinning is scheduled to optimise plantation productivity and to meet market demand.
(9) No.
(10) The approximate area of plantation thinned, and volume produced in each of the last six financial years is shown below.
Financial Year
Area Thinned
(Hectares)
Volume
(m 3 )
2019-20
2,150
281,000
2020-21
2,390
312,000
2021-22
1,760
230,000
2022-23
1,760
244,000
2023-24
2,290
306,000
2024-25
2,100
301,000
(a) See above
(11) The WA Labor government’s $350 million Softwood Plantation Investment Program (SPIP) is to restore historic levels of plantations within WA for a future supply of WA timber for housing and infrastructure projects. An initiative neglected by the previous coalition government as reflected in the below table:
GOVERNMENT
YEARS
HECTARES OF PINE PLANTED
Labor
2001 – 2008
11,745
Coalition
2009 – 2016
1,404
Labor
2017 – Present
12,426
There are existing contracts for the sale of timber produced from plantations and the FPC continuously monitors future market opportunities.
(12) Modelling of future woodflows shows the impact of the 2024/25 drought on future volumes is a reduction of approximately 1 million m 3 of sawlog and veneer log over the next 20 years.
(a) There are three major softwood log processors in Western Australia. The drought impacts are not expected to affect the ability of the FPC to supply contractual commitments to Wespine or Laminex. There has been an impact on the ability of the FPC to supply Pinus pinaster logs to Wesbeam from the mid west region. This impact is being mitigated through the supply of alternative species from other regions.
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