Hon Giz Watson questions the Forest Products Commission regarding the expiry dates of several sawmill contracts, particularly concerning their apparent extension beyond the current forest management plan's expiry. The Minister clarifies the contract terms and apologizes for an error in the previous list.

AnsweredQoN 299Legislative Council
Asked
23 May 2012
Portfolio
Forestry

QuestionView source ↗

FOREST
PRODUCTS COMMISSION — SAWMILL CONTRACTS
299. Hon GIZ WATSON to the minister representing the
Minister for Forestry:
Further to the answer given to question on notice 5132 of
2012, which lists the Forest Products Commission's current native
forest contracts of sale as at 2012, and given that section 58 of the Forest
Products Act 2000 states that a contract for the sale of forest products
located on departmental land has no effect after the relevant management plan
has expired and that the current forest management plan expires on 31 December
2013 —
(1) Why do
these contracts have a final expiry date of 31 December 2038 for the contract
of sale 769 between the Forest Products Commission and Simcoa Operations Pty
Ltd for 100 000 tonnes per annum of jarrah charcoal logs, and for the contract
of sale 2915 between the Forest Products Commission and Simcoa Operations Pty
Ltd for 160 000 tonnes per annum of jarrah and marri timber residues?
(2) Why does
contract of sale 2969 between the Forest Products Commission and Timber
Treaters Bridgetown for 8 000 tonnes per annum of fencing logs have a final
expiry date of 31 December 2017?

AnswerView source ↗

I thank the honourable member for some notice of the
question.
(1) The terms of
both these contracts end on the expiry of the forest management plan; however,
if the FMP is renewed or replaced by a new relevant management plan, the term
shall end on the expiry of the renewed or replaced relevant management plan.
Provided that there is no legal impediment to the renewal of either contract,
and subject to compliance with all laws, both contracts can be renewed for a
further period of 25 years commencing from the date following expiry of the
term. However, if a new FMP restricted the availability of this resource, it
would clearly be a legal impediment.
(2) Contract 2969
is for pine fencing logs and was included in the previous list in error as pine
log sales are not restricted by the FMP. The minister apologises for any
confusion that this may have caused.

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