❓ Hon Diane Evers questions the Minister for Forestry regarding the Forest Products Commission's payment calculations to sharefarmers, particularly concerning changes to pricing structures and consultation. The Minister confirms changes occurred in 2008, payments are based on net harvest revenue, and customer/contractor rates are commercial-in-confidence.
AnsweredQoN 586Legislative Council
QuestionView source ↗
FOREST PRODUCTS
COMMISSION — BASE PLANTATION STUMPAGE SCHEDULES
586. Hon DIANE EVERS to the minister representing the
Minister for Forestry:
I refer to the minister's
response to my question without notice 377, asked on 17 April.
(1) Are there any
existing sharefarmers with contracts that used these schedules for calculations
of payment?
(2) If yes to (1), how many and
what method is now used for calculating these payments?
(a) Will the minister please table all information
used for calculating these payments, such as price lists?
(b) If no, why
not?
(c) If no, how can sharefarmers be sure they are
being paid appropriately and in line with their contracts?
(d) Is the new method consistent in providing pricing
to sharefarmers under section 149 of the Forest Management Regulations
1993?
(3) Were
sharefarmers consulted on the changes to pricing structure payments?
(a) If no, why
not?
(b) If yes, were
any concerns raised about the new method?
COMMISSION — BASE PLANTATION STUMPAGE SCHEDULES
586. Hon DIANE EVERS to the minister representing the
Minister for Forestry:
I refer to the minister's
response to my question without notice 377, asked on 17 April.
(1) Are there any
existing sharefarmers with contracts that used these schedules for calculations
of payment?
(2) If yes to (1), how many and
what method is now used for calculating these payments?
(a) Will the minister please table all information
used for calculating these payments, such as price lists?
(b) If no, why
not?
(c) If no, how can sharefarmers be sure they are
being paid appropriately and in line with their contracts?
(d) Is the new method consistent in providing pricing
to sharefarmers under section 149 of the Forest Management Regulations
1993?
(3) Were
sharefarmers consulted on the changes to pricing structure payments?
(a) If no, why
not?
(b) If yes, were
any concerns raised about the new method?
AnswerView source ↗
I thank the member for the
question. The following information has been provided by the Minister for
Forestry.
(1) Yes.
(2) The majority
of the Forest Products Commission's approximately 730 sharefarming
agreements refer to a schedule of royalties or stumpages and other charges, or
a variation thereof. Sharefarmers are paid as a percentage of net harvest
revenue received from the sale of commercial products. The principle of
calculating landowner payments is customer price—FPC administration and
contractor costs—multiplied by the percentage of landowner share.
(a) No.
(b) The customer
and contractor rates are key components of the above calculation and are
commercial-in-confidence.
(c) The FPC
maintains a record of calculations. All FPC sales figures are accounted for an
audited.
(d) Yes.
Regulation 149 refers to produce taken from crown land.
(3) No.
(a) I am advised
that the pricing structure changes referred to were implemented in 2008. I am
advised that payments are still based on net harvest revenue, the quantum of
which is compatible with the terms of the relevant sharefarming agreements.
(b) Not
applicable.
question. The following information has been provided by the Minister for
Forestry.
(1) Yes.
(2) The majority
of the Forest Products Commission's approximately 730 sharefarming
agreements refer to a schedule of royalties or stumpages and other charges, or
a variation thereof. Sharefarmers are paid as a percentage of net harvest
revenue received from the sale of commercial products. The principle of
calculating landowner payments is customer price—FPC administration and
contractor costs—multiplied by the percentage of landowner share.
(a) No.
(b) The customer
and contractor rates are key components of the above calculation and are
commercial-in-confidence.
(c) The FPC
maintains a record of calculations. All FPC sales figures are accounted for an
audited.
(d) Yes.
Regulation 149 refers to produce taken from crown land.
(3) No.
(a) I am advised
that the pricing structure changes referred to were implemented in 2008. I am
advised that payments are still based on net harvest revenue, the quantum of
which is compatible with the terms of the relevant sharefarming agreements.
(b) Not
applicable.
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