❓ A parliamentary question regarding the reallocation of saw-log timber after the closure of Gunn's Dean Mill, focusing on the process, beneficiaries, royalty levels, and government assistance. The answer details the process, reallocation to Auswest Timbers, adjustments to log prices, and government support via Investment Security Guarantees.
AnsweredQoN 7446Legislative Assembly
QuestionView source ↗
(1) What is the normal process for allocating or reallocating saw-log timber to saw mills from the harvesting of native forest in the South West of Western Australia?
(2) Was the normal process followed in the reallocation of saw logs from the closure of the Gunn's Dean Mill operation; and
(a) to which company or companies were the reallocations made and what were the quantities to each company of each of the grades of saw-log;
(b) what was the royalty level for the reallocated saw-logs broken down by the grades of saw-log?
(c) is that royalty level the same as that previously charged to Gunn's at their timber operations at Dean Mill;
(d) did any of the mills obtaining the logs from the previous Gunn's allocation, request or obtain further allocations above those from the reallocation of Gunn's quota; and
(e) did any of the mills receive any financial assistance in the way of Investment Security Guarantees or other financial assistance from the Government at that time?
(2) Was the normal process followed in the reallocation of saw logs from the closure of the Gunn's Dean Mill operation; and
(a) to which company or companies were the reallocations made and what were the quantities to each company of each of the grades of saw-log;
(b) what was the royalty level for the reallocated saw-logs broken down by the grades of saw-log?
(c) is that royalty level the same as that previously charged to Gunn's at their timber operations at Dean Mill;
(d) did any of the mills obtaining the logs from the previous Gunn's allocation, request or obtain further allocations above those from the reallocation of Gunn's quota; and
(e) did any of the mills receive any financial assistance in the way of Investment Security Guarantees or other financial assistance from the Government at that time?
AnswerView source ↗
Answered
1 May 2012
Responded by
Minister for Forestry
Response time
42 days
(1) In accordance with the Forest Products Act 2000, the Forest Products Commission (FPC) may make any appropriate commercial arrangements for the purposes of entering into production contracts including conducting negotiations by private treaty, calling for expressions of interest, calling for tenders and arranging sales by auction. Production contracts normally have an assignment clause whereby the interests may be transferred to a third party.
(2) Yes.
(a) Contract 2770 was assigned to Auswest Timbers Pty Ltd and the total quantity under the Contract was reduced from 90 780 tonnes of jarrah first and second grade sawlogs to 44 431 tonnes of jarrah first, second and bole sawlogs. Converting bole sawlogs to first and second grade, the equivalent volume of first and second grade logs assigned to Auswest is 40 215 tonnes.
Other sawmillers have expressed an interest in the surplus volume of jarrah sawlog that has arisen from the sale of Contract 2770 as well as the volume foregone during the period that Gunns was winding down and closed its operations. Some of these mills have taken up supply of the quantity of logs no longer held under Contract 2770 as well as other Log Timber not previously used under other Contracts. Attachment 1 lists the increased quantities supplied.
(b) [See tabled paper no.]
(c) No. Some adjustments to log prices have been made to reflect the varying quality of logs from different regions of the south west forests.
(d) Yes. Requests have been received but FPC has not yet finalised responses.
(e) Yes. Auswest sought an extension of the terms of its Investment Security Guarantee until 2033. The government supported this request. Blueleaf Corporation has requested an ISG until 2023 for the additional timber listed in Attachment 1. The Government has supported this request.
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(2) Yes.
(a) Contract 2770 was assigned to Auswest Timbers Pty Ltd and the total quantity under the Contract was reduced from 90 780 tonnes of jarrah first and second grade sawlogs to 44 431 tonnes of jarrah first, second and bole sawlogs. Converting bole sawlogs to first and second grade, the equivalent volume of first and second grade logs assigned to Auswest is 40 215 tonnes.
Other sawmillers have expressed an interest in the surplus volume of jarrah sawlog that has arisen from the sale of Contract 2770 as well as the volume foregone during the period that Gunns was winding down and closed its operations. Some of these mills have taken up supply of the quantity of logs no longer held under Contract 2770 as well as other Log Timber not previously used under other Contracts. Attachment 1 lists the increased quantities supplied.
(b) [See tabled paper no.]
(c) No. Some adjustments to log prices have been made to reflect the varying quality of logs from different regions of the south west forests.
(d) Yes. Requests have been received but FPC has not yet finalised responses.
(e) Yes. Auswest sought an extension of the terms of its Investment Security Guarantee until 2033. The government supported this request. Blueleaf Corporation has requested an ISG until 2023 for the additional timber listed in Attachment 1. The Government has supported this request.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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