A WA parliamentary question scrutinises timber supply contracts, focusing on local manufacturing emphasis, export practices, and government investment in the local furniture industry. The Minister's response reveals some gaps in readily available information and highlights contract enforcement mechanisms.

AnsweredQoN 3387Legislative Council
Asked
4 April 2006
Portfolio
Forestry

QuestionView source ↗

(1) Do the log supply contracts finalised by the Forest Products Commission under the Forest Management Plan 2004-2013 include obligations to supply specific volumes of timber to specific markets?
(2) If no to (1), why not?
(3) Do these contracts have an emphasis on local manufacturing?
(4) If yes to (3), how is this emphasis provided for in the log supply contracts?
(5) Were these log supply contracts vetted to ensure legal enforceability prior to being offered to sawmillers?
(6) If no to (5), why not?
(7) Can the Minister confirm that at least one sawmiller with obligations to supply specific volumes of sawn timber to specific markets has instead been providing timber to a local firm during 2005, which has then exported jarrah sawn timber to ‘low wage’ countries where it is made into furniture and sold back into the markets of local furniture manufacturers?
(8) Can the Minister confirm if this practice is continuing?
(9) Since the signing of these log supply contracts what volume of sawn timber has been exported for furniture manufacture despite contractual obligations?
(10) What is the estimate of -
(a) local value adding capacity; and
(b) job numbers lost through the export of sawn timber to low wage countries for manufacture contrary to log supply contracts?
(11) What capacity does the Government have to ensure that jarrah sawlogs provided under log supply contracts are used by the local value adding industry?
(12) What investment has the Government made since 2001 in -
(a) relocations; and
(b) capital equipment upgrades for local furniture and fine wood manufacturers?
(13) What investment has the Government made since 2001 to assist local manufacturers access new markets and promote their furniture and fine wood products?
(14) Have any sawmillers with pre-existing log supply contracts also provided sawn timber for export to low wage countries for furniture and fine wood manufacture?
(15) If yes to (14), what volume of sawn timber has been provided?
(16) Is this practice continuing?
(17) Is there an oversupply of jarrah sawn timber for the local furniture and fine wood industry?

AnswerView source ↗

Answered
4 May 2006
Responded by
Minister for Forestry
Response time
30 days
(b) job numbers lost through the export of sawn timber to low wage countries for manufacture contrary to log supply contracts?
(b) capital equipment upgrades for local furniture and fine wood manufacturers?
(2) Not applicable. (3) Yes. The Government has at all times placed the emphasis on local use and local manufacturing. (4) The supply contracts include a schedule of expected outputs to local indoor and outdoor furniture production, locally manufactured joinery and locally produced timber flooring. The first priority is to supply the Western Australian market. (5) Yes. The contracts were reviewed by the State Solicitor's Office. (6) Not applicable. (7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(3) Yes. The Government has at all times placed the emphasis on local use and local manufacturing. (4) The supply contracts include a schedule of expected outputs to local indoor and outdoor furniture production, locally manufactured joinery and locally produced timber flooring. The first priority is to supply the Western Australian market. (5) Yes. The contracts were reviewed by the State Solicitor's Office. (6) Not applicable. (7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(4) The supply contracts include a schedule of expected outputs to local indoor and outdoor furniture production, locally manufactured joinery and locally produced timber flooring. The first priority is to supply the Western Australian market. (5) Yes. The contracts were reviewed by the State Solicitor's Office. (6) Not applicable. (7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
The first priority is to supply the Western Australian market. (5) Yes. The contracts were reviewed by the State Solicitor's Office. (6) Not applicable. (7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(5) Yes. The contracts were reviewed by the State Solicitor's Office. (6) Not applicable. (7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(6) Not applicable. (7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(7) Not to my knowledge. (8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(8) Not applicable. (9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(9) Within the terms of the production contracts, sales outside of Western Australia are permissible providing local supply targets have been met. I am unable to provide a figure as information regarding local timber sales for export purposes is not readily available. (10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(10) (a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(a) Information on local value adding capacity is not readily available. What is known is that demand by local manufacturers is less than the volume available for supply. (b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(b) See answers to question 8 and 9. (11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(11) The Forest Products Commission can terminate contracts for failure to comply with the terms of the contract. (12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(12) The Minister Assisting the Minister for State Development has responsibility for timber industry development. (13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(13) See answer to question 12. (14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(14) Yes, one. Contracts arranged prior to the Request For Proposals process 2004 (under the previous Liberal government) focussed on value adding targets for the production of kiln dried sawn timber without the degree of emphasis on local value adding. (15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(15) Information is not readily available. (16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(16) No. Following my intervention the mill concerned has made a level of commitment to local value adding in line with more recent supply contracts. (17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.
(17) Yes. There is more than adequate timber supply available for use by local manufacturers, in some species, grades and sizes.

Explore WA Government Data

Search the full archive in the free dashboard, or query programmatically via API.

Explore more