Hon Christine Sharp questions the WA government on native timber royalties, referencing a policy document promising to protect old-growth forests. The Minister responds by referring to tabled documents detailing a review of log prices and stumpage, and defends the government's approach to valuing timber beyond simple price.

AnsweredQoN 1918Legislative Council
Asked
7 April 2004
Portfolio
Agriculture, Forestry and Fisheries

QuestionView source ↗

(1) Has there been a review of royalties for native timber and the process by which they are levied, as promised in the Government’s policy document titled ‘Protecting our old-growth forests’?
(2) If so, will the Minister table a copy of the findings?
(3) If not, why not?
(4) How does the agreement with the timber industry for a 30 per cent increase in stumpage spread over four years and no increase apart from CPI adjustments for the following six years achieve returns for the State that, quote, ‘reflect the true value of our native timber’ as promised in the policy document ‘Protecting our old growth forests’?

AnswerView source ↗

Answered
7 May 2004
Responded by
Minister for Agriculture, Forestry and Fisheries
Response time
30 days
(2) I refer the Honourable Member to my answer to Question Without Notice 232 of 8 April 2004 where I tabled two documents. The larger document is titled “Review of Log Prices for Native Forest Hardwood from Government-owned Lands”. The smaller, one-page document is titled “Native Timber Stumpage Review”. (3) Not applicable. (4) The levels of sawlog stumpages for jarrah and karri will increase by approximately 34 per cent and nine per cent respectively from the 2002-03 levels. On 8 April 2004 I tabled a document that summarises the stages of these increases. Equally significantly, to ensure that the State reaps the true value of its forest timbers, it is the Government’s policy to ensure that the timber will be sawn and processed into value added products in Western Australia by a globally competitive local industry. The social and economic advantages of this approach provide overwhelming benefits to Western Australia compared with the alternative. There is little doubt that higher prices for Western Australian timbers could be achieved through open tender or auction processes that would likely see the best Western Australian timber sold overseas. That is a very narrow approach to value that the Government cannot support. [See Tabled Paper. ]
(3) Not applicable. (4) The levels of sawlog stumpages for jarrah and karri will increase by approximately 34 per cent and nine per cent respectively from the 2002-03 levels. On 8 April 2004 I tabled a document that summarises the stages of these increases. Equally significantly, to ensure that the State reaps the true value of its forest timbers, it is the Government’s policy to ensure that the timber will be sawn and processed into value added products in Western Australia by a globally competitive local industry. The social and economic advantages of this approach provide overwhelming benefits to Western Australia compared with the alternative. There is little doubt that higher prices for Western Australian timbers could be achieved through open tender or auction processes that would likely see the best Western Australian timber sold overseas. That is a very narrow approach to value that the Government cannot support. [See Tabled Paper. ]
(4) The levels of sawlog stumpages for jarrah and karri will increase by approximately 34 per cent and nine per cent respectively from the 2002-03 levels. On 8 April 2004 I tabled a document that summarises the stages of these increases. Equally significantly, to ensure that the State reaps the true value of its forest timbers, it is the Government’s policy to ensure that the timber will be sawn and processed into value added products in Western Australia by a globally competitive local industry. The social and economic advantages of this approach provide overwhelming benefits to Western Australia compared with the alternative. There is little doubt that higher prices for Western Australian timbers could be achieved through open tender or auction processes that would likely see the best Western Australian timber sold overseas. That is a very narrow approach to value that the Government cannot support. [See Tabled Paper. ]
[See Tabled Paper. ]

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