Home›Questions on Notice›QoN 448

❓ Mr Eatts questions the WA government on revenue declines in agriculture and forestry, particularly concerning sandalwood licensing and the Ecological Thinning Program's financial performance and operational costs. The answer refers to another question, QoN 447.

AnsweredQoN 448Legislative Assembly

Asked

12 August 2025

Member

Mr Bevan Eatts

Portfolio

Agriculture and Food; Fisheries; Forestry; Small Business; Mid West

QuestionView source ↗

(1) Estimated actual revenue for 2024/25 is $124.643 million, declining to $111.853 million in the 2025/26 budget . Could you please provide a detailed breakdown of the 2025/26 revenue estimates by operational area—both in dollar terms and as a percentage of total revenue? Specifically, please include : (a) Native forest operations; (b) Plantation timber; and (c) Sandalwood? (2) In light of the uncertainty surrounding the renewal of the Sandalwood licence beyond 31 December 2026, what is the revenue allocation for Sandalwood in the outer years of the budget: (a) Has this allocation been reduced to reflect the risk of non-renewal; and (b) If the allocation for Sandalwood remains at prior-year levels, is there a risk that we have overstated the profit line and improved the cash flow with something that is not going to happen? (3) Referencing the revenue from operations in the current state budget and the alignment of expenses with revenue decline, given the projected revenue decrease by $13.20 million (a 10.6% drop), have operational and fixed costs been reduced proportionately: (a) Please provide examples of how fixed costs have been scaled back in response? (4) Since the inception of the Ecological Thinning Program, what is the cumulative net shortfall between the revenue received, which should be returned monthly to Treasury, and the amount deducted from the Treasury Special Purpose Account through the program account? (how much of the program is effectively being subsidised by the taxpayer)? (5) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states “drawdowns totalling $43.1M are forecast in 2025/2026 with $34.2M allocated to support contractor payments”. How does the amount for contractor payments compare to total expended in 2024/2025: (a) How many contractors and how many machines does the $34.2M cover; and (b) When will the ecological thinning operations plan for 2025/2026 be released : (i) If already released will the Minister table the plan? (6) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states “drawdowns totalling $43.1M are forecast in 2025/2026 with $8.3M allocated for overheads”. Please detail the nature of the overheads and provide an itemised breakdown of the overheads: (a) Are these overheads incurred by the Forest Products Commission (FPC) or the Department of Biodiversity, Conservation and Attractions (DBCA): (i) If both, please provide a breakdown of overheads for each agency; and (b) How many FTEs are allocated to the management of ecological thinning operations in each DBCA and FPC? (7) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states “drawdowns totalling $43.1M are forecast in 2025/2026” and over the forward estimates the forecast drawdowns are $46M, $46M, and $47M respectively over the out years. Does this mean the Government expects the scale of ecological thinning operations to remain static over the forward estimates (noting this falls well short of the up to 8,000 hectares of ecological thinning specified in the Forest Management Plan as required to protect the health of our forests)? (8) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states receipts of $161M were forecast to be received in 2024/2025 and receipts of $31M are forecast to be received in 2025/2026. Was the forecast figure for 2024/2025 of $161M realised: (a) If not, how much was realised? (9) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states receipts of $161M were forecast to be received in 2024/2025 and receipts of $31M are forecast to be received in 2025/2026. Why is the forecast receipts for 2025/2026 about one fifth of the amount realised/forecast receipts in 2024/2025? (10) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states receipts of $161M were forecast to be received in 2024/2025 and receipts of $31M are forecast to be received in 2025/2026. Is it the case that the Government's investment in ecological thinning in 2025/2026 is just $5m more than the forecast receipts? (11) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states receipts of $161M were forecast to be received in 2024/2025 and receipts of $31M are forecast to be received in 2025/2026. Is it the case that the Government’s investment in ecological thinning in the out years is $4m (2026-27), $2m (2027-28) and $3m (2028-29) less than forecast receipts for those respective years? (12) Budget Paper No 3 pages 285-286, heading “Ecological Thinning Account”, states receipts of $161M were forecast to be received in 2024/2025 and receipts of $31M are forecast to be received in 2025/2026. Noting the Government’s stated objective to protect the health of our forests in a drying climate, why isn’t the Government investment in ecological thinning greater? (13) I refer to Budget Paper No 3 page 292, heading “ Softwood Plantation Expansion Fund”, and I ask: (a) based on the current trajectory, how much land is forecast to be purchased in total from the $350m fund? (14) Budget Paper No 2 Part 2, page 292 under the heading “Asset Investment Program” states the FPC “will spend $91.3m over the forward estimates period on the acquisition of land and the establishment of plantations to support the expansion of its softwood plantation estate”. I note that the payments out of the Softwood Plantation Expansion Fund Treasurer’s Special Purpose Account for the same period is $122m, and I ask: (a) how will the balance of $30.7m (being $122m - $91.3m) be spent/allocated? (15) Budget Paper No 2 Part 2, page 293, states under the heading “Financial Statements – Income Statement – Revenue” that the decrease of $13.2 m in sale of goods and services from 2024/2025 Estimated Actual to the 2025/2-26 Budget is driven by a decrease in expected timber sales volumes”. What is the reason for the expected decrease in timber sales volumes: (a) Is it the case that contracts are in place, and new contracts are expected to be awarded under the Request for Proposals process: (i) If yes, then surely timber sale volumes should be expected to increase; and (ii) If not, why not? (16) Budget Paper No 2 Part 2, page 293, states under the heading “Financial Statements – Income Statement – Expenses” that the decrease of $9.1m in supplies and services from the 2024/2025 Estimated Actual to the 2025/2026 Budget is driven by a forecast reduction in production costs”, and noting contractor contracts are in place, I ask what is the reason for the forecast reduction in production costs?