❓ A WA parliamentary question on notice regarding the Forest Products Commission's firewood contracts in the Goldfields, questioning the cost-effectiveness of managing small contracts and the viability of small-scale firewood harvesting.
AnsweredQoN 945Legislative Council
QuestionView source ↗
I refer to question without notice No. 114 of September 11 2002 and the answers provided -
(1) Can the Minister justify with specific individual costs how managing seven different contracts of such a small volume was expensive?
(2) If no to (1), why not?
(3) Can the Minister state and justify what specific individual costs have been incurred in administering tender number 2655 and the amount in number of contracts which have been let out to persons?
(4) If no to (3), why not?
(5) Can the Minister justify and state with figures how nobody can make a living from less than 70 tonnes a year?
(6) If no to (5), why not?
(7) Can the Minister explain why it was impossible to manage because there were far too many?
(8) If no to (7), why not?
(9) Can the Minister factually justify why he thinks four operators is still far too many?
(10) If no to (9), why not?
(11) Can the Minister state what configuration of road train and the amount of tonnage (capacity) was the Minister referring to when he stated ‘One Road Train of timber a year was all they were selling’?
(12) If no to (11), why not?
(1) Can the Minister justify with specific individual costs how managing seven different contracts of such a small volume was expensive?
(2) If no to (1), why not?
(3) Can the Minister state and justify what specific individual costs have been incurred in administering tender number 2655 and the amount in number of contracts which have been let out to persons?
(4) If no to (3), why not?
(5) Can the Minister justify and state with figures how nobody can make a living from less than 70 tonnes a year?
(6) If no to (5), why not?
(7) Can the Minister explain why it was impossible to manage because there were far too many?
(8) If no to (7), why not?
(9) Can the Minister factually justify why he thinks four operators is still far too many?
(10) If no to (9), why not?
(11) Can the Minister state what configuration of road train and the amount of tonnage (capacity) was the Minister referring to when he stated ‘One Road Train of timber a year was all they were selling’?
(12) If no to (11), why not?
AnswerView source ↗
Answered
20 August 2003
Responded by
Minister for Agriculture, Forestry and Fisheries
Response time
57 days
As an indication, if the full 1,100 tonne volume of the three contracts in the Goldfields is utilised, the Forest Products Commission’s revenue would be in the order of $17,000 per annum. Given the Commission’s requirement to operate on a commercial basis this limits the staff, vehicle and other costs that can be dedicated to managing contracts over such a broad area. (3-4) Individual costs are not recorded for each specific contract issued. Four contracts were awarded subsequent to tender 2655. (5-6) Assuming the price per tonne for firewood in Kalgoorlie ranges between $100 and $150 per tonne, a contract for 70 tonnes per annum would bring in a gross income of between $7,000 and $10,500 per annum. The net income, after deducting production and stumpage costs, would not appear to fit a reasonable definition of income required to “make a living”. (7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(3-4) Individual costs are not recorded for each specific contract issued. Four contracts were awarded subsequent to tender 2655. (5-6) Assuming the price per tonne for firewood in Kalgoorlie ranges between $100 and $150 per tonne, a contract for 70 tonnes per annum would bring in a gross income of between $7,000 and $10,500 per annum. The net income, after deducting production and stumpage costs, would not appear to fit a reasonable definition of income required to “make a living”. (7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(5-6) Assuming the price per tonne for firewood in Kalgoorlie ranges between $100 and $150 per tonne, a contract for 70 tonnes per annum would bring in a gross income of between $7,000 and $10,500 per annum. The net income, after deducting production and stumpage costs, would not appear to fit a reasonable definition of income required to “make a living”. (7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(3-4) Individual costs are not recorded for each specific contract issued. Four contracts were awarded subsequent to tender 2655. (5-6) Assuming the price per tonne for firewood in Kalgoorlie ranges between $100 and $150 per tonne, a contract for 70 tonnes per annum would bring in a gross income of between $7,000 and $10,500 per annum. The net income, after deducting production and stumpage costs, would not appear to fit a reasonable definition of income required to “make a living”. (7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(5-6) Assuming the price per tonne for firewood in Kalgoorlie ranges between $100 and $150 per tonne, a contract for 70 tonnes per annum would bring in a gross income of between $7,000 and $10,500 per annum. The net income, after deducting production and stumpage costs, would not appear to fit a reasonable definition of income required to “make a living”. (7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(7-8) The Forest Products Commission has implemented an Environmental Management System (EMS) that complies with ISO AS/NZS 14001:1996. In order to maintain its certification under this international standard, harvesting operations are conducted in accordance with operational plans that are prepared in accordance with the requirements of the standard. These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
These plans are detailed and require consideration of rare flora, heritage sites, consultation with other land managers and aboriginal groups in addition to other relevant aspects. Prior to the creation of the FPC and the implementation of its EMS, planning was far more rudimentary and did not require such a high level of staff time in the preparation of operations plans. The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
The same level of operational planning is required regardless of the annual harvest tonnage, in order to meet the ISO 14001 standard. The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
The FPC anticipated that in order to bring all harvesting operations up to the required standards there would be an associated increase in contract management costs. To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
To provide this level of planning and supervision on the limited revenue received by the FPC in relation to firewood in the Goldfields was not economically sensible or viable. By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
By limiting the number of contracts, whilst maintaining an equivalent level of firewood supply, the operational planning requirements have been managed in a cost effective manner while ensuring sound environmental management. (9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(9-10) The volume of firewood for 2002/2003 harvested from the Goldfields under FPC contracts was 432.90 tonnes, well below the maximum permissible under the contracts awarded. (11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
(11-12) The average B train configuration for road trains hauling hardwood logs averages between 40 and 50 tonnes net payload. On private haul roads in the southern forest it was not uncommon for road trains to haul a net payload of 70 tonnes.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.