❓ A parliamentary question seeks details on compensation payments to businesses exiting the timber industry under the BEA and STMCP programs, including eligibility criteria, funding allocation, and administrative costs. The answer clarifies eligibility, actual spending versus estimates, and provides specific figures.
AnsweredQoN 2975Legislative Assembly
QuestionView source ↗
(a) did either program make compensation payments to businesses which had ceased milling more than twelve months before the advertising of the availability of the assistance; and
(i) if so, how many businesses and how much was paid;
(b) how much of the initial three million dollars of the STMCP funding has been allocated to millers exiting the industry;
(c) how much of this figure has been paid; and
(d) how much of the initial three millions dollars of STMCP funding was spent on administration and contractors?
(i) if so, how many businesses and how much was paid;
(b) how much of the initial three million dollars of the STMCP funding has been allocated to millers exiting the industry;
(c) how much of this figure has been paid; and
(d) how much of the initial three millions dollars of STMCP funding was spent on administration and contractors?
AnswerView source ↗
Answered
19 March 2008
Responded by
Minister for Industry and Enterprise
Response time
22 days
(a) The dates on which these programs were announced were not relevant to eligibility to apply for assistance. Funding was only paid to those businesses which met the eligibility criteria detailed as follows.
To be eligible for BEA sawmillers had to;
· hold a log timber contract of sale entered into under the
Forest Products Act 2000
, and
· prove it could not be fully effective because of the operation of the Protecting Our Old Growth Forests Policy (POOGF), and
· demonstrate that for at least nine months within the period of 1 September 1999 and ending 1 March 2001 they had directly participated in the native forest timber industry.
The timber industry was advised of the BEA program through the relevant industry associations and the Forest Products Commission (FPC).
To be eligible for STMCP a sawmiller must;
· have held a contract for specialty timbers with the FPC immediately prior to the implementation of the new Forest Management Plan in January 2004 or;
· had at least two Minor Production Contracts for specialty timber in the three year period from January 2002 to December 2004.
· have applied for a contract under RFT 2679 and was unsuccessful in obtaining a contract under that RFT or did not receive sufficient resource under the new contract to make the business economically viable.
FPC provided a list of the unsuccessful bidders under RFT 2679 to the Department of Industry and Resources who in turn wrote to the sawmillers providing information on the STMCP.
(i) Not applicable.
(b) The three million dollars was an estimate only. The specialty timber sawmills were much smaller and less profitable than anticipated (when compared with those that received funding under the BEA) and many were not eligible for access to the program. An amount of $207,262 was allocated based on the valuation of the eligible businesses as assessed by an independent assessor.
(c) $97,946 has been paid to date.
(d) $65,523.
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To be eligible for BEA sawmillers had to;
· hold a log timber contract of sale entered into under the
Forest Products Act 2000
, and
· prove it could not be fully effective because of the operation of the Protecting Our Old Growth Forests Policy (POOGF), and
· demonstrate that for at least nine months within the period of 1 September 1999 and ending 1 March 2001 they had directly participated in the native forest timber industry.
The timber industry was advised of the BEA program through the relevant industry associations and the Forest Products Commission (FPC).
To be eligible for STMCP a sawmiller must;
· have held a contract for specialty timbers with the FPC immediately prior to the implementation of the new Forest Management Plan in January 2004 or;
· had at least two Minor Production Contracts for specialty timber in the three year period from January 2002 to December 2004.
· have applied for a contract under RFT 2679 and was unsuccessful in obtaining a contract under that RFT or did not receive sufficient resource under the new contract to make the business economically viable.
FPC provided a list of the unsuccessful bidders under RFT 2679 to the Department of Industry and Resources who in turn wrote to the sawmillers providing information on the STMCP.
(i) Not applicable.
(b) The three million dollars was an estimate only. The specialty timber sawmills were much smaller and less profitable than anticipated (when compared with those that received funding under the BEA) and many were not eligible for access to the program. An amount of $207,262 was allocated based on the valuation of the eligible businesses as assessed by an independent assessor.
(c) $97,946 has been paid to date.
(d) $65,523.
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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