Home›Questions on Notice›QoN 1664

❓ Hon Steve Martin questions the Forest Products Commission (FPC) on their half-yearly report, specifically regarding the pre-tax operating profit against a budgeted loss, sales performance, and cost reductions. The FPC attributes the profit to reduced operating and production costs, notes no significant sales above expectations, and cites harvest, haul, and processing costs as the most significant variances.

AnsweredQoN 1664Legislative Council

Asked

10 October 2023

Member

Hon Steve Martin

Portfolio

Forestry

QuestionView source ↗

I refer to the Forest Products Commission (FPC ) Half Yearly Report , and I ask: (a) why did the FPC report a pre-tax operating profit despite the budgeted forecast loss for the period; (b) the report lists plantations as inline with expectations, native forest sales as down, more production of low quality and lower price products and reduced returns for sandalwood. Which sales, if any, were above expectations for the period, and in what dollar amount; and (c) the report suggests costs are down, leading to better than budgeted performance. Which costs, and to what dollar amount are costs down relative to what was budgeted?

AnswerView source ↗

Answered

14 November 2023

Responded by

Minister for Forestry

Response time

9 days

(a-c) The FPC reported a pre-tax operating profit as compared to a budgeted forecast loss due to many factors including reduced operating and production cost.
No forest sector achieved any significant sales results above budget expectations.
There were many variances to cost with the most significant being harvest, haul, and processing costs.

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