Hon Paul Llewellyn questions the Forest Products Commission's obligation to sign an investment security guarantee contract with Lignor Ltd regarding native forest timber supply. The Minister, Hon Kim Chance, defers answering, citing complexity and the hypothetical nature of the questions.

AnsweredQoN 978Legislative Council
Asked
24 October 2007
Portfolio
Industry and Enterprise

QuestionView source ↗

FOREST PRODUCTS COMMISSION-LIGNOR LTD - NATIVE FOREST TIMBER SUPPLY AGREEMENT
I notice that this is a question that I directed to the minister previously, and it has been redirected, so the wording is almost the same. I refer to the Forest Products Commission’s contract with Lignor Ltd to supply native forest timber. (1) Under the aforementioned contract, is the Forest Products Commission obliged to sign an investment security guarantee contract? (2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does the FPC have any intention of signing an investment security guarantee contract; and (b) when is it expected that such a contract will be entered into? (4) If such an investment security guarantee contract is entered into - (a) what is the amount estimated to be payable by the FPC to Lignor should the FPC fail to meet the supply; (b) what strategies are in place, related to failure to meet supply, to minimise risk for the government; and (c) does this include the establishment of pine plantations? Hon KIM CHANCE

AnswerView source ↗

I thank Hon Paul Llewellyn for providing some notice of the question. It is an involved matter that will require a considerable degree of research, and even then, not all of these questions can be answered because they presume that certain agreements will be reached in relation to a contract. Therefore, it is not possible at this stage to provide the information in the time available. I recommend that the honourable member place the question on notice. However, I am happy to discuss with him some of the aspects of this question, which fall, at least, collectively within my portfolio.
(1) Under the aforementioned contract, is the Forest Products Commission obliged to sign an investment security guarantee contract? (2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does the FPC have any intention of signing an investment security guarantee contract; and (b) when is it expected that such a contract will be entered into? (4) If such an investment security guarantee contract is entered into - (a) what is the amount estimated to be payable by the FPC to Lignor should the FPC fail to meet the supply; (b) what strategies are in place, related to failure to meet supply, to minimise risk for the government; and (c) does this include the establishment of pine plantations? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. It is an involved matter that will require a considerable degree of research, and even then, not all of these questions can be answered because they presume that certain agreements will be reached in relation to a contract. Therefore, it is not possible at this stage to provide the information in the time available. I recommend that the honourable member place the question on notice. However, I am happy to discuss with him some of the aspects of this question, which fall, at least, collectively within my portfolio.
(2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does the FPC have any intention of signing an investment security guarantee contract; and (b) when is it expected that such a contract will be entered into? (4) If such an investment security guarantee contract is entered into - (a) what is the amount estimated to be payable by the FPC to Lignor should the FPC fail to meet the supply; (b) what strategies are in place, related to failure to meet supply, to minimise risk for the government; and (c) does this include the establishment of pine plantations? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. It is an involved matter that will require a considerable degree of research, and even then, not all of these questions can be answered because they presume that certain agreements will be reached in relation to a contract. Therefore, it is not possible at this stage to provide the information in the time available. I recommend that the honourable member place the question on notice. However, I am happy to discuss with him some of the aspects of this question, which fall, at least, collectively within my portfolio.
(3) If no to (1) - (a) does the FPC have any intention of signing an investment security guarantee contract; and (b) when is it expected that such a contract will be entered into? (4) If such an investment security guarantee contract is entered into - (a) what is the amount estimated to be payable by the FPC to Lignor should the FPC fail to meet the supply; (b) what strategies are in place, related to failure to meet supply, to minimise risk for the government; and (c) does this include the establishment of pine plantations? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. It is an involved matter that will require a considerable degree of research, and even then, not all of these questions can be answered because they presume that certain agreements will be reached in relation to a contract. Therefore, it is not possible at this stage to provide the information in the time available. I recommend that the honourable member place the question on notice. However, I am happy to discuss with him some of the aspects of this question, which fall, at least, collectively within my portfolio.
(b) when is it expected that such a contract will be entered into?
(b) what strategies are in place, related to failure to meet supply, to minimise risk for the government; and (c) does this include the establishment of pine plantations?
(c) does this include the establishment of pine plantations?
I thank Hon Paul Llewellyn for providing some notice of the question. It is an involved matter that will require a considerable degree of research, and even then, not all of these questions can be answered because they presume that certain agreements will be reached in relation to a contract. Therefore, it is not possible at this stage to provide the information in the time available. I recommend that the honourable member place the question on notice. However, I am happy to discuss with him some of the aspects of this question, which fall, at least, collectively within my portfolio.

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