Hon. Embry asks about the release date of timber quotas for Manjimup mills. Hon. Chance explains the ongoing negotiation process with proponents and hopes for a resolution soon, but cannot provide an exact date.

AnsweredQoN 357Legislative Council
Asked
12 November 2002
Portfolio
Leader of the House

QuestionView source ↗

On behalf of people from the Manjimup district, I ask whether the minister is close to giving an exact date when quotas will be released to the successful timber mills? Hon KIM CHANCE

AnswerView source ↗

Hon Paddy Embry has asked about the request for allocation process for grades 1 and 2 jarrah. The member is obviously aware that the situation with karri has already been resolved. I would love to be able to give an exact date when these might be announced, but unfortunately I cannot. I will explain the process. In the first instance, the request for allocation proposals went through two fundamental stages of assessment, both of which were completed about a month ago. The stage we are in now, essentially, is the one-to-one negotiations between the Forest Products Commission and the proponent. This is the stage at which each proponent’s case will be analysed very much independently of the process. Those who have remained in the process have got to a point at which they are able to begin their negotiations with the Government, through the Forest Products Commission, on investment assistance and other matters they may raise. This is not simply a process that deals in the allocation of timber by the FPC to the proponent; it is a process that involves a range of other issues as well as the allocation of timber. The honourable member will be aware that a final contract cannot be negotiated between the FPC and the proponent until such time as the final forest management plan has been declared. That is a matter of law that precedes our Government. However, we are able to consider arrangements between the Forest Products Commission and the proponent, which can, in effect, do the same thing; that is, we can provide a degree of certainty and a financial guarantee to the proponent that the volume that will be available to it will be volume X, whatever that might be, and that will then be confirmed by the forest management plan. In the event that the amount available under the forest management plan is less than the amount agreed, that will be a trigger for some financial consideration by the Government to the proponent. Two such agreements are already in place - one in Greenbushes and one in Nannup - and there is nothing to prevent the Government proceeding one by one with the proponents that remain in the system on the same basis as that. Indeed, I hope that the first of these will occur relatively quickly because, for some of the proponents, the financial assistance arrangements are either very modest or very simple, and that will allow quite early negotiations on these matters. Indeed, some of those negotiations are at quite an advanced stage now, although they will be subject to a final decision by Cabinet. The short answer is that they will not all happen at the same time; they will occur in stages, depending upon the progress of negotiations. While I cannot give the member a date, I am hopeful that the first of these agreements will be finalised quite soon. Hon Paddy Embry: Before Christmas? Hon KIM CHANCE: I hope so. That is certainly technically possible. However, the last of them may not be finalised until well into next year; indeed, it may not even be until we have a final figure on the forest management plan, depending on the complexity of the negotiations between the parties. However, I am certainly hopeful of getting one large proponent up and running soon.
Hon KIM CHANCE replied : Hon Paddy Embry has asked about the request for allocation process for grades 1 and 2 jarrah. The member is obviously aware that the situation with karri has already been resolved. I would love to be able to give an exact date when these might be announced, but unfortunately I cannot. I will explain the process. In the first instance, the request for allocation proposals went through two fundamental stages of assessment, both of which were completed about a month ago. The stage we are in now, essentially, is the one-to-one negotiations between the Forest Products Commission and the proponent. This is the stage at which each proponent’s case will be analysed very much independently of the process. Those who have remained in the process have got to a point at which they are able to begin their negotiations with the Government, through the Forest Products Commission, on investment assistance and other matters they may raise. This is not simply a process that deals in the allocation of timber by the FPC to the proponent; it is a process that involves a range of other issues as well as the allocation of timber. The honourable member will be aware that a final contract cannot be negotiated between the FPC and the proponent until such time as the final forest management plan has been declared. That is a matter of law that precedes our Government. However, we are able to consider arrangements between the Forest Products Commission and the proponent, which can, in effect, do the same thing; that is, we can provide a degree of certainty and a financial guarantee to the proponent that the volume that will be available to it will be volume X, whatever that might be, and that will then be confirmed by the forest management plan. In the event that the amount available under the forest management plan is less than the amount agreed, that will be a trigger for some financial consideration by the Government to the proponent. Two such agreements are already in place - one in Greenbushes and one in Nannup - and there is nothing to prevent the Government proceeding one by one with the proponents that remain in the system on the same basis as that. Indeed, I hope that the first of these will occur relatively quickly because, for some of the proponents, the financial assistance arrangements are either very modest or very simple, and that will allow quite early negotiations on these matters. Indeed, some of those negotiations are at quite an advanced stage now, although they will be subject to a final decision by Cabinet. The short answer is that they will not all happen at the same time; they will occur in stages, depending upon the progress of negotiations. While I cannot give the member a date, I am hopeful that the first of these agreements will be finalised quite soon. Hon Paddy Embry: Before Christmas? Hon KIM CHANCE: I hope so. That is certainly technically possible. However, the last of them may not be finalised until well into next year; indeed, it may not even be until we have a final figure on the forest management plan, depending on the complexity of the negotiations between the parties. However, I am certainly hopeful of getting one large proponent up and running soon.
Hon Paddy Embry has asked about the request for allocation process for grades 1 and 2 jarrah. The member is obviously aware that the situation with karri has already been resolved. I would love to be able to give an exact date when these might be announced, but unfortunately I cannot. I will explain the process. In the first instance, the request for allocation proposals went through two fundamental stages of assessment, both of which were completed about a month ago. The stage we are in now, essentially, is the one-to-one negotiations between the Forest Products Commission and the proponent. This is the stage at which each proponent’s case will be analysed very much independently of the process. Those who have remained in the process have got to a point at which they are able to begin their negotiations with the Government, through the Forest Products Commission, on investment assistance and other matters they may raise. This is not simply a process that deals in the allocation of timber by the FPC to the proponent; it is a process that involves a range of other issues as well as the allocation of timber. The honourable member will be aware that a final contract cannot be negotiated between the FPC and the proponent until such time as the final forest management plan has been declared. That is a matter of law that precedes our Government. However, we are able to consider arrangements between the Forest Products Commission and the proponent, which can, in effect, do the same thing; that is, we can provide a degree of certainty and a financial guarantee to the proponent that the volume that will be available to it will be volume X, whatever that might be, and that will then be confirmed by the forest management plan. In the event that the amount available under the forest management plan is less than the amount agreed, that will be a trigger for some financial consideration by the Government to the proponent. Two such agreements are already in place - one in Greenbushes and one in Nannup - and there is nothing to prevent the Government proceeding one by one with the proponents that remain in the system on the same basis as that. Indeed, I hope that the first of these will occur relatively quickly because, for some of the proponents, the financial assistance arrangements are either very modest or very simple, and that will allow quite early negotiations on these matters. Indeed, some of those negotiations are at quite an advanced stage now, although they will be subject to a final decision by Cabinet. The short answer is that they will not all happen at the same time; they will occur in stages, depending upon the progress of negotiations. While I cannot give the member a date, I am hopeful that the first of these agreements will be finalised quite soon. Hon Paddy Embry: Before Christmas? Hon KIM CHANCE: I hope so. That is certainly technically possible. However, the last of them may not be finalised until well into next year; indeed, it may not even be until we have a final figure on the forest management plan, depending on the complexity of the negotiations between the parties. However, I am certainly hopeful of getting one large proponent up and running soon.
The short answer is that they will not all happen at the same time; they will occur in stages, depending upon the progress of negotiations. While I cannot give the member a date, I am hopeful that the first of these agreements will be finalised quite soon. Hon Paddy Embry: Before Christmas? Hon KIM CHANCE: I hope so. That is certainly technically possible. However, the last of them may not be finalised until well into next year; indeed, it may not even be until we have a final figure on the forest management plan, depending on the complexity of the negotiations between the parties. However, I am certainly hopeful of getting one large proponent up and running soon.
Hon Paddy Embry: Before Christmas? Hon KIM CHANCE: I hope so. That is certainly technically possible. However, the last of them may not be finalised until well into next year; indeed, it may not even be until we have a final figure on the forest management plan, depending on the complexity of the negotiations between the parties. However, I am certainly hopeful of getting one large proponent up and running soon.
Hon KIM CHANCE: I hope so. That is certainly technically possible. However, the last of them may not be finalised until well into next year; indeed, it may not even be until we have a final figure on the forest management plan, depending on the complexity of the negotiations between the parties. However, I am certainly hopeful of getting one large proponent up and running soon.

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