❓ WA Parliamentary Question regarding investment security guarantees for sawmills, potential compensation for reduced timber intake, and exceptions to compensation payments. Focuses on Auswest Timbers and the conditions under which compensation would be applicable.
AnsweredQoN 541Legislative Council
QuestionView source ↗
SAWMILLS —
INVESTMENT SECURITY GUARANTEES
541. Hon DIANE EVERS to the minister representing the
Minister for Forestry:
(1) Which sawmills have investment
security guarantees?
(2) If the Forest
Products Commission reduces the log timber intake specified in its contracts
with sawmills and the exceptions to payment of compensation do not apply, what
amount of compensation will be payable to each sawmill, and in total?
(3) What are the exceptions to the
payment of compensation?
INVESTMENT SECURITY GUARANTEES
541. Hon DIANE EVERS to the minister representing the
Minister for Forestry:
(1) Which sawmills have investment
security guarantees?
(2) If the Forest
Products Commission reduces the log timber intake specified in its contracts
with sawmills and the exceptions to payment of compensation do not apply, what
amount of compensation will be payable to each sawmill, and in total?
(3) What are the exceptions to the
payment of compensation?
AnswerView source ↗
I thank the member for the question.
(1) Auswest Timbers Pty Ltd has
investment security guarantees.
(2) Compensation
is applicable only if the recipient is not offered a new contract with similar
terms and conditions in 2024. If it is offered a new contract with a reduced
volume or lower quality products, the compensation amount may be reduced. The
maximum compensation payable is a one-off payment and is based on a full log
timber intake, approximately 45 000 tonnes per annum, multiplied by the
compensation rate of $261.96 per tonne, which is a total of $11.8 million.
(3) The Western Australian
government is not liable to pay compensation if a change in state government
policy that causes a refusal to offer a rollover contract was influenced by
climate change or by an increase in the spread of dieback and either or both
have caused a reduction in the sustainable yield of log timber.
(1) Auswest Timbers Pty Ltd has
investment security guarantees.
(2) Compensation
is applicable only if the recipient is not offered a new contract with similar
terms and conditions in 2024. If it is offered a new contract with a reduced
volume or lower quality products, the compensation amount may be reduced. The
maximum compensation payable is a one-off payment and is based on a full log
timber intake, approximately 45 000 tonnes per annum, multiplied by the
compensation rate of $261.96 per tonne, which is a total of $11.8 million.
(3) The Western Australian
government is not liable to pay compensation if a change in state government
policy that causes a refusal to offer a rollover contract was influenced by
climate change or by an increase in the spread of dieback and either or both
have caused a reduction in the sustainable yield of log timber.
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