❓ Mr. Murray questions the Minister for Forestry about the Forest Products Commission's plans for the softwood plantation industry given a planned reduction in the estate and the future of share farm leases. The Minister acknowledges challenges but commits to honoring existing contracts.
AnsweredQoN 207Legislative Assembly
QuestionView source ↗
FOREST PRODUCTS COMMISSION — SOFTWOOD
PLANTATION INDUSTRY
207. Mr M.P. MURRAY to the Minister for Forestry:
My question without notice is to the
Minister for Forestry.
Several members interjected.
The SPEAKER :
Sorry, can you repeat that please, member for Collie–Preston?
Mr M.P. MURRAY :
Thank you, Mr Speaker; my colleagues are not playing the game, I can see!
I refer to the Forest Products
Commission's statement of corporate intent 2012–13, and the
statement that over the next 20 years —
Point of Order
Mr W.R. MARMION : We did not hear
who the question was directed to.
The SPEAKER : Can you just repeat
which minister the question is for? Just read it again.
Questions without Notice Resumed
Mr
M.P. MURRAY : I will say it again: my question without notice is to the
Minister for Forestry.
I refer to the Forest Products Commission's statement
of corporate intent 2012–13, and the statement that over the next 20
years the softwood plantation estate will be substantially reduced, with one of
the reasons given that share farm leases will not continue to be replaced.
(1) How does
the Forest Products Commission plan to develop and instil confidence in the
softwood plantation industry in the face of these statements?
(2) What
compensation will the Forest Products Commission provide to share farm lessees,
given that it has virtually walked away from the softwood plantation industry
and any future investment on the back of the unsuccessful sale of the
plantation side of the business?
PLANTATION INDUSTRY
207. Mr M.P. MURRAY to the Minister for Forestry:
My question without notice is to the
Minister for Forestry.
Several members interjected.
The SPEAKER :
Sorry, can you repeat that please, member for Collie–Preston?
Mr M.P. MURRAY :
Thank you, Mr Speaker; my colleagues are not playing the game, I can see!
I refer to the Forest Products
Commission's statement of corporate intent 2012–13, and the
statement that over the next 20 years —
Point of Order
Mr W.R. MARMION : We did not hear
who the question was directed to.
The SPEAKER : Can you just repeat
which minister the question is for? Just read it again.
Questions without Notice Resumed
Mr
M.P. MURRAY : I will say it again: my question without notice is to the
Minister for Forestry.
I refer to the Forest Products Commission's statement
of corporate intent 2012–13, and the statement that over the next 20
years the softwood plantation estate will be substantially reduced, with one of
the reasons given that share farm leases will not continue to be replaced.
(1) How does
the Forest Products Commission plan to develop and instil confidence in the
softwood plantation industry in the face of these statements?
(2) What
compensation will the Forest Products Commission provide to share farm lessees,
given that it has virtually walked away from the softwood plantation industry
and any future investment on the back of the unsuccessful sale of the
plantation side of the business?
AnswerView source ↗
I thank the member for the question. I think this is the
second question on forestry he has asked me in five years.
Several members interjected.
Mr D.T. REDMAN : It
was! The only other one was when we had state Parliament in Bunbury.
Several members interjected.
Mr D.T. REDMAN : I
am pleased to see that he has a renewed interest in Forestry.
Several members interjected.
The
SPEAKER : Member for Willagee, I call you to order for the first time.
Member for Girrawheen, will you stop badgering the minister. Minister, will you
answer the question through the Chair.
Mr D.T. REDMAN :
(1)–(2)
The member refers to the softwood plantation section of the forestry sector.
There are three main processors. One is Wesbeam, in the electorate of the
member for Wanneroo. Another is Wespine Industries, down towards Bunbury. Of
course, there have been challenges in that sector; we have seen the inventory
building up in some of the yards, and that is largely related to the building
sector. That sector is certainly going through some challenges, as are a number
of other businesses at this time in the economic cycle. The member refers to
investments that were made some time ago in the new plantation sector, with
share farming agreements with farmers to grow pine plantations over long
periods of time. We made the decision at one stage to try to exit that sector;
unfortunately we did not get any takers when we put out the expression of
interest process.
Mr M.P. Murray : Twice.
The SPEAKER : Member for Collie–Preston,
I call you to order for the first time.
Mr D.T. REDMAN : I
think it could well have been twice that the expression of interest process
showed no private sector interest in taking over those share farming
arrangements. I think some $64 million of state and federal funds were put
together at the time, when funds were available from the sale of Telstra and
there was also quite a bit of money available in the natural resource sector.
One of the issues of the former government in the time of the member for Collie–Preston
that was wrong was that when it did that, it did it all over the state, and
there was no critical mass in any particular area to support a timber industry.
We have now, across the south west of Western Australia, isolated pockets of
share farming arrangements and agreements in place. The consequence of that is
that unless we make significant investment—I am talking about something
like $40 million a year over 20 years to get that up to a critical mass to
support a sector, particularly the eucalypt sector—it is certainly a
funding challenge. Yes, there are challenges in the supply, and it is due to
not only the share farming issue that the member talked about but also fire in,
I think, the Yanchep area and drought. We have actually lost a significant
amount of the plantation from the 2010 drought, so there are challenges with
supply. In fact, there are challenges in the longer term with meeting some of
our state agreement requirements. We have not neglected the share farming
arrangements. We will honour the contracts that are in place, and that was the
last part of the member's question: what are we going to do about the
contracts, and what are we going to do about those farmers? We are honouring
the full extent of the contracts that are in place between the Forest Products
Commission and those farmers with share farming agreements. In summary, yes,
there are challenges in that sector. It is not just due to the share farming
arrangements; it is also due to fire, drought and the stage of the economic
cycle. We will be honouring contracts that we have in place with those share
farmers.
second question on forestry he has asked me in five years.
Several members interjected.
Mr D.T. REDMAN : It
was! The only other one was when we had state Parliament in Bunbury.
Several members interjected.
Mr D.T. REDMAN : I
am pleased to see that he has a renewed interest in Forestry.
Several members interjected.
The
SPEAKER : Member for Willagee, I call you to order for the first time.
Member for Girrawheen, will you stop badgering the minister. Minister, will you
answer the question through the Chair.
Mr D.T. REDMAN :
(1)–(2)
The member refers to the softwood plantation section of the forestry sector.
There are three main processors. One is Wesbeam, in the electorate of the
member for Wanneroo. Another is Wespine Industries, down towards Bunbury. Of
course, there have been challenges in that sector; we have seen the inventory
building up in some of the yards, and that is largely related to the building
sector. That sector is certainly going through some challenges, as are a number
of other businesses at this time in the economic cycle. The member refers to
investments that were made some time ago in the new plantation sector, with
share farming agreements with farmers to grow pine plantations over long
periods of time. We made the decision at one stage to try to exit that sector;
unfortunately we did not get any takers when we put out the expression of
interest process.
Mr M.P. Murray : Twice.
The SPEAKER : Member for Collie–Preston,
I call you to order for the first time.
Mr D.T. REDMAN : I
think it could well have been twice that the expression of interest process
showed no private sector interest in taking over those share farming
arrangements. I think some $64 million of state and federal funds were put
together at the time, when funds were available from the sale of Telstra and
there was also quite a bit of money available in the natural resource sector.
One of the issues of the former government in the time of the member for Collie–Preston
that was wrong was that when it did that, it did it all over the state, and
there was no critical mass in any particular area to support a timber industry.
We have now, across the south west of Western Australia, isolated pockets of
share farming arrangements and agreements in place. The consequence of that is
that unless we make significant investment—I am talking about something
like $40 million a year over 20 years to get that up to a critical mass to
support a sector, particularly the eucalypt sector—it is certainly a
funding challenge. Yes, there are challenges in the supply, and it is due to
not only the share farming issue that the member talked about but also fire in,
I think, the Yanchep area and drought. We have actually lost a significant
amount of the plantation from the 2010 drought, so there are challenges with
supply. In fact, there are challenges in the longer term with meeting some of
our state agreement requirements. We have not neglected the share farming
arrangements. We will honour the contracts that are in place, and that was the
last part of the member's question: what are we going to do about the
contracts, and what are we going to do about those farmers? We are honouring
the full extent of the contracts that are in place between the Forest Products
Commission and those farmers with share farming agreements. In summary, yes,
there are challenges in that sector. It is not just due to the share farming
arrangements; it is also due to fire, drought and the stage of the economic
cycle. We will be honouring contracts that we have in place with those share
farmers.
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