❓ Hon Giz Watson questions the Forest Products Commission (FPC) regarding wildfire insurance, valuation of natural assets, and consideration of climate change impacts in their financial projections. The FPC provides answers indicating no direct wildfire insurance but inclusion of potential losses and consideration of climate change data.
AnsweredQoN 1369Legislative Council
QuestionView source ↗
With reference to the Forest Products Commission (FPC) Annual Report 2008-2009, I ask -
(1) Does the FPC insure against wildfires in the south-west forests, plantations or areas of sandalwood?
(2) If yes to (1), are insurance premiums allowed for, in the cash flows on which valuations are based?
(3) If no to (1), are losses such as those incurred at Bridgetown and Yanchep, which in the year under review were stated to be $15 million and which were paid for by way of capital injection by State Treasury, allowed for at regular intervals in these cash flows?
(4) In valuing the natural assets, specifically the south-west forests, have estimates of rates of growth and logging rates been independently verified?
(5) If yes to (4), could the FPC provide a copy of the report of the independent verification?
(6) Do the cash flow projections from which natural asset valuations are derived, allow for climate change and resultant decline in rainfall as predicted by the CSIRO and the Bureau of Meteorology?
(7) As a result of climate change and the decline in rainfall, have the following aspects been allowed for in the FPC cash flow projections, -
(a) reduced tree growth;
(b) reduced areas of viable logging;
(c) increased probability and intensity of wildfires; and
(d) increased vulnerability to disease and infestation?
(8) If yes to any part of (7), could the FPC provide further details?
(1) Does the FPC insure against wildfires in the south-west forests, plantations or areas of sandalwood?
(2) If yes to (1), are insurance premiums allowed for, in the cash flows on which valuations are based?
(3) If no to (1), are losses such as those incurred at Bridgetown and Yanchep, which in the year under review were stated to be $15 million and which were paid for by way of capital injection by State Treasury, allowed for at regular intervals in these cash flows?
(4) In valuing the natural assets, specifically the south-west forests, have estimates of rates of growth and logging rates been independently verified?
(5) If yes to (4), could the FPC provide a copy of the report of the independent verification?
(6) Do the cash flow projections from which natural asset valuations are derived, allow for climate change and resultant decline in rainfall as predicted by the CSIRO and the Bureau of Meteorology?
(7) As a result of climate change and the decline in rainfall, have the following aspects been allowed for in the FPC cash flow projections, -
(a) reduced tree growth;
(b) reduced areas of viable logging;
(c) increased probability and intensity of wildfires; and
(d) increased vulnerability to disease and infestation?
(8) If yes to any part of (7), could the FPC provide further details?
AnswerView source ↗
Answered
1 March 2010
Responded by
Minister for Child Protection representing the Minister for Forestry
Response time
111 days
(1) No
(2) Not applicable.
(3) Yes.
(4) Yes. Natural assets are valued on the basis of growth rates estimated by the Department of Environment and Conservation (DEC) for the current forest management plan, which were verified by an independent expert panel (the Ferguson Panel). Logging rates are audited by the DEC and the Conservation Commission (CCWA).
(5) The report of the Ferguson Panel is available on the Conservation Commission website. Requests regarding audits of harvest rates conducted by DEC and CCWA should be referred to the Minister for the Environment.
(6-7) FPCs projections are based on DEC data which the expert independent panel verified took adequate account of climate change, as well as other risk factors including fire and disease, and forest area loss and conversion.
(8) Please refer to part (5).
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(2) Not applicable.
(3) Yes.
(4) Yes. Natural assets are valued on the basis of growth rates estimated by the Department of Environment and Conservation (DEC) for the current forest management plan, which were verified by an independent expert panel (the Ferguson Panel). Logging rates are audited by the DEC and the Conservation Commission (CCWA).
(5) The report of the Ferguson Panel is available on the Conservation Commission website. Requests regarding audits of harvest rates conducted by DEC and CCWA should be referred to the Minister for the Environment.
(6-7) FPCs projections are based on DEC data which the expert independent panel verified took adequate account of climate change, as well as other risk factors including fire and disease, and forest area loss and conversion.
(8) Please refer to part (5).
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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