Hon Giz Watson questions the Forest Products Commission (FPC) regarding rejected log deliveries to sawmills, focusing on the reasons for rejection, handling of rejected logs, and payment processes. The FPC provides data on rejection rates by grade and species, and clarifies procedures for log replacement and payment.

AnsweredQoN 1177Legislative Council
Asked
8 September 2009
Portfolio
Forestry

QuestionView source ↗

Regarding deliveries of logs to sawmills over the last financial year, I ask -
(1) On how many occasions were all or part of deliveries of logs to sawmills rejected by the sawmill owner/operator because the logs were below the grade specified in the contract with the Forest Products Commission (FPC)?
(2) By grade and species, what was the total tonnage of logs delivered to sawmills but rejected by sawmill owners/operators?
(3) Did the FPC direct that replacement logs be sent to the sawmill?
(4) If no to (3), why not?
(5) What happened to the logs rejected by sawmill owners/operators?
(6) Were any such logs left at the sawmill where they were rejected?
(7) How did the FPC keep track of logs that were rejected?
(8) Were new delivery notes prepared for rejected logs?
(9) If no to (8), why not?
(10) Did the FPC receive any payment for logs rejected by a sawmill owner/operator?
(11) If yes to (10), from whom?

AnswerView source ↗

Answered
13 October 2009
Responded by
Minister for Child Protection representing the Minister for Forestry
Response time
35 days
(1) Logs delivered to FPC customers cannot be rejected by the sawmill owner/operator. Rejection can only be approved by an authorised Forest Officer. However, the FPC was requested to attend sawmills to adjudicate on log quality issues on 73 occasions during the 2008/09 financial year. The FPC conducted a total of 81 visits to customers on the basis that some visits were initiated by the FPC.
(2) The total quantity delivered versus that rejected for the 2008/09 financial year was as follows.
Jarrah Bole Sawlog
Delivered = 48870 tonnes; Rejected = 412.81 tonnes (0.8 per cent)
Jarrah First Grade Sawlog
Delivered = 99133 tonnes; Rejected = 1535.43 tonnes (1.5 per cent)
Jarrah Second Grade Sawlog
Delivered = 19205 tonnes; Rejected = 516.57 tonnes (2.7 per cent)
Jarrah Third Grade Sawlog
Delivered = 20391 tonnes; Rejected = 42.36 tonnes (0.2 per cent)
Marri Sawlog
Delivered = 4715 tonnes; Rejected = 135.05 tonnes (2.9 per cent)
Karri First Grade Sawlog
Delivered = 49688 tonnes; Rejected = 97.99 tonnes (0.25 per cent)
Karri Second Grade Sawlog
Delivered = 10673 tonnes; Rejected = 0 tonnes (0.0 per cent)
(3) Yes, rejected logs are credited then replaced with other logs which meet the required grade.
(4) Not applicable
(5-6) Reject logs are treated in one of two ways:
· They are returned to the bush for re-treatment.
· They are re-graded to a lower grade, in which case they may be sold to the same sawmill if it has a contract of sale for the lower grade of log.
(7-9) Logs rejected and returned to the bush are recorded using Hardwood Delivery notes. Logs that are 'downgraded' and sold to the same customer are recorded on a credit note issued to the customer.
(10) The FPC receives payment for any logs sold subsequent to rejection, whether that be following retreatment in the bush, or where they are sold to the same customer as a lower grade log.
(11) Logs that were rejected, returned to the bush, and then resold are not traced individually. As a result it is not possible to specify who may have received such previously rejected log material. With respect to logs that were downgraded to a lower grade and sold to the same customer, the FPC received payment for a total of 118.77 tonnes from Gunns, Blueleaf, Nannup Timber Processing and Rowney during 2008/09.
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