Hon Christine Sharp questions the royalties for native timber and the agreement with the timber industry, referencing the government's policy on old-growth forests. Hon Kim Chance acknowledges the question and promises a comprehensive response, indicating a review has occurred.

AnsweredQoN 193Legislative Council
Asked
6 April 2004
Portfolio
Agriculture, Forestry and Fisheries

QuestionView source ↗

(1) Has there been a review of royalties for native timber and the process by which they are levied, as promised by the Government’s policy document titled “protecting our old-growth forests”; if so, will the minister table a copy of the findings; and, if not, why not? (2) How does the agreement with the timber industry for a 30 per cent increase in stumpage spread over four years and no increase apart from consumer price index adjustments for the following six years achieve returns for the State that reflect “the true value of our native timber”, as promised in the policy document titled “protecting our old-growth forests”? Hon KIM CHANCE

AnswerView source ↗

I thank Hon Christine Sharp for some notice of the question. A comprehensive response to the question will take longer than the time available for a question without notice; therefore, I ask the honourable member to place the question on notice. I undertake to provide a full response before the Easter recess. However, in the timeframe available I offer the following answer - (1) Yes, there has been a review of the royalties and the process by which the royalties are levied. I believe I have already tabled a copy of that review, but if I have not, I most certainly will. (2) I think the member will find that the agreement with the timber industry is for an increase a little over 30 per cent and a little over the four years that the member indicated. However, I will give the member that information in detail shortly. How does that reflect the true value of our native timber? I think the member will find that that will be answered in the answer to (1) in that the outcome of the review was the adoption of the cost of growing process, which is what the report actually dealt with. The cost-of-growing process will include allowance for the additional costs that flowed from a number of processes, including the additional costs imposed by the last forest management plan process. They will be built into the stumpage rate and thus reflective of it. I will obtain a more comprehensive answer for the member within the next few days.
(2) How does the agreement with the timber industry for a 30 per cent increase in stumpage spread over four years and no increase apart from consumer price index adjustments for the following six years achieve returns for the State that reflect “the true value of our native timber”, as promised in the policy document titled “protecting our old-growth forests”? Hon KIM CHANCE replied : I thank Hon Christine Sharp for some notice of the question. A comprehensive response to the question will take longer than the time available for a question without notice; therefore, I ask the honourable member to place the question on notice. I undertake to provide a full response before the Easter recess. However, in the timeframe available I offer the following answer - (1) Yes, there has been a review of the royalties and the process by which the royalties are levied. I believe I have already tabled a copy of that review, but if I have not, I most certainly will. (2) I think the member will find that the agreement with the timber industry is for an increase a little over 30 per cent and a little over the four years that the member indicated. However, I will give the member that information in detail shortly. How does that reflect the true value of our native timber? I think the member will find that that will be answered in the answer to (1) in that the outcome of the review was the adoption of the cost of growing process, which is what the report actually dealt with. The cost-of-growing process will include allowance for the additional costs that flowed from a number of processes, including the additional costs imposed by the last forest management plan process. They will be built into the stumpage rate and thus reflective of it. I will obtain a more comprehensive answer for the member within the next few days.
Hon KIM CHANCE replied : I thank Hon Christine Sharp for some notice of the question. A comprehensive response to the question will take longer than the time available for a question without notice; therefore, I ask the honourable member to place the question on notice. I undertake to provide a full response before the Easter recess. However, in the timeframe available I offer the following answer - (1) Yes, there has been a review of the royalties and the process by which the royalties are levied. I believe I have already tabled a copy of that review, but if I have not, I most certainly will. (2) I think the member will find that the agreement with the timber industry is for an increase a little over 30 per cent and a little over the four years that the member indicated. However, I will give the member that information in detail shortly. How does that reflect the true value of our native timber? I think the member will find that that will be answered in the answer to (1) in that the outcome of the review was the adoption of the cost of growing process, which is what the report actually dealt with. The cost-of-growing process will include allowance for the additional costs that flowed from a number of processes, including the additional costs imposed by the last forest management plan process. They will be built into the stumpage rate and thus reflective of it. I will obtain a more comprehensive answer for the member within the next few days.
I thank Hon Christine Sharp for some notice of the question. A comprehensive response to the question will take longer than the time available for a question without notice; therefore, I ask the honourable member to place the question on notice. I undertake to provide a full response before the Easter recess. However, in the timeframe available I offer the following answer - (1) Yes, there has been a review of the royalties and the process by which the royalties are levied. I believe I have already tabled a copy of that review, but if I have not, I most certainly will. (2) I think the member will find that the agreement with the timber industry is for an increase a little over 30 per cent and a little over the four years that the member indicated. However, I will give the member that information in detail shortly. How does that reflect the true value of our native timber? I think the member will find that that will be answered in the answer to (1) in that the outcome of the review was the adoption of the cost of growing process, which is what the report actually dealt with. The cost-of-growing process will include allowance for the additional costs that flowed from a number of processes, including the additional costs imposed by the last forest management plan process. They will be built into the stumpage rate and thus reflective of it. I will obtain a more comprehensive answer for the member within the next few days.
(1) Yes, there has been a review of the royalties and the process by which the royalties are levied. I believe I have already tabled a copy of that review, but if I have not, I most certainly will. (2) I think the member will find that the agreement with the timber industry is for an increase a little over 30 per cent and a little over the four years that the member indicated. However, I will give the member that information in detail shortly. How does that reflect the true value of our native timber? I think the member will find that that will be answered in the answer to (1) in that the outcome of the review was the adoption of the cost of growing process, which is what the report actually dealt with. The cost-of-growing process will include allowance for the additional costs that flowed from a number of processes, including the additional costs imposed by the last forest management plan process. They will be built into the stumpage rate and thus reflective of it. I will obtain a more comprehensive answer for the member within the next few days.
(2) I think the member will find that the agreement with the timber industry is for an increase a little over 30 per cent and a little over the four years that the member indicated. However, I will give the member that information in detail shortly. How does that reflect the true value of our native timber? I think the member will find that that will be answered in the answer to (1) in that the outcome of the review was the adoption of the cost of growing process, which is what the report actually dealt with. The cost-of-growing process will include allowance for the additional costs that flowed from a number of processes, including the additional costs imposed by the last forest management plan process. They will be built into the stumpage rate and thus reflective of it. I will obtain a more comprehensive answer for the member within the next few days.

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