❓ Hon Paul Llewellyn questions the Forest Products Commission's (FPC) contract with Lignor Pty Ltd regarding security of timber supply. Hon Kim Chance clarifies that a production agreement exists, providing supply security until 2013, and addresses potential confusion regarding investment security guarantees.
AnsweredQoN 856Legislative Council
QuestionView source ↗
FOREST PRODUCTS COMMISSION - CONTRACT WITH LIGNOR PTY LTD
I refer to the Forest Products Commission’s contract with Lignor Pty Ltd to supply native forest timber. (1) Under the contract, is FPC obliged to sign a security of supply contract? (2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE
I refer to the Forest Products Commission’s contract with Lignor Pty Ltd to supply native forest timber. (1) Under the contract, is FPC obliged to sign a security of supply contract? (2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE
AnswerView source ↗
I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(1) Under the contract, is FPC obliged to sign a security of supply contract? (2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(b) when is it expected that such a contract will be entered into?
Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(1) Under the contract, is FPC obliged to sign a security of supply contract? (2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(2) If yes to (1), when is it expected that such a contract will be entered into? (3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(3) If no to (1) - (a) does FPC have any intention of signing a security of supply contract; and (b) when is it expected that such a contract will be entered into? (4) If such a security of supply contact is entered into, what is the amount calculated to be payable by FPC to Lignor should FPC fail to meet supply? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(b) when is it expected that such a contract will be entered into?
Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
I thank Hon Paul Llewellyn for providing some notice of the question. I think there may be some confusion in terms, but we will work our way through that. (1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(1) The Forest Products Commission has entered into production agreement 2899 with Lignor Pty Ltd in accordance with section 10(1)(c) of the Forest Products Act 2000. The production agreement gives security of supply of forest products until 31 December 2013 and was executed on 5 April 2007. (2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(2)-(3) Not applicable. (4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
(4) There is no direct compensation payable by FPC if FPC fails to supply forest products under the agreement, although FPC, in those circumstances, would potentially be liable for breach of contract. This is where there is some confusion in terms. The question asked by Hon Paul Llewellyn might be referring to an investment security guarantee because he used the words “security of supply contract”. If that is the case, we would be happy to answer that; however, that question should properly be directed to the Minister for Industry and Enterprise.
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