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❓ Question regarding a $14.2 million variance in the Forest Products Commission's 2017 annual report income, with the Minister providing reasons for the shortfall in native forest and sandalwood sales, offset partially by stronger plantation sales.

AnsweredQoN 2601Legislative Assembly

Asked

13 March 2018

Member

Mr I.C. Blayney

Portfolio

Water; Fisheries; Forestry; Innovation and ICT; Science

QuestionView source ↗

I refer to page 44 of the Forest Products Commission 2017 Annual Report which states that total income was targeted at $132.5 million, but actual was $118.3 million leading to a variance of $14.2 million and I ask the Minister, what was the Forest Products Commission’s reasoning for the variance?

AnswerView source ↗

Answered

8 May 2018

Responded by

Minister for Water; Fisheries; Forestry; Innovation and ICT; Science

Response time

9 days

The key contributor to the total income variance of $14.2 million, as reported on page 40 of the Forest Products Commission (FPC) 2016-17 Annual Report, is revenue from the sale of goods and services being less than estimated: 1. Native forest sales were under estimate primarily due to deliveries being delayed because of sawmill upgrades, an unscheduled sawmill delivery halt, and forecast sales opportunities not eventuating. 2. Plantation sales exceeded the estimate because of stronger than expected demand. 3. Sandalwood sales were under estimate because of international sales being weaker than forecast and delays in finalising a domestic sales contract.

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