Hon Christine Sharp asks the Minister for Agriculture, Forestry and Fisheries to table the timber production agreement between the Forest Products Commission and Sotico Pty Ltd, and the official criteria for defining "value adding". The Minister agrees to table the documents and provides a definition of "value adding".

AnsweredQoN 64Legislative Council
Asked
9 March 2004
Portfolio
Agriculture, Forestry and Fisheries

QuestionView source ↗

(1) Further to my questions without notice of Friday, 5 March, will the minister table the timber production agreement between the Forest Products Commission and Sotico Pty Ltd under which the company is guaranteed a supply of 70 000 cubic metres of jarrah? (2) Will the minister also table the official criteria used to define the term “value adding” in relation to contracts and agreements with timber industry participants? Hon KIM CHANCE

AnswerView source ↗

I thank the member for some notice of this question. (1)-(2) I will table the document requested, in accordance with the answer. That document is the current production contract in full; that is, Contract of Sale No 2672 between the Forest Products Commission and Sotico. Based on this question and on question without notice 50 of Friday, 5 March this year, the parts of the document that are most likely to interest the honourable member are clause 11 and schedules 1 and 5, particularly schedule 5. I have marked it on this copy to allow the member to find it quickly. The term “value adding” has both a generic and specific meaning. Sometimes the two are used conjointly. It is simply defined in the generic sense as “seasoning, dressing or further processing of timber into a product of greater value”. In respect of the recent contracts issued through the Forest Products Commission’s request for proposals allocation process, value-adding commitments to downstream processing are more specifically defined in the fifth schedule - to which I have referred and which is marked in the documents that I will now table - for use in furniture, joinery, flooring and other end uses. Schedule 5 goes further than that and prescribes specific percentages that are to be allocated to specific uses. It includes not only the 70 000 cubic metres in the context of the Sotico Pty Ltd contract, but also the additional 30 000 cubic metres of other grades which are processed at Sotico Collie and which are also captured to some degree by the value-adding component of the contract, which, until I read it today, I was not aware of. I hope that will be useful to the member. I table the documents as requested. [See paper No 2016.]
(2) Will the minister also table the official criteria used to define the term “value adding” in relation to contracts and agreements with timber industry participants? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(2) I will table the document requested, in accordance with the answer. That document is the current production contract in full; that is, Contract of Sale No 2672 between the Forest Products Commission and Sotico. Based on this question and on question without notice 50 of Friday, 5 March this year, the parts of the document that are most likely to interest the honourable member are clause 11 and schedules 1 and 5, particularly schedule 5. I have marked it on this copy to allow the member to find it quickly. The term “value adding” has both a generic and specific meaning. Sometimes the two are used conjointly. It is simply defined in the generic sense as “seasoning, dressing or further processing of timber into a product of greater value”. In respect of the recent contracts issued through the Forest Products Commission’s request for proposals allocation process, value-adding commitments to downstream processing are more specifically defined in the fifth schedule - to which I have referred and which is marked in the documents that I will now table - for use in furniture, joinery, flooring and other end uses. Schedule 5 goes further than that and prescribes specific percentages that are to be allocated to specific uses. It includes not only the 70 000 cubic metres in the context of the Sotico Pty Ltd contract, but also the additional 30 000 cubic metres of other grades which are processed at Sotico Collie and which are also captured to some degree by the value-adding component of the contract, which, until I read it today, I was not aware of. I hope that will be useful to the member. I table the documents as requested. [See paper No 2016.]
Hon KIM CHANCE replied : I thank the member for some notice of this question. (1)-(2) I will table the document requested, in accordance with the answer. That document is the current production contract in full; that is, Contract of Sale No 2672 between the Forest Products Commission and Sotico. Based on this question and on question without notice 50 of Friday, 5 March this year, the parts of the document that are most likely to interest the honourable member are clause 11 and schedules 1 and 5, particularly schedule 5. I have marked it on this copy to allow the member to find it quickly. The term “value adding” has both a generic and specific meaning. Sometimes the two are used conjointly. It is simply defined in the generic sense as “seasoning, dressing or further processing of timber into a product of greater value”. In respect of the recent contracts issued through the Forest Products Commission’s request for proposals allocation process, value-adding commitments to downstream processing are more specifically defined in the fifth schedule - to which I have referred and which is marked in the documents that I will now table - for use in furniture, joinery, flooring and other end uses. Schedule 5 goes further than that and prescribes specific percentages that are to be allocated to specific uses. It includes not only the 70 000 cubic metres in the context of the Sotico Pty Ltd contract, but also the additional 30 000 cubic metres of other grades which are processed at Sotico Collie and which are also captured to some degree by the value-adding component of the contract, which, until I read it today, I was not aware of. I hope that will be useful to the member. I table the documents as requested. [See paper No 2016.]
I thank the member for some notice of this question. (1)-(2) I will table the document requested, in accordance with the answer. That document is the current production contract in full; that is, Contract of Sale No 2672 between the Forest Products Commission and Sotico. Based on this question and on question without notice 50 of Friday, 5 March this year, the parts of the document that are most likely to interest the honourable member are clause 11 and schedules 1 and 5, particularly schedule 5. I have marked it on this copy to allow the member to find it quickly. The term “value adding” has both a generic and specific meaning. Sometimes the two are used conjointly. It is simply defined in the generic sense as “seasoning, dressing or further processing of timber into a product of greater value”. In respect of the recent contracts issued through the Forest Products Commission’s request for proposals allocation process, value-adding commitments to downstream processing are more specifically defined in the fifth schedule - to which I have referred and which is marked in the documents that I will now table - for use in furniture, joinery, flooring and other end uses. Schedule 5 goes further than that and prescribes specific percentages that are to be allocated to specific uses. It includes not only the 70 000 cubic metres in the context of the Sotico Pty Ltd contract, but also the additional 30 000 cubic metres of other grades which are processed at Sotico Collie and which are also captured to some degree by the value-adding component of the contract, which, until I read it today, I was not aware of. I hope that will be useful to the member. I table the documents as requested. [See paper No 2016.]
(1)-(2) I will table the document requested, in accordance with the answer. That document is the current production contract in full; that is, Contract of Sale No 2672 between the Forest Products Commission and Sotico. Based on this question and on question without notice 50 of Friday, 5 March this year, the parts of the document that are most likely to interest the honourable member are clause 11 and schedules 1 and 5, particularly schedule 5. I have marked it on this copy to allow the member to find it quickly. The term “value adding” has both a generic and specific meaning. Sometimes the two are used conjointly. It is simply defined in the generic sense as “seasoning, dressing or further processing of timber into a product of greater value”. In respect of the recent contracts issued through the Forest Products Commission’s request for proposals allocation process, value-adding commitments to downstream processing are more specifically defined in the fifth schedule - to which I have referred and which is marked in the documents that I will now table - for use in furniture, joinery, flooring and other end uses. Schedule 5 goes further than that and prescribes specific percentages that are to be allocated to specific uses. It includes not only the 70 000 cubic metres in the context of the Sotico Pty Ltd contract, but also the additional 30 000 cubic metres of other grades which are processed at Sotico Collie and which are also captured to some degree by the value-adding component of the contract, which, until I read it today, I was not aware of. I hope that will be useful to the member. I table the documents as requested. [See paper No 2016.]
In respect of the recent contracts issued through the Forest Products Commission’s request for proposals allocation process, value-adding commitments to downstream processing are more specifically defined in the fifth schedule - to which I have referred and which is marked in the documents that I will now table - for use in furniture, joinery, flooring and other end uses. Schedule 5 goes further than that and prescribes specific percentages that are to be allocated to specific uses. It includes not only the 70 000 cubic metres in the context of the Sotico Pty Ltd contract, but also the additional 30 000 cubic metres of other grades which are processed at Sotico Collie and which are also captured to some degree by the value-adding component of the contract, which, until I read it today, I was not aware of. I hope that will be useful to the member. I table the documents as requested. [See paper No 2016.]
I table the documents as requested. [See paper No 2016.]

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