Hon. Nigel Hallett questions the Forest Products Commission's sandalwood sales practices, particularly regarding public tenders and access for local companies. The response reveals private treaty sales occurred, raising concerns about fairness and transparency.

AnsweredQoN 3171Legislative Council
Asked
16 November 2010
Portfolio
Forestry

QuestionView source ↗

In relation to Sandalwood, I ask -
(1) Is the sale of native Sandalwood, harvested and processed by the Forest Products Commission to any Australian company, put out for public tender if the value is greater than $50 000, as prescribed in the
State Supply Commission Act 1991
?
(2) If no to (1), why not?
(3) Are there any current negotiations taking place with ANY Australian companies and the Forest Products Commission to sell Sandalwood with a sale value greater than $50 000 without going to Public Tender?
(4) Have there been any Private Treaty Sales of native Sandalwood during the past three years to any Australian company with a value in excess of $50 000 without that sale/contract going to Public Tender?
(5) If yes to (4), -
(a) why was the proper Public process not followed;
(b) who were the local companies that benefited from this action; and
(c) what was the value of the sales?
(6) Are Australian companies, especially those adding value and creating additional employment opportunities within the State, allowed to purchase native Sandalwood from the Forest Products Commission and its marketing agent Wescorp Sandalwood, at the current export price offered to overseas companies?
(7) If no to (6), why not?
(8) If no to (6), what action will the Minister take to enable local Australian companies access to the Sandalwood resource so that they can add value and create employment, not subsidized sales but at true market price?

AnswerView source ↗

Answered
14 February 2011
Responded by
Minister for Child Protection representing the Minister for Forestry
Response time
90 days
(1)        No.
(2)        The Forest Products Commission (FPC) may make any appropriate commercial contractual arrangements as defined under Section 56 of the
Forest Products Act 2000
.
(3)        No.
(4)        Yes.
(5)        (a)        Please refer to part (2)
.
(b)        Mount RomanceAustraliaand The Paperbark Company.
(c)        FPCincome received since November 2007 under private treaty sale arrangements:
- Mount RomanceAustralia- $1,573,440.30; and
- The Paperbark Company - $591,947.14
(6)       Yes, but none is available.
(7-8)    Not applicable.
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