Hon Giz Watson questions the Forest Products Commission (FPC) regarding value-adding requirements in timber mill contracts and compliance monitoring. The Minister confirms some contracts have value-adding requirements, provides contract clause details, outlines monitoring processes, denies any breaches, and expresses willingness to engage with furniture manufacturers.

AnsweredQoN 5207Legislative Council
Asked
6 March 2012
Portfolio
Forestry

QuestionView source ↗

(1) Is it correct that contracts between the Forest Products Commission and timber mills have value adding requirements for mills to comply with when selling to manufacturers?
(2) If yes to (1) -
(a) what is the exact wording of these contract provisions, and also of the contract provisions that apply if this requirement is breached;
(b) will the Minister please provide full details of how compliance with this requirement is monitored;
(c) is the Minister, your Department or the Forest Products Commission aware of any breaches of this requirement to date;
(d) if yes to (2)(c), will the Minister please provide full details of what action has been taken in response to this;
(e) if the answer to (2)(d) is none -
(i) why has no action been taken; and
(ii) what action will you take to ensure this contract requirement is monitored and enforceable in the future; and
(f) if no to (2)(c), or if the answer to (2)(d) is none, is the Minister or your representative willing to meet with the Western Australia Furniture Manufacturers Association to hear the concerns local furniture manufacturers have in this regard?

AnswerView source ↗

Answered
1 May 2012
Responded by
Minister for Child Protection representing the Minister for Forestry
Response time
56 days
(1) Some contracts between the Forest Products Commission (FPC) and sawmills require the sawmiller to undertake value added processing but this does not include any specific requirement when selling to manufacturers.
(2)(a) [See tabled paper no.]
Attachment 1 provides the standard clause included in those contracts that have a value adding requirement.
Attachment 2 contains a slightly varied clause used in Contract 2770.
(b) All but one of the sawmills that have this clause in their contract submit to the FPC a "Summary of Native Forest (Hardwood) Log Timber Processing (form FPC 182H)" for each six month period ending 30 June and 31 December in each year of the contract.
(c) No.
(d)-(e) Not applicable.
(f) Yes. I have already met with local furniture manufacturers and am willing to continue to have dialogue with them.
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