The WA parliamentary question concerns the impact of the Gnangara pine plantation reservation on timber supply, particularly for Wespine and Wesbeam, and seeks information on timber volumes, contractual obligations, and compensation for increased haulage costs. The answer details timber losses, force majeure events, supply arrangements, and karri log supply to Wesbeam.

AnsweredQoN 224Legislative Assembly
Asked
17 June 2025
Portfolio
Forestry

QuestionView source ↗

(1) What volume of timber (by grade) has been lost due to the reservation of the Gnangara pine plantation: (a) What is the estimated market value of that timber? (2) Can the Forest Products Commission (FPC) meet its contractual supply obligations to Wespine and Wesbeam: (a) Will Wesbeam continue to receive pine logs after 2029: (i) If so, at what volume? (3) Has the FPC modelled future timber supply: (a) Will the Minister table the projections? (4) Is Wesbeam receiving timber from longer-distance sources to offset the Gnangara shortfall: (a) Is Wesbeam being compensated for the increased haulage costs: (i) If so, by whom and how much; and (ii) Will this compensation appear in the FPC’s Annual Report? (5) Does Wesbeam currently receive karri logs: (a) How much has been supplied annually by year; (b) Was this supply contract tendered: (i) If not, how was the price determined; and (c) Does Wesbeam receive any benefit in the form of discounted pricing: (i) or subsidised haulage?

AnswerView source ↗

Answered
12 August 2025
Responded by
Minister representing the Minister for Forestry
Response time
6 days
(1)          In December 2023, the then Minister for Environment announced the cessation of pine harvesting in State Forest 65 to protect the area as a food source for Carnaby’s cockatoo.  At the time of the cessation of harvesting there was an estimated volume of 165 000 m 3 of LVL log and 24 000 m 3 of industrial wood within the standing trees.
(a)          The timber has no market value as it is not available to harvest.
(2)     In addition to the impact of the cessation harvesting in State Forest 65 (see 1), Force Majeure events including fire and the impact of extended periods of low rainfall have impacted on the ability of the FPC to supply the contracted volume of Pinus pinaster .
(a)     Supply arrangements with Wesbeam after 2029 have not yet been negotiated.
(i)   Not applicable.
(3)     (a)
Future timber supply volumes are commercially sensitive.
(4)     Yes
(a)     The Production Contract between the FPC and Wesbeam includes calculations for haulage distance. Deliveries are charged as per the contract conditions.
(i)      Not applicable.
(ii)     Not applicable.
(5)     Yes
(a)
2014      1 750 tonnes
2015      4 877 tonnes
2016    10 672 tonnes
2017    21 415 tonnes
2018    31 034 tonnes
2019    41 194 tonnes
2020    49 674 tonnes
2021    43 303 tonnes
2022    35 406 tonnes
2023    33 243 tonnes
2024    20 230 tonnes
2025    11 298 m 3 (six months to 30 June 2025)
(b)     The supply of karri logs for the period 2014 to 2023 was awarded via tender. Supply from 2024 has been via private treaty.
(i)   The current price is equivalent to the cost of pine under the current Production Contract between the FPC and Wesbeam.
(c)     No, Wesbeam is paying the same amount for karri logs as for the equivalent specification of pine logs.
(i)   Not applicable.

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