❓ Hon Giz Watson asks about Investment Security Guarantees for sawmills, including which sawmills have them, potential compensation amounts if log timber intake is reduced, and exceptions to compensation payment. The Minister for Forestry provides a detailed response.
AnsweredQoN 5134Legislative Council
QuestionView source ↗
(1) Which sawmills now have Investment Security Guarantees?
(2) What amount of compensation will be payable -
(a) to each sawmill; and
(b) in total,
if the Forest Products Commission (FPC) reduces the log timber intake specified in their contracts with the FPC and the exceptions to payment of compensation do not apply?
(3) What are the exceptions to the payment of compensation?
(2) What amount of compensation will be payable -
(a) to each sawmill; and
(b) in total,
if the Forest Products Commission (FPC) reduces the log timber intake specified in their contracts with the FPC and the exceptions to payment of compensation do not apply?
(3) What are the exceptions to the payment of compensation?
AnswerView source ↗
Answered
1 May 2012
Responded by
Minister for Child Protection representing the Minister for Forestry
Response time
56 days
It should be noted that Investment Security Guarantees are managed by Industry Science and Innovation, Department of Commerce, which falls within the portfolio of the Minister for Science and Innovation. However, the Minister for Forestry is able to provide the following response.
(1) The following sawmills now have Investment Security Guarantees:
· Auswest Timbers Pty Ltd
· Blueleaf Corporation Pty Ltd
· Yornup Mill Pty Ltd
· Middlesex Mill Pty Ltd
· Nannup Timber Processing Pty Ltd
· Hexan Holdings Pty Ltd
(2)(a) As at 8 March 2012 the compensation payable would be as follows:
· Auswest Timbers Pty Ltd $27 730 615
· Blueleaf Corporation Pty Ltd $18 321 002
· Yornup Mill Pty Ltd $1 850 138
· Middlesex Mill Pty Ltd $674 449
· Nannup Timber Processing Pty Ltd $5 868 992
· Hexan Holdings Pty Ltd $2 458 062
(b) As at 8 March 2012 the total would be $56 903 258.
(3) The exceptions to the payment of compensation are within any of the following circumstances:
(a) the Recipient has not adhered to any term or provision of the Proposal and such non-adherence is not remedied within 21 days after the Minister serves notice on the Recipient specifying the non-adherence and requiring that it be remedied;
(b) the Recipient has breached any material term or condition of the FPC Contract and such breach is not remedied within 21 days after the General Manager serves notice on the Recipient specifying the breach and requiring that it be remedied;
(c) an Event of Default occurs;
(d) the reduction in the Log Timber Intake was due to an event of Force Majeure (as defined in the FPC Contract); or
(e) where the reduction in log timber intake or the refusal to offer a Rollover Contract was influenced by:
(i) climate change; or
(ii) an increase in the estimated spread of dieback,
which has caused a reduction in the sustainable yield of Log Timber.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
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(1) The following sawmills now have Investment Security Guarantees:
· Auswest Timbers Pty Ltd
· Blueleaf Corporation Pty Ltd
· Yornup Mill Pty Ltd
· Middlesex Mill Pty Ltd
· Nannup Timber Processing Pty Ltd
· Hexan Holdings Pty Ltd
(2)(a) As at 8 March 2012 the compensation payable would be as follows:
· Auswest Timbers Pty Ltd $27 730 615
· Blueleaf Corporation Pty Ltd $18 321 002
· Yornup Mill Pty Ltd $1 850 138
· Middlesex Mill Pty Ltd $674 449
· Nannup Timber Processing Pty Ltd $5 868 992
· Hexan Holdings Pty Ltd $2 458 062
(b) As at 8 March 2012 the total would be $56 903 258.
(3) The exceptions to the payment of compensation are within any of the following circumstances:
(a) the Recipient has not adhered to any term or provision of the Proposal and such non-adherence is not remedied within 21 days after the Minister serves notice on the Recipient specifying the non-adherence and requiring that it be remedied;
(b) the Recipient has breached any material term or condition of the FPC Contract and such breach is not remedied within 21 days after the General Manager serves notice on the Recipient specifying the breach and requiring that it be remedied;
(c) an Event of Default occurs;
(d) the reduction in the Log Timber Intake was due to an event of Force Majeure (as defined in the FPC Contract); or
(e) where the reduction in log timber intake or the refusal to offer a Rollover Contract was influenced by:
(i) climate change; or
(ii) an increase in the estimated spread of dieback,
which has caused a reduction in the sustainable yield of Log Timber.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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