Hon Diane Evers questions the Minister for Forestry regarding the Forest Products Commission's financial forecasts, specifically net profit/loss, biological asset valuation, and plantation investment. The answer reveals a projected loss and details the valuation and investment figures.

AnsweredQoN 425Legislative Council
Asked
31 October 2017
Portfolio
Forestry

QuestionView source ↗

I refer to the answer to Question 3a, provided by the Forest Products Commission in the 2017-18 Budgets Estimates Hearings - Questions Prior to Hearings and ask, could the Minister please advise:
(a) the forecast 2018-19 net profit/loss after tax, adjusted for non-cash items of biological asset valuation and onerous contracts revaluation;
(b) the amount of biological asset valuation included in the calculation; and
(c) the forecast amount being invested in plantation each year from 2017-18 to 2020-21?

AnswerView source ↗

Answered
5 December 2017
Responded by
Minister for Regional Development representing the Minister for Forestry
Response time
9 days
(a) The 2018-19 net profit/loss after tax, adjusted for non-cash items of biological asset valuation and onerous contracts revaluation is a loss of $0.9 million.
(b) The amount of biological asset valuation movement included in the net loss after tax of $0.9 million is a movement of -$7.2 million.
This movement consists of:
1. A decrease in the valuation of the Sandalwood biological asset by $2.1 million,
2. A decrease in the valuation of the Plantation biological asset by $0.4 million, and
3. The value of plantation establishment for 2018-19 (which has no asset value on establishment) is $4.7 million.
The Biological asset value in the balance sheet decreased by $2.5 million from $328.8 million to $326.3 million (refer item 1&2 above).
(c) The forecast amount being investment in plantation expansion over the period 2017-18 to 2020-21 is $14.9 million. By year this is:
• 2017-2018 an investment of $4.1 million.
• 2018-2019 an investment of $3.6 million.
• 2019-2020 an investment of $3.6 million.
• 2020-2021 an investment of $3.6 million.

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