Discounts on timber

2017-06-07

Ms DUNN (Eastern Metropolitan) — My question is for the Minister for Agriculture. At the public hearing of the VicForests inquiry it was revealed that as part of the purchase of the Heyfield mill by the Hermal Group from Gunns a discount rate of between $8 and $10 per cubic metre was put in place as part of the contract arrangements. My question for the minister is: how many mills have current contracts in place that include a discounted rate for timber?

Ms PULFORD (Minister for Agriculture) — I thank Ms Dunn for her question and her ongoing interest in these matters. As is my normal practice, given that these questions — and in particular this question — go to contractual arrangements with VicForests and individual businesses, there is a sensitivity and a commercial-in-confidence nature to a lot of this. I will take Ms Dunn’s question on notice, and if I am able to provide further information, I will, but I would indicate that it is quite possible that these matters do go into areas that are commercial in
confidence.

Supplementary question

Ms DUNN (Eastern Metropolitan) — I thank the minister for her answer. My supplementary question is: what has been the accumulated cost to Victoria of providing this discount to Australian Sustainable Hardwoods?

Ms PULFORD (Minister for Agriculture) — I thank Ms Dunn for her further question. In the same vein, if I am able to provide further information to Ms Dunn, I will. But I know that Ms Dunn sees these matters only as a negative and never as a positive. The community of Heyfield, of course, has derived great benefits from the ongoing employment that exists for so many people at the Heyfield mill. Of course the economic benefits of having a strong and sustainable timber industry are many. For the individuals who work in this business, for the contractors who supply product to this business and for the consumers who purchase finished product at the end of all the work and effort that occurs at the mill there is great value. So I might also provide Ms Dunn with some information about the benefits that have flowed to the Victorian economy and to the community, in particular the community of Heyfield, as a result of the ongoing operations of the mill — of course something that we hope will continue and are working very hard to that effect.