2015-11-26
Ms Dunn - My question is for the Minister for Agriculture. The VicForests Annual Report 2014–15 describes current contingent liabilities as ‘claims for commercial losses ... in relation to alleged non-performance under a timber sale agreement’. No value has been attributed to the claims in the financial statements. It is my understanding that the basis of the claim is around the non-receipt of the contracted allocation of sawlog timber. My question is: how can it be that local timber mills are in the position that they have to take legal action about the shortfall of timber they are receiving when sawlog-grade timber is being exported overseas via the Big Traffic and Orient Exports supply chains?
Ms Pulford (Minister for Agriculture) - I thank Ms Dunn for her question. Ms Dunn canvasses a range of issues, some which I think the question suggests may be subject to legal proceedings, others which may relate to individual contracts. On the question of exports, as I have indicated to the house before, I have asked VicForests to consider and indeed I have asked my department to provide formal advice to ensure that exports are very much a matter of last resort for our timber industry and that all opportunities are presented to local participants in the industry.
The VicForests annual report, as has been canvassed in the house in question time on previous occasions, certainly indicates that VicForests had a positive year in 2014, achieving a net profit after tax of $4.7 million, its highest profit since 2004–05, which is of course in stark contrast to the occasional assertions that VicForests is unprofitable. It is also a matter of fact that VicForests is not subsidised, another a myth that gets airing from time to time.
Supplementary Question:
Ms Dunn - I thank the minister for her answer. I note that in this house, in response to an earlier question I asked on 7 October, she also referred to that advice around this matter, so I am wondering: once the minister receives that formal advice, could she report that to the house?
Ms Pulford - Once I have received that advice and considered it, I am happy to report that to the house.