2015-11-12
Ms Dunn — My question is for the Minister for Agriculture. The VicForests annual report for 2014–15 refers to new and replacement contracts to supply approximately 900,000 cubic metres of wood per annum, with tenures between three and four years, as well as negotiation of new contracts with harvest and haulage contractors that provide the ‘greatest level of security to contractors since 2009’ to enable them to purchase capital equipment. My question for the minister is this: can the minister advise how the work of the industry task force can proceed in good faith, as task force deliberations and recommendations are likely to be inconsistent with these long-term contract arrangements negotiated by VicForests that guarantee long-term supply to harvest and haulage contractors?
Ms Pulford (Minister for Agriculture) — I thank the member for her question and her ongoing interest in the activities of VicForests. The member refers to VicForests’ annual report. Just briefly, by way of background for members, it shows a very strong financial result with net profit after tax of $4.7 million and no net debt, so VicForests will continue to be able to provide a dividend to the state. Since being established, VicForests has indeed returned dividends in excess of $6 million. The annual report that the member refers to represents the activities of VicForests in the 2014–15 financial year. The member asked how this relates to the work of the task force that is being established to consider some issues around the sustainability of our timber industry as well as some issues around contested area and the desire of some members of the community to see the establishment of a national park. That task force is being established. It will seek to bring together industry, environmental and union representatives as well as a host of other significantly interested stakeholders, including Indigenous landholders, recreational users and others, and it will seek to identify areas of consensus in this respect.
Supplementary question
Ms Dunn — I thank the minister for her answer. Can the minister advise why contracts were allowed to be signed over a long time scale, locking in the logging of Leadbeater’s possum habitat, and how this is consistent with what is now the hollow promise of the task force in ‘reaching common ground on the future issues facing the industry, job protection, economic activity, protection of our unique native flora and fauna and threatened species such as the Leadbeater’s possum’?
Ms Pulford— Again I thank the member for her supplementary question. Decisions to enter into contracts are decisions that are taken by the VicForests board, and I am very confident that proper due diligence and appropriate understandings of the commercial realities that are part of their responsibility are conscientiously undertaken by each and every one of the members of the VicForests board. On the question about how this relates to the task force, I think the member has the cart before the horse a bit. VicForests needs to continue to perform the duties it is required to do, and the task force is about establishing a conversation about potential areas for change.