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Parliamentary Questions


Question Without Notice No. 541 asked in the Legislative Council on 28 June 2018 by Hon Diane Evers

Parliament: 40 Session: 1

SAWMILLS — INVESTMENT SECURITY GUARANTEES

541. Hon DIANE EVERS to the minister representing the Minister for Forestry:

(1) Which sawmills have investment security guarantees?

(2) If the Forest Products Commission reduces the log timber intake specified in its contracts with sawmills and the exceptions to payment of compensation do not apply, what amount of compensation will be payable to each sawmill, and in total?

(3) What are the exceptions to the payment of compensation?

Hon ALANNAH MacTIERNAN replied:

I thank the member for the question.

(1) Auswest Timbers Pty Ltd has investment security guarantees.

(2) Compensation is applicable only if the recipient is not offered a new contract with similar terms and conditions in 2024. If it is offered a new contract with a reduced volume or lower quality products, the compensation amount may be reduced. The maximum compensation payable is a one-off payment and is based on a full log timber intake, approximately 45 000 tonnes per annum, multiplied by the compensation rate of $261.96 per tonne, which is a total of $11.8 million.

(3) The Western Australian government is not liable to pay compensation if a change in state government policy that causes a refusal to offer a rollover contract was influenced by climate change or by an increase in the spread of dieback and either or both have caused a reduction in the sustainable yield of log timber.