Question Without Notice No. 403 asked in the Legislative Council on 16 August 2017 by Hon Diane Evers
Parliament: 40 Session: 1
FOREST PRODUCTS COMMISSION — NATIVE FORESTRY MANAGEMENT
403. Hon DIANE EVERS to the minister representing the Minister for Forestry:
I refer to the Forest Products Commission's annual reports for the years 2012–13 to 2015–16 that collectively show production of more than two billion tonnes of native forest sawlog timber and other log material made for a financial loss of $33.7 million.
(1) Does the minister agree that these figures prove that FPC's native forestry management is a loss‑making activity for WA taxpayers; and, if not, why not?
(2) Does the minister agree that it is unacceptable for FPC to cross‑subsidise its loss‑making native forest–based timber activities through its plantation‑based activities, as is currently the case; and, if not, why not?
(3) In light of the government's public statements about cost saving and fixing debt, does the minister agree that FPC should cease its native forest–based timber operations?
(4) If no to (3), will the minister at least agree to an independent inquiry into the financial and environmental sustainability of native forest logging in WA?
(5) If no to (4), why not?
Hon ALANNAH MacTIERNAN replied:
I thank the member for notice of the question. The Minister for Forestry has provided the following answer.
(1) No. The Forest Products Commission operated at a profit in these years and returned a positive dividend to government each year, showing that there was no loss for WA taxpayers. The FPC makes a positive contribution to communities in the south west. Last year the FPC invested $71 million in regional communities, purchasing goods and services for harvesting and forest management, and in wages and salaries. It also provided $8 million in funding to the Department of Parks and Wildlife to undertake forest management works.
(2) No. The FPC supplies timber to three industry segments and provides its accounts to government in this way for transparency. The native forest sector has previously returned a profit and is forecast to do so again in 2016–17 and 2017–18.
(3)–(4) No.
(5) The financial accounts of the FPC are prepared in compliance with the provisions of the Financial Management Act 2006 and in accordance with Australian accounting standards. These accounts are audited by the Auditor General. The FPC's environmental performance is independently audited by internationally recognised certification bodies to achieve the Australian Forestry Standard and Environmental Management Systems ISO 14001. The most recent AFS surveillance audit was in April 2017 and further audits are scheduled for later this year.