Question On Notice No. 3326 asked in the Legislative Council on 8 October 2020 by Hon Diane Evers
Question Directed to the: Minister for Regional Development representing the Minister for Forestry
Parliament: 40 Session: 1
Question
(1) Are sawlogs sold to Wespine and particleboard wood sold to WESFI/Laminex both sold on a fixed, delivered, milldoor price basis?
(2) What are the current indexation rates for sawlogs to Wespine and particleboard wood to WESFI/Laminex?
(3) What was the amount of stumpage/royalty received by Forest Products Commission (FPC) for selling Radiata Pine from the State owned plantations in 2019-2020?
(4) Does the FPC recover in full the costs of the production expenses as shown in each annual report since 2008:
(a) if no to (4), why not?
Answered on 11 November 2020
(1) Yes.
(2) The Laminex price increased by 2.1 per cent in May 2020, and the Wespine price increased by 0.83 per cent in July 2020.
(3) As per the answer to (1), pine is priced on a delivered price basis and a stumpage/royalty is not used. The FPC does not differentiate by resource tenure and reports by forest sectors and not by species. Radiata pine forms part of the Plantations forest sector. As per section 2.2 of the Notes to the Financial Statements, page 45 of the 2019-2020 Annual Report, Plantations forest returned an Operating Profit of $5.366 million.
(4) Yes.
(a) Not applicable.