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Parliamentary Questions


Question Without Notice No. 1209 asked in the Legislative Council on 20 October 2016 by Hon Lynn Maclaren

Parliament: 39 Session: 1

COMMERCE — SAWMILLS — INVESTMENT SECURITY GUARANTEES

1209. Hon LYNN MacLAREN to the Minister for Commerce:

(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 MICHAEL MISCHIN replied:

I note that this question is identical to questions on notice 2247 asked on 17 February 2015 and 2248 asked on 10 March 2015 and that the answer is the same.

(1) Auswest Timbers Pty Ltd.

(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 an increase in the estimated spread of dieback and either or both have caused a reduction in the sustainable yield of log timber.

I look forward to the next question being asked sometime after March next year, so I can give the member the same answer all over again!