Tim Pallas: Government recognises forestry industry important for regional communities
About $36 million will be spent on modernising the regional forest agreements in Victoria under the Andrews Government’s 2018-19 state budget released this week. From Philip Hopkins for Timberbiz
Treasurer Tim Pallas said the Government recognised that the forestry industry was important for regional communities.
“It’s why we are providing certainty to Victorians who rely on our forests for their economic livelihoods,” he said.
The Government will invest $35.9 million to modernise the RFAs with the Commonwealth and improve the surveying of forestry land. This would help “to better protect the environment and give industry certainty,” he said.
Mr Pallas said this initiative would be underpinned by community engagement to determine the highest and best value use of our forests.
“This will inform forestry policy and planning, increase transparency and effectiveness in managing environmental values, and improve industry sustainability and viability,” he said.
A total of $3 million will also be spent on protecting the state’s faunal emblems – the Helmeted Honeyeater and the Leadbeater’s Possum and their habitat.
Habitat at key sites in the Yellingbo area, just north-east of Melbourne, will be restored, including at the conservation reserve.
Captive breeding programs will also be introduced for Helmeted Honeyeaters, Victoria’s bird emblem.
The budget provides $70.6 million for Parks Victoria to improve the management of the state’s extensive public parks network, and the services provided to visitors.
This will include enhancing camping in parks and forests by improving Parks Victoria’s booking system and providing discounts to shoulder and off-peak camping for seniors, students and concession holders.
The funding will also create an extra 130 park ranger positions in regional Victoria.
Existing strategies, including the Alpine Horse Strategy, will receive additional money to manage the threat from feral animals and invasive plant species
Mr Pallas said in the coming year, $78.9 billion of capital works would start or continue, with big spending on roads and rail, technical education and health.
“Real gross state product (GSP) is forecast to grow by 2.75% in 2018-19 and continue at that growth rate over the next three years,” he said, having grown at 3.3% in 2016-17.
Vocational education and training will receive almost $830 million, which Mr Pallas said was the single biggest investment in Victoria’s TAFE system since its inception in the 1970s.
Priority TAFE courses will be made free. From January 1 next year, students will pay no tuition fees for 30 priority non-apprenticeship courses and 18 Apprenticeship Pathway courses.
These will include forestry-related areas – Certificate II in furniture making, Certificate IV/Diploma in Building and Construction and Certificate III in Civil Construction.
Mr Pallas said economic activity had been driven by population growth and low interest rates, which had underpinned dwelling investment – a key forestry-related sector. Population growth was expected to remain strong but moderate to 2.0% by 2020-21.
“Dwelling investment is expected to remain near historically high levels,” he said, but growth would moderate in 2017-18 and 2018-19.
“In the longer term, dwelling investment will be supported by Victoria’s strong population growth and demand for new dwellings.”
The ratio between dwelling completions and population growth is relatively in sync. Mr Pallas said this meant the risk of an ‘overbuild’ in Victoria’s housing market was lower than the national average, and “suggests that the pace of construction is broadly in line with Victoria’s strong population growth”.
Forestry is likely to benefit from the Andrews Government’s decision to cut payroll tax for regional businesses to 2.425%, making it the lowest in Australia. Mr Pallas said this was half the metropolitan rate.
From I July this year, regional businesses who pay at least 85% of their payroll to locals will be eligible for the reduced payroll tax rate. Last year’s budget reduced the regional payroll tax rate by an initial 25%.
The budget will also double the stamp duty-free threshold for young farmers from $300,000 to $600,000. Mr Pallas said this helps more young Victorians looking to buy their first farm.
