One of Australia’s largest integrated commercial plantation companies has been found to be fully compliant with domestic log supply and export lease conditions following an independent government-commissioned audit. Source: ABC
It was the first independent probe into the operations of South Australian-based company OneFortyOne since it purchased 110,000 hectares of radiata pine plantation harvesting rights from the South Australian Government.
The audit findings come amid ongoing concerns from some sections of the forestry industry over thousands of tonnes of wood fibre being exported through deep-sea ports at Melbourne and Portland bound for China by multiple Green Triangle plantation growers.
OneFortyOne — headquartered at Mount Gambier — operates one of the largest softwood sawmills in Australia, employs hundreds of people, and has dozens of contractors.
Department of Primary Industries and Regions forestry director Rob Robinson said an independent audit was conducted by BDO Advisory (SA) in partnership with specialist forest sector advisory firm Indufor.
“The audit found that OneFortyOne complied in all material respects with Plantation Lease Agreement requirements in regard to domestic timber supply and exports for 2018,” Mr Robinson said.
Since OneFortyOne purchased the lease in 2012, Mr Robinson said the volume of timber flowing to domestic processors increased by more than 50%.
He said the audit did not trigger any alarm bells for the department.
“There have been investigations over that time, but we haven’t found any reasons to be concerned with OneFortyOne in terms of their domestic wood supply,” Mr Robinson said.
“We will continue to be on the case in the future.”
The State Government, in agreement with OneFortyOne, initiated the audit in 2019.
The requirements audited included age class distribution, area weighted average clear-fall age, the tender process for uncontracted sawlog in excess of planned viable domestic supply, and the sale contract lengths for sawlog exports.
“The auditors found the disclosed quantum and classification of sawlog and pulp log exported by OneFortyOne in 2018 was correct,” Mr Robinson said.
He said the State Government released the audit report to demonstrate OneFortyOne was compliant with its lease.
“South Australia’s $2.3 billion forest industry is an important economic driver for the state and the Green Triangle region is one of Australia’s premier softwood timber producing regions,” Mr Robinson said.
“In 2017–18, the industry directly contributed $285 million to Gross Regional Production.”
Member for Mount Gambier Troy Bell, who pushed for an independent investigation, said he believed the auditors should have spoken with timber processors in the region.
“I want to be very clear. I’m not trying to knock OneFortyOne or belittle their company because they’re extremely important to our region,” Mr Bell said.
“And I think a lot of credit needs to go to OneFortyOne. A number of their processes and perhaps attitude has significantly improved since 2012.
“But all this audit really says is that the processes that OneFortyOne has in place are compliant.”
Mr Bell said he was disappointed the auditors only spoke with OneFortyOne representatives.
“So, I am questioning why they didn’t go and talk to the owners of our local mills and say: ‘Hey, are you getting the supply that should be coming your way, or that is being exported?’,” Mr Bell said.
A OneFortyOne spokesperson said the audit demonstrated the company was 100% compliant with its legal obligations.
“We are committed to the future of the Green Triangle forest and timber industries and will continue to invest in our community,” the spokesperson said.
According to the company’s 2019 Annual Review, 78% of its timber flowed to the domestic market and 22 per cent to export during this period.
The company said this export material consisted of wood chip and pulp log.
