Melina Bath and Rob Brunt
Victoria’s native forest harvest and haulage logging contractors are only being offered the bare minimum in compensation as the State Government prepares to shut down the industry on 1 January 2024. Source: Timberbiz
The initial package being offered to contractors contains only three options;
- Enter into a contract to work with the Department of Energy, Environment and Climate Action,
- Surrender the contract and receive compensation,
- Continue on stand-down payments until 30 June 2024.
Contractors who agree to terminate their contracts before 30 June, will receive just 30% of their contracted rate as a payout.
Gippsland East Nationals MP, Tim Bull has blasted the State Government over what he says is a woeful timber industry compensation package.
“It is clearly a package that has been put together to fit under a budget rather than provide a reasonable and fair outcome,” he told State Parliament.
A timber business with a contract to deliver 30,000 cubic metres to VicForests for $35/m3, could have earned $1.05 million. But if they agree to terminate their 2023-24 contract six months early, on December 31, they will receive 30 cents in the dollar of their full contracted volume or $10.50/m3, but only paid out on a pro-rated basis on the remainder of the year – equal to $183,645.
Orbost harvest and haulage contractor Rob Brunt told The Weekly Times the offer was “an insult” and worse than his workers were being offered by the government, under a separate compensation scheme.
When asked about the inadequacy of the package, Agriculture Minister Ros Spence’s office stated that “the draft Harvest and Haulage Support Package guidelines are subject to further consultation and are not final”.
Mr Bull said that it appeared the entire package had been put together by people who did not understand the industry.
“For those who want to consider continued work with DEECA, they have to put in an application to do so, but the Labor Government has provided no information on such things as what the remuneration is, what the work is, or where the work will be.
“How can they possibly make a decision on proceeding with this application process without even basic information like whether the income will cover their machinery loans,” Mr Bull said.
Australian Forest Contractors Association general manager Tim Lester said the package failed to recognise contractors’ investments over decades and even generations in the business.
“It’s a draft, but clearly our members are unhappy with it,” Mr Lester said. “There’s no recognition of future earnings or structural adjustment.”
Eastern Victorian MLC, Melina Bath, also raised her concerns in the Upper House of Parliament, joining the growing chorus for fairer supports.
“Like my other Nationals’ colleagues, I have been working with the impacted timber industry families for a long period of time and the process has been an unpleasant one. However, to be made offers that fall well short of what is needed, shows them no regard and in many ways is disrespectful,” she said.
“This needs to be sorted out within weeks, so these hardworking families can make informed decisions about their futures.”
Mr Bull said one positive was that when asked in question time the Premier Jacinta Allen, committed to meeting with the Australian Forest Contractors’ Association to discuss the details of the package.
“This commitment is good, but the package needs to change significantly as, in its current form, it falls well short of even the most basic of expectations and the Minister needs to revisit this immediately,” he said.
