VicForests has denied claims it has been running out of money for years before the Premier declared the end of Victoria’s native hardwood industry last week. The Age in Melbourne last week reported that only increasing direct payments by taxpayers, which the government insists are not subsidies, have kept VicForests’ accounts in the black in recent years as falling sales and increased costs, including hefty legal bills to fight challenges by environmentalists, took their toll. Source: Timberbiz
The Victorian Government’s long-term plan to end harvesting of timber in State Forests by 2030 is set to drive VicForests to transform its business and support diversification and innovation in the native timber sector according to VicForests.
The Victorian Government sent shockwaves through timber-dependent towns in the state on Thursday when it announced that native forest logging, part of Victoria’s economy since European settlement, would cease by 2030 with the cutting of old-growth timber to be halted immediately.
However, VicForests’ CEO Monique Dawson said that the organisation was paying it’s way.
“VicForests is a successful native forestry business and during the 2018-19 financial year recorded a net profit of $1.953 million,” she said.
“Over the past decade we have reported in excess of $18 million in profit.
“Our financial results are audited by the Victorian Auditor General’s office to verify their accuracy and compliance with Australian Accounting Standards.”
VicForests said that the Government’s plan provides a clear decade-long timeline for it to continue to supply timber to native timber processors and to negotiate new sales and supply contracts to reflect the transformation timeline.
VicForests’ total harvest levels will be maintained at around current levels to 2024, then reduce by around 25% in 2025, and a further 25% from 2026 to 2030.
According to VicForests this will provide clarity for its harvest and haulage contractors and timber mills and processors during the transformation period and enable them to retain highly skilled employees.
Monique Dawson, VicForests CEO, said that while challenging, the decision provides opportunities for VicForests to develop and trial new species for plantations and new approaches to growing trees to support better timber products and respond to the future impact of climate change.
“We plan to play a significant role in carbon farming and to contribute to the development of new products to make the most of our high-quality timber and the unique and valuable skillset of VicForests’ workforce,” Ms Dawson said.
“In the short to medium term, the Government has provided the clarity needed by industry with a long lead time for change. The reform package also provides significant opportunities for the sector to diversify into new sources of timber, new products and new markets.”
Ms Dawson said VicForests was already contributing to this gradual shift through the establishment of new Blue Gum plantations.
“The announcement earlier this year that VicForests is supporting a major new plantation program in the LaTrobe Valley – overseeing the planting of 250,000 eucalyptus seedlings as part of the Government’s $100m program – is an important part of our future,” she said.
VicForests’ role will expand to include direct support for the continued expansion of private plantations, from large industrial scale plantings to tree crops managed and sold by farmers.
“There will continue to be strong growth in demand for high value, locally grown and manufactured timber products to drive and support continued economic growth. Our people are highly skilled in forestry silviculture, seed management, and forest product development. We are excited about the role we will play in supporting the future development of the Victorian timber industry.”
There is 7.1 million hectares of public native forests across Victoria, about 94% of which is protected or is unsuitable for native timber harvesting and VicForests harvests around 3000 hectares per year.
