VicForests will cease operations on 30 June, the end date was revealed on Wednesday during a court hearing involving VicForests and environmental group Wombat Forestcare. Source: Timberbiz
Nationals’ leader Peter Walsh said VicForests was being treated deplorably.
He said the State Government has not offered a single positive word, effectively ignoring its existence.
“This June 30 end date is painful enough, but VicForests are being kicked on the way out the door without an ounce of respect,” Mr Walsh said.
“The organisation has no way of defending itself. The Allan Labor Government remains silent, refusing to publicly defend its own logging company.
“This is a cruel, unfair ending for an organisation that has done so much for regional communities and made a huge contribution to Victoria.”
The winding-up of the body is part of the Victorian government’s decision to end native forest logging, which took effect on January 1.
Stand-down payments to VicForests contractors are due to end on 30 June.
Last September, the government paved the way for the organisation’s closure, altering its status as a state business corporation and making it a “reorganising body”, which allows its functions and staff to be moved around.
VicForests employs 140 staff. Of these, it is understood 60 will be made redundant while the remaining 80 will get new roles in the state Department of Energy, Environment and Climate Action.
“It has always done its best despite severe harassment from illegal protesters,” Mr Walsh said.
He said the contribution of VicForests should be applauded given so much of its work supporting the industry was amid continual litigation by extremists.
“VicForests had to use taxpayers’ money to defend itself from carrying out government policy,” Mr Walsh said.
He said the end of VicForests would also leave a gaping hole in fire management.
“The risk of mega-fires will increase. There won’t be tracks maintained by the timber industry and there won’t be control lines to burn back from,” Mr Walsh said.
“There won’t be the heavy equipment and timber industry workers to go in and help fight fires.
“The Greens, so critical of the industry, will be hiding in inner Melbourne and nowhere to be seen as regional communities face the inevitable bushfires without the support of the timber industry to help fight them.”
Community and Public Sector Union industrial organiser Kassey Dickie said VicForests’ 100 employees were aware the company would close on 30 June.
She said workers were able to apply for about 80 other government jobs, including five-year contracts with Forest Fire Management Victoria.
“Everyone’s going to lose their job at VicForests, whether or not a large portion find other work, that remains to be seen,” Ms Dickie told AAP.
The government initially planned to phase out native logging in 2030 but brought that forward over claims the sector had become unviable because of ongoing legal action.
Ms Dickie said many workers were stressed and finding new roles had been a “very fast process” for them.
“They’re sad I think, to sum it up, many of them have worked together for a very long time,” she said.
“They have been rushed through a process made by government in a hurry that has been pretty stressful.”
VicForests recorded a net loss of $60.1 million in the 2022/23 financial year, blaming court action brought on by environmental groups.
During that time it harvested $17.9 million in timber, paid $110 million in compensation for undersupply to customers and $41 million to contractors who were not able to work.
It received $149 million from the state to fund the compensation.
