TIMBER AUCTION 'ABSOLUTE DISASTER' SAYS HALL
The latest public auction of hardwood timber has been described as an
‘absolute disaster’ by The Nationals Spokesman for Natural Resources Peter
Hall.
Speaking in State Parliament this week, Mr Hall warned that the native
hardwood timber industry was ‘perilously close to collapse’ and several
Victorian country towns would suffer significant job losses.
Mr Hall said the latest timber auction was now embroiled in a legal dispute
and the uncertainty was undermining confidence in the future of the timber
industry.
“Unless the government acts quickly and decisively, many small sawmill
operations in Victoria will simply fall over,” Mr Hall told Parliament.
“If that occurs, it means a greater reliance on imported timber products to
our country, and that is a bad thing both in terms of an import position
but also an environmental position - if we are relying on imports from
other countries of lesser environmental standards than we adopt for forest
harvesting practices.”
Mr Hall said the VicForests auction for 700,000 cubic metres of timber held
earlier this month was dominated by four sawmilling companies.
He said many smaller companies missed out completely and now faced
uncertain futures.
“Even those who were successful had to pay prices that were somewhere
between 20-50% above expectations,” Mr Hall said.
“In the longer term, these higher prices are completely unsustainable and
put the future of the Victorian hardwood timber industry in jeopardy.”
Mr Hall said there was significant confusion surrounding the auction
process and the issue had been complicated by sawmill companies now
challenging the validity of the results and the actual appeals process
itself.
“As I understand it, the auction process led to grievances being lodged on
every single lot, and just over 100 lots were put forward for auction,” Mr
Hall told Parliament.
“Indeed, the grievance process has prompted letters today to VicForests
from legal representatives of the Victorian Association of Forest
Industries suggesting they wonder whether the grievance process is legal
and whether the panel appointed to hear the grievances had the power to
determine the outcome.”
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