|Home||About Us||Daily Timber News||Timber Jobs||Buyers' Guide||Timber Books||Calendar||Publications|
Forestry forward sale ‘based on a false assumption’
Subscribe to Daily Timber News e-mail
Browse the DTN Archive by date
A State Parliament inquiry has called for the sale of South Australia’s South East forest harvesting rights to be abandoned. Family First MP Rob Brokenshire tabled the Upper House committee's final report and termed it "embarrassing" for the State Government. However, it is unlikely to halt the process. Source: Timberbiz
Brokenshire said the sale was a "short-term cash grab" and ignored long-term benefits the State would miss out on in a renewable and economically and environmentally sustainable industry.
Brokenshire said it also broke Labor's 2002 promise not to pursue any more privatisations.
"The privatisation is still under way, there is still time to demonstrate to this uncaring Government that the sale process is fundamentally flawed, based on a false assumption and must be stopped," he said.
Earlier, Shadow Forestry Minister Adrian Pederick said the Weatherill Labor Government had failed on its promise to protect the State’s AAA credit rating and the planned forward sale of ForestySA’s would now be to no avail.
The planned forward sale of timber rotations in the State’s South East was to retain the AAA credit rating.
“Clearly the sale is based on a false premise!” Pederick said.
The forest fiasco doesn’t end there. Budget figures released by Treasurer Snelling show the Labor Government will be $20 million short this year from ForestySA contributions.
The Government is now expected to pocket $18.9 million this year from ForestrySA, rather than the budgeted $38.6 million.
“The $20 million shortfall just shows how badly the planned sale has been handled. People of the South East voiced their opinions to the Premier but fell on deaf ears – the State is going to lose out on this sale,” Pederick said.
Budget papers spell out the clear issues: ForestrySA’s estimated net contributions to government in 2011-12 of $18.9 million are significantly below budget due to reduced timber sales.
The reduction in ForestrySA’s contributions from 2012-13 reflects the planned forward sale of forest rotations in the South East. - (2012-13 Budget Paper 3 Chpt 5: Government businesses – ForestrySA).
“Why are we selling ForestrySA again?” Pederick questioned. “To maintain and protect the State’s AAA credit rating?
“Well that’s now gone, so will the Government end this sale circus?”