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FPC’s failure to deliver log contracts shutting businesses in WA

The WA forestry industry is urging the State Government to provide support to businesses impacted by the Forest Products Commission’s failure to deliver on log contracts. Source: Timberbiz

Sawmills and forestry contracting businesses are struggling due to poor supply, with a number of sawmills in the South West forced to cease operations while desperately trying to keep their employees.

FIFWA Executive Director Melissa Haslam said support was required to retain the affected workforce until the FPC could resume a consistent supply.

Ms Haslam said delays with the approval, planning and preparation of harvesting areas had snowballed over the past 12 months resulting in the shortfall.

“Normally sawmills have a stockpile of logs heading into winter, as access to sites is limited during the wetter months,” Mrs Haslam said.

“This year however, mills have been unable to accumulate a stockpile because the FPC has fallen so far behind on its contractual obligations.

“Our members have literally run out of logs and as such, have been forced to stop work and send their employees home. Contractors have also been impacted, having their machinery sitting idle waiting for harvest areas to be prepared.

“We are seeking a response from the Minister for Forestry Dave Kelly, including support for the businesses impacted, because quite simply this situation is not their fault.”

WA’s forestry industry contributes $1.4 billion to the WA economy annually and supports about 6000 jobs, with more than 90% of those jobs located in regional communities.

Sustainable native forestry directly employs more than 500 people and contributes over $220 million to the WA economy each year.

The industry underpins many small businesses, suppliers and service providers, particularly in regional areas.

Mrs Haslam said support was a necessity, to help businesses directly impacted as well as the regional communities in which they operate.