When the Brill family paid their last debt this year following Forest Enterprises Australia’s 2010 collapse, Jillene Brill decided it was time to retire. She’d had enough of the long hours. Source: The Examiner
She thought it was time to seek out the simple things in life, the humble pleasures of a relaxing life on the family’s Lietinna farm and time spent with the grandchildren.
But the plan of leaving the stresses that came with overseeing the family’s Stronach Timber Industries processing centre, and its retail and labour arm, were short-lived when Gunns went into administration last month with almost $500,000 still owed to Stronach.
It was like history repeating for the Brills – they were creditors to FEA when that company went into administration two years ago.
“We’d only just recovered from FEA – we’d just made the last payment – when Gunns happened,” Mrs Brill said. “This time we’ve been hit a lot harder.”
In the meantime, their cash flow has been diminished due to a downturn in the forestry industry.
Mrs Brill said that despite a reduced production capacity, and reduced sales, they still had to maintain their own costs to employees, suppliers and creditors.
She said she, and her husband Michael, held little hope of seeing the money owed by Gunns returned to them.
“This will take away a lot of good money from us that should be going back into innovating our business, into paying off our debts,” Mrs Brill said.
“What is heartbreaking is that you spend a lifetime building up a business, but we can end up losing all of our personal possessions, and effectively feel like we’ve worked for nothing.
“We could lose our farm, and that means everything to us.
“It feels like we’ve been robbed from all of our efforts through no fault of our own.”
She said that while others had fallen due to industry and market challenges, Stronach had sustained the knocks.
“We have been efficient and sustainable in our operations, we have been profitable, but we have still been affected by it all,” Mrs Brill said. “And it’s not just us who are struggling.
“The general feeling in Scottsdale is that a lot of people have lost their jobs and are being ignored.”
Mrs Brill said that with up to 100 workers on Stronach Labour Force’s books, the business had little choice but to keep operating for the sake of Scottsdale.
“And we have to keep operating because we’ve got so much tied up in assets – assets that we can’t sell because nobody will buy them,” she said.
“We have the resources, we have the skilled workers and the infrastructure to redevelop the industry, but not the funding – that’s what we need.
“When your cash flow has been ripped out beneath you, you cannot do it for yourself.
“The only thing you can do is innovate to stay alive.
“The only other alternative is to pack up, lock the gates and move away.”
Dorset Mayor Barry Jarvis said forest peace negotiations continued to hold Scottsdale, and its surrounding towns, to ransom.
“Nobody knows what is happening in the forestry industry and nobody will invest in it,” Cr Jarvis said.
“Two and a half years of hanging in suspense hasn’t helped anybody. It’s been a real nightmare for the towns that rely on this industry.”
Cr Jarvis said Scottsdale’s property values had taken a big hit and pockets of empty buildings had emerged in its tight business centre.
He said that while he was optimistic about potential developments in agriculture, Scottsdale needed a forestry industry rebirth to move forward with confidence.
“It can’t get any worse,” Cr Jarvis said. “Once there is some certainty in the (forestry intergovernmental agreement) process, we can get workers back in the forest.”
