ForestrySA

The Hon. L.W.K. BIGNELL (Mawson—Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Tourism, Minister for Recreation and Sport, Minister for Racing) (14:24): I seek leave to make a ministerial statement.

Leave granted.

The Hon. L.W.K. BIGNELL: I wish to update the house on the progress of the restructure at ForestrySA, which is being undertaken to ensure it remains competitive and is in the best shape to secure the contract to maintain the plantations in the Green Triangle after 2017. In May this year, ForestrySA opened offers of voluntary separation packages to employees in the South-East and Mount Lofty Ranges. That offer, which was initially for 60 packages, closed yesterday.

I can inform the house that 66 people, comprising 32 field staff and 34 staff working in administration and supervisory roles from across the Green Triangle and Mount Lofty region, have accepted separation packages. We have worked closely with the three unions representing workers at ForestrySA and a range of support services are in place for affected staff and stakeholders.

ForestrySA continues to operate its business in the Mount Lofty Ranges, Mid North, and in the South-East of South Australia. There are no staff changes planned for ForestrySA's Mid North operations. The state government has kept its promise to ForestrySA workers that there would be no forced redundancies. The workers who do wish to leave have been offered very fair redundancy conditions.

While ForestrySA is reducing its direct workforce, the timber industry in the South-East is experiencing one of its brightest periods in years and there are many jobs being offered in the local area. There is a strong base of private contractors offering forest management services for a range of plantation owners. The state government has already provided more than $16.5 million in assistance to the private sector for capital investment in the state's timber industry, with a further $10.5 million committed to support future projects. This money for innovation is helping secure and create jobs in the South-East as well as increase the opportunity for us to be able to value-add here. It is much better for our state's economy and jobs to have finished products made here for the local and export markets rather than sending logs overseas only to come back as imported timber goods.

I will be in the South-East again for most of next week to continue working with all parties in the region, including the member for Mount Gambier, to ensure ForestrySA is in the best position possible to continue to provide services under the plantation management agreement.