FORESTRYSA

The Hon. J.S.L. DAWKINS (14:52): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about the regional impact statement released yesterday entitled 'ForestrySA and the South-East Region of South Australia'.

Leave granted.

The Hon. J.S.L. DAWKINS: The minister no doubt will be aware of the importance of regional impact statements in the making of decisions that affect regional communities. I note that most of these statements are kept confidential due to their interaction with cabinet deliberations, but in this instance the final report produced by ACIL Tasman was released by the government to seek to ease community concern.

The regional impact statement encourages the government to clearly outline the sale process and key risks to ease community concern about the sale process. One of the key risks outlined by the report is:

If a large quantity of log was exported, the impact on the local processing industry would be significant.

The report goes on to say:

We also note that there are no barriers preventing those firms that buy sawlog from ForestrySA exporting that log, rather than processing it in the region.

ACIL Tasman bases its conclusions on economic modelling and analysis, which underpins their assumptions and conclusion, but the information does not form part of the report. My question is: Given that the report encourages the government to release information on the key risks of the sale of ForestrySA and as the increased export of sawlog is a key risk, will the minister release the economic modelling that underpins the economic assumptions and the conclusion of the regional impact statement?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (14:54): I thank the honourable member for his most important question. Indeed, the RIS recently released examined the proposal carefully following consultation with stakeholders and the consideration of economic and social impact of the sale of rotations on the region. To accomplish that task, ACIL Tasman examined both the South-East region's economy and the softwood timber industry more broadly. This is all information I have been advised of. I am further advised that the RIS concluded, as has been announced, that there are unlikely to be significant economic or social impacts arising from that sale of forward rotations.

I am also advised that the RIS noted that the community was concerned that the forward sale would lead to substantial job losses with ensuing impacts on the broader community. I am further advised that the RIS stated that the key concern is that the new owner would export logs on a large scale, that all of FSA's uncontracted green triangle production would be exported and that this would have a significant impact on the local processing industry. I am advised that the RIS concluded that it was unlikely that the change in ownership of rotations would, in fact, result in significant additional exports.

As we know, the minister has announced that the South-East forest industry round table will be established and chaired by Trevor Smith. Mr Smith has represented the forest and forestry products industry employees, communities and industry interests in several roles for over 35 years, in particular as national secretary of the Forestry and Furnishing Products Division of the CFMEU. The round table, I am advised, will examine the broader issues facing the forestry industry in the South-East and provide recommendations to the Treasurer and the Minister for Forests. It will also provide advice to the Treasurer regarding the proposed conditions of the divestment, such as extending existing log supply contracts, placing a cap on exports and imposing minimum rotation length before going to market.

The minister has announced that the government will ensure that this arrangement will ensure that the government retains ownership of the forest land, as well as the water and carbon rights, and ForestrySA's staff will also continue to be employed by the government. As I said, the government will establish the round table, and it will provide sawmill owners who have existing log supply contracts with ForestrySA an option to extend their current contracts up to a further five years to help protect job security.

The other commitments that have been announced are: to ensure that any sale condition includes the new purchaser agreeing to target rotation length consistent with the current and planned ForestrySA standard—that is about keeping the integrity of the standard of the forest product coming out of the region; to ensure that there is a commitment by a new purchaser to match ForestrySA's current level of planned global domestic supply; and a commitment to create an obligation on the successful purchaser to report yearly to the government to ensure that it is meeting the conditions of its purchase.

We can see that there are a number of considerable safeguards that have been put in place to protect the industry, to protect workers and to retain the ownership of that land.