Question Time

FORESTRYSA

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:25): I seek leave to make a brief explanation before asking the Minister for Forests a question on forests.

Leave granted.

The Hon. D.W. RIDGWAY: As members would be well aware, it has been part of the government's budget decision to sell three forward rotations of the South-East forests and, in fact, members also know that just a matter of probably 90 seconds ago a report from the select committee was tabled in this place.

It has also been reported that the sale will not include other forestry assets outside the South-East: those in the Adelaide Hills and the Mid North are not being offered for sale. It has also been reported that the reason these assets are not being sold is they do not make any money. In fact, they require, if you like, a subsidy from the asset that is to be sold in the South-East to keep them maintained and provide the staff resources.

In a question I asked the minister some weeks ago, she informed this chamber that Treasury was handling the sale of the forests so she was unable to answer any questions in relation to the sale. However, I assume that these other remaining forestry assets will remain under her control as Minister for Forests. My questions are:

1. What is the future of these other forestry assets, given that they are unlikely to be profitable?

2. What cuts to other existing services will be made in order to provide fire protection and community protection and to maintain those other forestry assets?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:27): I thank the honourable member for his questions. Indeed, the honourable member is correct that earlier this year the Treasurer announced the forward sale of ForestrySA's harvesting rights of the Green Triangle estate—

The Hon. D.W. Ridgway: Only for the South Australian part. Some of the Green Triangle is in Victoria.

The Hon. G.E. GAGO: That's quite true, Mr President. I did say ForestrySA; I said the forward sale of ForestrySA. Honourable members need to clean out their ears. The commitment on the sale has been put in place, but I have talked in this place before about the Treasurer's commitment to—

An honourable member interjecting:

The PRESIDENT: Order!

The Hon. G.E. GAGO: —ensure that there are a number of measures put in place to ensure the long-term sustainability of the industry in that region, and to put in place a number of measures to protect local industry stakeholders. The honourable member is quite right: it is only those ForestrySA commitments in the South-East that are included in the proposal for the forward sale. Our other forestry interests are not, and I have been advised that is because it is not a viable proposition to look at the sale of those.

In terms of our strategy in managing those forests, we have a Forest Industry Development Board. That is the government's advisory board, and it provides leadership in innovation and development in the forests and forest products industry to help us support sustainable economic growth in South Australia within our forestry industry. We recognise the imperative to develop a forest industry strategy that will help chart a course for growth in forests and forest products. The board has consulted widely over some time to help develop the state's forestry industry strategy and these other interests the honourable member has referred to. The board has released that draft South Australian strategy for public consultation, which was done in December 2010. I am advised that it included a number of forums. A number of the draft strategy documents were distributed and a number of submissions received.

The industry strategy was released in September 2011. The strategy sets out a 2050 vision, strategic directions and strategies for the next five years. The strategy identifies seven implementation priorities, which include the articulation of the state government's policy position on the forest industry to work to increase investor confidence, increase the resource base and processing capacity to enhance industry international competitiveness, to attempt to capture new value-adding opportunities to maximise returns from plantation resources, to achieve a stable operating environment across South Australia and harmonise regulatory regimes with other states to expedite things like planning, development and transport.

Government and industry stakeholders obviously need to work together to work through water planning and other cross-jurisdictional issues to promote the environmental benefits of forestry and forest products to the public and establish better consumer understanding and demand, to develop additional support and funding for training, education and innovation to help meet those future needs, and obviously to foster capability to pursue regional actions to support the strategy.

Obviously we will continue to look for investment opportunities, and the strategy provides a platform to initiate a number of steps that we believe through implementation will assist us to continue to achieve a sustainable forestry sector here in South Australia.

The PRESIDENT: The Hon. Mr Ridgway has a supplementary question.