FORESTRYSA

In reply to the Hon. R.L. BROKENSHIRE (18 October 2012).

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations): I am advised that the Northern Forests and the Mount Lofty Ranges (MLR) Forests are managed as community forests due to their social and environmental values as well as their economic value. This is in line with ForestrySA's Charter.

They deliver an important commercial function and the Community Forest status reflects the importance of the Northern Forests as a recreational resource for local people and visitors, with significant heritage qualities and conservation values. Visitors are becoming increasingly aware of these values, including that they were established in 1876 and are some of the oldest planted forests in Australia. This legacy is appreciated by those who attend one of the largest forest festivals in Australia—the Bundaleer Festival—which was again held in March this year.

The forest reserves are highly valued by the community for recreation and are the location of choice for over 200,000 visitors per year undertaking more than 30 different types of activities. It is important to note that it is in fact the plantation areas that provide unique recreation opportunities for mountain bike riding, horse-riding, bushwalking and camping, and dogs are allowed. Some of these activities are generally unavailable on other public lands such as conservation and national parks.

The government continues to assist ForestrySA in the provision of these services through Community Service Obligation funding.

Timber processing activities in those regions depend almost entirely on ForestrySA logs. EconSearch Pty Ltd estimated the total direct and indirect economic contribution of these forests to gross state product as $44.9 million in 2008-09, generating 550 full-time jobs.

Of course since then the difficulties in the Australian housing and construction sector and competition from imports have and continue to affect the forestry sector's profitability and performance, and the Mount Lofty Ranges and Mid North are no exception. In the Mount Lofty Ranges, Brownwood Panels has closed, but on a positive note SA Sawmilling and Recut Industries have combined and are building a new drymill and kilns at Monarto.

The performance of these forests varies from one year to the next, and in order to improve revenue and return to profitability, ForestrySA is pursuing initiatives such as export log sales and the potential for a biofuel facility.

Collectively these forest operations together with non-commercial activities provide a significant benefit to the people of South Australia.