Question Time

MORGAN SAWMILL

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:18): I seek leave to make a brief explanation before asking the Minister for Forests and Regional Development a question about the future of timber supply in the Mid North.

Leave granted.

The Hon. D.W. RIDGWAY: There is a sawmill near Jamestown called Morgan's, a family business owned and operated by three generations of the same family. It supplies structural timber, pallets, woodchips, sawdust and decking. Morgan Sawmill supports the preservation of timber supply from a locally-grown plantation forest maintained by ForestrySA.

Most of its raw timber comes from the Wirrabara and Bundaleer forests, Bundaleer being the state's first forest plantation, planted in 1876. Members will recall that last year we had quite a significant fire in that region, and now Morgan Sawmill is coping with a large supply of burned logs, trying to harvest the timber before it becomes unmillable. They also create some 35 to 40 jobs in the town of Jamestown, and I visited them earlier this year.

Morgan's have a quandary, and it's of the minister's making. Early last year, the minister's department promised to do essential mapping of the Mid North forest resource. Morgan's need to know exactly how much timber is available and what type of timber it is. Morgan's would use the mapping of what is in the forest to target the market with the right timber products. This will give the company confidence to invest, to create even more jobs in a regional community and to hand the company on to the fourth generation. Despite being told that the mapping would be finalised last year, the company has heard nothing from the department. My questions to the minister are:

1. Why the delay?

2. When will the delay be over?

3. Has the minister visited Morgan Sawmill to see how important this industry is to a regional community?

The PRESIDENT: Before I call the minister, I ask the minister to ignore the opinion.

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) (14:20): Thank you for your advice, Mr President; I will ignore all opinion. I am advised that Morgan Sawmill have raised concerns with ForestrySA about their mix of log supply. This is obviously an operational issue for ForestrySA, and I understand that there are ongoing discussions around that to work on contractual arrangements for their supply over the long term.

ForestrySA, I understand, has previously advised that they would undertake a survey of the current tree stock in the Mid North plantations to provide better information about what might be the longer term supply options with respect to log mix. This assessment and review was expected to be completed early this year. However, I am advised—

The Hon. D.W. Ridgway: Last year.

The Hon. G.E. GAGO: My understanding is that it was expected to be completed early in 2013. I am advised that in about mid-January this year approximately one-third of the 1,344 hectares of pine resource in the Bundaleer Forest was severely damaged by wildfire, which I am sure the Hon. David Ridgway would be well aware of. I am advised that ForestrySA is communicating with Morgan Sawmill to work through the fire salvage issues. Recent survey work, I understand, and analysis to provide better information about the potential longer term supply options from the Mid North forests will now need to consider unsalvageable logs from the wildfire, and it is likely that the assessment and review are now expected to be completed around mid-2013.

It is most unfortunate that we had that fire; there is very little that we can do about that. These things happen; they are part of the environment we work in and part of the risks associated with our forestry industry. I understand that this dialogue has been going on with Morgan's for some time and that they understood why there were protracted mapping opportunities. My understanding is that they have been kept informed of this and understand what is going on, why it is going on and what the new time frames have been calculated to be.

I will double-check that Morgan's have been informed of all these things. I am confident that they have, but I will double-check to make sure that, if they haven't or if there is any uncertainty about any of those matters, they are kept up to date.