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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-04-30 Daily Xml
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FORESTRY

The Hon. R.J. McEWEN (Mount Gambier) (14:41): Will the Minister for Forests outline the ongoing commitment of the state government to the forestry industry? On Tuesday morning the people of the South-East awoke to some disturbing news that approximately one-third of the employees at Carter Holt Harvey's laminated veneer lumber plant at Nangwarry would be offered voluntary redundancies. The community immediately began to consider the plight of the 90 employees and their families and put in place support in terms of seeking jobs or training or supporting people into retirement. Within an hour the community was shocked to hear the member for Hammond bellyflop into the political sewer and sheet the blame at lack of investment by the government.

Members interjecting:

The SPEAKER: Order!

Mr WILLIAMS: I have a point of order, sir.

The SPEAKER: Order! I think I know what the member for MacKillop's point of order might be, and the member for Mount Gambier is out of order. The Minister for Forests.

The Hon. P. CAICA (Colton—Minister for Agriculture, Food and Fisheries, Minister for Industrial Relations, Minister for Forests, Minister for Regional Development) (14:42): I acknowledge the honourable member's understanding of the matter, having had stewardship of this important portfolio for a number of years and thank him for setting the scene for that question without notice.

The state government recognises the significant contribution made by the forestry industry to the economic and social wellbeing of the South-East region of this state and, indeed, the South Australian economy as a whole. That is why the Rann Labor Government has committed significant levels of support to the industry through Forestry SA.

The member for Mount Gambier is quite right to be disturbed about the comments made by the shadow spokesperson for forests, as all members of this place should be. I am sure the shadow spokesperson's attempt—

An honourable member interjecting:

The Hon. P. CAICA: I am sure the honourable member on the other side has a lot of dealings with the forestry union and I expect—

An honourable member interjecting:

The Hon. P. CAICA: Does he?

An honourable member interjecting:

The Hon. P. CAICA: Yes, that's right. I am sure the shadow minister's attempt to cast a shadow of doom and gloom over the future of the forestry industry has been welcomed by neither the industry itself nor the good people of the South-East. I offered to arrange a briefing for the shadow spokesperson about this government's ongoing and firm commitment to forestry, and I understand it is booked for 14 May—a little late to save him from his ill-informed comments on South-East ABC Radio last Tuesday, where he attempted to link the difficulties in which some companies find themselves to the level of government support for the industry.

Not only is that wrong but also, amazingly, the shadow spokesperson tried to relegate the impact of the global financial crisis on those circumstances as being of relatively minor significance. As the interviewer pointed out, since the beginning of the global financial crisis, mills have closed in most jurisdictions around Australia. Japanese pulp and paper sector markets have experienced about a 20 per cent decline, which has impacted significantly on Australian export woodchip sales, and the number of dwelling unit commencements nationally has declined by about 20 per cent between December 2007 and December 2008. If the shadow spokesperson wants to deny the impact of the global financial crisis which has hit most sectors of the economy, let him attempt to examine the facts—and this is important—about the investment made by the government through Forestry SA and argue that the Liberal Party in government did more.

Of course, I would remind the shadow spokesperson that it was his party (when in government) that sold off the Nangwarry mill which was in question there. I was also interested to learn through the media commentary and his contribution to the wireless station down there that the Liberal Party policy regarding sale of rotations currently being considered by this government will not be supported by his party. It is nice to learn of your policy over the airwaves.

An honourable member interjecting:

The Hon. P. CAICA: I do listen and I offer you some advice: perhaps you should listen in the future.

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: I do take—

Members interjecting:

The SPEAKER: Order!

The Hon. P. CAICA: I do take notice of where my emails come from. Just getting back to the point in question—that is, this government's support for the forestry industry—between 2000-01 and 2004-05, the expenditure authority provided to Forestry SA to conduct—

Members interjecting:

The SPEAKER: Order!

The Hon. M.J. Atkinson interjecting:

The SPEAKER: The Attorney will come to order!

Mr Goldsworthy interjecting:

The SPEAKER: The member for Kavel will come to order!

The Hon. P. CAICA: I was attempting to explain that between 2000-01 and 2004-05, the expenditure authority provided to Forestry SA to conduct its activities was $3 million per year, a figure which was doubled to $6 million per year between 2005-06 and 2007-08, before again being doubled by this government to $12 million in 2008-09 and 2009-10. In terms of having trees in the ground, this government's commitment can be clearly understood. Between 1998 and 2005, Forestry SA's new plantings and replanted area after clear-felling was constant—about 10,172 hectares in total (or a yearly average over that period of 2,543 hectares). What is of particular note is that, in the last three years—2006 to 2008—Forestry SA's total new plantings and replanted area after clear-felling jumped to 10,203 hectares (or a yearly average over that period of 3,401 hectares).

Yes, there are challenging times ahead for the forestry industry, like most sectors and most industries, but this government is about ensuring that we maintain a strong forestry industry and that we will be in a position to respond nimbly to take advantage of improved economic conditions nationally and, indeed, internationally. At another time in this place, I will be happy to report back to members about some of those specific initiatives and, indeed, by that time, I am sure the shadow spokesperson, as a result of the briefing he will be provided, will be far better informed than he was on Tuesday.

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