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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-02-23 Daily Xml
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FORESTRYSA

Mr PEGLER (Mount Gambier) (14:23): My question is also to the Treasurer. Can the Treasurer confirm to the house that a final decision has not been made about the forward sale of rotations of ForestrySA plantations?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Employment, Training and Further Education) (14:23): I thank the member for Mount Gambier for the question and note the passion with which he looks after the interests of the people of the South-East of this great state. In the wake of the unfolding global financial crisis, the South Australian government announced in the 2008-09 Mid-Year Budget Review several measures aimed at realising some of the value of the state's assets, with the intention of reducing government debt and meeting the increased demand in our core public services. One of these measures was an investigation into options to sell the harvesting rights of ForestrySA.

The former treasurer has advised the house that, as part of the initial consultation process and to gain a better understanding of the forestry business, there have been meetings with ForestrySA's board, key customers, a range of industry analysts and commercial advisers, and harvesting contractors. The Premier is already on the record in this place, on 24 November last year, as saying, and I quote, if 'the potential sale is no longer economically viable, then the government will not proceed with the sale'.

The government has also announced to the house that, as part of the decision to investigate the sale of the forward harvest, it has commissioned an external economics consulting firm, ACIL Tasman, to develop a regional impact statement identifying the potential social and economic impacts on the South-East from selling the forward harvest.

As part of this process, the consultants have begun a comprehensive consultation process with key stakeholders including local councils, timber industry representatives, key unions and chambers of commerce. The regional impact statement will identify, firstly, the issues and the views expressed in the consultation; secondly, the costs and benefits of this proposal on the region and its community, in particular on employment; thirdly, the impact of the proposal on social inclusion and economic development within the region; fourthly, strategies for managing any identified risks, impacts and issues including the impact on downstream industries.

It is expected that the consultant will deliver their report by the end of the first quarter of this year. I can confirm to the house that no final decision has been made by cabinet and no final decision will be made until the consultation process and the regional impact statement is completed. I will advise the house once a final decision has been made by the cabinet. I would like to add, the people of the South-East can be assured that I will need to be satisfied—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: —that the jobs and the welfare of families are secure before I agree to this proposal.

Members interjecting:

The SPEAKER: Order!

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