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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-05-03 Daily Xml
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FORESTRYSA

The Hon. I.F. EVANS (Davenport) (15:36): My question is to the Treasurer. Will the government release the economic modelling in the case outlined in the regional impact statement on the sale of the harvest rights of SA forests where there is a large quantity of log exported? I quote from the report which states, 'If a large quantity of log was exported, the impact on the local processing industry would be significant.' Why hasn't the government released the economic modelling on that model?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Employment, Training and Further Education) (15:37): I have done what I promised to do and that is to release the regional impact statement and to make it public. If it is not on the internet now, it should be. So, we have certainly released the regional impact statement. I take it from the member for Davenport that he is asking about the economic modelling behind the regional impact statement. I will have to have a look at that. The regional impact statement makes quite clear that it would not be in the interests of a potential purchaser of the forward forest rotations to undertake large scale exporting above and beyond what already happens. Any potential purchaser operating in their own interest is going to have an interest in making sure that there is a viable local sawmilling industry. It makes a lot more sense to provide forest product to local sawmills to produce than to export it and to try and make a quick buck out of what is a highly—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: —volatile market. The other thing to keep in mind with forest product is that a large amount of it goes to waste. It does not make economic sense to export it and to have costs associated with transport that cannot be recouped. So, for many reasons the RIS makes quite clear that it is highly unlikely that this will have any significant impact on the region, and on the viability of sawmills in the region. But just to make absolutely sure that that is the case, and to provide further reassurance for the people of the South-East, and the families in the South-East, who I know have legitimate concerns about this issue, and I acknowledge those legitimate concerns about those issues—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: To give those families reassurance about the future of forestry in the South-East, I have established an industry round table. That industry round table—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: —will be chaired by someone who is acknowledged across the sector as having a very deep and ongoing understanding of the issues—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: —facing forestry in the South-East. As the sale process proceeds, that industry round table will be providing me directly with advice on the conditions associated with the sale. On the round table, I will be inviting the owners of the two largest sawmills in the region, Carter Holt Harvey and Gunns. I will be inviting a representative of the small mill owners to participate on it. I will be inviting a representative of the union and a representative of the Regional Development Authority.

I will be inviting all those people to participate so they can have a direct line of access to me, to make sure that the interests of the forestry industry in the South-East and to make sure that the jobs and welfare of families in the South-East are absolutely protected. I give that my promise.

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