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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-11-24 Daily Xml
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SOUTH-EAST FORESTRY INDUSTRY ROUNDTABLE

Mr PEGLER (Mount Gambier) (14:19): My question is to the Treasurer. Can the Treasurer tell the house, will conditions recommended by the South-East Forestry Industry Roundtable be made public, and will those recommendations be adhered to and be written into the conditions of sale?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:19): I would like to thank the member for Mount Gambier for this very important question. I recognise the keen interest that he takes in this very important issue to his electorate. As members would be aware, on Tuesday 3 May I announced the South Australian government's intention to proceed with the proposed forward sale of ForestrySA plantations. This decision was made following the preparation of a regional impact statement by independent external economic consultant firm ACIL Tasman and an extensive consultation process.

At the time of making this announcement I advised the house of steps that would be taken to protect the interests of the South-East as a direct result of proceeding with the divestment of forest rotations. One of these steps, which I reported to the house, was the establishment of the South-East Forestry Industry Roundtable. This round table has met on numerous occasions, both in Mount Gambier and in Adelaide, to formulate conditions and issues for me to consider.

Last week I released the request for expressions of interest as the first stage of the sale process of up to three rotations. This is the start of the competitive tender process for the sale of forward rotations of the Green Triangle plantation estate. The round table has recently provided me with several recommendations to be considered as part of the intended conditions of sale. The recommendations provided to me by the round table address many of the sale conditions that I have previously made public as safeguards to encourage the long-term development and sustainability of the forestry industry in South Australia.

I wish to advise the house that at this early stage of the sale process those conditions will not be made public. However, the next stage of the sale process is to provide an information memorandum in order to short-list potential bidders and to provide them with the conditions of sale. My intention is to make the round table recommendations and my response to those recommendations public at that stage of the process. Ultimately the conditions of sale, informed by advice from the round table, will form part of a binding legal contract with the successful bidder, which will include regular reporting, compliance monitoring and a penalty regime for noncompliance.

As I have said previously, there will be annual reporting requirements to ensure the terms of the agreement are being complied with, and the government will have the right to terminate the agreement in the event of the terms and conditions not being met. The government recognises the importance of the state's forest industry and is committed—

Members interjecting:

The SPEAKER: Order! Member for Hammond, behave.

The Hon. J.J. SNELLING: The government recognises the importance of the state's forest industry—

Members interjecting:

The Hon. J.J. SNELLING: Madam Speaker, I can't complete my speech.

The SPEAKER: Order! The Treasurer can't hear himself, let alone anyone else.

An honourable member interjecting:

The Hon. J.J. SNELLING: I am happy to repeat it to emphasise the point.

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: It is like canned laughter. Madam Speaker, the government recognises the importance of the state's forestry industry and is committed to addressing the many challenges facing the industry, irrespective of the proposed forward sale of forest rotations. The government intends to, and will, protect the interests of the industry, the community of the South-East and all South Australians.

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