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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-10-18 Daily Xml
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Ministerial Statement

FORESTRYSA

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:08): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.J. SNELLING: Today I inform the house that the sale of ForestrySA's forward rotations in the South-East has been completed. The forward rotations were required—

Members interjecting:

The SPEAKER: Order! The Treasurer will be heard in silence.

The Hon. J.J. SNELLING: The forward rotations were required by a consortium led by The Campbell Group. The Campbell Group, trading in Australia as OneFortyOne Plantations, is representing a number of institutional investors including Australia's Future Fund. The Campbell Group is one of the world's largest timber investment managers, and currently manages over three million acres of timberland assets. We have secured $670 million for taxpayers of South Australia to continue to invest—

Members interjecting:

The SPEAKER: Order! I won't say it again.

Members interjecting:

The SPEAKER: Order! The Treasurer.

The Hon. J.J. SNELLING: —in future infrastructure and core government services such as health, education and law and order. The $670 million—

Mr Pederick interjecting:

The SPEAKER: Member for Hammond, behave!

The Hon. J.J. SNELLING: The $670 million figure is substantially above our reserve price. In May last year the government announced its decision to proceed with the sale of ForestrySA forward rotations in the South-East which was first proposed in late 2008 as part of the 2008-09 Mid-Year Budget Review. As part of this announcement I also established the South-East Forestry Industry Roundtable which was made up of local community leaders, sawmillers and unions. The roundtable examined the broader issues facing the forestry industry in the South-East and provided recommendations and advice to the government about the conditions of sale.

The government has engaged with the stakeholders throughout the sale process. The conditions of sale recommended by the roundtable to protect the long-term future of the region's forestry industry had been incorporated into the contract of the forward sale of the forest rotations of the Green Triangle. The Campbell Group is committed to the conditions imposed by the government, including the provision of future sawlog to domestic customers, maintaining targeted rotation length, complying with replanting obligations and annual reporting. The Campbell Group was able to meet my strict demands and offered an impressive deal that South Australians will benefit from. Under The Campbell Group's direction, this valuable forestry estate will continue to be managed on a sustainable and commercial basis.

The high quality blue chip field of bidders and the eventual successful bid from The Campbell Group demonstrated a strong vote of support for the long-term viability of the local industry in the South-East.

Mr Williams interjecting:

The Hon. J.J. SNELLING: Mate, if you want to ask me a question, I am happy to take it. Separate to this transaction—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: —the government has been—

Members interjecting:

The SPEAKER: Order! Treasurer, can you sit down for a moment until we have some order? The Deputy Leader of the Opposition, you are very close to going out. Order! This is an important issue for South Australia and we need to listen to what the Treasurer has to say. Treasurer.

The Hon. J.J. SNELLING: Separate to this transaction, the government has been in ongoing discussions with various sawmillers in the South-East about assistance to provide long-term coinvestment to help overcome issues that are currently facing the timber industry.

The government is also working with The Campbell Group and local industry participants to further enhance investment and employment in the region. The Campbell Group is committed to the local forestry industry and is looking forward to working with local customers, suppliers and the high quality management team at ForestrySA. The government recognises the need to ensure that the interests of the entire industry are protected, therefore the government will be announcing a resolution on those matters in the very near future.

I thank the member for Mount Gambier for his constructive representation to me on behalf of the people of the South-East while maintaining his strong opposition to the sale and Mr Trevor Smith, chair of the round table—

Members interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING: —Mr Trevor Smith, chair of the round table and its members for their time and commitment in formulating the sale conditions. I am confident that the sale conditions recommended by the roundtable that The Campbell Group has committed to will protect the long-term future of the industry in the South-East and assist in building a sustainable future for future generations.

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