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Taxpayers Can't Afford to Lose the Timber IndustryThe NSW and Commonwealth Governments cannot afford to lose the money they receive from the south east hardwood industry which is paying its way according to Mr Graeme Hammond, president of the South East Timber Association (SETA).He said that hidden by the debate about timber resource accessibility for the south east hardwood industry are some startling facts about the cost of maintaining forests which eventually will fall on Australian taxpayers. "We do not believe government has considered the financial implications of losing the timber industry in the Eden Native Forest Management Area (ENFMA)", he said. Investigations by SETA show that it costs $7-8 per hectare per annum to maintain the status quo in forests - that is, preventive burning, removing accumulated fuel and rubbish. To do a thorough job which would include extermination of feral animals and destroying marijuana plantations would increase the cost to about $15 per hectare per annum. State Forests of NSW receive royalties from the timber industry. The amount received from timber harvesting operations in the ENFMA within the south east forests enabled State Forests to return to NSW Treasury about $4 million last year, after all wages and overheads had been paid. Removing another 36,000 hectares from State Forests and timber harvesting and adding this to national parks would mean an additional minimum cost of $270,000 to the NSW National Parks & Wildlife Service (NPWS) budget if it is to maintain these forests at the minimum level. This will bring the total costs of maintaining the south east national parks to $1.4 million. However, it would cost NPWS $3 million to do the job properly including measures to protect neighbouring state forests and private property from the inevitable bushfires originating in national parks. This does not include the cost of roads and infrastructure maintenance. According to SETA sources, NPWS has never developed a culture of doing the things that need to be done or of costing the things that they do. For, example, roads are not maintained well and fuel has built up and not been removed or burned off. In one recent instance the newly sown Wyndham Sports Oval was severely damaged by NPWS helicopters and vehicles using it without due care during a nearby bushfire near Jingera Rock in the South East Forests National Park (Yowaka section). The result of NPWS-style forest maintenance has been that wildfires in national parks have been extinguished more slowly and with increased danger factors than have fires in state forests or private lands which have been stopped quickly. Management of bushfires by NPWS personnel has also been substandard with floats hired, kept idle and never used. All this has added to NPWS costs. Mr Hammond said this information should be considered carefully by politicians who should be mindful of the blow-outs of their budget deficits. "Decisions to diminish the timber industry by further reducing the annual sawlog quota (already cut from 59,000 to 26,000 cubic metres in 1996) will also mean higher welfare bills for people who will receive unemployment benefits after losing timber related jobs", Mr Hammond said. The NSW Government received $17.25 million in taxes and royalties from the Eden woodchip industry in 1995. Arbitrary cutbacks reduced this to $15.67 in 1996. The NSW Government has an increased budget deficit from the Olympic Games blow-out. It is unable to privatise the electricity industry. It has problems in maintaining health and education and other important services. Its ministers and members want to regain power in the 1999 elections. "What a tragedy for Bob Carr and his ministers if they are the Opposition at the time of the Olympic Games", Mr Hammond said. "Can the Carr Government afford financially to severely damage an industry which pays its own way? Can it afford the social implications of eliminating small timber businesses and putting many families on the dole?" One timber job lost accounts for another 2.3 jobs lost indirectly. A loss of 36,000 hectares and considerable sawlog volume as proposed by Bob Carr would eliminate total employment in the Eden region for 92 people. The revenue for the NSW Government would fall to $10 million from 1998 onwards. The actual costs would be between $1.4 to $3 million higher due to additional NPWS forest maintenance. The Commonwealth Government received $16.85 million in taxes and charges from the Eden forest industries in 1995, which reduced to $14.28 in 1996. The same story applies arises should the timber industry further decline through unnecessary government interference. A shortfall in taxes and charges received to $10 million in 1998, would be considerably higher due to huge redundancy and closure settlements, and a massive increase in social welfare payments for the area. The greens want to close down the woodchip industry in Eden completely. This is unlikely to happen as the woodchip mill can continue its operations by bringing in more timber from East Gippsland in Victoria. Should the woodchip quotas in the Eden region be folded up due to a Carr Government decision the NSW towns of Eden and Bombala and surrounding communities will suffer in the extreme. The scenario then would be:
Mr Hammond said: "We have heard a lot about Newcastle and Lithgow and sympathise with any worker made redundant. Here in Eden we have an industry that makes money and does not need to close. There are no economic problems, just resource access difficulties. "Yet Eden and Bombala would be decimated just because a minority green vote has influenced a handful of politicians to close an industry with a tradition of paying its own way. "Environmentalists and politicians must take heed that people are also a part of their environment. A fine balance must be maintained to assure the status quo of the socio-economic community does not topple over and fall below the poverty line," he said. Sources of Information
Enquiries Rob Owen - 02 6493 2410 Media Interviews Graeme Hammond, President, South-East Timber Association 02 6496 1345 (w); 02 6458 3180 (ah) |
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