Behind the Veneer - Tasmanian Greens MPs

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TA ANN: BEHIND THE VENEER Coupe CO002B, Counsel area The swift parrot is one of the most threatened bird species in Australia, with 1000 breeding pairs left. The swift parrot is the most significant of the endangered species with habitat range, both breeding and foraging, in Bruny Island state forests. In June 2010, a representative from Tasmania’s Threatened Species Unit (TSU) communicated at a meeting of the Bruny Community Forestry Group that Tasmania’s most important breeding habitat for the swift parrot for the year 2008-2009 was Bruny Island. 117 Peter Pepper, Forestry Tasmania’s Community Liaison Officer for the Huon District frequently stated that the 80-100 year old regrowth forests of South Bruny State Forest, were particularly valuable as a source of veneer billets for Ta Ann’s Southwood mill. For example a memo dated 15 June 2010, from Peter Pepper to the Bruny Community Forest Group, stated that 2 500 tonnes of timber from the logging of coupe SB040A would be supplied to the rotary peeler mill at Ta Ann Huon. A total of 13 400 tonnes of timber would be logged at the site, with 5 100 m 3 being supplied to sawlogs, 5 800 tonnes to Gunns Ltd’s Triabunna woodchip mill and 2 500 tonnes supplied to Ta Ann Tasmania. This logging coupe was identified by community members, as well as TSU surveys, as key swift parrot foraging habitat. 118 Coupe WE005E, Wedge area Logging coupe RU043H: West Wellington The logging coupe RU043H is a 53ha coupe located in the West Wellington region, watershed for the Judds Creek community. Logging commenced in this forest in August 2011. Timber from this coupe was supplied to TAT (see Appendix VI). Community members of the West Wellington watershed have 24
TA ANN: BEHIND THE VENEER been in consultation with Forestry Tasmania to express their concerns about logging in the region. West Wellington is a region of native forest on the mountain range behind the rural communities of Lucaston, Crabtree and Judds Creek in southern Tasmania, all in the water catchments of this forested region. The threatened forests border the Wellington Park. In meetings with Forestry Tasmania the community members have been informed ‘to meet the requirements of Ta Ann, they need all the re-growth they can get.’ Further to this, Forestry Tasmania claimed that ‘plantation wood (E. nitens) has too many knots for veneer, partly owing to the species, mainly owing to the fact it wasn’t pruned at an early stage. Blue gum plantations which would have been fine, were stopped because it was too slow growing.’ 119 Forestry Tasmania employees explained ‘previously a good coupe in the Huon Valley was averaging 20% sawlogs, with the rest going for chips. Now 40% of what used to go to pulp, is recovered for Ta Ann … For an averagely good tree, 30% of it would go for sawlog, 30% for pulp, 30% for peeler logs’. 120 Coupe RU043H, West Wellington Financial trouble at Ta Ann Tasmania will drive further native forest clearing TAT’s operations are neither environmentally nor financially sustainable. Despite having a cheap source of timber, TAT has made an operating loss in each of its five years of operations in Tasmania. Accumulated net losses currently stand at AU$18 million. In 2010, with both of its mills fully operational, Ta Ann made a loss of AU$11 million. The table below summarises Ta Ann’s financial performance over the last five years. In total, Ta Ann has made losses of AU$17.8 million over this period. The final year’s loss, of AU$11.0 million, was made in an environment of full production capacity and record sales. TAT’s losses have occurred notwithstanding considerable financial support from the Australian public. TAT has received direct taxpayer subsidies of AU$10.3 million and has been the indirect beneficiary of public grants to Forestry Tasmania’s subsidiary Newood, the company that operates the two mill sites that TAT leases. Forestry Tasmania has invested AU$23 million in TAT’s Newood sites and Newood has been operating unprofitably since inception. The Tasmanian Auditor General has called for an impairment review into Forestry Tasmania’s investment in Newood. TAT’s operating losses (shown in the third from last row above) have continued despite growing veneer sales. The 2010 result is particularly worrying, given that TAT was operating both of its mills. Veneer sales of AU$37.6 million were made but the direct cost of those sales (payments to staff, Forestry Tasmania and other direct operating costs) was $42.3 million. This is, of course, not sustainable. The reason that TAT is unable to operate 25
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