A contract to allow a private forester to harvest 29,000 hectares of publicly owned forested land does not impose an obligation to regenerate harvested areas.
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Labor resources spokesman Shane Broad produced the Forest Right for the 99-year lease at Tuesday’s hearing, signed between the state government and Reliance Forest Fibre, who purchased the hardwood forest estate for $60.7 million last year.
From the sale, $45 million would pay off the company’s debt and assist with business restructure costs and $15 million would be paid as a special dividend to the state’s Health Department.
Dr Broad said the contract showed it had been signed on October 5, but this was not registered with the Land Titles office for another eight months.
Resources Minister Guy Barnett deflected questions about whether the late registration delayed the dividend payment and was the reason that the government decided it did not need to include that payment in this year’s health budget.
Dr Broad said there was no clause within the contract that required the company to regenerate areas of land it considered unproductive, which meant it could result in large areas of barren coupes being left behind.
Mr Barnett said it was an operational matter for Sustainable Timber Tasmania (STT), formerly Forestry Tasmania.
He expressed faith in Forest Practices Act would ensure planned harvesting happened in a sustainable way.
Mr Barnett confirmed STT was still pursuing Forest Stewardship Council certification, which he said had the government’s support.
But Mr Barnett could not commit to having the certification achieved during this term of government, saying it was a complex process which relied on independent approval.
He would not confirm if Ta Ann were still committed to FSC, saying he would not publicly reveal discussions with private sector operators.
Dr Broad expressed concern over the time taken to achieve the certification, highlighting the $190 million plantation hardwood mill and timber product manufacturing facility planned for Hampshire would only take FSC-approved product.
Mr Barnett said the proposed mill owner, Hermal Group, was looking to process 300,000 cubic metres of Eucalyptus nitens each year which would be supplied by Forico.
