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Union concern at forestry ‘cash cow’

Posted on December 23, 2008, 10:10am and updated on December 24, 2008 at 11:17 am

A union leader has called on the South Australian Government to not use the South East as a cash cow for the rest of the state and ensure money from the region’s forestry is reinvested in the area.

His comments follow Treasurer Kevin Foley’s announcement the government will work with key stakeholders to explore options for the upfront sale of ForestrySA harvests to secure infrastructure investments.

“The Rann Government’s first priority is to guarantee the delivery of our record investment in infrastructure with new schools, hospitals, a desalination plant to secure Adelaide water supplies and the $2b to rebuild the metropolitan transport system,” Mr Foley said.

He said ForestrySA would retain responsibility for sale of timber assets into the marketplace under the initiative and no employees would be affected by the upfront sale.

“The jobs of ForestrySA workers will not be impacted by this initiative,” he said.

“Expert advice will be sought on the best way of realising the future value of the ForestrySA plantations to ensure we receive the appropriate return.”

CFMEU assistant state secretary Brad Coates said the government was following a similar approach to Gunns and Timbercorp, selling timber before harvest while continuing to manage the assets.

“It is a way of raising revenue by pre-selling timber before trees are cut down, instead of after they are delivered to mills,” he said.

Mr Coates said he welcomed assurances jobs would be safe and the ForestrySA would remain a public corporation under the move.

But he said the government would have to take care during the negotiation process to ensure the price was appropriate at the time of harvest in years to come, possibly by building annual consumer price index rises into the contract.

“The government has said it won’t do it quickly and there will be a period of 12 months of negotiations, but that all depends on whether there is anyone out there with enough money to want to invest in them,” he said.

However, Mr Coates said his bigger concern was that the government was using ForestrySA to raise funds for city-based infrastructure.

“We would hope some of that money is utilised in regional areas where that revenue is derived,” he said.

“We also hope during industrial negotiations next year they remember ForestrySA workers are due for a reasonable pay increase as well and there is some money used for that.”

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