Chapter 4

REPORT ON THE PROVISIONS OF THE REGIONAL FOREST AGREEMENTS BILL 1998

Chapter 4

Comment on Issues Raised by the Bill

RFAs and confidence in the forest estate

4.1 The Tasmanian State Office of the Forest Protection Society told the inquiry the Bill will allow Australia's commercial forests to be managed according to the principles of sustainable management. It is the view of the Society that sustainable development of native forest resources will give “ … a future to regional communities and ensure that the social and economic benefits of each Regional Forest Agreement are achieved.” [1]

4.2 The Bill provides RFAs with the legislative backing to ensure that all Australians have confidence in the long-term future of Australia's forest estate. It is the view of the Commonwealth Government that this confidence will be further sustained through:

4.3 Minister Tuckey told the House of Representatives that the Government firmly believes that “… community and investor confidence in forest industries will be best secured by strong RFAs which provide for ecologically sustainable management of our forests.” [3]Mr Tuckey went on to state:

RFAs and ecologically sustainable management

4.4 In the view of some contributors to the inquiry the Commonwealth Government's confidence in the potential of RFAs to bring about ecologically sustainable management of our forests is misplaced. The Southern Tablelands NSW Branch of the Friends of the Earth told the inquiry that any forest management that uses clearfelling and other intensive harvesting methods “cannot possibly achieve ecological sustainability”. [5]

4.5 The Native Forest Network, Southern Hemisphere, advised the inquiry that in relation to Tasmania's RFA; “This failure to adequately reserve old growth immediately calls into question the validity of the `ecologically sustainable forest management' process.' [6]

4.6 The WA Forest Alliance commenting on the West Australian RFA stated:

4.7 It was alleged during the inquiry that:

4.8 Mr Robert Pearce replying to a question from Senator Brown concerning sustainable ecology during the Melbourne public hearing presented a different view of the issue when he stated:

4.9 Professor Harry Recher noted:

4.10 Mr Alan McMahon (p 114 et seq) gave evidence that the scientific assessments that formed the basis for the Central Highlands RFA were incomplete -

4.11 Mr McMahon also questioned whether ecological sustainability would be achieved through the RFA -

4.12 The Aboriginal Legal Service of Western Australia (Inc) also emphasized that Indigenous people have a range of interests in relation to forests

Termination of RFAs

4.13 Under the provisions of the Bill (clause 6) the Commonwealth Government proposes that all existing and future RFAs be strengthened by providing that termination by mutual consent of the parties can only take place 12 months following a notification of intention to terminate the agreement. This provision will allow a full review of the operation of the RFA to be carried out. [11]

4.14 The Bill's second reading speech in the House of Representatives stated:

4.15 The Environmental Defenders Office in Tasmania was critical of the termination provisions set out in the Bill, arguing that:

Resource security and RFAs

4.16 The Commonwealth Government claimed that the Bill “ … provides a high degree of certainty for conservation and environmental interests, forests and forest products industry operators, recreational users of forests and the broader community in that significant commitments made under RFAs will be supported by legislation.” [14]

4.17 The Forest Protection Society advised the inquiry:

4.18 The RPS went on to comment, “…the absence of reasonable security of access to forest resources has negative effects that touch all levels of the economic and social structure of timber communities.” [16]According to the FPS:

4.19 Senator Shayne Murphy, appearing as a private witnesses, stated in evidence:

4.20 Mr Paul Lennon, Deputy Premier and Minister for Infrastructure, Energy and Resources in Tasmania commented to the inquiry:

RFA and employment

4.21 Mr Geoff Law of Tasmania, in his submission, detailed the reduction of employment in Tasmania's forest industry that has taken place over the years over recent years. However, Mr Law argued that the “… adverse impacts on employment in the Tasmanian timber industry have occurred not because of conservation, but because of economic rationalism, in particular the de-regulation of trade and the large-scale takeovers by multinational corporations …” [20]

4.22 Ms Patricia Townsend of the WA State Office of the Forest Protection Society claimed that if all remaining old-growth forests in WA were reserved the cost would be 1 313 direct jobs and 1 576 indirect jobs. It was estimated such a reservation would have an impact on 7 222 people in Western Australia. [21]

4.23 The Busselton-Dunsborough Environment Centre in Western Australia advised the Committee that:

4.25 In her evidence to the inquiry Ms Judith Clarke stressed the importance of plantations to the creation of employment in the forest industry. Ms Clarke stated:

4.26 Ms Clark told the inquiry that the forestry industry in Australia is not a native forest industry any more but a plantation industry and that the plantation sector of the industry is dominated by a manufacturing ethic. Among the most significant points made by Ms Clark were:

4.27 Ms Clark also noted the lack of data to enable identification of employment levels in the plantation-based and native forest-based industries.

4.28 In evidence to the inquiry's public hearing in Melbourne Mr Keith Kessell of Bunnings Forest Products described his company's activities in Western Australia involving value adding. Mr Kessell stated:

Mr Kessell went on later to state in evidence:

RFAs and compensation

4.29 Clause 7 of the Bill sets down the obligation of the Commonwealth Government to pay compensation to a State for a breach of an RFA by the Commonwealth. [32]

4.30 As stated in the Bill's second reading speech the Commonwealth proposes that all RFAs will include obligations on the part of the States to initiate compensation action on behalf of industry where a Commonwealth breach of an RFA results in a case for compensation. [33] The right to compensation will exist even if the RFA is terminated or expires. It is claimed that this will ensure that the Commonwealth Government cannot “… effectively change RFA termination or compensation provisions in the future without legislative action.” [34]

Opposed to compensation provisions in the Bill

4.31 The Conservation Council of Western Australia expressed opposition to the inclusion of compensation provisions in the Bill:

4.32 The Amcor Green Shareholders Strategy Committee stated:

4.33 The National Council of Women of Australia expressed concern about the imbalance between the timber industry and ecological protection in relation to the compensation provisions in the bill, and also pointed to the lack of any minimum requirement for investment and downstream processing --

Support for compensation provisions in the Bill

4.34 The NAFI supported the compensation provisions set out in the Bill. The Association argues that investors must have confidence that under a worse case scenario, for example if their wood supplies were diminished they would have the legal opportunity to seek compensation from the “offending government”. [37]

4.35 The FPS in its submission to the inquiry expressed its strong support for compensation provisions in the Bill. According to the Society, “… a legally binding agreement, including provision for third party compensation should offer communities reasonable security and certainty as well as a formal avenue of recourse should an RFA be changed or terminated resulting in economic hardship for businesses, workers and communities affected by the decision.” [38]

4.36 The Forest Industries Federation of WA commented that:

4.37 Mr Allen Grant, Assistant Secretary, Forest Assessment Branch of the Commonwealth Department of Agriculture, Fisheries and Forestry told the inquiry that the Commonwealth Government agreed in the RFAs to pay compensation only if it does “certain things which are limited”. Mr Grant went on to state:

4.38 The Committee considers that the provisions of clause 7 of the Bill provide an adequate compensation regime for RFA activities, and notes that the provisions of clause 7 only become effective upon breach of an RFA terms by the Commonwealth.

Review of RFAs

Support for review of RFAs

4.39 A number of contributors to the inquiry recommended some formal method of reviewing RFAs.

4.40 The WA Forest Alliance recommended to the inquiry that “a judicial review of all RFAs in place or still underway be instigated.” [41]

4.41 The Aboriginal Legal Service of WA (ALSWA) stated:

4.42 Dr Ian Crawford of WA in his submission to the inquiry was critical of the lack of provision in the Bill dealing with monitoring the performance of States:

4.43 Ms Heather Whitelk submitted that:

Opposition to review of RFAs

4.44 The Forest Protection Society is opposed to any review of the Regional Forests Agreements once they are operating. According to the Society any “post-signing analysis would ensure political intervention” in the operation of the agreements. The FPS noted:

4.45 North Forest Products expressed their concern that:

Review of RFAs - Committee view

4.46 The Committee considers that an annual review of the operations of RFA'sRFAs during the first 5 years of operation should be made public.

4.47 To make the process of review of RFA operations more transparent, and more available to the public, the Committee recommends that annual reports of the operation of RFAs for the first 5 years of the period of an RFA be tabled in the Parliament to allow both public and Parliamentary scrutiny of RFA operations.

Footnotes

[1] Submission, Tasmanian State Office of the Forest Protection Society, p. 5.

[2] House of Representatives Hansard, 26 November 1998, p. 612.

[3] House of Representatives Hansard, 26 November 1998, p. 612.

[4] House of Representatives Hansard, 26 November 1998, p. 612.

[5] Submission, Southern Tablelands NSW Branch of the Friends of the Earth, p. 3

[6] Submission, Native Forest Network, Southern Hemisphere, p. 3.

[7] Evidence, WA Forest Alliance, p. 180.

[8] Submission, Mr Roger Martin, p. 3.

[9] Evidence, Forest Industries Federation of WA, pp. 173-174

[10] Evidence, Judith Clark, p. 150.

[11] House of Representatives Hansard, 26 November 1998, p. 612.

[12] House of Representatives Hansard, 26 November 1998, p. 612; see also Regional Forest Agreement Bill 1998, Explanatory Memorandum, p. 4.

[13] Submission, the Environmental Defenders Office, Tas, Inc. p. 3.

[14] Regional Forest Agreement Bill 1998, Explanatory Memorandum, p. 3.

[15] Submission, Forest Protection Society, p. 1.

[16] Submission, Forest Protection Society, p. 2.

[17] Submission, Forest Protection Society, p. 3; see also Submission, Boral Timber.

[18] Evidence, Senator Shayne Murphy, p. 81.

[19] Evidence, Forestry Tasmania, p. 135. For a description of the importance of the forestry industry to Tasmanian see Evidence, Forestry Tasmania, pp. 136-137

[20] Submission, Mr Geoff Law, p. 3.

[21] Evidence, Forest Protection Society, p. 194.

[22] Submission, Busselton-Dunsborough Environment Centre, p. 2.

[23] Evidence, Judith Clark, p. 153. For a discussion dealing with the issue of forest plantations in Australia see Submission, Ms Judy Clark. For information on the number of people employed in the WA forest industry see Evidence, WA Forest Alliance, pp. 179-180.

[24] Evidence, Judith Clark, p. 150.

[25] Evidence, p. 152.

[26] Evidence, Forest Industries Federation of WA, p. 168

[27] Evidence, Forest Industries Federation of WA, p.172

[28] Submission, WA Forest Alliance, p. 2.

[29] Submission, Aboriginal Legal Service of WA, p. 2

[30] Submission, Dr Ian Crawford, p. 1.

[31] Submission, Ms Heather Whitelk, p. 1. The following is a selection of submissions which supported reviews in relation to RFAs and related activities: Ms Stefanie Rennick, Ms Jill Bartlett, Mr Ralph Bartlett, Ms Georgette Courtenay, Mr Marc de Vecchi, Mrs E J Wright, Mr C RA Lang, Ms Peg Jones, A and B Cook, Mr Peter Campbell, Ms Helen Goedemoed, A and J A Schmidt, Ms Lois Loftus-Hills, E L Minifie, Richard and Alison Harcourt, Ms Carolyn Pile, Mr Neil McLogan, Phillip Island Conservation Society, Mr Murray Winter, Knox Environment Society, Ms Doris L Metcher, Ms Dallas Kinnear, Ms Margaret Files, Ms Alfrieda Booth, Mr David Cook.

[32] Department of the Parliamentary Library, Bills Digest No. 50 of 1998-99, p. 9.

[33] House of Representatives Hansard, 26 November 1998, p. 612

[34] Regional Forest Agreement Bill 1998, Explanatory Memorandum, p. 4; see also Department of the Parliamentary Library, Bills Digest No. 50 of 1998-99, p. 5

[35] Submission, Conservation Council of Western Australia, p. 1.

[36] Submission, Amcor Green Shareholders Strategy Committee, p. 3. See comments by Senator Brown Evidence, p, 67. See also Evidence, Tarkine National Coalition p. 106; submissions from: Braidwood and Bega Greens, Ms Christine Milne.

[37] Submission, NAFI, p. 5.

[38] Submission, Forest Protection Society, p. 6.

[39] Submission, Forest Industries Federation of WA, pp. 3-4.

[40] Evidence, Commonwealth Department of Agriculture, Fisheries and Forestry, pp. 212-213.

[41] Submission, WA Forest Alliance, p. 2.

[42] Submission, Aboriginal Legal Service of WA, p. 2

[43] Submission, Dr Ian Crawford, p. 1.

[44] Submission, Ms Heather Whitelk, p. 1. The following is a selection of submissions which supported reviews in relation to RFAs and related activities: Ms Stefanie Rennick, Ms Jill Bartlett, Mr Ralph Bartlett, Ms Georgette Courtenay, Mr Marc de Vecchi, Mrs E J Wright, Mr C RA Lang, Ms Peg Jones, A and B Cook, Mr Peter Campbell, Ms Helen Goedemoed, A and J A Schmidt, Ms Lois Loftus-Hills, E L Minifie, Richard and Alison Harcourt, Ms Carolyn Pile, Mr Neil McLogan, Phillip Island Conservation Society, Mr Murray Winter, Knox Environment Society, Ms Doris L Metcher, Ms Dallas Kinnear, Ms Margaret Files, Ms Alfrieda Booth, Mr David Cook.

[45] Submission, Forest Protection Society, p. 7. See also the following submissions opposing reviews: Tasmanian Farmers and Graziers Association, Forestry Committee, p. 3, Forest Industries Federation of WA, pp. 5-6, North Forests Products, p. 2, Queensland Timber Board, Professor Emeritus E P Bachelard. See Evidence, Australian Workers' Union (WA Branch), p. 181.

[46] Submission, North Forest Products, p. 2.