Labor insults Forestry Industry with disappointing compensation package

Feb 4, 2022 | State News, Steve Martin MLC

Minister for Forestry Dave Kelly must listen to the concerns of the forestry industry and
drastically improve his attempt at a recently announced compensation package which
has been labelled offensive by the sector.


Labor Government’s shock announcement last year that banned hardwood harvesting in
Western Australia has been followed up by a lack of engagement with the industry by the
Minister to discuss compensation.


Shadow Minister for Forestry, the Hon Steve Martin MLC said, “the initial announcement
came as a complete shock to the forestry industry without any consultation with the
sector.


“Now Minister Kelly has handed down a package that is too narrow in its scope and will
not compensate the many small businesses affected by the Government’s unscientific
decision to ban hardwood harvesting,” said Mr Martin.


After a shambolic process filled with repeatedly cancelled meetings and a complete void
of information, the resulting package has been described as “offensive” and “deplorable”
by representatives of the industry.


“Minister Kelly made the announcement via an online meeting after cancelling an inperson
meeting in the South West. He needs to immediately jump in the car and get to
Manjimup and deliver the news in person.


“He needs to hear from the affected businesses and not make this decision based on the
findings of a handful of meetings stacked with Department staff and union officials.


“This arrogant Minister initially offered the industry only a week to offer feedback on the
poorly designed package.


“He has since realised that timeframe is hopelessly inadequate and now needs to listen
to the genuine concerns of the industry.


The package has been based upon the Forest Products Commission’s indicative supply
volume figures for 2022. These figures fall well short of the base contracted volume and
have been “plucked from the air,” says Forest Industries Federation WA (FIFWA) Chief
Executive Officer Adele Farina.


Due to the nature of the eligibility criteria, very few businesses will be able to access the
packages. Those who do manage to check all the boxes will still require final approval
from the Minister.

“Despite starving the forestry industry of material, the Labor Government are demanding
the industry continue operating until July 2023 in order to claim compensation,” said Mr
Martin.


“Businesses are now faced with heavy job losses, a stark shortage of material and a steep
increase in operational costs.


“It is impossible to expect that businesses will be able survive long enough in these
conditions to claim any compensation.


“The Labor Government have proven that they do not care about small business.
“By starving the forestry industry of materials and compensation, the Government’s
decision doesn’t just impact loggers and sawmills. It also ensures the end of secondary
industries who rely on hardwood materials,” said Mr Martin.


Furniture manufacturers, construction companies, heritage builders and firewood
suppliers are just some examples of the many secondary industries who are facing a very
uncertain future due to Labor’s short-sighted and poorly planned decision.


“The Minister refuses to acknowledge that this decision has already had far-reaching
effects across not only the primary forestry industry, but other industries who rely on
hardwood as well.
“Industries like furniture manufact

urers and firewood suppliers are already seeing the
negative impact this decision has had on their business.


“The Minister continues to ignore their cries for help, saying that it’s business as usual.
Anyone who works in these industries knows that this isn’t the case,” said Mr Martin.

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