Construction, Forestry, Mining and Energy Union spokesperson Brad Coates said Treasurer Kevin Foley’s proposal to sell off three rotations of pine trees would not address failures to properly manage the estate.
“It is no secret the union has great doubts about ForestrySA’s ability to actually manage the forests,” he said.
“If the government wants efficiencies, they should look at the way the forests are managed.”
A spokesperson for Mr Foley told The Border Watch yesterday that treasury officials, with the help of external advice, were still working on the proposed forward sale of the state’s trees.
“When we’re in position to announce something we will,” he said.
“It is market sensitive, so we don’t want to put a date out; the decision will be made when the market is right for such a decision.”
The issue resurfaced this week after ForestrySA chairman John Ross wrote in the corporation’s annual report that the sale had a potential term of 100 years, taking the corporation into “uncharted territory”.
“Funding bodies with the capacity to purchase our production for 100 years in advance presumably would seek a discount reflecting their commercial risk and their cost of funds,” he wrote.
Mr Coates said it appeared even treasury officials were “smart enough to know it is a buyer’s market, and not a seller’s market, at the moment”.
He said the current environment was not suited to the sale after the collapses of Timbercorp and Great Southern, along with Gunns’ moves to forward sell trees in the region, leading to potential buyers having plenty of options on the market.
“With any sell-off of ForestrySA forests, if they don’t get the correct price, taxpayers in South Australia will pay for that dearly over the next 40 to 50 years,” he said.
Article from: The Border Watch 13 November 2009
