Economics of logging

Logging in East Gippsland losing up to $5.5 million a year

Thursday, May 28, 2015

Originally published at: 

Environmental activists in East Gippsland. Photo: Goongerah Environment Centre Office

Logging in East Gippsland is not commercially viable and cutting down native forests across the region is racking up losses of up to $5.5 million a year, internal government documents reveal.

The government’s own tax-dodger

Friday, April 10, 2015

It is not only hi-tech internationals like Microsoft, Google and Apple that are rorting the tax system to minimise declared profits and therefore pay less tax.

Low-tech, state-owned native forest logging corporation, VicForests, has been at it for years. Since  2007 VicForests has posted total revenues of almost $1 billion raised from the sale of public wood-chips and timber.. Two-thirds of this is paid to a small number of loggers and hauliers  and the balance is spent on running VicForests, including the CEO's wage of over $300,000 per annum, about the same as the Premier's.

Creative accounting – VicForests style

Thursday, April 9, 2015

Paper profits for political appearances

VicForests Annual Report for 2014 is now available here and they are claiming a profit of $3.4 million this year, but this claimed profit is a mirage, created for political reasons.

$2.6m seems to have been generated (on paper at least) by re-valuing "forestry assets", see Note 3c, p.42

Another $1.1m is gained in reduced Road access fees (payable to DEPI/DELWP). Given the volume of timber carted is almost identical to the previous year, it is not clear why this fee would be reduced. Possibly to help a loss making government entity look healthy and profitable.

Gas prices could kill off Australian Paper

Tuesday, March 31, 2015

Australian Paper which manufactures REFLEX paper from the Central Highland ash forests, is Victoria’s major user of natural gas. The price of gas is set to rise astronomically Australian Paper Mill chip pilesdue to increased sales offshore. This will be a serious financial burden for this Nippon owned pulp and paper mill. As a result it is pleading for government intervention (more subsidies?) to help it adapt to the price increases.

Highlands logging halt would earn Victoria $30m a year in emissions reductions: report

Tuesday, January 20, 2015

Originally published at: 

Stopping logging in Victoria's central highlands would drive tens of millions of dollars into state coffers if the move was included under the Abbott government's emissions reduction fund.

Woodchip licences end in East Gippsland

Saturday, January 3, 2015

In April last year NIPPON announced it would not renew the woodchip licences after December 2014. VicForests has not been able to find another customer for its booty.

Nippon owns the chipmill and export facilities at Eden in NSW where millions of tonnes of EG forests have been shredded and shipped for over 40 years. This has been at great cost to tax payers through direct subsidies the chipmill and industry has received from governments.

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