In response to the State Government’s decision last Thursday to cease logging in remaining old growth forests and cease all logging in native forests in the east of the state, East Gippsland Shire Council voted on Tuesday to write to Premier Daniel Andrews for an explanation.
“Many people in the forestry industries and in small communities will be doing it very tough on hearing of the announcement,” Cr Dick Ellis said.
“We have multi-generational harvesting, haulage, sawmilling and service industry families who only know this industry and are heavily invested both emotionally and financially.
“Following an announcement of this magnitude, we need to take stock, deal in facts and understand the full and true impact of direct and indirect job losses, the scale of economic impact and the social challenges ahead.”
Council heard from Orbost Chamber of Commerce and Industry secretary, Garry Squires, who explained the future impacts on East Gippsland’s economy, particularly for towns like Orbost, which rely heavily on the timber industry.
Mr Squires’ presentation came at the request of Cr Ellis, who, in urgent and other business moved that council seek further information from the Premier, and request his reconsideration. The meeting’s standing orders were suspended so councillors could hear what Mr Squires had to say.
“This is a very serious issue for the Orbost economy,” Mr Squires said.
“We have an industry that is sustainable, an industry that is based on a natural resource, which is renewable. An industry that is carbon neutral, and we’re going to get rid of it? Crazy.
“The Andrews Government’s announcement applies to all forests east of Melbourne, not just East Gippsland. Impacts will vary very much according to locations. The phase down between now and 2030 will vary according to locations.
“If there is any good news in it, and there probably is only one bit of good news, it’s that it’s not going to happen tomorrow. The phase down will start effectively in 2024. My current understanding is that all mills will operate at their current level until 2024, unless they choose to get out early. The bestcase scenario would be that all or some of the mills operate until 2030. The worse-case scenario is that they start to phase down in 2024 and they’re all gone by 2026. That’s quite a possibility with what licences those people have got in front of them.”
Mr Squires said the process is being sold as ‘transition’ from native forest to plantations.
“That is not correct,” he said.
“That’s what you’re led to understand. But the reality is there are no plantations to transition to in this part of the world. Yes, there are some plantations in the shire; we have some plantations in Combienbar and around Bendoc. They’re all private plantations grown for pulpwood for export.
“There are some pine plantations in the northern part of the shire, all owned by private companies, either being sold for chip for export or committed to the mills in the district up there.
“Effectively any talk of transitioning our mills to plantations is not possible.”
Mr Squires said the 250 hectares of plantation timber being planted in the Latrobe Valley would be ready for Australian Paper in around 2030-2035, but to grow to sawmill size would take 20 to 30 years. The logs from other plantations in Central Gippsland are already committed elsewhere.
“Effectively there are no new plantations for any of the sawmills in Gippsland to transition to,” he said.
Mr Squires said in Orbost, with a population of about 2000 people, 114 jobs are currently related directly to the industry, roughly 25 per cent of full-time jobs in the district.
With the flow-on effects to other businesses, he said it’s probably about 40 per cent of all the full time jobs in the town that are directly or indirectly affected by these decisions.
Mr Squires said towns like Swifts Creek would be in the same situation, and even Bairnsdale, with significant timber mills and Auswest Timbers’ drying facility.
With regards to the $120 million dollars as part of the State Government’s announcement to transition displaced workers, he asks, transition to what?
“Retraining for other jobs? There are no additional jobs in Orbost,” he said.
He said hits to the Orbost timber industry in the past hurt, and this decision will see a further exodus of young people and their families as they leave with their new skills, leaving holes in not only the town’s economy but also areas like emergency service units and sporting clubs.
Mr Squires said Orbost has “three things going for it” natural resources, tourism and being age-friendly (attracting retirees). He says the decision will see the natural resources knocked out; East Gippsland, west of Lakes Entrance, is low yield and would produce maybe 20 jobs; and with the area already struggling to source doctors, a further reduction in population wouldn’t help. Retirees seek good health care.
“I hate being pessimistic, I’m usually a fairly positive person, but I don’t see the answer out of this one,” he said.
With the meeting’s standing orders reinstated, Cr Marianne Pelz, as an owner of a timber transport business, declared a conflict of interest and removed herself from council discussions.
As a matter of urgency, Cr Ellis proposed East Gippsland Shire Council writes to Premier Daniel Andrews requesting he reconsider his decision and provide evidence for the basis of the decision; that the State Government works with local government, the community and timber industry to support and enhance a sustainable native timber industry; that the transition funding be proportionately distributed to those affected; the matter is taken by council to the Gippsland Local Government Network (GLGN) requesting it liaise with all relevant parties to further gauge and interpret the long-term consequences; identify and offer solutions to any impediments to the implementation of world’s best practices in timber harvesting and native forest environmental protection for the long-term benefit of the Gippsland region; and requests the GLGN reports the outcome of such works back to council after no more than 12 months.
Cr Jackson Roberts was the only councillor around the table to vote against Cr Ellis’ proposal.
“Whatever occurs in the next 10 years I urge the government to make it equitable and to make it as easy for affected communities as possible,” Cr Roberts said.
He said the proposal put him in “a really troubling position” and his words “may be considered unpopular”.
“I think the government’s decision is premature. I think the government should be doing more to support plantation hardwood, especially in saw logs, but they haven’t done a whole lot,” he said.
“In contrast, I think this announcement is continuing a trend that began over 10 years ago when the government started scaling back native hardwood supply.”
Cr Roberts said schools are already closing around Gippsland.
“This is already an issue that is affecting our regional area and towns regardless of what happens in the next 10 years. This is a reality now,” he said.
“The sad reality is the timber industry has for many years been in a steep decline and has become less and less financially viable.
“While I think the government should be doing more to support the industry, I’m also of the belief that long term goals should be set.
“In order to preserve the long term sustainability of our natural environment, difficult decisions will have to be made eventually.”
Cr Roberts did not support the motion put to council, but says he does advocate that government provide much needed support for the transition of the industry.
With the exclusion of councillors Pelz (conflict of interest) and Joe Rettino (absent) the motion was passed six to one.
