Details of the State Government’s sale of ForestrySA’s harvesting rights to OneFortyOne Plantation revealed in new document

In October 16, 2017

(AU) – THE future of the South-East’s timber supply could be at risk because of the State Government’s deal for the controversial sale of the state’s forests.

The Advertiser has obtained the lease agreement on the government’s sale of the ForestrySA harvesting rights to OneFortyOne Plantation for $670 million, in 2012.

The confidential document detailed the 70-year privatisation deal, which can be extended for 35 years, and outlined a peppercorn lease for more than 80,000ha land.

Under the deal, OneFortyOne has the right to three forward rotations of the pine plantations and must achieve a minimum clearfall age of 32-35 years for the first rotation.

However, to decrease the clearfall age for the remaining two rotations, the company simply had to consult in “good faith” with stakeholders, according to the document.

The details have sparked backlash from sale opponents, including Australian Conservatives MP Robert Brokenshire.

“If the company can go ahead with a rotation felling (trees) quicker than the department used to, then that’s a real concern for the security of timber supply,” Mr Brokenshire said.

The Advertiser this year revealed OneFortyOne’s profits were as high as $125.5 million — four times the annual profits generated under government management.

Wattle Range Council mayor Peter Gandolfi said the lease agreement showed how the region was “sold out” by the government. “The government promised protection in place for log supply — well it’s false, that only applies to the first rotation, it does not apply for second or third rotation,” Mr Gandolfi said.

A spokeswoman for OneFortyOne said the company took responsibilities under the agreement seriously and in 2016 the average clearfall age was 36 years. “We have met and will continue to meet all conditions of our lease with the SA Government,” she said.


Details of the State Government’s sale of ForestrySA’s harvesting rights to OneFortyOne Plantation revealed in new document by Erin Jones.  Available from <http://www.adelaidenow.com.au/business/details-of-the-state-governments-sale-of-forestrysas-harvesting-rights-to-onefortyone-plantation-revealed-in-new-document/news-story/745081b19733f729bd09bec0a658e810> [October 10, 2017 7:58pm]

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