for a comprehensive analysis of the economic illogic behind the widespread native forest logging and woodchipping in Australia right now.
The key statement is: "Australians are unwittingly digging into their own pockets to send more than six million tonnes of cheap woodchips to Asia annually [from our native forests], and that figure is expected to continue to rise."
See below
Media Release - Australian Conservation Foundation
14 May 2001
Logging Native Forests an Economic, Competitive and Environmental Failure - Report Claims that State Governments are wasting millions of dollars of taxpayers'
money to support woodchipping in Australia's native forests have been
fuelled by a landmark report (649KB PDF).
Prepared by leading economists Marsden Jacob Associates, the report confirms NSW, Victoria, Tasmania and WA are using a raft of unfair advantages to prop up native-forest logging at the expense of plantation forests.
The report, the first national assessment of Forests and National
Competition Policy (NCP), notes that reform will reduce native-forest
logging and increase plantation investment.
In a systematic evaluation, the report finds all Australian States fail to
comply with the NCP they agreed to in 1995. The report confirms that current
arrangements for logging native forests are an economic and competition
disaster, further compounding environmental concerns.
ACF Executive Director Don Henry says: "If we took away logging subsidies
today, old growth logging would shut down tomorrow. With trees now a key
weapon in the nation's battle against salinity, governments should be
encouraging plantations and farm forests, not deliberately undercutting them
on price."
Mr Henry says separate studies estimate that in each state, the public has
been paying tens of millions of dollars a year in subsidies to prop-up high
rates of native forest logging.
Mr Henry says the report makes it clear that state forest departments
operate in an environment protected by taxpayers' funds and cushioned from
commercial reality.
"In this day and age when the community expects a 'level playing field',
subsidies for this unnecessary and damaging activity should be out of the
question.
"By and large, forestry departments are acting as laws unto themselves,
arbitrarily dismissing competing uses for forests such as tourism, water
supply, recreation and conservation.
"I urge State Governments, and competition watchdogs nationally, to act
immediately to eliminate native forest subsidies."
Further information and media inquiries: ACF Communications Co-ordinator Bruce Atherton: (03) 9926 6734 Mob: 0417 032 698 ACF Executive Director Don Henry: (03) 9926 6701 ACF Land & Water Program Co-ordinator Tim Fisher: (03) 9926 6707 Mob: 0409 004 651