25^th June, 2009

HALL CALLS FOR INDEPENDENT AUDIT OF VICFORESTS

EASTERN Region MP Peter Hall has called on the Brumby Government to establish an independent audit of VicForests’ decision to tender out all harvest and haulage contracts.

His call for action follows widespread industry criticism of VicForests’ management of these contracts.

Mr Hall told parliament this week that it appeared VicForests was “unable to deliver on the quantities of timber put to tender and unable to provide timely advice to contractors on monthly work plans”.

“Many of my constituents are concerned about lack of supply to the timber industry and I know of sawmills in East Gippsland and other areas which have had to close due to this issue,” Mr Hall said.

“Timber industry employers are highly stressed over the current situation. Some have had to terminate the jobs of valuable employees. Many are saying that when they tendered for their jobs, and were successful, they thought they would finally have some sort of security, but this has been far from the case.”

Mr Hall said his plea to the Government to assess the situation seemed to fall on deaf ears.

“Treasurer John Lenders, who is responsible for VicForests, says his Government is achieving a “balance” between preserving the forest heritage and protecting jobs in regional towns,” Mr Hall said. “I fail to see this balance when I continue to hear of job losses in the timber industry and local workers and employers who fear for their future due to the current management of harvest and haulage contracts.”

While Mr Lenders admitted to the parliament that VicForests was “slow in delivering wood in this environment”, he blamed the recent bushfires for holding up VicForests’ supply.

“I understand we’ve suffered a terrible natural disaster,” Mr Hall said. “I agree salvage operations undertaken by VicForests are important. But despite these operations VicForests is still unable to deliver on the quantities of timber out to tender.”

Mr Hall said it was evident the current contract process was not working.

“Rather than turning a blind eye to this and making excuses it’s about time the Brumby Government supported jobs in regional communities, such as East Gippsland,” Mr Hall said.

“If Mr Lenders is so confident in the operations of VicForests I challenge him to establish an external independent audit to find some real answers as to how the new contract process is working.”