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Forest NSW Annual Report 2012

Forests NSW eucalypt tree breeding Forests NSW activities directly contribute Forests NSW will remain publicly owned and program has involved the establishment of a approximately $20 million each year to the the nature of its present business and business number of genetic archives along with seed regional economy through harvest and haul relationships will remain largely the same. production orchards. contracts, plantation establishment activities There will be no reduction in the regulatory and road construction and maintenance. Regulatory update The timber industry in the Monaro region performance. The NSW Government willoversight of Forests NSW environmental South Western Cypress close to 1000 people indirectly Regional Forest Agreements (RFAs) are met andensure that the State’s commitments under theemploys more than 300 people directly and Legislation was passed by the NSW that the environmental benefits flowing from Government to provide an extension of time Native forests the RFAs are realised. before the transfer of some State forests to the A tender for harvesting capacity was national park estate takes effect. This was to undertaken for south coast and tablelands All the current wood supply commitments allow for the orderly completion of approved native forests with 34 000 m3 of timber of Forests NSW will be transferred to the harvesting levels in a few of the State forests volume awarded for up to eight years, new corporation and, where appropriate, that were originally nominated for reservation providing security of employment and will continue to be underwritten by the on 1 January 2012. certainty around investing in new technology Government. Integrated Forestry Operations and equipment. Negotiations are ongoing As a State-owned corporation, Forests NSW will: Approvals for the remaining volume. ■■ transition existing employees to the new A review began by EPA, DPI-Fisheries NSW and Significant customer entity when the corporation comes into Forests NSW to further streamline the licences effect; within the coastal IFOAs to contribute to developments ■■ continue to provide high quality services better management outcomes. This followed and products to its customers, clients and In August 2011, construction commenced amendments during the year to a number continue its good relationships with local on a new $74 million sawmill in Bombala by of conditions of the coastal IFOAs that were councils; Dongwha Timbers Pty Ltd. Initially, Forests NSW considered inefficient and not contributing to ■■ retain its important role as a manager ofwill be the sole supplier of sawlogs to the new good forest management practices. State forests for recreational opportunities;000 tonnes per annum tomill with up to 250 The South Western Cypress IFOA commenced be delivered following commissioning, which is and on 1 July 2011. scheduled for January 2013. More than ■■ continue other important community Certification maintained the construction phase. prevention, ecological protection, forestroles including firefighting and fire120 people have been employed as part of Successful surveillance audits were undertaken Dongwha plans to complement the road maintenance and feral animal and in Southern and Hume Regions this year as new sawmill with other value adding weed control. part of the continued certifying of the forests. manufacturing facilities in the medium Forests NSW is looking forward to building an Forests NSW holds AFS and EMS ISO 14001 term and has secured $4.9 million of federal even more sustainable corporation. certification of its forests, which allows our funding to support the infrastructure customers to sell their products into domestic necessary to train timber workers and Latest carbon research and international markets that demand support future investment in timber demonstrable sustainability. manufacturing at Bombala. Dongwha is A recent peer reviewed study showed that matching the funding dollar-for-dollar, sustainably managed multiple use production Recertification audits to both standards are bringing the total project funding value to forests such as State forests have the capacity planned to be undertaken later in 2012. more than $9 million. to abate more greenhouse gas (GHG) emissions Major contracts awarded Building a new sustainable timber harvesting is not undertaken.than conservation forests – forests where Planted forests corporation of native forests in New South Wales, Australia,Greenhouse gas balanceThe study, entitled During 2011–12, Forests NSW awarded was a collaborative project involving a team ofThis year the NSW Government announced its $75 million of harvest and haulage contracts research scientists from DPI, Forests NSW anddecision to corporatise Forests NSW with the for plantation grown softwood log products the University of New England. It was recentlynew State-owned corporation expected to be in Monaro Region over a six-year period. published in the international journal Forests. Ain place in early 2013. The contracts were for 474 000 tonnes discussion paper can also be downloaded from per year of mechanised harvesting with www.dpi.nsw.gov.auThe main change will be the organisation’s governance structure. Under the direction of additional haulage contracts of 450 000 a skilled, commercially-focused board, Forests Two coastal native forest areas in NSW, tonnes per year in the Bombala region. NSW will be better able to concentrate on its currently used for timber production, were The new long term contracts represent core business of growing and harvesting timber examined. The study showed that sustainably almost 70 per cent of Forests NSW business to meet the community’s needs for hardwood managed, multiple use production forests in the region and provide a substantial and softwood products and achieve better not only provide wood products for use by opportunity for forestry businesses in financial performance for the benefit of all the the community but also reduce overall GHG the Monaro. taxpayers of NSW. emissions. Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance 47


Forest NSW Annual Report 2012
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