Six Gippsland sawmills have renewed pressure on the Victorian government, urging Premier Daniel Andrews in an open letter to save jobs, protect regional communities and return confidence to the timber industry.
The G6, as the group calls itself, fears the six mills are at a competitive disadvantage since the state government bought into Australian Sustainable Hardwoods mill at Heyfield and VicForests refused to renew their timber contracts past 2021.
VicForests is the state government’s commercial forestry arm.
“Urgent action is needed,” the G6, which consists of Fenning Timbers (Bairnsdale), Ryan & McNulty (Benalla), Dindi Sawmill (Murrindindi), AG Brown Sawmill (Noojee), Kelly’s Timber (Westburn) and Powelltown Sawmills, said.
The G6 said the government’s large stake in the Heyfield mill made it a “competitor with every other timber mill in Victoria”.
It urged the government to reassure the timber industry that it will be “treated equally and given a fair go”.
“Don’t get us wrong. We’re happy for the Heyfield folks. We’d be rapt if we were part of the special deals, some adjustment support and the advantages they are getting,” the letter said.
They fear the advantage given to Heyfield could drive them into the ground.
“We will not be left to wither and rot. We will not be sold out. We just want to know what the government is going to do to level up the playing field,” the G6 said.
Australian Securities Investment Commission records show that the Heyfield mill is owned 51 per cent by management and 49 per cent by the state government.
It is believed the management shareholders will buy the government’s share over time.
The refusal to allow wood contracts past 2021 also includes a halt to some harvest and haulage contracts to some Gippsland businesses.
The group says the sawmills’ clients, their 200 employees and the 700 jobs down the line that they support are under threat.
VicForests said it was unable to meet the supply extensions in the mill agreements because of “severe restrictions” on available timber.
“We are intensely aware and sympathetic of the issues faced by other mills and will work with each mill so we can together achieve a fair transition to lower timber volumes,” a VicForests spokesperson said.
A government spokesman said VicForests entered into a three-year Timber Sales Agreement of 80,000 cubic metres a year with ASH’s new owners.
“The Department of Economic Development, Jobs Transport and Resources has the protocols in place to ensure that there is proper governance and separation between ASH and VicForests,” he said.
“VicForests made public its long term forward forecasts of sustainable timber supply for ash sawlogs in its 2017 Resource Outlook. VicForests is guided by its 2017 Resource Outlook in its competitive offerings of ash timber to the market.”
