Heyfield mill: Timber supply contract offer halved in 2½ years

THE Heyfield timber mill was guaranteed more than twice the logs just 29 months ago than it is now being offered.

Heyfield timber mill workers protested outside a cabinet meeting. Picture: Chloe Smith

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THE Heyfield timber mill was guaranteed more than twice the logs just 29 months ago than it is now being offered.

A 17-year confidential agreement, seen by the Herald Sun, was signed by VicForests directors but missed getting final government approval on the eve of 2014’s state election.

The contract between the state-owned VicForests and mill operator Australian Sustainable Hardwoods offered an annual log supply of 130,000 to 150,000 cubic metres until 2034. VicForests now says this is unsustainable; its current offer is for 60,000 to 80,000 cubic metres over three years.

The 2014 contract, dated October 30, was signed by VicForests directors Rob de Fegely and Therese Ryan.

Heyfield timber mill. Picture: Tony Gough

But it didn’t get final approval from treasurer Michael O’Brien before the then Coalition government went into caretaker mode on November 4.

This month, after the government and VicForests refused to budge on the current timber supply offer, ASH announced it would close the mill in September next year.

Local Nationals MP Tim Bull said the reason for the reduced offer was that more areas were due to be put in reserve to protect the endangered Leadbeater’s possum.

“This is proof that the timber resource was there and is there, and it is government policy that is restricting the offer to Australian Sustainable Hardwoods,” Mr Bull said.

Employees at a meeting announcing the closure of the Heyfield timber mill. Picture: Andrew Batsch

Heyfield Timber Mill workers protesting outside a cabinet meeting. Picture: Chloe Smith.

But VicForests’ David Walsh said the reduced offer was due to “improved modelling of timber yields” and the “impact of other environmental regulations”, including the protection of the possum.

“We don’t want to offer any of our customers timber volumes we can’t supply,” he said.

ASH’s James Lantry said modelling company officials had been shown before signing the contract showed the timber was available.

“The reduction in the timber supply offer was caused by government policy around uncapped exclusion zones expected to occur in commercial forestry zones,” he said.

Government spokesman Tom Whitty said the former Coalition government had “refused to sign off on the 2014 supply contract”.

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