Harvest and haulage contractors compo axed: offered 30 cents on the dollar

The Allan Government is offering Victoria’s native forest harvest and haulage contractors 30 cents on the dollar to leave the industry.

Orbost harvest and haulage logging contractor Rob Brunt says the government’s compensation to offset shutting down native forest harvesting was “an insult.

The Allan Government is only offering Victoria’s native forest harvest and haulage logging contractors the minimum needed to pay them out, as it prepares to shut down the industry on January 1.

The initial 17-page package the government has put on the table offers contractors three options: to either terminate or ride out their contracts until June 30 next year; or sign up to a fire and forest management contract, but without offering any details on rates or terms.

Department of Energy, Environment and Climate Action bureaucrats are offering those contractors who agree to terminate their contracts before June 30, just 30 per cent of their contracted rate as a payout.

Currently a timber business with a contract to deliver 30,000 cubic metres to VicForests for $35/m3, could have earned $1.05 million.

But if they agree to terminate their 2023-24 contract six months early, on December 31, they would receive 30 cents in the dollar of their full contracted volume or $10.50/m3, but only paid out on a pro-rated basis on the remainder of the year – equal to $183,645.

Orbost harvest and haulage contractor Rob Brunt said the offer was “an insult” and worse than his workers were being offered by the government, under a separate compensation scheme.

When asked about the inadequacy of the package, Agriculture Minister Ros Spence’s office stated “the draft Harvest and Haulage Support Package guidelines are subject to further consultation and are not final”.

Australian Forest Contractors Association general manager Tim Lester said the package failed to recognise contractors’ investments over decades and even generations in the business.

“It’s a draft, but clearly our members are unhappy with it,” Mr Lester said. “There’s no recognition of future earnings or structural adjustment.”

Even the government’s offer on compensating contractors for redundant harvest and haulage machinery is limited to paying the difference between what the Valuer-General determines is its 2020 market value versus today’s values.

The machinery compensation guidelines state: “The department reserves the right to pay less than the full difference to meet the available budget for the package”.

Gippsland East MP Tim Bull said clearly the package was “put together to fit under a budget rather than provide a reasonable and fair outcome.”

“On the matter of compensation, the offer is paltry,” Mr Bull said.

“This is 30 per cent of one year. As a starting point, they should be offered what the Gippsland Lakes commercial fishermen were offered (to buyout their licences) – three years of their average income”.