world news - 27.11.2002
Critics of Forestry lashed by Rolley
Managing director Evan Rolley said Southwood must proceed if the Government-owned forestry company was to return more dollars to state coffers.
Mr Rolley spoke yesterday at the launch of Forestry Tasmania's 2001-02 financial results.
"If you want an increased return on assets you need to have increased value adding," he said.
"We're looking to increasing that return on assets, and our strategy is to get the Southwood projects in Smithton and Huonville operating."
He said planning approval had been granted for the two wood processing facilities, and investors were waiting in the wings.
This followed a report, tabled in Parliament last week, that showed Forestry Tasmania's after-tax return to the state compared to its equity was .7 per cent.
Auditor-General Arthur McHugh said this figure should be around 7-8.5 per cent.
He also pointed to a $12.2 million "fundamental error" in Forestry Tasmania's accounts posted for the 2000-01 financial year.
Mr Rolley responded yesterday, and said this error had been factored into this year's results.
He said the mistake occurred when data was collected in May 2001 to prepare the 2000-01 financial year report, and that year's May and June data was then not added to correct the figure in the final report.
It related to the value of standing timber, and Mr Rolley said the mistake would not occur again.
"Our own internal auditors found it [the error]," he said.
"It was an accounting oversight. It had no effect on our cash or dividend payments to Government."
Other Forestry Tasmania figures for the 2001-02 financial year:
Operating revenue increased by $4.4 million to $144.2 million.
A total 3.47 million tonnes of wood was sold, including 2.42 million tonnes of low-grade pulpwood from native forest or eucalypt plantations.
The Tahune Airwalk and Scottsdale Forest Eco Centres exceeded visitor forecasts with 154,000 and 10,000-plus, respectively.
And Forestry Tasmania employed 1219 people, either directly or by contract, paying them $91 million.
Meanwhile, the Greens have renewed their call for a commission of inquiry into Forestry Tasmania and expanded the terms of reference to include allegations of corruption and cronyism within the industry.
Greens Leader Peg Putt said a commission of inquiry, equivalent to a royal commission, was needed to ensure it was independent and provided witness protection.
But the move has no chance of succeeding, with the Government and Opposition both calling it a stunt and part of a Green campaign to undermine the industry.
See also:
- — USA: imports of furniture will rise, analyst says
- — New Zealand: Timber industry rejects arsenic report
- — Jaakko Pöyry Group awarded mill engineering for Metso Paper's board making line delivery to China
- — U.S.-Canadian timber deal sought
- — Sting's forest lobby attacks 'green' timber trade