Opinion Piece and Briefing Summary
Regional Forestry Matters NSW
The Hardwood Timber Industry in NSW
Prepared by Noel Atkins FCA – Business Consultant
KPS Global Pty Ltd

There has been a continual push by conservation and similar groups to halt any form of timber harvesting in NSW. Private property harvesting and rural land management was severely curtailed under the Private Native Vegetation act which was repealed by the NSW Coalition Govt in their first term . Since then, various bodies and state run authorities have attempted to regain control of the private land estate through attempts to introduce further regulatory controls. This has been a continual challenge to the National Party in Coalition with the Liberal Party at State level, where the liberal party has been more inclined to accept regulation mostly at the expense of the rural land holders.

Over the last few years various koala sanctuary areas have been declared in previous state forest areas to try and satisfy what is perceived as community concern. In some cases, these were created without evidence or history of koala presence.

The matter recently reached a crisis point when the EPA through the NSW Depts of Planning and Environment attempted to introduce a new Koala Protection SEPP (State Environmental Planning Policy), to replace the existing SEPP44. This new SEPP would have severely curtailed private property timber harvesting, existing and future farming practice and urban development. This policy was aimed solely at gaining control of the management and use of private lands under the auspices of conservation and protection of flora and fauna. National Parks and Crown land were exempted from this SEPP.

The final introduction of this SEPP was challenged strongly by those impacted in the Regional Communities, particularly Farmers, Foresters, Urban developers, and the State Nationals, causing it to be withdrawn. At present the management of Private Property is continuing under the previous SEPP44, and a new amended Private Native Forest Code of Practice (updated 2022).
Lengthy negotiation between the NSW Coalition Govt and Authorities including Forest Corporation about the future of WSA’s due to expire in 2023, finally resulted in 2022 in these being extended to 2028 ,in line with the Boral Pentarch agreement..

The Government introduced LLS Amendment legislation in November 2020 into Parliament which included removal of dual consent requirement for PNF approvals (Schedule 10(1) of the Local land Services Amendment Bill). Hon Catherine Cusack (now retired) crossed the floor defeating the Bill. Further legislation to remove the dual consent requirements was to be tabled in the last sitting of parliament in 2022 prior to the state election in March 2023 , but was withdrawn.

At present private property owners are required to obtain permits and harvesting agreements in compliance with LLS legislation. These are then valid for up to 15 years . In addition, some local Govt areas councils now insist on landholders also meeting the requirements of a Development Allocation(DA) and other studies before they can actually harvest timber on their own properties, even though these properties have been owned and responsibly harvested for generations. This is seen as an unnecessary doubling of legislation given the strict controls imposed by LLS under their regime, protecting both flora and fauna. Some councils, through overzealous (in my opinion) conservation minded staff and councillors, are seeking to impose the DA requirements ; thus potentially holding up or halting harvesting operations for an extensive time if not permanently ,and at significant extra cost to the landholder.

The Government on 8 March 2021 announced that following the review of the PNF Code of Practice the dual consent issue would be resolved. Nothing has been done by Government since then that has resolved this issue..
Part of proposed amendments was to also extend the harvesting permits issued to private land holders to 30 years , to allow a full cycle of regeneration.

Recent litigation in the Supreme Court of Victoria has resulted in interim injunctions on forestry operations in Victorian State forests. The litigation was based on statutory measures concerning the precautionary principle. In NSW such litigation is statute barred if forestry operations are approved under the IFOA. However, NSW has legislation setting out the precautionary principle as a statutory environmental measure. The Local land Services Act in regard to PNF approval does not have a statutory bar preventing litigation against a PNF operator if they are operating under a PNF approval and the PNF Code of Practice, the equivalent to the IFOA process.

At present there is a continued impasse between Forest Corpn and the NSW EPA over access to unburnt forest areas adjacent to burnt areas, and burnt areas needing harvesting in the State Forest Estate…

Forest Corpn have completed reviews and studies by forestry scientists advocating access be granted post 2020 bush fires and current rejuvenation. However, EPA has rejected these reviews. The matter was referred to an independent review by the Natural Resources Commission (NRC) to report back to both State and Federal Govts. It is understood this review supported the continuation of the current forestry regime and operations in many areas. EPA and Conservationists again rejected these findings. In the meantime, only site-specific approvals are being given in the southern areas of the state causing extreme shortfalls in hardwood timber supply in that area, and periods of mill closures.

No approvals were being given in the northern area of the state in the areas mentioned above – which is believed will lead to a severe shortage long term .

It appears also the EPA and conservation groups are questioning the validity of the IFOA given the significant events of the recent bushfires; and attempting to influence the validity of the RFA which relies on the operation of the IFOA to regulate the State Forest operation. A similar process is occurring in Victoria and in Tasmania for various reasons. The Victorian govt has now legislated to close the native Hardwood forests to harvesting by 2024.

It is the writer’s opinion that EPA is exerting an influence well beyond their role as a compliance regulator, by not supporting existing RFA’s in place between State and Federal Govts, not supporting the operation of the IFOA that applies to harvesting in NSW; and threatening on occasions to take legal action against their own Depts and Govt owned company (Forest Corpn NSW).

For whatever reason Forest Corpn and its Board of Directors have not to date been able to overcome the power of EPA to exercise its right to harvest in the footprint granted under the RFA granted between the State and Federal Govt. It does not help matters when Forest Corpn NSW is required to report to State Govt via the State Treasurer and State Finance Minister, who hold the only two issued shares in Forest Corpn, previously  both being liberals, but now passed to labor ministers in the recent change of State Govt in  NSW

At the same time, it is understood the state minister for Agriculture, who has Forestry as part of the portfolio, does not appear to have a direct influence or power over the operations of State Forest via Forest Corpn NSW.

Excuses have been given with the impacts of bushfires, floods etc forcing a force majeure situation when all negotiations stopped, followed by intervention and threats by the EPA, conservation groups etc.  For the operators in the industry, it appears the Govt, particularly the Nationals while in  Govt  have failed to deliver, and there is a lack of confidence in Forest Corpn given their past history, to deliver  agreements and actually supply the wood allocations approved therein. A change in Govt under the current objectives of Labor and the Greens would almost certainly place additional pressure on  the hardwood timber industry, particularly with the push for the Great Koala  Park  from Kempsey to Coffs Harbour.

Unfortunately the general public are not informed of  the great conservation work and management work carried out in state forests and private native forests, that actually enhance and protect the presence of flora and fauna. The industry is one of the most highly regulated in the world providing for regeneration , sustainability and protection . There should be distinction between forestry (private and State) and urban growth and development , which is the main danger to flora and fauna. Instead as the urban sprawl  continues , the call is to lock up the forests , create more national parks ,without continued management practices, the result we have then seen in the devastating bush fires  with excessive fuel loads  causing long term destruction.

It appears a serious attempt is being made to set aside the RFA signed between the Federal Govt and the NSW State Govt. This is being driven as a result of a recent Victorian court case which brought that State’s   RFA into question, and has resulted in the pending closure of access to all native hardwood forests  in Victoria to harvesting by 2024. It is understood  prior to this decision ,in excess of 60 Harvesting areas in Vic were set aside  due to what is perceived as irregularities or noncompliance determined either by conservation groups, or their equivalent of the EPA that operates in NSW, subject to further investigation. These investigations were taking anything from 60 days to 180 days or longer, effectively stopping timber supply and forcing harvesting contractors out of the industry. – A case of guilty before proving your innocence.

A similar process commenced  in NSW, accentuated by the bush fires as explained above, with EPA refusing access and delaying any fast tracking of reviews where a complaint or noncompliance is reported to have potentially occurred. The process means that where a compliant is made regarding non-compliance, the EPA can immediately order harvesting to cease pending their future investigation, on which there may be no time limit.

Timber NSW representing most hardwood sawmills and harvesting contractors in NSW engaged legal counsel to examine the RFA between NSW and the Federal Govt, and provided a series of recommendations and suggested amendments whereby the RFA could be amended to ensure the Victorian situation does not occur in NSW. To date it appears this has not been taken up by the Federal Govt.

It is imperative in the writer’s view that both the NSW and Federal Govts liaise on the above important issues to ensure that the future of the Timber Industry in NSW and indeed in other states is secured in the long term…It is also important that any factional issues within the Govt be set aside with differing views to achieve the best possible outcome.

It appears that some state run bureaucracies (e.g. EPA) are stepping outside their regulatory functions and running a political agenda to achieve an outcome that is not in the best interests of regional NSW nor other regional areas in other states. This goes beyond having a balanced view of the needs for conservation and maintaining a viable industry.

There is an agenda to create a Great Koala Park as expounded by the conservation and greens movements – and indeed by the Labor party at the last state election. There is concern that there are elements in both the Federal and State Coalition (now in opposition) that may indirectly support this- particularly by non-action – at the expense of our sustainable, renewable timber Industry which has world class controls and regulations.

Noel Atkins FCA – Business Consultant
KPS Global Pty Limited
REEF Research Foundation Director
Phone 0448 866 393
Email noel@reefresearch.foundation