FEARS have surfaced the region’s softwood estate is being over-cut amid new figures revealing OneFortyOne Plantations has posted annual profits of up to $125.5m.
These concerns come as regional timber industry insiders continue to flag concerns over the high levels of log exports leaving the Port of Portland and the sustained upswing in harvesting rates.
Member for Mount Gambier Troy Bell has questioned how profits could soar from $30m – when the asset was managed by ForestrySA – to a “gob-smacking” $125.5m
under private ownership.
The Liberal MP has called on OFO to release the export softwood log figures for this financial year.
“Some people are very concerned the estate is being over-cut – we need to know what is going on,” Mr Bell told The Border Watch.
“Our community needs to be ensured the government is monitoring whether the sale conditions are being met.”
“OneFortyOne will likely have the whole asset paid off by mid 2019 – it is mind boggling they will making this type of profit for the next 100 years,” Mr Bell said.
“It is unbelievable the company is making $125.5m – and that’s just the profit.”
In a fiery broadside at the Labor Government, Mr Bell said he was stunned the government sold the community’s forestry estate for such a “bargain-basement price”.
“I have no ill-will against OneFortyOne for purchasing the asset, the government put it up for sale,” Mr Bell said.
“But the sale price of $670m just shows how incompetent this Labor mob really is.”
He claimed the “incompetence” of the government particularly was staggering given it sold the estate during a downward cycle in the market.
“This is lost annual revenue to the people of South Australia – I find this really sad for our community,” Mr Bell said.
He claimed the profits were now flowing overseas instead of into the state’s economy.
But OneFortyOne chief executive officer Linda Sewell rejected these concerns.
“We take our responsibilities very seriously. We have met and will continue to meet all conditions of our agreement,” Ms Sewell said.
“We report on this annually to the government.”
The company chief also categorically rejected the resource was being over-cut.
“We are here for the long term,” Ms Sewell said.
“We purchased a 105 year lease … over-cutting in the short-term would not be consistent with growing long-term value.”
Regarding harvesting rates, she said these changed from year to year depending on the profile of the forest.
“We have world class technology which ensures we can’t cut more than the forest can sustain,” Ms Sewell said.
“Further, for every log we harvest, we replant – we are planting more than five million trees this year alone.”
Moreover, she said there had been a 45pc increase in logs sold to domestic buyers since 2012 and export volumes were declining.
“The domestic market has been buoyant in the past three years and our customers continue to seek more logs, however we must be mindful the forest is a finite resource and we continue to manage it sustainably now and into the future.”
The company directly employs more than 50 staff in the Green Triangle as well as up to 500 people locally via contractor partners.
