THE State Government is investigating whether OneFortyOne Plantations (OFO) has breached its conditions of the forward sale contract as concerns escalate over the huge number of softwood saw logs being shipped offshore at Portland.
These revelations come as new photographs show the mountainous piles of softwood logs sitting at the Victorian port this week.
Claims have emerged there are at times 200 trucks – laden with softwood logs – backed up at the export facility.
It is understood Forestry Minister Leon Bignell will meet with the Campbell Group – the parent company of OFO – within weeks over growing concerns and whether the forward sale conditions have been breached.
The number of tonnes leaving the port remains in a cloud of secrecy, despite other commodities figures being readily available.
The Port of Portland chief executive officer Jim Cooper yesterday refused to release softwood log export numbers to The Border Watch, arguing these figures needed to “come from log companies”.
The timber workers union has also announced it will start a public campaign to see this resource redirected back to domestic use given it could underpin 1000 new jobs.
In a State Parliament estimates committee this week, Forestry Minister Leon Bignell confirmed the government had “concerns” following discussions with regional timber processors.
“We are working through these concerns,” said Mr Bignell, responding to a string of questions from Member for Mount Gambier Troy Bell.
“We want to make sure that as much employment and economic activity as possible happens in the South East around Mount Gambier and the rest of those forest lands.”
He said a “comprehensive” set of conditions – including export terms – were placed on the $670m forward sale.
While investigations were under way by PIRSA and ForestrySA, Mr Bignell said he was not aware of any breaches at this stage.
“We are getting more information from people in the industry, in the South East, to make sure we have all the facts that we need to put to OFO.”
He said these discussions would include OFO officials from Australia and North America.
The investigations will also include a report compiled and paid for by regional processors.
“OFO is saying they are compliant, but some of the processors questioning whether they are,” Mr Bignell said.
The minister also revealed the government was also obtaining legal advice on the issue.
“There is a meeting with OFO and the Campbell Group in the next couple of weeks,” Mr Bignell said.
“I think this is still playing out.”
The minister also revealed ForestrySA convened a meeting with a wider group of commercial stakeholders to “get an accurate picture”.
“We want to see as much log as possible being worked on in SA rather than being exported as logs,” Mr Bignell said.
“If there is any possibility at all that we have processors here that can deal with those logs, we want to make sure that as much of that can be handled as possible.
“This is an ongoing process and one that we take very seriously.
“As someone who grew up in the South East, I totally understand how important the forestry industry is for people in the local community.”
