MEMBER for Mount Gambier Troy Bell has renewed his call for an independent auditor to monitor OneFortyOne Plantations’ compliance with conditions set in the 2012 forward sale of the South East’s forests.
Mr Bell yesterday called on the Liberal and Labor parties to support his plan for a “full-time auditor to continually monitor OFO’s compliance and report back to the people of the South East”.
He said the region continually hears about the importance of value adding, but that everyone could see the amount of unprocessed timber being exported.
“The forests were sold for $670m, but with a number of conditions,” Mr Bell said.
“I was concerned when I asked Forestry Minister Leon Bignell who audits OFO’s compliance with these conditions, and he answered OFO does.
“To me this is totally unacceptable, especially when I hear supply agreements are being reduced to a point where smaller timber mills run the financial risk of being unviable.
“The entire sale agreement and conditions have been shrouded in secrecy and it is about time we shone a light on these conditions and ensured the people of the South East the conditions are being met.”
However, OFO chief executive officer Linda Sewell yesterday told The Border Watch it was “disappointing that incorrect claims continue to be made about OFO as they are counterproductive and negatively impact industry confidence in the South East”.
“We remain in complete compliance with the lease terms and conditions,” Ms Sewell said.
“In addition, and as we have previously publicly stated on a number of occasions, our commercial tenders are audited by an independent third party auditor – most recently in November last year.”
Mr Sewell said as one of the region’s largest employers and economic contributors it was important for OFO to have an enduring industry and the focus has always been to work collaboratively with all stakeholders to achieve this.
Meanwhile, Mount Gambier Liberal candidate Craig Marsh said the call for an independent auditor had some merit, but the situation was more complex and this “does not offer a solution to unite the divided industry”.
“The forestry industry is the strongest it has been in 15 years and OFO as well as the private sector have been investing heavily in jobs in our region,” Mr Marsh said.
“However, what the forestry industry needs in the South East is a long-term plan.
“It has only been about five years since our forestry assets were privatised and I want to work with all stakeholders within the industry.
“We need a long-term plan to ensure the industry is sustainable, viable and continues to be a powerhouse for the South East economy over the next 95 years.”
