VicForests Finances

Interpol says corruption in global forestry sector worth $29 billion every year

9 December 2016

The international police organization Interpol released a report today that highlights the scale of corruption in the global forestry sector as well as the importance of coordinating law enforcement efforts across national boundaries in order to protect forests.

According to the report, the cost of corruption in the global forestry sector is some $29 billion annually. Bribery is the most common form of forestry corruption, followed by fraud, abuse of office, extortion, cronyism, and nepotism.

Native Forest logging: we can do better than this

23 July 2016

Pretty much everyone is sick of the slogans used by the major parties in the election. But jobs, growth and fairness remain pertinent to the current situation in the native forests of Victoria's Central Highlands. There, the reality is that native forest logging provides few jobs; it is not a growth industry – its resource availability is shrinking. It is not fair that taxpayers have to subsidise an industry worth far less to the economy than alternative uses of the forest.

Is Victoria's native forestry industry worth it at $5 million a job?

27 June 2016

The viability of Victoria's government-owned native forestry business has been thrown into doubt by a high-level analysis concluding it takes more than $5 million of investment in roads, machinery and equipment to create a single timber job.

Victorian forests worth more as national park than timber

21 June 2016

This ANU report proves the logging industry is worth 1/70th what the forests produce in water value.

Professor David Lindenmayer said plainly "This is really dumb economics..." Logging in the central highlands generated a tiny $29 per hectare of additional net economic activity in 2013-14. That compares to a $2,023 per hectare contribution to the state's water supply, a $2,667 per hectare contribution to agriculture and $353 per hectare from tourism.

The analysis also found the value of carbon sequestration was potentially greater than the value of logging. Based on a carbon price of $12.25 - which was the average price paid by the Commonwealth in its second direct action emissions fund auction - it estimated carbon storage could generated about $38 per hectare per year.

Chops and chips hard to swallow for some Libs

14 August 2014

EARLIER this month VicForests, the state government-owned entity that manages logging in the state’s native forests, celebrated its 10th birthday with a party.

On the face of it the foresters had a lot to celebrate. In its first eight years, despite taking in hundreds of millions in revenue, VicForests made a profit of only $12.3 million and it hasn’t paid a dividend to its owners — the taxpayers — since 2007. Lately, however, the business seems to have turned the corner. In the financial year 2012-13 it made a profit of $802,000 on $106.3 million in revenue.

Forestry industry out on a limb

9 August 2014

In its heyday, the town of Cann River in the far east of Victoria was home to seven sawmills. But now just one remains .

Bob Humphreys, 70, has run it for 43 years. As a boy he spent school holidays working at the mill.

In all that time no changes have been as dramatic as those which have buffeted the industry in the past five years.

‘‘Our critical mass has shrunk to such an extent that sooner or later it will no longer be viable. And we're rapidly approaching that point, I reckon,’’ Humphreys says.

Victoria leads logging of native forests

8 August 2014

Victoria has become the largest producer of wood from logging native forests in the country, following a dramatic contraction in Australia’s native timber industry over the past decade.

The industry’s decline, and Victoria’s rise to the top, is in large part a result of native timber losing its prized international woodchip markets, with domestic and international plantations now favoured by buyers in Japan and China.

Axe VicForests or chop off the public money

28 May 2014

The age of entitlement is alive and well in Victoria. At least when it comes to the logging of native forests, a proposition that has become so financially fraught the government is considering getting into the business of firewood collection and chipboard production just to prop it up.

A couple of weeks ago South East Fibre Exports – the Japanese-owned company that owns a large woodchip mill at Eden – decided to dump a contract taking waste timber from VicForests’ East Gippsland logging operations.

Vic government timber business just chasing its tail

5 March 2014
Originally published at : 

Imagine a world where the state owns a school demolition business.  It roams the countryside knocking down perfectly fine public schools chosen by the state government.  This company then sells the rubble to merchants.

Not that anyone really wants to buy it, so the school-dozing company barely breaks evendespite government subsidies.  The obscene arrangement is made on the basis that several hundred school rubble jobs are at stake.  This patently nuts.  It is also the world in which we live right now.

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