For a state-owned enterprise, the company`s financial information may be consistent with current accounting standards, but so often these standards are used to mask rather than explain. Today, when STT prepares its accounts, they do not reflect true values. For example, the state-owned enterprise does not own the country it registers and the country is not valued at anything. Not in the forestry sector. All grants provided by the Australian government to Tasmania under the Tasmanian Intergovernmental Agreement (TFA) of $277 million in 2011 and $250 million (TCFA) have been quarantined in the calculation of GST`s share in Tasmania. I was the only person to give an overview of all the circumstances that led to the sale of the wood chip plant, but I was not called to testify, although some of the final reports were reported to what I had noticed. The investigation was a witch hunt as to why the mill was unexpectedly sold to environmental philanthropists Graeme Wood and Jan Cameron, who immediately shut it down. Vested Timber`s interests in Tasmania were outraged that a consortium of local millers had been blind. Unfortunately, the expanded FRG that was signed last year – practically a blank cheque turning forever – almost certainly guarantees that nothing will change. We will not have a competitive and sustainable local forest timber industry on the international stage. Similarly, I provided an in-depth opinion on the profitability of the timber industry as part of a Tasmanian parliamentary inquiry into the sale of the Triabunna chip plant by Tasmanian timber giant Gunns in 2011.
The only way that will happen is when people are willing to pay a lot more for their wood, and we save a lot less. We can discuss anything we like to know if there is enough wood there or whether logging is environmentally sustainable. The reality is that Tasmania will not make money at contract prices and the state will continue to drain forests for soils, pulp and fleas that could produce sawwood for decades to come. Tasmania`s first regional forest agreement, signed in 1997 between the state and the community, was to us another era in which forestry was environmentally and economically sustainable. It is a bad public order if this loss of value is never properly taken into account, when the state decides whether or not to register. The great irony of all is that these other environmental values should be integrated into an “ecologically sustainable forest management” that Tasmania`s first FRG did not deliver. The native forests used for timber production now appear to have an estimated value of $44 million, and this value continues to erode. On the economic front, we are witnessing the last days of a unique mining operation that destroys natural capital. In response to questions from the Guardian, Tasmanian Resources Minister Guy Barnett said: “The Tasmanian FRG provides a balanced framework for sustainable management of production forests. Over the past 20 years, the FRG has had a lifespan in the market – so that the forest industry can be responsible and competitive in global markets and support thousands of jobs in regional communities.