Statement for Media - under embargo
EDEN CHIPMILL WOOD SUPPLY AGREEMENT CANCELLED
The Forestry Corporation has cancelled its Wood Supply Agreement with the Eden woodchip mill.
Chief Executive Officer of the Corporation, Mr Nick Roberts said that the recent change of ownership of the mill had required some scrutiny of various aspects of the agreement and this had formed the conclusion that the continuation of the current arrangements could not be justified.
Mr Roberts said that under Clause 31.1.1 of the agreement, a change of ownership must be approved by the Government.
“Unfortunately in the current circumstances, this was not possible,“ he said.
Clause 31.1.2 states that “in considering whether to give consent to any proposed assignment, State Forests must have regard to the public interest.”
The Wood Supply Agreement was scheduled to run for 20 years from 1 January 1999, but can be cancelled for a variety of circumstances, including, under Clause 3.1 for “an event arising from an Act of God”
“After lengthy consideration the Government has decided that a continuation of the agreement until the end of 2018 would not be in the public interest, with or without any intervention from God.”
The international market for woodchips has crashed and there is no way that the Forestry Corporation can continue to supply trees without incurring further multi-million dollar losses for NSW taxpayers.
Contact: Nick Roberts
02 98720111
1 April 2016
Office of the Chief Executive Officer, Forestry Corporation of NSW http://www.forestrycorporation.com.au/ Postal address: PO Box 100, Beecroft NSW 2119