Historic North Coast forestry contracts signed

The Minister for Infrastructure, Planning and Natural Resources today signed the first in a series of 20-year wood supply agreements that will underpin timber industry employment and investment on the NSW north coast.

“These wood supply contracts will provide the timber industry in the region with unprecedented security,” said Mr Knowles.

The seven agreements, announced today by the Premier, Bob Carr at the Annual Conference of the Shires Association of NSW will replace previous supply agreements for high quality sawlogs finalised following the North East Regional Forest Agreements.

“The signing of these agreements represents the first step forward in removing a significant impediment to investment by providing long-term supply and a secure platform from which the industry can move forward with security and confidence.

“In addition to the changes to the previous supply contracts, two new types of wood supply agreement are also being introduced to secure the supply of speciality high quality logs - smalls, logs, poles, piles and girders; and lower quality sawlogs - thinnings from plantations and native forests.

“By extending the long-term security of supply to a broader range of logs, some companies will have, for the first time, certainty in the form of a legally binding wood supply agreement.

“The restructured supply arrangements are the result of 12 months work by Government and the industry to create a long-term vision for the north coast timber processing sector.

“I am pleased that the north coast timber industry has embraced this opportunity to secure its long-term future now. I congratulate them all as well as their representative organisation the Forest Products Association for this historic effort and the agreement.

“As well as stimulating new investment and jobs, the changes will ensure optimum use of the available wood resource. The logging industry will also benefit, along with many north coast communities.

“The new contracts recognise the changing nature of our timber resources into the future, particularly the increased supply from hardwood plantations and the capacity of industry to process and add value to smaller, lower quality logs.

“These agreements are a big step forward in establishing a balance between the conservation of the valuable resource in the north east timber reserves, and the need to maintain industry security and employment.”.

The first seven new 20-year agreements announced today are for the supply of high quality sawlogs to:

  • Big River Timbers Pty Ltd, Grafton
  • J Notaras and Sons Pty Ltd, South Grafton
  • Ford Timbers Pty Ltd, Urbenville
  • Thora Sawmilling Pty Ltd, Thora (near Bellingen)
  • SA Relf and Sons Pty Ltd, Bulahdelah
  • Newells Creek Sawmilling Company Pty Ltd, Bulahdelah
  • Hurfords Building Supplies Pty Ltd, Lismore.

The Minister said he hoped the remaining contracts would be signed by the end of June.

Media contact: Kathy Connell on 0419 239 178.