The timber industry is reeling after the Victorian Government brought forward the transition away from native forestry logging to 1 January 2024 from the initial 2030 goal.
The decision has come as the state forestry body VicForests ceased operations in November 2022 after losing a Supreme Court case against them brought by Warburton Environment.
An extra $200 million was allocated in the 23/24 Victorian budget to bring forward the transition package to support timber industry workers, for a total package of $875 million.
Powelltown Sawmill CEO Dan Pote said when he heard the rumours of the decision on Monday night and Tuesday morning, he felt sick in the stomach.
“It has been a lot to digest, this very sudden change of plan to end native forestry, from 2030 all of a sudden to January 2024,” he said.
“We’ve got people’s livelihoods at risk now in terms of what they do for work going forward, it was a very tough night to sleep because I was worried about every single employee that works in the industry.”
Powelltown Sawmill employees were called for a team meeting as soon as the news was confirmed on Tuesday morning prior to the release of the budget and Mr Pote said tears were shed. The Powelltown Sawmill has been in operation for over 100 years.
Mr Pote said they have employees who’ve been in the industry 30 to 40 years and know they are going to find it difficult to transition.
“2030 allowed us originally to have enough time to properly transition a business with infrastructure innovation, the right skill set, the right training, now all of a sudden to fast track that to six months or seven months, I don’t know any business that can transition that fast,” he said.
“There is support, but at the moment, we haven’t seen any of that support and we’re trying to understand exactly what the business will get and what the employees will get too.”
Legal injunctions from the Warburton Environment case, as well as two cases heard together from Environment East Gippsland and Kinglake Friends of the Forest which ruled VicForests’s methods for surveying for Greater Gliders and Yellow-Bellied Gliders were inadequate, created supply issues for mills.
“The rapid phase out of subsidised native forest logging will create a more even playing field that doesn’t disadvantage growers of plantation timber,” President of Kinglake Friends of the Forest Sue McKinnon said in a statement.
“In a climate emergency we can’t just keep converting the most carbon dense forests in the world into cardboard.”
Forest contractor workers are set to be transitioned into the forest management field, working in bushfire risk reduction. The Free TAFE program will support workers in retraining, with an additional $8000 in retraining vouchers to be supplied for retraining, TAFE or exterior.
Local Member for Eastern Victoria and Minister for Regional development Harriet Shing said the news has been extremely tough for people who have made a living in forestry for generations.
“Workers and businesses around the state have been unable to operate for many months and this has been incredibly difficult for many families and communities,” she said.
“The impact of bushfires and litigation has brought forward the transition, and we are working across government to provide intensive support over the coming days, weeks and months.”
Timber industry workers will be referred to local mental health service providers for support, with out-of-pocket costs covered. Native timber mills like the Powelltown Sawmill are eligible for a voluntary transition package, or can receive investment support through the Timber Innovation Fund if they choose to persevere.
Ms Shing said the decision is also about mental health support, engagement, and resources in each affected community.
“Workers and businesses will be provided with one on one case management and community support to have the information and resources they need to make the choices that are right for them,” she said.
“Whether that’s retooling, moving to a new industry, or taking a job in public land management, people will be supported.”
Business that rely on the supply of local hardwood will also be eligible for the Supply Chain Resilience Package to transition away from native timber.
The Victorian Government will also have to undergo land management works on 1.8 million hectares of public land previously slated for timber harvesting, which will expand Victoria’s state forest. An advisory panel will determine opportunities to qualify that forest for expanding National Parks, land management by Traditional Owners and recreation opportunities.
