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Forest Products Commission Annual Report 2018-2019 Statement of Compliance

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Forest Products Commission Annual Report 2018-2019 Statement of Compliance Forest Products Commission Annual Report 2018-2019 Statement of compliance ISSN 1838-5362 (print) ISSN 1838-5370 (online) ISBN 978-0-6485318-0-7 (print) ISBN 978-0-6485318-1-4 (online) September 2019 Copyright © 2019, Forest Products Commission. All rights reserved. All materials, including internet pages, documents and online graphics, audio and video are protected by copyright law. Copyright of these materials resides with the State of Western Australia. Apart from any fair dealing for the purposes of private study, Hon. Dave Kelly MLA research, criticism or review, as permitted under provisions of the Minister for Forestry Copyright Act 1968, no part may be reproduced or reused for any purposes whatsoever without prior written permission of the Statement of compliance General Manager, Forest Products Commission. For year ended 30 June 2019 Permission to use these materials can be obtained by contacting: In accordance with section 63 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of the Forest Products Commission for the reporting period General Manager ended 30 June 2019. Forest Products Commission Locked Bag 888 The Annual Report has been prepared in accordance with the provisions of the Financial Management Act PERTH BUSINESS CENTRE WA 6849 AUSTRALIA 2006 and any other relevant written law. Telephone +61 8 9363 4600 Facsimile +61 8 9363 4601 Email [email protected] Web www.fpc.wa.gov.au Copies of this document are available in alternative formats on request. Mr Ross Holt Mr Stuart West Chairman General Manager /fpcwa 11 September 2019 11 September 2019 Cover: Aboriginal planters were engaged to hand-seed sandalwood as part of our regeneration activities in the Rangelands. Photo credit: Rachel Clarke. FOREST PRODUCTS COMMISSION ANNUAL REPORT 2018-2019 Contents Who we are 1 Performance summary 42 Disclosures 120 Glossary 137 Financial highlights 2 Financial performance 44 Administered legislation 122 Notes 138 Chair’s report 3 Summary of audited 46 Ministerial directives 122 key performance indicators General Manager’s report 3 Governance disclosures 122 Contact us 139 Our agency 5 Financial statements 48 Other legal requirements 124 Organisational structure 5 Auditor General independent 50 Government policy requirements 126 Commissioners 6 auditor’s report Statistics 128 Executive team 7 Certification of the financial 53 statements Trends in the area of native 130 Our performance 8 Statement of Comprehensive 54 forest harvested Performance management 10 Income Area of coniferous plantations 131 framework Statement of Financial Position 55 as at 31 December 2018 Goal one: 12 Statement of Changes in Equity 56 Area of broadleaved plantations 133 Deliver healthy forests for future as at 31 December 2018 generations Statement of Cash Flows 57 Notes to the financial statements 58 Area of sandalwood plantations 133 Goal two: 20 as at 31 December 2018 Facilitate a vibrant forestry industry Key performance indicators 102 to deliver social and economic Log production from Crown land 134 benefits, particularly in regional Certification of the 104 and private property in 2018-2019 Western Australia key performance indicators Native forest sawlog production 136 Goal three: 32 Key effectiveness indicators 107 in 2018-2019 Ensure efficient, effective and safe Key efficiency indicators 116 Native forest other bole volume 136 delivery of business outcomes Sandalwood production by the 136 Looking forward 40 FPC from Crown land FOREST PRODUCTS COMMISSION ANNUAL REPORT 2018-2019 i Who we are Sustainable forest management provides healthy forests for future generations and the timber products we use every day. FOREST PRODUCTS COMMISSION ANNUAL REPORT 2018-2019 ii FORESTFOREST PRODUCTSPRODUCTS COMMISSIONCOMMISSION ANNUAL REPORT 2018-2019 1 Who we are Financial highlights Our annual turnover was $116 million. We operated at a profit, paid a dividend to the State Government and invested in plantation expansion, innovation, jobs and communities. Our investment in community We support the Western Australian forestry industry, which provides employment for more than 6,000 people. $117million $10million $0.8million $0.7million spent in regional WA supporting invested in the expansion for sandalwood regeneration for South West native employment and services, and of the softwood estate forest regeneration providing products to industry More than $70 million $30thousand $86thousand in contracts awarded, including awarded to community groups awarded to community-focused 17 sale and 95 service contracts through the FPC Community organisations through the FPC Support Program Sponsorship Program FOREST PRODUCTS COMMISSION ANNUAL REPORT 2018-2019 2 Who we are Chair’s report General Manager’s report An increased focus on engaging with stakeholders and sharing the benefits of forestry has supported the growth of the FPC as a dynamic business. Forestry plays a vital role in contributing to the well-being This year, the Western Australian Regional Forest Agreement (WA RFA) of the Western Australian people and we remain committed was extended for 20 years. The extension includes five-yearly reviews to to greater engagement with Aboriginal communities, provide ongoing confidence to the community through the monitoring of forest management practices. It will support stability for Western Australia’s addressing the forestry industry’s challenges, and $1.4 billion forest and forest products industry and the more than maintaining a safe, strong and vibrant industry. 6,000 people employed through forestry in Western Australia. The development of the Djarlma Plan aims to set This is part of an ambitious softwood expansion We launched our first Reflect Reconciliation Action Fire mitigation continued to be a focus through the strategic direction for the future of the forestry strategy to grow the estate and provide enhanced Plan, confirming our commitment to reconciliation strengthening existing fire mitigation techniques industry by integrating traditional with scientific resource certainty in the softwood sector. and furthering relationships with Aboriginal peoples. and the exploration of new strategies to better knowledge. This will allow the industry to meet The FPC has also committed to working with the Four enthusiastic trainees were appointed under manage fire risk during our operations. Salvage contemporary market needs and maximise its Forest Industries Federation WA (FIFWA) to our Aboriginal traineeship program in both field and operations were able to recover around 74,000 social, economic and environmental contribution urgently improve the industry’s safety performance. office-based roles across the business, with the aim tonnes of fire-affected softwood for local industry. to the State. The Plan also recognises that of nurturing a new generation of Aboriginal foresters It is crucial that we continue to learn from fire improving how these benefits are communicated I wish to thank Mr Geoffrey Totterdell, who left and forestry industry professionals. events and look at ways to increase the security to the broader community will support investment after nearly six years with the Commission, for his of this renewable resource. in the forestry industry. valuable contribution as Deputy Chair. I’d also like Our Community Support Program was expanded to thank my fellow commissioners for their support this year to award 20 community groups with grants I want to thank our dedicated staff, particularly We continued to reinvest in native forest and throughout the year. which will help them improve their local communities those involved in fire-fighting and fire-salvage sandalwood regeneration, plantation expansion and ensure that all West Australians can experience efforts this year. It is encouraging to see so many and innovation, to ensure the resource harvested I am proud of the continued dedication of FPC the benefits of forestry and healthy forests. of our staff taking on new challenges and from our forests is sustainably sourced. Western staff, particularly their commitment to safety, roles while embracing an increased focus on We invested $1.5 million in sandalwood and native Australia’s forests are a renewable resource and both in everyday work activities and in our broader engagement. sustainable management will ensure our forests role in the forestry industry. forest regeneration, expanded our Operation are maintained to support future industry and Woylie sandalwood seeding program, and I would also like to acknowledge the Minister community needs. increased the area of regenerated karri forest. for Forestry, the Hon. Dave Kelly MLA, for his We continued our commitment to expanding leadership and support. We expanded Western Australia’s softwood estate Western Australia’s softwood estate, with with more than 1,600 hectares of additional land Mr Ross Holt $4.3 million invested in land acquisition for planting established, and 180 hectares expected to be Chair in 2019-2020, and we continue to work with established in winter 2019 through Forest Products 11 September 2019 industry to encourage broader investment in the Commission (FPC) Farm Forestry Assist grants plantation industry additional to FPC funds. Mr Stuart West awarded to landowners choosing to grow pine. General Manager 11 September 2019 FOREST PRODUCTS COMMISSION ANNUAL REPORT 2018-2019 3 Who we are Sandalwood regeneration remained a key focus for the FPC this year to help ensure the long-term future of the State’s
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