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PFT Annual Report 2015-16

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PFT Annual Report 2015-16 Cover Page 1. Stockyards with valuable shelter 2. Native and plantation forests providing shelter for cattle and pasture 3. PFT Agroforestry project – installing instruments at one of four trial sites 4. Harvesting Eucalyptus nitens shelter belt 5. Plantation hardwood framing 6. PFT field day at Preolenna, November 2015 30 Patrick Street HOBART TAS 7000 Email: [email protected] Web: www.pft.tas.gov.au Inquiries: Tom Fisk Phone: (03) 6165 4070 10th October 2016 Email: [email protected] Our Ref: 0507/3 The Hon Guy Barnett Minister for Resources Parliament House HOBART TAS 7000 Dear Minister ANNUAL REPORT FOR YEAR ENDED 30 JUNE 2016 In accordance with section 32E of the Private Forests Act 1994, I hereby submit for your information and presentation to Parliament the Annual Report of Private Forests Tasmania for the year ended 30 June 2016. Yours Sincerely Tom Fisk CHIEF EXECUTIVE OFFICER This page has been intentionally left blank Contents CEO’s Year in Review............................................................................................................................... 1 Private Forests Tasmania – Introduction ................................................................................................ 7 Chapter 1 Reporting On the Private Forest Estate ................................................................................. 9 Chapter 2 Adding Value to the Private Forest Estate ........................................................................... 15 Chapter 3 Engaging with our Stakeholders ........................................................................................... 23 Chapter 4 The Regulatory Regime ........................................................................................................ 33 Chapter 5 Administration and Finance ................................................................................................. 39 Financial Statements ............................................................................................................................. 47 Auditors Report ..................................................................................................................................... 71 Table Index Table 1: Composition of privately owned/managed forests at 31 December 2015 ............................ 10 Table 2: Private Forests Harvest Volumes 2011-12 to 2015-16 (tonnes) ............................................ 12 Table 3: Client Services Inquiries ......................................................................................................... 24 Table 4: PTR Applications 2015-16 ....................................................................................................... 35 Table 5: PTR Gazettals 1994-95 to 2015-16 ......................................................................................... 36 Table 6: Service Levy Income ............................................................................................................... 37 Figure Index Figure 1: Private Forest Harvest Volumes (including fuel wood)......................................................... 13 Figure 2: Native Forest and Plantation (softwood and hardwood) Harvest from Private Forests ...... 14 Figure 3: Organisation Chart ................................................................................................................ 41 This page has been intentionally left blank CEO’s Year in Review I am pleased to report that Private Forests Tasmania (PFT) has had another productive year and it gives me great pleasure to present this report that briefly describes our focus, our activities and our financial performance for the period. Once again we have responded to requests for assistance and advice from a large number (552) of private forest owners; we have continued to build new, and strengthen current, relationships with companies and stakeholder groups; we have worked with others to research, pursue and promote new market opportunities for wood; we have continued our initiatives targeting an expansion of the private forest estate; and, we have provided input and advice to government on matters of relevance to the private forestry sector. All this while delivering a strong financial result from a tight budget. I am proud of these achievements and I am particularly proud of my small team who are largely responsible for their delivery. Our state-wide operating structure continues to underpin our capacity to provide services that support private forest owners and engage in activities that add value to their forests. I know I have stated this in the past, but the adoption of a new operating structure some years ago was something that had to happen and, while I acknowledge that it didn’t go down well with everyone, this initiative has appropriately positioned PFT to more effectively champion the cause of our forestry stakeholders in a changing operating environment. In addition, and very importantly, our current structure continues to ensure that maximum value is delivered from the ongoing government and private financial support we receive and greatly appreciate. However, as forest industry activity grows and privately owned forests progressively assume greater dominance in the supply chain, it is appropriate that we consider ways to strengthen support for the sector. Tasmanian private forest owners are in a unique situation of having an organisation like PFT available to them – this is not the case in other parts of Australia. A major objective of mine is to seize the opportunity that this provides and ensure that PFT continues to touch the lives of progressively more private land and forest owners in order to maximise our impact. To do this we have to offer services and pursue initiatives that are relevant to our stakeholders’ needs - which means everyone within the organisation has to be open to innovation and change. I believe that is now the case, with evidence provided throughout the report to support this claim. Chapter 1 of this report provides some metrics on the private forest estate and I refer you to this chapter for greater detail. Importantly, these metrics remind us of the significance of this estate for Tasmania. Our capacity to provide this valuable information is totally reliant on the goodwill of forest owners/managers and primary wood processors and we work hard to maintain trusting relationships with these people. I take this opportunity to once again thank them for their co-operation. At 1,110,000 hectares, the private forest estate comprises approximately 30% of Tasmania’s reported forest area. The native forest component (858,000 hectares) comprises 26% of the State’s reported native forest area and the plantation component (242,000 hectares) comprises 78% of the State’s reported plantation area. These metrics emphasise why the private forest estate (across all categories and ownership classes) is such an important asset for the forestry sector in particular and for the general economic, social and environmental well-being of Tasmania as a whole. Last year I alluded to the latent potential the private forest estate has to underpin further growth in the forest products processing sector with associated benefits in economic growth for regional communities and the State more generally. Over the last year it is pleasing to see some of this latent Private Forests Tasmania Annual Report 2015-16 1 potential being realised with the total private forest harvest increasing by 48.5% over the previous year, to 2.94 million tonnes. A level of production not experienced for 8 years. As expected, the dominant contributor to this increase was the hardwood plantation estate (89% increase to 1.79 million tonnes) as the fall-out from the failed MIS era subsides and the new owners ramp up their harvesting and replanting activities. Of significance here is the substantial increase in the production of hardwood plantation export logs rather than wood chips, signalling that despite the estate being primarily developed for fibre production (pulp wood) a range of products are now being produced that provide better returns to forest owners. Further value adding within the State is hopefully the next step. At a little under 1.0 million tonnes across all log grades, the softwood estate continues to support (at its sustainable yield level) local processors and export activities alike, creating wealth and employment opportunities. Nowhere near as significant in volume terms but nevertheless important, is the 86% increase in native forest production to 169,000 tonnes. While this remains a miniscule proportion of peak production (2.6 million tonnes) achieved historically it shows that there is ongoing interest in this very valuable forest asset that has largely remained dormant for many years. Importantly, these forests primarily belong to individual landowners who have witnessed the progressive destruction in the value of their forest assets over the last decade. These forests are an important environmental, social and economic asset for all Tasmanians and they are managed free of charge to the community by their owners. It is important that they are seen to have potential commercial value, realised or not, so that their survival is assured. As previously predicted, the private estate’s contribution to State forestry production continues to increase. For the previous three years the contribution had risen to, and remained at, 58%. During the reporting period the contribution rose to 67% - reinforcing the importance
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