Poor Advice Threatens $1.5b Pulp Mill Project

20 July 2007
The forestry industry and timber communities face serious uncertainties from the South East Natural Resources Management Board’s (SE NRM) approach to managing water allocations in southeast South Australia.
Industry has urged the state government to amend the proposed $1.5 billion Penola pulp mill Bill so that it provides resource security for the mill’s feedstock of wood fibre.
The proposed water allocation plans for the southeast could result in up to 14,000 ha of hardwood plantations grown prior to 2002 not replanted, threatening investment in the Penola project.
“Like all land users in the southeast region, the forest industry is concerned about sustainable water use, but the SE NRM’s approach is not based on sound science or method,” Tree Plantations Australia chief executive Allan Hansard said.
“For example, they think they can measure the water used by a tree in the same way they meter an irrigator’s pump,” he said. “It is clear they have not considered the benefits the industry brings to local economies or to the environment through carbon sequestration, biodiversity or water quality, let alone secure employment.
“For these reasons, we need the government to amend the Bill and extend water security to existing as well as new plantations.”
Timber Communities Australia (TCA) is concerned about the uncertainty the Bill creates for local communities.
“Many small rural communities are reliant on forestry,” says TCA chief executive Jill Lewis. “The last thing they need is for trees to be pulled out of the ground. The tree plantation sector contributes $664 million to the state’s southeast regional GDP and employs 7100 people.
“The industry represents 36% of all employment generated by primary industry sectors in the southeast. This could double as trees reach maturity and if the pulp mill is built. However, a pulp mill cannot operate on a secure basis without a secure supply of wood fibre.”
The National Association of Forest Industries (NAFI), Tree Plantations Australia (TPA), and TCA have written submissions requesting amendment to the Penola Pulp Mill Authorisation Bill, currently under review by a Government select committee.
“In its current form, the Bill provides water security for future plantations but falls short of providing water security for the plantations that are already in the ground,” Allan Hansard said. “To provide a long term resource for the pulp mill, the existing resource will also need water security.”
NAFI CEO Catherine Murphy says tree plantations are helping South Australia deal with greenhouse emissions as forestry is a carbon positive industry.
“This was demonstrated in the South Australian Government’s recent greenhouse strategy document. Forestry in the state is sequestering 2.7 million tonnes of CO₂ each year and offsets almost 10 percent of the state’s emissions.”

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