163 FORESTS PACT A BLUEPRINT FOR NORTH-EAST

Philip Hopkins, The Age (article), 1/2/99


The future of the hardwood timber, mining and tourism industries in Victoria's north-east will become clearer soon with the release of a directions paper that will form the basis of the regional forest agreement (RFA) for the region.   The RFA aims to achieve a balance in the use of native forests in the region between the hardwood timber industry, tourism, mining and conservation. The north-east RFA region is an area bounded by the Murray River to the east and north, the Hume Highway to the west and the Great Dividing Range to the south.  It includes Wodonga, Wangaratta,  Benalla,  Mansfield, Corryong,  Myrtleford,  Chiltern, Beechworth and Yackandandah.

The executive director of the Forest Service in the north-east, Mr Gerard O'Neill, said the directions report was being finalised and would be available as soon as possible. It would propose a reserve system, identify industry  development opportunities  and  set  out  how sustainable  forest  management could be dealt with by the RFA.  Mr O'Neill said the directions report would be open to public comment, after which the State Government and the Commonwealth would negotiate the final RFA. The federal minister overseeing the agreement, Mr Wilson Tuckey, had indicated he wanted the whole RFA process completed by the end of  the year, Mr O'Neill said.

The directions report will incorporate public submissions made after the release last year of a detailed scientific assessment of the native forests in the north-east.  The north-east RFA region has 1.3 million hectares of public land 94 per cent of the total area --most of which is native forest. Private land, mainly used for agriculture, makes up the remaining 46 per cent.

Of the native forest, state forest occupies more than half - 718,700 hectares.  Conservation  reserves make up 392,000 hectares of the public land and include part of the Alpine National Park, Mount Buffalo and the Chiltern Box-Ironbark National Park. The remaining public land includes alpine resorts, plantations and water bodies.  According to the scientific assessment, the regional hardwood timber industry in 1996-97 contributed more than $40 million to the Victorian economy.

The estimated gross production value of commercial forestry, sawmilling and residual log processing using hardwood was $20.6 million, providing 212 direct jobs.  With flow-on effects, sawmilling and residual log processing were estimated to contribute more than $34 million and $7 million respectively to the economy. Together with forest management, logging and haulage they provided about 485 direct and indirect jobs within and outside the region.

Timber processing and contracting industries using hardwood directly supported 1336 people who generated at least $14 million each year in household spending. The region's native hardwood also contributed to furniture manufacturing, joinery and craft-wood businesses. In 1996, 585 people in the north-east were employed in furniture and joinery-based industries using hardwood and softwood.

The regional softwood industry, which is not part of the RFA process, has just under a quarter of the state's private plantations. In 1996-97, the softwood sawmilling industry employed 706 people, with another 135 in harvesting and hauling.

The scientific assessment said that the north-east had 1.5 million tourists in 1996, 10 per cent of all visitors to Victoria In 1995-96 recreationa1, personal and other services employed more than 5400 people in the region, or 8.4 per cent of total employment.

Tourism made a big contribution to the.retail and wholesale sectors, which combined were the region's second-largest employer, employing about 11,500 people, or 17.7 per cent of the workforce.  Tourism was also a big money spinner, with visitors estimated to have spent about $93 million in Albury in 1994-95. Tourist spending in the "Legends, Wine and High Country" was about $219 million in 1995-96.

In the minerals sector, the assessment said there were no big mines in the north-east, with $9.3 million being spent on exploration in 1996-97 and 31 active licences distributed among 23 companies.  "Quarrying is a major activity, with 25 construction material quarries producing at least $20.5 million of construction material in 1994-95," the assessment said.

The biodiversity assessment identified a region of great environmental diversity, with 133 different environmental strata. About 2000 species of plants were recorded, including 166 of conservation significance, of which 24 were rated critically endangered.  The assessment also identified 34 species of mammals, reptiles, birds and frogs, rare or threatened.  About 21 per cent (261,000 hectares) of the region's forested public land was identified as old growth.