THE State Government sold the equivalent of 4745 MCGs of native forests to private timber companies last year for less than it cost the Government to fell the trees and ship them to the buyers.
Despite selling the timber for $99 million, and other revenue of $4 million, VicForests ended in the red with a $17,000 loss once expenses such as haulage were taken out, according to the agency's annual report. VicForests is the quasi-government body charged with commercialising the state's forests. Most of the timber sold at a loss went into pulp.
"We have got a situation where the three south-eastern state governments are underpricing the forest resources," said Judith Ajani, an economist at the Australian National University who managed Victoria's forest policy in the 1980s. "This will favour those companies exporting native forest-based chip against those who have invested in plantations."
In an emailed response to The Sunday Age, VicForests chief executive David Pollard defended the result: "A loss of $17,000 is because the incurred expenses were greater than the revenue derived."
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