Independent report slams Soviet-style mismanagement of Red Gum forests

The Wilderness Society (Sydney) Inc
National Parks Association of NSW
Media Release
20th October 2008 

A new report into the economics of NSW’s River Red Gum timber industry has found it is being subsidised by taxpayers while better alternatives are ignored.  This is described by the economists as being akin to the failed Soviet -tyle economics of the last century.

The report River Red Gum Forestry in the New South Wales Riverina: Seeing the Value for the Trees, is an economic analysis of River Red Gum logging along the Murray and Murrumbidgee Rivers in south-western NSW.  It finds that unsustainable logging for low-value products like firewood and fence posts should be replaced by tourism, farm forestry woodlot establishment and recreation. This would deliver more jobs and better economic returns for local communities and the State.

Carmel Flint, spokesperson for the National Parks Association said, “This report lifts the lid on the economic mismanagement of NSW Red Gum forests. The hidden subsidies provided to the logging industry mean that tax payers are effectively paying for their precious wetland habitats to be patch-clearfelled.”

“The real value of River Red Gum forests will only be realised when they are protected.  The report estimates that the net revenue from River Red Gum logging on public lands in NSW is worth only $7 million each year to the NSW economy, while the non-use value to the community of protecting the areas logged each year is $18 million.

“Tourism is already economically far more important than logging in the region. Tourism currently supports over 1,000 jobs in just two local government areas and across the region generates $797m annually. Creation of new national parks in the Red Gum forests would see tourism jobs and economic returns rise even further. In contrast the logging industry supports only 136 jobs and generates just $22m in gross revenue” said Peter Cooper, Campaigner for The Wilderness Society.

The National Parks Association and The Wilderness Society are calling for a rapid forest assessment in the Red Gums and the creation of large new National Parks in the region, in consultation with indigenous traditional owners.     

“This is an important resource that is being abused and mismanaged. We need to protect these forests in National Parks to enable their true value to the community to be realised.” said Peter Cooper.

 “Converting the forests to national parks makes good economic sense. It would provide for more jobs, boost tourism and see an end to an industry that is wasting public money”

The report was prepared by Economists At Large for the National Parks Association and The Wilderness Society.

To obtain a full copy of the report, please contact::