VicForests' 2009 Annual Report reveals $5.1 million loss

VicForests' 2009 Annual Report has once again revealed that the logging agency continues to waste taxpayer millions of dollars sending our forests to the woodchip mills.

The report shows that VicForests has posted a loss this year of $5.1 million.  This is on top of last year posting a tiny profit after receiving a $5 million lifeline from government, and a loss the previous year.

Woodchip train makes its way to Midways, Geelong, for as little as $2.50 per tonne. Photo: Wilderness Society Collection

Whilst VicForests squanders Victorian taxpayer's hard earned money, woodchipping and paper companies continue to post handsome profits.  Whilst we don't yet know how much they will make for 2009, South East Fibre Exports, a wholly owned subsidiary of Japanese paper giant, Nippon Paper, last year made over $10 million profit.  They woodchipped approximately half a million tonnes of Victoria's native forests, and this year paid as little as $2.50 per tonne for them.

Another giant company, Australian Paper, which makes Reflex papers, is VicForests' largest single customer and was recently purchased for around $700 million by Nippon Paper.

The $5.1 million loss is on top of an extra $1.3 million handout for bushfire recovery and does not include the massive $29 million royalty that it has failed to hand over to the state government who, along with the Victorian public, own these forests.

VicForests continues to log ancient forests such as the 500+ year old trees at Brown Mountain, and wastes massive amounts of water by allowing logging in water catchments.

VicForests claims that the loss was due to the recent fires.  These tragic fires did burn through a large resource, but VicForests needs to manage the risk of fire, and not continue to blindly commit our forests to paper and woodchip companies.  Victoria has more than enough plantations to supply these commodity markets.  The Brumby Government must now protect our forests for their carbon, water and biodiversity values and stop the wholesale sell off via the propping up VicForests.

Take Action

1. Email the Treasurer John Lenders and demand he pull VicForests out of our native forests.

2. Visit our Waterlogged website and sign our petition to protect our water catchments.