Tiwi Logging Inquiry Fails to Flush out Finances

The Wilderness Society Inc
Media Release
29 October 2009

A Senate Inquiry into logging, land clearing and mining on the Tiwi Islands has not investigated the propriety of complex financial arrangements surrounding the clearing of 30,000 hectares of valuable native forest, despite being specifically required to do so.

The Senate Committee’s Majority Report, released yesterday, also fails to address a key aspect of the Tiwi land clearing and plantation debacle - the huge damage caused to the unique Tiwi natural environment.

“An opaque corporate web surrounds this failed plantation venture”, said Wilderness Society spokesperson Ms Amelia Young.

“The Senate Inquiry has failed to properly ascertain whether the contracts relating to the land-clearing, the shipping and sale of valuable native forest timbers and rent of Tiwi land by failed MIS-giant Great Southern are all above-board. This is in the context of valuable native timbers being sold at a loss on the  world market.”

Earlier this month, Great Southern investors were told by the company’s receivers that ‘The Tiwi Island operations are commercially unviable’.

“With receivers advising that the Tiwi plantations are commercially unviable, it’s little wonder no other woodchip company wanted to buy the Tiwi venture. Now, Tiwi Traditional Owners are left with 30,000 hectares of potential weeds, no venture partner, and an unfavorable verdict from the administrators”, said Ms Young.

“With the collapse of Great Southern, Tiwi Island Traditional Owners are now going cap in hand to the Commonwealth and Territory Governments seeking over one hundred million dollars to prop up a woodchip venture that is proven to be without a bright future”, said Dr Stuart Blanch, Co-ordinator of the Environment Centre NT.

“We seek to support Tiwi to develop an economic future for their people and Country that creates jobs and support community development based on maintaining and restoring their natural and cultural values”, added Dr Blanch.

The Senate Inquiry neglected to fully exercise its powers in relation to properly investigating the social and economic opportunities foregone in the pursuit of the woodchip plantation.

“In a carbon constrained world, restoring the existing plantations to multi-species native forest for climate and biodiversity gains presents the best outcomes for Tiwi people in terms of restoring the natural environment and creating ongoing employment. Did the Inquiry hear enough about these opportunities?”