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VicForests tenders risk timber industry’s futureThe State Government has refused to intervene in the current round of timber harvesting and haulage contracts that are creating havoc and uncertainty for the East Gippsland timber industry. By Kevin Balshaw - 31st July 2008 - Back to News The State Government has refused to intervene in the current round of timber harvesting and haulage contracts that are creating havoc and uncertainty for the East Gippsland timber industry.
In Parliament, Treasurer John Lenders rejected a call from the Member for Eastern Victoria, Philip Davis, for high-level intervention to resolve the contract shambles immediately.
Mr Davis said the current round of tenders again showed VicForests to be totally incapable of managing contractor tenders and guaranteeing wood supplies to the region’s timber mills and processors.
"This fiasco is putting at risk the future of the industry and of hundreds of jobs as well as that of local communities throughout East Gippsland," he said.
"The position is that VicForests called harvesting and haulage tenders closing July 16 for the year from the start of October, but was then unable to manage the tendering process on schedule and, at a day’s notice, extended the awarding of contracts by a week.
"But when the decisions were announced on July 23 it became clear tenders had been awarded for only 65% of the total harvesting allocation.
"The remaining 35% is being re-tendered with a closing date in mid-September, giving contractors who win those contracts only a fortnight to gear up for the season from October."
Mr Davis said VicForests had also botched the announcement of the tenders that were awarded.
In some instances, contractors were first told they had not been successful, then that they had won tenders, and later that their bids had been successful only in part.
Some have had to tell their crews they will have no work for the next year and face a decision on whether to put their machinery and equipment up for sale.
Chief Executive of the Victorian Forests Harvesting and Cartage Council, David Drane, reports contractors are hostile at their treatment and want VicForests to negotiate the contracts rather than force them to re-tender.
Mr Davis said this meant mills that were already short of timber supplies could run out altogether in the course of the next year.
He called on Treasurer John Lenders, the minister responsible for VicForests, to instruct VicForests to finalise the next year’s total timber allocation by direct negotiation with the contractors immediately rather than go through a protracted re-tendering process.
Mr Lenders said he would not intervene in the contracts. "I have asked VicForests to deal individually with each of the people who were unsuccessful in gaining contracts and to take them through what the process was and invite them to participate in the next round, as is appropriate."
Mr Davis said for the Government to continue sitting on its hands was unacceptable when the future of the industry in East Gippsland was at stake.
"The next round of tenders, as the Treasurer denotes it, is not a fresh round at all, but the extension of a process that should by now be finalised, but has not been because of VicForests’ mismanagement and incompetence."
Source: http://gippsland.com/ Published by: kevin.balshaw@parliament.vic.gov.au
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