Forestry Plantations Queensland (FPQ), which manages state-owned timber plantations, will be sold for around $500 million to help keep the state’s massive building program going.
Premier Anna Bligh said with $14 billion ripped out of the budget by the Global Financial Crisis the Government faced a tough choice – sell some assets or cut back on the building program.
Premier Bligh said: "The state’s forestry business was corporatised three years ago.
"We turned DPI Forestry into Forestry Plantations Queensland in 2006 to put it on a more commercial footing.
"Since then it has been run like a private business. Selling it is a natural progression and the funds raised will help us maintain our building program.
"Privatising timber plantations should attract even more investment and enable this industry to grow and further develop.
"Last century it made sense for the government to be involved in the timber plantation business to help get it off the ground.
"Now we have 200,000 hectares of plantations and world class timber processors who are internationally competitive.
"As a government we’ve had to ask ourselves ‘Do we really want to be in the business of managing forestry plantations? Or would revenue from the sale be better spent maintaining the building program, reducing debt and taking a step towards restoring our AAA credit rating?’
"The answer is obvious. Our building program is about protecting and creating jobs and that is our priority.
"We will retain ownership of the land to protect access rights for the public.
"A condition of sale will be that recreation in State Plantation Forests will continue including walking, cycling, horse riding, motorcycling, car rallies, photography, filming, and dog sled racing.
"We are not stepping away from the western hardwoods plan to have 20,000 hectares of hardwood plantations by 2015.
"As part of the process, we will take specialist advice as to whether the sale will include hardwood plantations.
"If it does another condition of sale will be that the western hardwoods plan must be honoured," Ms Bligh said.
Ms Bligh noted that Rod McInnes, CEO, Timber Queensland has said the industry would ‘not be averse’ to the sale of FPQ - subject to the detail.
Treasurer Andrew Fraser said: "FPQ manages the Queensland Government's 200,000 hectare softwood and hardwood forest plantations and after three years as a corporate entity it is in a solid position.
"Last financial year it achieved $93.8 million in timber sales and planted 5.8 million trees.
"The first step has been our decision to sell.
"The next step is that I will head a taskforce to put together a process that will determine, the timing, sequence and manner of the sale.
"We will work with the Australian Workers Union, other unions, Timber Queensland, and timber communities to ensure they are well informed about the process," Mr Fraser said.
There are exotic pine plantations at Beerburrum, Passchendale (near Stanthorpe), Pechey (near Crows Nest), Toolara (near Gympie), Tuan (near Maryborough), Byfield (near Yeppoon), Ingham, Cardwell, Atherton and Cathu (near Proserpine);
Hoop pine plantations at Inmbil, Brooyar (near Kilkivan), Jimna and Gallangowan, Yarraman, Kalpower (near Monto), Palen Creek and Atherton.
And hardwood plantations around Kingaroy, Wondai, Gayndah, Mundubbera, and on the coastal plan between Beerburrum and Gympie.
Media: Premier’s Office 3224 4500
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