Labor is committed to putting in place comprehensive new strategies to protect our natural environment, to promoting a sustainable future for Victoria and to redress the exploitation and neglect of our natural assets which occurred under the former Government.

Labor believes the management of our precious native forests should be open, accountable and subject to public scrutiny. This policy statement recognises, as the former Government did not, that the permanent care of our natural environment and assets is one of the most important duties of any government.

The challenge is to ensure a sustainable future for our native forests and equally to ensure that all community stakeholders are heard by government in deciding that future.

Labor is committed to achieving a responsible balance of competing uses in our native forests, to the establishment of a comprehensive, adequate and representative (CAR) reserve system to ensuring that these values are properly assessed and reflected in the Regional Forest Agreement process.

The management of Victoria’s native forests in the best interests of all Victorians represents a critical challenge. The Government is committed to putting in place new practices to better manage the multiple roles of our forests in maintaining our natural heritage, biodiversity, health and well-being.

These native forests must be managed in a way which recognises competing, but potentially reconcilable, demands including:

• conservation of the biodiversity of native flora and fauna;
• collection and storage of water for rural and urban needs;
• timber production;
• soil conservation;
• education;
• aboriginal heritage;
• tourism and eco-tourism;
• active and passive recreational pursuits;

• employment generation; and

• the value of forest product exports and Australia’s position as a net importer of forest products.

Striking the right balance between these sometimes competing values and achieving broad stakeholder agreement about forest management is not easy. In particular, debates have raged about how to allocate and manage that part of our forest resource to be dedicated to timber harvesting. The initiatives in this Statement aim to get the balance right in the interests of the whole community.

In the election, Labor committed to review the RFA process in practice to ensure that it genuinely meets the criteria of the original National Forest Policy Statement. In accordance with this policy, in November I appointed an independent consultant to help identify improvements needed to the RFA process to involve all stakeholders in the consultation process.

The Statement is based on the consultant’s findings and sets revised directions for the management of native forests and forest industries in Victoria. It is underscored by a recognition that Government is only one of many players. If we are to have well managed forests, new partnerships and new practices are required. A shared and robust recognition of Victoria’s forests and their many values will provide the best way forward. A contemporary, forward looking and broadly agreed set of forest policies will position Victoria to provide national leadership on this issue.

The Government came to office with a commitment to sustainable management of Victoria’s forests in the interests of all Victorians and for future generations. We signalled that we would manage our forests in a way which recognises the many roles our forests play - in biodiversity, as sources of timber production, the generators of employment in many small rural communities, in nature conservation, in recreation, as carbon sinks and stores, etc.

We recognise that while more can be done to better manage our forests, there is a policy base, developed over the last 15 years, which shares broad community, industry and bi-partisan support and bilateral Commonwealth-State Government support.

The National Forest Policy Statement, the Victorian Timber Industry Strategy, the Code of Forest Practices for Timber Production, Victoria’s Biodiversity Strategy, and the Flora and Fauna Guarantee Act set a framework for forest management and a viable timber industry within an environmentally acceptable framework. They lay firm policy foundations for environmentally sustainable forest management. Regrettably they were not given sufficient attention by the former government.

For the timber industry, these policies emphasise sustainable yield, careful and responsible harvesting practices, efficient use of sawlogs and residual roundwood and sawmill residue, and an industry based on maximum value adding. They encourage plantation establishment and farm forestry. They have set a clear direction for ensuring that timber harvesting should not jeopardise the maintenance of an extensive and permanent native estate in Victoria.

The Government is committed to building on these policy documents. Our election commitments were set out in "Our Natural Assets: Valuing Victoria’s Natural Environment."

Labor believes that public forests should be kept in public ownership and be managed in the public interest.

Labor is committed to the sustainable management of our forests by achieving a responsible balance of competing uses.

Changes to the protected reserve system will be identified through an open participatory process that uses up to date scientific information, considers all relevant environmental, economic and social issues and genuinely meets the Joint Australian New Zealand Environment and Conservation Council (JANIS) criteria for establishing a comprehensive, adequate and representative (CAR) reserve system.

Labor supports Regional Forest Agreements (RFA’s) which provide for:

• Ecologically sustainable wood production and wood product industries, maximising value adding opportunities and efficient use of wood resources.

• The management of Australia’s forests in an ecologically sustainable manner for a range of uses that includes tourism, recreation and the production of non-wood products.

• The maintenance of an extensive and permanent forest estate in Australia that includes a comprehensive, adequate and representative reserve system.

• The protection of nature conservation values in forests.

• Environmental values, including old growth, wilderness, endangered species, national estate values and world heritage values.

• The conservation of the full range of values that forests can provide for current and future generations, including biological diversity, indigenous heritage and social values.

• The protection of catchment values to ensure the availability of reliable high quality water supplies from forested areas.

• The expansion of employment opportunities and the skills base of people working in the forested industries.

• Ensures that Australia fulfils its obligations under relevant international agreements.

• Fosters community understanding of an support for ecologically sustainable forest management.

• Provides opportunities for public participation in decision making.

Labor does not support Regional Forest Agreements which do not include the meaningful participation of all the relevant parties, and which are not open and accountable. Labor does not support RFA’s that do not properly resolve competing uses in the forest based on the best available scientific evidence. Nor does Labor support RFA’s which do not properly take into account social, economic, environmental and indigenous heritage issues.

Labor understands that responsible and effective management of our forests will be best achieved where there are plans for a viable and sustainable timber industry. This will be put in place through the development of a Forest and Forest Products Industry Plan".

If we are to ensure a sound public understanding of forest management issues and better public engagement in planning for the future of our forests more and better information must be put into the public arena. My experience in dealing with key stakeholder groups indicates that many have the desire and the capacity to make good use of better information.

Under the previous Government, members of the public and conservation groups were highly critical about the lack of accurate, up-to-date information made available by the Government.

The Government is committed to harnessing the views of stakeholders. We intend to generate and release enhanced data sets that will provide the most up to date information available about our forests. Government forestry figures, except those that contain commercially sensitive information, will be made publicly available. The community is entitled to better and more transparent information. The industry requires a better overall picture.

We are aware that there are some critical gaps in data. At present, for example, we do not hold long term supply and demand forecasts for forest products for Victoria.

Available data is scattered. Real value would be obtained from having a consolidated picture of forest data. The National Forest Policy Statement called for an Australian State of the Forests Report to be produced every five years and the first was released in 1998. A Victorian equivalent will make a major contribution to ensuring comprehensive and better long term planning, accountability and transparency.

The Government will commit to:

• releasing available, reliable information now;

• immediately beginning to define, in consultation with all interested parties, the nature of additional information requirements and data gaps;

• developing new data sets where relevant. For example, within 12 months we will establish long term supply and demand forecasts for forest products for Victoria;

• agreeing with stakeholder groups the best and most reasonable means of disseminating forests data to facilitate genuine engagement in planning for the future of Victoria’s forests. This will potentially include use of CD Rom, the Internet, and other forms of stored data;

• using the data to facilitate factually based public discussion about forest management issues; and

• maintaining an active research program on forest issues; and

• a Victorian State of the Forests Report.

The Government is completing the two remaining RFAs for Victoria, covering Gippsland and Western Victoria. The date for their completion has been extended by the Federal Government to 31 March 2000. We are committed to that timeframe in order to provide certainty for the industry and for local communities about the future of forest management in these two areas.

RFAs are integral to implementing the goals of the National Forest Policy Statement. Typically an RFA defines commitments by both governments to forest conservation, forest use and development, and the development of industries based on the resources of a region’s forests. The RFA operate for 20 years, with in-built five yearly effectiveness reviews.

The existing RFA processes involve:

• release of a Comprehensive Regional Assessment outlining regional data (including social and economic values of forest based resources, aboriginal and heritage values, ecologically sustainable forest management, biodiversity, wilderness, old growth, National Estate, World Heritage and other forest uses) for public consultation;

• development by a Steering Committee of Commonwealth and State officials of a Directions Report which builds on the Comprehensive Regional Assessment review;

• receipt and assessment by the Steering Committee of written public submissions about the contents of the Directions Report;

• a recommendation by the Steering Committee to both the Commonwealth and State Governments about the scope and contents of the resulting RFA which should take into account matters raised in the written public submissions; and

• the ultimate signing of the RFA by the Prime Minister and the Premier of Victoria.

A Directions Report addresses:

• how the proposed comprehensive, adequate and representative (CAR) reserve system satisfies the national reserve criteria;

• industry opportunities and the implications of these opportunities;

• ecologically sustainable forest management; and

• the links between the RFA process and other statutory processes, particularly those related to environmental impact legislation, World Heritage, National Estate, endangered species protection and Native Title issues.

The RFA itself is a formal agreement outlining commitments by each Government and is underpinned by plans including:

• park and forest management plans;
• endangered species and threat abatement plans; and
• industry development strategy.

However, there has been serious controversy and complaint about the nature and extent of public consultation involved in the development of previous RFAs for other parts of the State under the former Government.

With the support of the Commonwealth Government we intend to enhance the consultation processes for the remaining RFAs in the following ways:

• As in the past, a report will be prepared by the State and Commonwealth officials Steering Committee outlining proposals for public comment. The public consultation process will be significantly strengthened, however, by the establishment of independent panels to receive and report to the Steering Committee on the nature and implications of public comments. Written submissions will be invited on matters including:

• any issues of substance not covered in the report;
• any other issues arising from the report; and

• views on the approach that should be adopted within the RFA and the implications of that approach.

• The independent panels will conduct public hearings where individuals or groups indicate that they wish to have the opportunity to speak to their written submissions.

• The terms of reference of the panels will involve a clear listening brief and a responsibility to advise the Steering Committee of the key issues, and their possible implications, raised by the public submissions.

• The chairs of the panels will become ex officio members of the joint Commonwealth-Victorian RFA Steering Committee during its deliberations on the public responses and on the ultimate contents of the RFA. This will ensure that the RFA Steering Committee has a direct linkage to the consultation processes of the panels.

In order to improve the consultation process Victoria will hold a series of open forums, designed to allow in-depth exploration of technical issues relevant to the development of plans. Topics to be covered include wood and water management, forest silviculture and biodiversity management. This arrangement allows for detailed input by individuals and groups with a strong interest or particular expertise in issues relevant to the development of forest management plans.

The report for both regions will be released in January 2000 and public hearings are likely to be held by the panels during late February with finalisation of the RFA in late March 2000.

The RFA processes are important elements in the forest management process, but ultimately do not substitute for a long-term integrated vision for Victoria’s forests. The Government will develop a long term vision, to be documented in a Forests and Forests Industry Plan for Victoria.

The Government was elected with a commitment to preparing a Forests and Forests Industry Plan and we will commence the preparation of the Plan next year. While inputs to the Plan will involve some of the new data and processes outlined in this Statement, work can begin on scoping the Plan. It will be developed and implemented in partnership with the industry, the relevant industry unions, local governments and the community. It will be directed at reinforcing a sustainable timber industry and at job creation. It will encompass:

• job creation through value adding;

• job creation by expanding farm forestry and plantations as sources of timber products;

• better promotion of our timber products to domestic and overseas markets;

• encouragement of R&D in the forests industry sector;

• encouragement of complementary and related activities in rural areas;

• analysis of opportunities for growth of non-wood products from forests, eg. honey, oils, medicinal products, fungi;

• recreation and tourism industry opportunities in State forests;

• structural adjustment issues from the perspective of both employers and employees; and

• improved industrial practices and working environments (eg. Occupational Health and Safety).

The Plan will sit within the context of the Government’s commitment to broader regional planning strategies for Victoria and its investment attraction and retention programs. Our forests can play an enhanced role in community and regional development.

A further area for examination under the plan relates to how access to forest resources is managed and whether there is a fair return to the State for resources supplied to industry.

Concurrent with the other initiatives detailed in this Statement, the Government will commence discussions with key stakeholders about the scope of the Plan, the best participatory mechanisms for its development, data requirements and realistic timelines for its finalisation.

Any long-term view of the timber industry in Victoria must take into account both public and private forestry. Almost all of Victoria’s plantations are in private ownership, providing predominantly softwood products, whilst over 95% of our hardwood is sourced from public forests. The public, or native, forest estate must satisfy a variety of non-timber harvesting values, while private forestry is largely dedicated to commercial timber production.

Private forestry is potentially a relief valve for some of the competing pressures on native forests. Indeed, some conservation groups would argue that all commercial timber production should come from plantations. At present there is no integrated data allowing accurate analysis of such a proposition. At the very least we need an integrated plan based closely on the development of supply and demand forecasts for forest products.

Organisational impediments to building a comprehensive picture of forestry in Victoria include the separation of management responsibilities for public and private forestry within Natural Resources and Environment and, more particularly, the private ownership of plantations. The Government will ensure the Department better integrates its private and public forestry activities and will work with the industry to build an integrated view and be forward looking.

Any revision of Victorian forest management should also seek to draw on sound practice in national and international data gathering, monitoring, planning and policy.

The Government is committed, for example, to exploring international experience in the independent certification of forest management to promote good forest management worldwide.

There seems little doubt that the carbon sequestration and storage values of forests will have an impact on how forests are managed in the future. We will review the current experience of the State Forests of NSW in this area. We will consider whether Victoria should itself establish a leading role in developing policy and scientific and legislative frameworks for carbon sequestration and storage forestry to maximise carbon benefits and dollar returns to Victorian forestry.

The initiatives announced in this statement will require some re-orientation of the activities of Government departments. The emphasis will shift to protecting forests in reserves and sustainable management of our forests for multiple values through facilitating greater public consultation.

The Government will commit to:

• openness, partnership and participation with the full range of forest interest groups; and
• patience and commitment with groups where trust in government may have broken down for a variety of historical reasons and cannot be expected to return overnight.