TIMBER AUCTION 'ABSOLUTE DISASTER' SAYS HALL

The latest public auction of hardwood timber has been described as an 'absolute disaster' by The Nationals Spokesman for Natural Resources Peter Hall.

Speaking in State Parliament this week, Mr Hall warned that the native hardwood timber industry was 'perilously close to collapse' and several Victorian country towns would suffer significant job losses.

Mr Hall said the latest timber auction was now embroiled in a legal dispute and the uncertainty was undermining confidence in the future of the timber industry.

"Unless the government acts quickly and decisively, many small sawmill operations in Victoria will simply fall over," Mr Hall told Parliament.

"If that occurs, it means a greater reliance on imported timber products to our country, and that is a bad thing both in terms of an import position but also an environmental position - if we are relying on imports from other countries of lesser environmental standards than we adopt for forest harvesting practices."

Mr Hall said the VicForests auction for 700,000 cubic metres of timber held earlier this month was dominated by four sawmilling companies.

He said many smaller companies missed out completely and now faced uncertain futures.

"Even those who were successful had to pay prices that were somewhere between 20-50% above expectations," Mr Hall said.

"In the longer term, these higher prices are completely unsustainable and put the future of the Victorian hardwood timber industry in jeopardy."

Mr Hall said there was significant confusion surrounding the auction process and the issue had been complicated by sawmill companies now challenging the validity of the results and the actual appeals process itself.

"As I understand it, the auction process led to grievances being lodged on every single lot, and just over 100 lots were put forward for auction," Mr Hall told Parliament.

"Indeed, the grievance process has prompted letters today to VicForests from legal representatives of the Victorian Association of Forest Industries suggesting they wonder whether the grievance process is legal and whether the panel appointed to hear the grievances had the power to determine the outcome."

Media contact: Peter Hall (03) 5174 7066 or 0427 747 066