5 Dec 2008

Minister confirms closure of Timberlands

3:56 pm on 5 December 2008

Forestry Minister David Carter says the new Government will proceed with plans to shut down State-owned forestry enterprise Timberlands and merge it with Crown Forestry.

Earlier this year, the previous Government announced that Timberlands West Coast was to be wound up and its assets transferred because the company could no longer operate as a successful business.

In its annual report, Timberlands reported a loss of almost $15 million, as well as a trading loss of $4 million which it blamed on rising production costs, such as the high price of oil.

The report said Timberlands' deficit to the end of June was mostly because of a $17 million write-down in the value of its plantation estate.

Mr Carter acknowledges there have been long-standing forestry issues on the West Coast.