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Forestry Transition Funds Used to Import Tasmanian Logs, Investigation Finds
A joint investigation by Four Corners, Environmental Justice Australia (EJA), and forensic accountants has revealed that Victorian government compensation payments intended to support the state's native forest logging ban are being used to fund the importation of Tasmanian native forest logs.
The same investigation also found that more than $615 million of the $1.5 billion transition fund remains publicly unaccounted for, and that an industry-owned nonprofit managing worker support payments failed to conduct required eligibility checks.
"There is no consolidated public account of the transition funding." — Nicola Rivers, EJA co-chief executive
Forestry Transition Compensation Overview
The Victorian government banned native forest logging in state forests effective January 1, 2024. The government allocated $1.5 billion to support the transition, including compensation for affected businesses and investment in plantation timber. Key recipients include:
- Australian Sustainable Hardwoods (ASH): Received over $49 million in compensation.
- Powelltown Sawmills: Received $9 million in compensation.
ASH managing director Vince Hurley stated that the compensation was a legally entitled penalty payment, and that the money was reinvested to expand manufacturing and retain 200 jobs.
Tasmanian Timber Imports to Victoria
Forensic accountant Daniela Juric, who reviewed ASH's financial records, stated that government compensation enabled the company to purchase timber from Tasmania. ASH now sources half its timber from Tasmanian plantations and half from Tasmanian native forests.
Environmentalists Paul O'Halloran and Patrick Johnson documented hundreds of log trucks at the Devonport ferry terminal over three years. The Tasmanian government stated that these logs came from private forests.
James Neville-Smith, owner of a third-generation timber business, confirmed to Four Corners that he sold logs from Tasmanian state forests to Victorian sawmills. He cited the need to process logs after retooling his sawmill for plantation timber.
Sustainable Timber Tasmania Corrects Earlier Statement
Sustainable Timber Tasmania (STT), the state-owned timber company, provided a correction to a parliamentary committee regarding its earlier statements. STT CEO Dean Kearney updated an answer given in November 2024.
- Original statement: STT's acting CEO advised that all sawlogs delivered by STT were processed in Tasmania.
- Corrected statement: STT has since learned that a small quantity of sawlogs were onsold by Tasmanian customers and processed interstate.
STT stated it was not informed of these arrangements at the time. Existing contracts with sawmillers did not require logs to be processed in Tasmania; this requirement will be included in contracts for 2027–2040.
Government Responses
- Tasmanian Resources Minister Felix Ellis: Described it as "disappointing to hear that some logs from state forests may be being on-sent interstate for processing" and stated that new supply contracts will require all timber to be processed in Tasmania.
- Tasmanian Labor resources spokesperson Shane Broad: Stated that the minister needs to explain what checks and audits were undertaken before assurances were given.
- Victorian Premier Jacinta Allan: Stated the government was backing workers and regional communities.
- Victorian government spokesperson: Provided a list of initiatives totaling $1.51 billion, including $200 million for timber harvesting transition support, $151.9 million for forest management, and $193 million for worker transition support. No details or links were provided to confirm spending.
Auditor-General’s Findings on ForestWorks
In April, the Victorian Auditor-General Andrew Greaves reported on ForestWorks, an industry-owned nonprofit that received at least $71 million in public funding to deliver skills and training to forestry workers and their families.
Key findings include:
- ForestWorks failed to maintain accurate records.
- Did not conduct eligibility assessments for 50 sampled workers.
- Issued hardship payments to 32 people who also received other government payments, violating its own criteria.
The Australian Charities and Not-for-profits Commission reported that ForestWorks' 2025 revenue was $23.67 million, 99.47% from government funding. ForestWorks paid the Construction, Forestry and Maritime Employees Union $619,990 in 2025 for services, director fees, and rent.
ForestWorks chief executive Mike Radda stated the organization supports the auditor-general's report with minor clarifications.
Fund Accountability
A report by Environmental Justice Australia (EJA) and forensic accountants Clarium Forensics found that only $884.7 million of the $1.5 billion allocated for forestry transition funding has been publicly accounted for, leaving $615.3 million unaccounted.
The government has not publicly disclosed which organizations received full payments or any conditions applied.
Victorian Government Stake in ASH
In 2017, the Victorian government paid $61 million for a 49% stake in ASH. The controlling shareholders then borrowed from ASH to buy a Tasmanian sawmill, with government approval.
Legislative Proposals
The Victorian Greens plan to introduce a bill to prevent Victorian mills from processing native timber from anywhere in Australia. Tasmanian Greens leader Rosalie Woodruff stated that community concerns about log volumes had been dismissed for years.
Background
The Victorian government announced in 2019 it would end native forest logging by 2030, later moving the ban to 2024. VicForests reported $127 million in losses between 2019 and 2023 and relied on $466 million in government support. Sustainable Timber Tasmania reported that harvesting levels have remained at 5,000–6,000 hectares per year for the past five years.