Australia broke away from Gondwana about 65 million years ago. Over the last 2 million years Australia has undergone 19 ice ages, the last ending about 10,000 years ago. This has resulted in ecosystems that have constantly been adapting and changing. Vestiges of original Gondwanic forests remain in East Gippsland (1).

Only 5% of Australia is forested with 3% being eucalypt forest (Forest cover was 10% at the time of European arrival).

Victoria has only 36% tree cover compared with 88% fast century. Of this, most forested areas are still available for clearfell logging (see map) East Gippsland is now the last stronghold for old growth forest in the state.

In the days of bullocks and crosscut saws, it took a day to fall and prepare a log for
the dray. Now it takes less than 1 hour.

Scientists believe that during the last ice age, East Gippsland’s Errinundra Plateau was an ark for our present day eucalypts in S. E. Australia. The plateau still contains vestiges of those original forests.

The first batch of timber cut in a sawmill was in 1882. Most timber was extracted along the coastal areas earlier this century which was closer to the railway and on flatter more accessible land.

After the '39 fires of the Central Highlands and the post war boom, exploitation of East Gippsland’s forests increased. During the 70s and 80s, EG was supplying 25% of the states sawn timber. This has now risen to 33%. The cut had increased from about 75,000 m3 in the 50s to 345,000 m3 in the 70s and 80s. (3)

The Land Conservation Council (LCC - now defuncted) first assessed East Gippsland in the early 70s which resulted in Croajingalong and the riverine tract of the Snowy declared National Parks.

In 1972 Conservation Council of Victoria (CCV, now Environment Victoria or EV ) lobbied Rod McKenzie to keep the dozers out of the Roger River Area until after the LCC Report had been completed. This was one week before the dozers were about to go in. The industry claimed there was no alternative area to log but were proved to be lying. McKenzie ordered them into another area and the Roger was eventually saved.

Conservation groups, in the years '76, '79 and '82, pointed out the overcutting of forests to the denials by the then Forests Commission. The Timber Industry (Ferguson) Inquiry 1985 and the subsequent Timber Industry Strategy of 1986 lowered the rate of over-cutting down to 179, 000m3 of sawlogs pa.(4). After the National Estate survey the cut was reduced to 174, 000m3 This is still considered by many, including those in the logging industry as unsustainable.

In order to find an alternative product to fill the space caused by a clearly dwindling market for green scanning (house framing), the industry pushed for an increase in woodchipping. Around 1990, the Value Adding Utilisation Scheme (VAUS) and the Residual Roundwood Trails began. Both with the intended outcome of allowing massive woodchipping under a more acceptable name. The VAUS trials were effectively aborted in about 1991 as a result of poor resourcing, inadequate controls,
poor planning and no takers for the pulpwood. But woodchipping was allowed regardless of outcomes (5)

The Cutting Area Review Committee was set up by Rod McKenzie in 1983. This allowed a good representation of Department scientists and environment groups to decide on areas to be logged. This was disbanded by Geoff Coteman in 1993 and no effective public input has been allowed since.

A pulpmill for the area was first mooted in the early 80s. Many locals and the environment movt were opposed to this plan and successfully fought it. It was again proposed in 1989, with competing bids by North and Amcor. It again failed.

This resulted in the declaration of the Errinundra Nat Park in 1988. Pressure form the industry created a park with huge holes missing around the edges. This makes the park totally unviable in the long term as it is all edge and little centre (octopus shaped). The Department is steadily 'ringbarking' the park to ensure no inclusions are ever
possible.

In 1985, the Ferguson inquiry found the industry to be grossly overcutting the forests, This resulted in a reduction in sustainable yield levels.

The 1985 LCC published the East Gippsland Area Review and the final recommendations in 1986 recommending the additions to the Snowy (Roger River and Gelantipy Plateau, Errinundra, and an increase in Coopracambra. The David Tatnall poster of the south Coast Range was responsible for that area's inclusion in the Errinundra National Park.

The Government has tried several times to lure potential investors to East Gippsland’s 'waste' resource over the years. Each spruiking session has failed in the past. They are now in the throws of negotiating a buyer for the still standing 800,000m3 of 'waste'.

In 1987 the Very Fast Train (VFT) was threatening to gouge a massive scar through the mountains of East Gippsland. The campaign to stop it was successful. However, BHP, who was a member of the VFT consortium, is now planning a gas pipeline along a similar route in the region which could allow a VFT to be placed along the same corridor in the future.

Joan Kimer allowed a version of 'Resource Security' for the industry in 1988. Mills were given 15 year licences to encourage value-adding to timber. The licences were granted after the timber industry screamed they needed security before they would invest in value adding equipment. To date there has been virtually no investment other than bigger and better logging machinery, chip trucks and more chippers. Kiln dried timber accounts for a fraction of a percent of all timber output.

The next major protests were the 1989-90 National Estate protests where 300 were arrested over 6 weeks. This resulted in the 'Prudent and Feasible Study' into alternatives to logging National Estate. After a year's moratorium while this study was carried out the dozers. were back in, with the help of $10 million Federal money.

In 1992, the feasibility study into a wood-fired power station commissioned by the Orbost Shire was released. It was found to be uneconomic. It has since been pushed and pulled along by a local engineer who sees great potential in the plan to burn waste wood for power generation.

In 1993-94, the East Gippsland Forest Alliance attracted hundreds of people who staged various blockades around East Gippsland. There have been blockades annually ever since - Yandown Crk, Hensleigh Crk, Cobon, Big River, Goolengook, chip mill actions etc.

The National Forest Policy Statement (NFPS) was signed by Jeff Kennett in 1992. It stated that "Until assessments are completed, forest management agencies will avoid activities that may significantly effect those areas-of old growth, wilderness or are likely to have high conservation values". It also stated old growth and wilderness would be protected by the end of 1995. However in January 1995, Keating announced that this would happen by the year 2000.

In early 1995 Fauikner announced 1300 Deferred Forest Areas (DFAS) across
Australia. This was whittled down to 250 as they were logged and as industry cried hard done by. Victoria had its original 109 coupes slashed to just 14. Victoria ended up with just 2 deferred areas, both in East Gippsland. Assessments were carried out in forests without setting foot in them and with no prior surveys having ever been carried out, such as East Gippsland’s Cobain block an important area for old growth and rainforests.

During this time 40,000 forest supporters marched in the streets of Australian cities, while log trucks and industry workers blockaded Parliament House in Canberra on full pay.

East Gippsland was the first 'cab-off-the-rank’ for the RFA process. This was completed and signed in Dec '96 which lifted the lid on export woodchip controls for the region.

Under the Forest Management Plan, threatened species are at best subject to Zero Population Growth (ZPG), but more commonly Minus Population Growth.

The owls do very badly. To make up the 100 sites for protection, 'pretend owls' have been sited in areas where there is no conflict with logging! The small number of real owls often receive smaller areas than is viable and they can also have their habitat logged in 'Special Management Zones'! (7)

Where a species is detected outside a park or reserve but within several kms of the boundary, it is assumed it can move its territory into the 'safe zone' and so receive protection. (8)

Where real owls have been identified after the imaginary owls have been given protection, the assumed owls are still given preference! (Eg. Martins Creek With its three threatened owl species is ignored in favour of the Departments strategically placed assumed owls (9) The 500~800 ha site which may be reserved if an owl is lucky enough to score protection, is a circle swung around the owl like a hoop until it lands in the forest least wanted for logging.

Powerful Owls have only 19 sites with an actual owl that receives the full 800 ha. (which is believed to be undersized anyway).

Sooty Owls have only 21 areas with actual owls that score the full and unloggable 500 ha.

Masked Owls have only 12 sites with positively identified birds which lie fully within no-logging zones of the required size

Tiger Quolls score the worst 'protection' of all threatened vertebrate species. They have only 6 areas of adequate size (by Department definition) fully protected. This is despite East Gippsland being the state's stronghold for the species. The FFGA states there should be 3000 protected.(10) Only 30 have been identified over the past 3 decades in East Gippsland. Only 6 have semi-decent protection. (7)

The Sooty Owl’s protected territory has been set at 500 ha. NSW studies in similar
forest types to East Gippsland has shown that they can range over 3,000 ha. (11)
The Department’s unwilling to look at any new evidence which may reduce the area
available for logging - even when it could mean the local extinction of a large forest
owl.(12)

Under the Forest Management Plan, high densities of forest bats or arboreal mammals will be afforded a bulldozer free zone but the catch here is that there are no staff given the task of identifying such areas.

The Long-footed Potoroo scores about 35 sites totalling about 17,500 ha. However, these areas have been included into the long term sustainable yield calculations in the hope that research will find they can live in clearfelled or regrowth forest. (7) Conservation areas that can be logged (SMZs) are commonly given to the Potoroo.

In 1994, after successfully coordinating threatened species surveys in controversial areas, and identifying many in areas due to be clearfelled, the Department refused to loan any more equipment to the local environment group. (13)

In winter of 1994, East Gippsland’s largest girthed tree was discovered in the Ellery catchment; a 400 year old messmate with a girth of 15.4 metres (the 'Touchwood' Tree). This is also where 5 threatened species had been identified and a three tiered 40 metre water fall - First Creek Falls. These discoveries were made by amateurs who went in after a Department scientific survey found nothing. (14)

The old growth study for East Gippsland used very tight criteria for defining these forests. (15) This means there is a lot more old growth forest being clearfelled than the Department admits.

The Department claims about 20% of East Gippsland is old growth, with half this in parks and reserves. (15) This is higher than in any other region in Victoria. The
Department admits that about 95% of its annual cut is in mature and old growth forests.(16)(17)

Department scientists have found that understorey plants are often much older than the trees above. Tree ferns and mountain geebung are examples of this. Radio carbon dating has shown they can be up to 1000 years old. Geebungs have viable seed only when very old - around 200 years. Short rotation logging could wipe out this species. (18)

The Department plans to log 35% of remaining old growth forests. (69)There is 37% of old growth forests outside conservation reserve(70) and only 52% which has
secure protection. The remainder occurs Within other less secure zones such as
SMZs and SPZB; (which can be logged or rezoned at any time). (7)

Most rainforest occurs along gullies and creeks. These lineal strips are very susceptible to being slowly eaten away at the margins by such things as burning and logging. These not only impact directly but open up the surrounding forest to allow the once-sheltered rainforest to dry out. The buffer zones for rainforest needs to include the subcatchments.(19)

In 1985, the Vic Government announced it would no longer log rainforests.(20)
Logging has continued in these areas by simply defining rainforests out of existence. The Department had doctored their own rainforest scientist's report to define all
merchantable rainforest stands as non-rainforests. (22) Other stages of rainforests and the transitional rainforests (ecotones) which have about 50% of old eucalypts above can be logged.

If the true definition of rainforest were used this would increase the area of officially recognised rainforest from about 15,000 - 16,000 ha to 25,000 - 40,000 ha.
By using the doctored definition to suit the logging industry there could be several thousand hectares of rainforest logged in the state (23) The Department is unable to admit it cannot afford not to log them (tight legislated commitments) but is refusing to admit it can't protect them.

East Gippsland and the alps is regarded as Australia's most widely supported proposal of any area currently up for listing as World Heritage(30). Professor Jamie Kirkpatrick, in his report to the Australian Alps Liaison Committee, ranked the Alps and East Gippsland above 5 of Australia’s current World Heritage Areas already listed.

Only 36 of the 103 forest blocks in the region have been covered by a pre-logging ecological survey. (7) Yet the Department and industry claims this region is the most surveyed and researched area in Australia.

Podocarp or Mountain Plum Pine forests (native Pine with Gondwanic origins) are the longest living undisturbed forests in Victoria (19). They occur on the Errinundra Plateau and are still being bulldozed where they occur with eucalypts. (25) Some Podocarp trees are believed to be between 500 and 1 000 years old (possibly older but no radio carbon dating has been carried out). They are priceless antiques occurring nowhere else outside of East Gippsland and the Alpine plateau. Their oily leaves has seen them bulldozed and used to fuel the Department's 'regeneration' fires after logging.

Recent studies using radio carbon dating have shown that understorey species suchas the Mountain Geebung and tree ferns can be at least three times the age of the large overstorey trees.

Drainage on the flat topography of the plateau is slow. Therefore alpine wetlands have collected pollen layers over thousands of years. These are now important libraries which show the changes in vegetation over time.Core samples of the wetlands have shown there to be more changes to certain vegetation types in the past 30 years than over the past 12,000 (since the end of the last ice age). (26)

The debris left after logging contains about 10-20% of its total weight as carbon. If there's about 230 tonnes of waste per hectare (27) and about 5000 ha logged and burnt a year, this adds up to between 1 1 5,000 -230,000 tonnes. Calculate into this that maybe half the debris is actually burnt (the larger logs and but ends just char). Then multiply by 3.5 tonnes (tonnes of C02 released when 1 tonne of carbon is burnt) and the end figure from regen burns across East Gippsland is about 201,250 402,500 tonnes of C02 sent into the atmosphere annually. Add to this the autumn fuel reduction burns (FRB) which cover 1 00, 000 ha across all of Gippsland and we have enormous contribution to greenhouse from forest 'management' burns.

A 1991 DCE (Department of Conservation and Environment) report from the Office of the Environment titled 'Reducing potential impacts on air quality of prescribed buming' by the DCE stated 'if mature forests are not permitted to obtain their pre-fire or peharvesting biomass in subsequent rotations, there will be a long term increase in atmospheric C02 from this source." It claims there is no strong evidence to suggest that broadscale burning (FRB) is effective in achieving fire protection - that no data exists of the effectiveness of FRBS, and justification is of an anecdotal or observational nature and often conflict.

The practice of carrying out regular fuel reduction burns in the forests in the belief that it will protect the industry's resource from wildfire, has been poorly studied and has no scientific backing.

The dry ridge top ecology of silver top and stringybark has now invaded many of the hill slopes and areas that once supported a diverse, lush and fire-retardant vegetation,(28) Such forest practices also seriously threaten the survival of the narrow stands of rainforest along creeks and gullies which remain. (21)

An Australia Government booklet of 1991 "The Energy Guide" states that an area of 10 yo regrowth covering the size of an Olympic pool would breathe in 4 tonne of C02 a year. That means one hectare of 10 yo eucalypt regrowth absorbs 40 tonnes of<BR> C02 pa, leaving 200,000 tonnes not absorbed every year.

Between 1972 and 1990, 59% of all fires on public land in the FMA were caused by humans. 41 % were caused by lightning (16).

In one year around 200-300 coupes averaging around 30 ha are subject to intensive 'regeneration' burns. (3) Fire is considered the most cost effective despite mechanical disturbance being an alternative method of site preparation for regeneration. (16).

Around 50% of the forest biomass can be left to be burnt after a coupe is logged. (27) This is not good for adjoining forests (where the fire often can and does escape), the streams, plant and animal life, nor the greenhouse problem!

These hot 'regen' burns have no scientific basis(32) and it does not, as claimed, ensure adequate regeneration. Forest ecology is altered dramatically when forests are burnt for both regeneration or FRB. This creates a drier more flammable forest and changes the fauna and flora of an area. (33) (34)

It is estimated that 1 in 3 coupes fail to regenerate adequately. In the higher altitudes this figure is much higher. These clearfelled areas are then hand planted with commercially desirable species, destroying the natural diversity which once existed.

Clear-felling has been the only method of logging used in East Gippsland since Daishowa moved on shore in the late 60s. Prior to this selective felling was used which didn't create the 'waste' now used to justify woodchipping.

A logging coupe is the size of 400 urban house blocks, or 40 ha. Three can be joined together in one year. Each year about 200 are scheduled for clearfelling in East Gippsland. (17)

The timber industry claim they only log 30% of East Gippsland. In fact 52% is in timber production zones. (3) Logging on steep slopes and in stream buffer zones etc is claimed to 'lock up' more areas, but leaving small strips of forest surrounded by clearfelled landscape does not protect the integrity of these small unlogged patches.

The industry log the most valuable and intact areas, effecting greater area than that immediately logged. For example, the Tea Tree wetland in the Errinundra National Park is drying up due to the intense logging of it's catchment outside the. park.

In East Gippsland, 93% of forest scheduled for logging is in mature and old growth forest (regrowth is not old enough to begin harvesting yet).(17) The Department intend to log out this resource and then use regrowth forests which it claims will increase the annual yield from 174.000 to 500,000m3 pa. (3)

Past years have seen about 5,500 ha cleared annually. (3) Since the RFA, the scheduled area has risen to about 8,000 ha. (17)

The Department rely almost entirely on mature and 'overmature' (ie old growth) forests to supply timber to the industry up until 2030. (7)

The seedtree method sees a token number of trees (about 5 per hectare) left scattered over the coupe. (3'5) These are supposed to provide 'habitat' and seed for regeneration. Trees rarely survive the intensity of the hot 'regeneration' bums. Those which do survive, often die from exposure afterwards. Trees to be spared as seed producers are often those which are not wanted as logs, hence they are less than healthy genetic stock.

Much of East Gippsland’s remaining forests are very low yielding, making them unviable to log unless there is a market for the low grade logs as woodchips. (3) (7) Without this market, the Department will be forced to continue providing sawlogs to the industry from the higher yielding and hence higher conservation value forests. Many of these sawlogs are believed to be chipped in order to ensure a cash flow.

Studies have shown that clearfell logging destroys as much as 90% of tree ferns in a logging coupe. (37)

Despite coupes failing to regenerate, other coupes immediately adjoining are still clearfelled. This type of poor management is occurring in prime National Estate forest, old growth and emergent rainforest. The DNRE are deliberately transforming old growth forests into industrial tree farms and debiting it to the tax payer. (38)

Sites erode after clearfelling and burning and soil fertility is lost. Small particulates contain ng many nutrients are washed down to the riparian zones leaving the slopes depleted. Siltation of streams suffocates the aquatic life, clogs small crevices essential for instream life to breed, shelter and feed, and destroys the finely balanced stream ecology. (39)

Studies carried out by the DNRE have indicated that logging can increase the bulk density of soils by 62% This means soils do not absorb water, creating greater runoff and making it difficult for young eucalypt seedlings to survive. (40)

A leaked internal memo in 1992 showed that 79% of logged coupes over a three year period had failed to regrow. (41) This has been a problem since clearfelling on the plateau began in the early 70s. However, it appears to suit the, agenda of the government. Public money is used to scalp, burn and hand-plant commercially desirable species. Hundreds of hectares are treated in this way across East Gippsland annually. Single species tree crops are planted over once healthy diverse public forests (38).

The lack of regeneration is blamed on wildlife that survive. Plans were afoot to poison indiscriminately using 1080 baited carrots. (42) A public outcry put the use of 1080 poison on hold. The Department of Natural Resources and Environment will not indicate whether it has resumed its poisoning program against wallabies (43) (and effectively all carrot-eating native animal including bandicoots and potoroos).

When eucalypts fail to grow back over a logged coupe, the Department 'scalps' the surface of all vegetation back to bare earth with a dozer blade. It then hand-plants (and aerially sows at the same time) the commercially desirable species every 3 metres. This cost to the tax payer is between $1100-$1900/ha (depending on site preparation). A 40 ha coupe would cost the public $44,000 -$76, 000. (44) The exact number of coupes regenerated in this way each year is unknown, but royalties from the medium to low yielding forests would not cover the cost of replanting.

The head of the National Association of Forest Industries (NAFI), Dr Robert Bain has admitted that 80-90% of logs that come form East Gippsland are woodchipped (45).

In the 80s and early 90s, both Hawk and Keating promised a phase out of woodchips by the year 2000. In early '95, Keating allowed an increase in the woodchip export licences (46).

For a decade the Victorian Government has been trying to entice overseas investors to use the 800, 000 m3 of 'waste' from East Gippsland.

The prospectus for this 'waste' claims the government would:

• solve the environment debate
• allow 1 00% foreign ownership of processing ventures
• ensure future changes to supply will be minor
• be able to provide 1.4 million m in the future
• ensure labour costs will be low
• provide access to gas from BHPs as yet unbuilt pipeline
• ensure a low-risk environment and a compliant government
• override any environment concerns of locals <LI>aim to remove impediments to foreign investment in forest products
• squash any hindrance from local government, problematic bureaucrats, legal challenges, unions etc
• assist with land tax concessions, infrastructure, skills training and fast tracking processes. (47)

Despite the above it has not been snapped up as expected by the export market (currently in a depressed state). Negotiations are still underway (May '97) to settle on a price. A senior East Gippsland forester has admitted that the royalty price being negotiated (excluding failing, snigging, cartage costs) is between 20c and $2 a tonne. Even firewood permits cost the public $5 a tonne (or $3.60 for a pensioner). (48)

Old growth forests provide about 85% pulp lops to 15% sawlogs(3). Of this small amount, using a very generous 50% recovery-rate(49), actual sawn timber product is as low as 7% of extracted logs. Factor in the 50% biomass that is left and we see that about 3.5% of an old growth forest's total living mass is turned into sawn timber!

Some '96-97 coupes are scheduled for clearfellinq which will provide 25:1 (and even one coupe of 50: 1!) ratio of pulp logs to saw logs(17 ) This could see the ratio of sawn timber to forest biomass as low as 1%

It has been admitted that unless there is a market for the woodchips, these areas are unviable to log. (3) (7).Therefore the claim that no more forest will be cut down as a result of lifting the ceiling on woodchip exports is a lie(50).

Between 1975 and 1995,, there has been a 111 % increase in woodchip exports(98).

The VAUS trials which began in 1990 (along with the SSP trials from 1986) to test the impact of removing "waste' wood for chipping after clearfelling has seen $23 million sunk into them (from 1986-93) (53).

Japan has been losing its taste for Aussie woodchips over the years. Despite its increased demand for the raw product, Australia's share has dropped from supplying 66% in the mid 80s to 30% in the early 90s. (51) They are instead looking to Canada, the US and plantations in other countries.

In the 5 years from '85 -'90, twice the timber was cut than in the previous 10 years from '75 -'85. This trend of doubling the cut, in half the time seems set to continue(54).

Export woodchipping accounts for about half of all the log removals in Australian forests(54). Asian buyers will exploit the suppliers of hardwood chips over the next 5-10 years and pressure the Govt for further reduction in royalty prices, as we're witnessing in East Gippsland.

It is not the utilisation of this 'waste' we need to look at but at practices which can, avoid creating the waste to begin with. Clearfell operations provide vast amounts of waste which are essential for Daishowa's woodchip mill.

The argument that clearfelling is needed to provide adequate regeneration is based on outdated information obtained in totally different forest types. (55) It is also being, proven wrong by the forests themselves. Clearfell is necessary only to provide 'waste' for the export woodchip market.

If the sawlog industry is in deep recession and if we have a sawlog driven industry, a drop in the market for sawn timber should effect the amount of woodchips being produced. The claim that large mills are chipping good solid logs to keep the money rolling has to be seriously investigated

It has been shown from past government inspection of saw and chip mills in East Gippsland that D grade sawlogs were being fed directly into the chipper. (89) (97)

In 1988, EG mills claimed that 45% of their output was sold as chips, yet this returned only 10% of total sales value(56). With woodchipping having increased but prices having dropped, the ratio would be much higher now.

NRE are unable to give figures on how many tonnes of woodchips or sawn timber leave East Gippsland mills. They claim they only sell the logs to the mills, not ensure they are used according to their quality. (57)

Woodchipping sawlogs, or worse still, downgrading logs to get cheaper and higher quality chip logs means the volume of sawlog's to provide future demand will be much less than calculated, increasing pressure on conservation reserves to supply the volume.

Daishowa came to Eden in 1967 as a partner of a small sawmiller, Harris. Together they tendered for and won a contract to export woodchips. The first load left Australia in 1971. Two months later Harris sold out due to lack of capital. The mill is now 100% Japanese owned. (58)

Daishowa's paper mills could easily be modified to use plantation timbers. (58)

Daishowa has sold woodchips to its parent company in Japan at virtually cost price. Therefore it declared no profit and paid no tax in the earlier years. (58)

Under the Fraser Government, Daishowa took $600.000 from the Federal<BR> Government using an export incentive scheme.

Daishowa had $400,000 knocked off their royalties to he] them build a road into the chip mill and $125,000 to build houses for its employers.(58)

The SE NSW.'s woodchip operation accounts for 0.85% of the region's total employment.

Daishowa is the dominant sector of the timber industry in southern NSW (and East Gippsland).

Daishowa takes 9 out of every 1 0 trees felled in S. E. NSW and East Gippsland. (58)

Daishowa has a habit of chipping high quality logs! (60)

Daishowa continues to push for lower royalties!

Back to Table of Contents

The FMP was a costly process that was finalised in December 1995. It has been aptly described as 'Dressing the devil in a dinner suit' and East Gippsland’s largest white elephant.

The East Gippsland Forest Management Area (EGFMA) encompasses all of the land East of the Snowy River and part of the forest west of the Snowy to include the Buchan and Nowa Nowa areas (to the Timbara River). This totals 1,217,000 ha. Or 5% of the state. Of this, 87% is public land, mostly forested.(7) (3)

Government policy requires forest management to be economically viable giving a 4% return, (4) (79). Despite lobbying to have an economic analysis of the East Gippsland industry, it was refused using the reasoning that there was no resources available for such a study and it would take too long. (82)

Both the FMP and the RFA clearly ignored extremely important scientific studies. The study into soil compaction by M Rabb for example was conveniently ignored as were many other 'difficult to deal with'. research findings(63).

Special Management Zones (SPZ) and Special Protection Zones (SPZ) have taken the place of scientifically identified Sights Of Significance (SOS) in the FMP. Many SOS areas were returned back to logging zones (GMZ) in the 'rationalising' process to help meet the overcommitment to industry.

SPZs are managed primarily for conservation. They can be redefined at any time without only token public consultation. SMZs are ‘multiple use' areas. They can be logged with slight modifications. Sooty owl sites for example are logged (a la Goolengook) but small clumps of 'recruitment' trees are left. They are subject to intense hot regen burns as any normal clearfell coupe is. Sooty owls would not survive this management: These are effectively a logging zone hiding behind a deceitful name and a few unwanted trees left standing. (7) (64)

National Parks account for 29% of the region. Along with other conservation reserves the total conservation area comprises about 34% of East Gippsland. All other public lands total 53%. At least 36% in logging zones. Private land covers 13,% of the EGFMA. (3) (7)

The outcome of this shabby, transparently biased and unscientific sham. of a process sees an additional 0.2% of East Gippsland placed into secure reserves. In order to protect this small amount, other reserved areas of high conservation value (and high timber volumes) have been sacrificed for the all-powerful sustainable yield.

Certain areas which were in logging zones were given an SPZ status, but these appear to be of low conservation value and low timber volumes.

Of the 13,000ha claimed to be new reserves, there are about 5,000 ha of transitory reserves (SPZ and SMZs where included from forests with few recognised natural values but convenient few timber values!). The 5,700 reserve at Martins Crk has the provision for a VFT to be routed through the rainforest reserve in the future! This leaves 2,300 ha in Ellery and Goolengook (the latter with the most important area of high value/volume forest being left for logging).

In 1995, 30,000 ha was deferred from logging under the DFA moratorium for East Gippsland. Of that, only 2,300 ha has been given secure protection (at the cost of other areas).

Areas reserved are said to decrease sustainable yields by less than 0.6% yet these yield estimates can have a 30% error margin. (4)

It was admitted in the RFA that the level of error used to calculate much of the data was unknown. The ESFM report concluded that there is a high level of uncertainty about effects of forest logging. The big issue of loss of hollow bearing trees (listed under the Flora and Fauna Guarantee Act) was dismissed in two sentences ... etc... (66)

Public consultation was a mere formality which was set up (and scaled down) to give an appearance of legitimacy to what was intended all along. The unions pulled out of the process, but green groups stayed 'in.

Forest management is to be based on ESFM but no monitoring is required for 5 years! By which time many species dependent on older forests could have quietly gone down the gurgler (as they indisputably are now). (66)

With the signing of the RFA for East Gippsland there is now no limit on the volume of chips to be exported. Whole logs are also defined as part of the new value adding' push for forest 'waste'!

During a normal assessment for sawlog yield of a coupe, less than 1 % of trees are measured. There are four levels of reliability; level one uses aerial. photos and sample plots but covers only 21 % of planned logging areas. 79% of areas are assessed using methods that are unreliable (3).

During the Prudent and Feasible study, it was calculated on a whiteboard that 50,000M3 of sawlogs would be the realistic sustainable yield for the region. This was raised to a convenient 179,000M3 in the final report. (68)

In the past, sustainable yield figures have include such things as Natural Features Zones, Potoroo Zones, Sites Of Significance, wildlife corridors etc. (71) We assume these are still part of the long term figures, which would now include Special Management Zones.

'The Code' is a set of guidelines for loggers to follow. Whenever environmental concerns are raised, the code is held up to prove there are no, problems. However, many serious breaches are constantly being documented by environmentalists.

• habitat trees are burnt or felled.
• retained vegetation is burnt.
• stream buffers are logged or damaged.
• drainage lines and gullies are bulldozed.
• bulldozers cross creeks and destroy riparian zones.
• log trucks run on roads in very wet conditions.
• rubbish is left on sites.

Three Forest Watch surveys conducted independently of the Department showed gross violations of the Code. In the 1992 survey, 31 breaches were detected yet only 1 was officially noted and reported. (72)

A 1995 Department survey showed that 30% of all Vic logging operations breached the environmental code (73).

The Code is vague, open to interpretation and can be, and often is, overridden by the regional manager. It contains many qualifying clauses such as "where possible... as much as practical".

'We chop down the forests and sell them to get foreign exchange, to pay the interest on the debt, which we accrued from chopping down the forests. If it wasn't so tragic it could be a huge Monty Python sketch' Green economist.

The introduction to the EGFMP states that Government policy requires forest management to be economically viable(7). The Timber Industry Strategy requires forest operations achieve a 4% return to Government, yet the Govt refused to incorporate an economic component into the Forest Management Plan, despite pressure form environment groups (62).

Over the years, the forest sector in Australia has cost the taxpayer $5 billion in subsidies!

This debt increases every year by hundreds of millions of dollars. We are actually paying to have our forests destroyed (74).

The state government spends at least $2.25 for every $1 it receives in royalty payments (75).

Export woodchips account for about 0.5% of the Australia’s total export market. (78)

In Victoria, our taxes have been paying for the clearfelling of important habitat areas to the tune of up to $380 million (75). The govemment refuse to admit a loss while also refusing to open their monthly accounts to scrutiny. After an FOI request in Oct '94 and subsequent AAT hearing in Jan '96, the Department kept a tight clutch on its accounts, calling them 'cabinet documents'!

In May 1993, the Auditor General released a damning report on the operations of the DCNR and their economic incompetence. The Department. has still not addressed the problems. (79)

Bee-keepers are slowly losing their leased bee sites to clearfell logging. The return from annual licences from bee-keeper’s over a period of 40-80 years is worth much more to the government than the single return from low royalties after clearfelling an area once.

The Victorian subsidy was calculated at $41 million in a 1991 ACF report. That meant that every cubic metre was subsidised to the tune of $14. The Timber Industry Strategy states there must be a return of 4% to the Government (which wouldn't even cover inflation).

The Auditor General's Report revealed the subsidy to East Gippsland’s logging industry was $3.7 million in 1990-91. (79) East Gippsland was the most heavily subsidised region across Vic. After this expose, the Government did not produce a revenue and expenditure statement the following year. Very creative accounting has been used in all subsequent balance sheets (ie, the cost of regen is put in the income column!)

Two government reports in 1994-5 revealed Victoria's logging industry to have cost taxpayers between $3-6 million in subsidies to pay for road damage repair. (104)

A RAC report in 1991 showed that the cost to taxpayers to stop the cutting down of National Estate forests by compensating forest workers would be $1.55 each (this doesn't take into account the subsidies paid to log forests anyway).

The RAC report also found that the only way profit could be made from forest logging is if it was cut down every 20-30 years and managed for the woodchip export market.

In the 1987-88 financial year, woodchips were calculated to make up 46% of total output in East Gippsland yet returned only 10% of total financial return.

'It is imperative that as much of the remaining private old growth pulpwood resource as is available for sale is marketed over the next 15 years whilst market acceptance of this comparatively low commercial quality wood is relatively high. Quota restrictions on the harvesting of this resource must be lifted immediately'.(81)

These prices are averages and are subject to variations depending on the distance for cartage from major centres (Cann River and Orbost). The main category is 'other species'(OS). (82)

In 1987 the average royalty rate for OS was $16.15 for a C grade and $4.1 0 for a D grade(56). These charges have not risen in proportion to inflation and costs of forest management.

The price of $5.40 for D grades is no disincentive to prevent these logs from being directly chipped.

The price for the 'waste' Residual Logs (RL) is unavailable in writing but from personal communication with a local senior forester, we are told the price being negotiated is between 20c and $2! (83)

The practice of down-grading logs, overloading trucks and running long after log checking stations close is rife!(84) DNRE's log checking system is totally inadequate.

An FOI request in mid 1994 for a log grading audit revealed that only 1% of logs graded by loggers are checked by the Department, and of those half were found to be misgraded. The penalty for being found to downgrade logs is two warnings and then 5 days out of the bush, and lastly the log-grading ticket is lost. With only a 1 % chance of being caught - there's great incentive to rort the system.

Despite government policy which prohibits the clearing of native forests for plantations (102) the Dept is doing this by stealth. Large areas which fail to grow back (103) according to the Dept's requirements are 'tended' as a plantation but are termed 'intensively managed forests' (38).

Studies have shown that for every hectare of unsealed road surface (ie logging road) 35 tonne of soil can be washed into streams each year. (61) Logging roads can create a greater erosion problem than clearfelling.

Part of the Federal Govts $10 million National Estate compensation money was also used to fund several ecological surveys of forest blocks currently being logged. (86) The Vic Government refused to release these finished reports (87) and the all important scientists recommendations were cut out when the documents were allowed to be viewed under FOI.

The Department has so over committed itself, it can't spare a stick. This tight commitment does not allow for reserving any more areas for new discoveries or for such things as major bushfires which could reduce the sawlog volumes. The sustainable yields. are the only thing which is legislated and has teeth. (Flora and Fauna Guarantee Act and the CFP are quite- useless as legally binding documents)

Pressure is on the Department to provide every stick of timber it can scrape up. This means logging significant patches of rainforests (by defining them away), keeping buffers to an absolute and inadequate minimum, 'rationalising' sites of ecological significance and deliberately discouraging the identification of any more areas of habitat for endangered species. (13)

Rotation lengths were supposed to be on 80-120 year cycles. It is now a minimum of 65years for most forest types.(69) This does not allow for the return of certain plant and animal species. With the push for woodchips, this could be reduced to as little as 20-30 years.

D grade sawlogs are in reality a glorified chip log. Few mills take the time to put these through a sawbench, especially while the market for sawn timber is depressed and the market for woodchips can provide a more reliable income. The Andrews mill at Newmerella near Orbost has admitted it splits D grade logs to feed directly into the chipper. (89)

The East Gippsland sawn timber industry is in fast decline. The industry is responding by shifting to woodchipping under the guise of 'value adding'. Logs of lower quality are supplied to mills, supposedly to salvage sawn timber from, but as woodchips are a quick seller, more mills are chipping good sawlogs to stay afloat. Downgrading of good sawlogs is still rife.(91)

Softwood is steadily taking over from the hardwood sawn timber market. Plantations provide at least 60% of all our timber needs and 70% of raw material for paper production in Australia (90).

(98)

*The lower figure is likely to be more accurate.

Factor into the above the statistics, that on top of the 2 million of plantation sawn
timber consumed pa, there is also 1.3 million M3 of panel boards and veneers made from pin- and we see the plantation timber market fast swallowing the hardwood sector.(90)

In the last 18 months, four East Gippsland sawmills have folded, their licences being bought by large woodchip interests.

Victoria already has enough plantations in the ground and ready for harvesting to supply, all our timber and paper needs, creating 2,000 jobs in the process.

If it's viable to cart logs across the border to Eden for the lowest value product (woodchips), it would have to be more economically viable to bring pine logs back to process here. A shift to processing pine would not be difficult. Mills could retool and take. advantage of the expanding pine timber market. The argument that East Gippsland has no land and therefore resource for a plantation-based industry does not hold water. There are huge areas of mature pine across the border around Bombala. (90)

Mature pine plantations Australia wide can provide 6 times the current level of cut of native forest sawlogs. (92)

National Estate covers at least 54% of the region. bring this figure up to almost 70%. Interim listed areas could bring this figure up to almost 70%.

This resulted in an agreement which put logging in National Estate on hold for 12 months while a 'Prudent and Feasible Study was carried out to look at alternatives to logging National Estate. (94)

As compensation, the Federal Government gave the State $10 million to find alternatives to logging the National Estate. (86) Of this, $306,000 was allocated to schedule roading outside these areas. (86) However, 4 major new roads were instead pushed into the most valuable areas, in readiness for logging the next year. (95)

Another $6 million was allocated towards researching and establishing plantations over native forests (defined less directly as intensive management, species trials, fertiliser trials etc).

Due to the state government strategically logging many of the previously identified areas, a new joint study by the Department of Natural Resources and Environment and the Australian Heritage Commission began in 1993 to delist many of the now logged areas, as well as assess new information. Due to a more comprehensive study and more areas being identified than previously, there could now be 70% of the region with heritage values. However, most of the areas outside existing reserves have not- received a final listing. Knowing the Vic Government has refused to protect them, the AHC took the easy path of not giving these areas a final listing. (101)

During the EGFMP, the Department stated 'The Government has considered the issue and decided that National Estate forests outside Parks and Reserves will be managed in the same way as other areas of forests" (3)

While the joint NRE/AHC study was going on, the NRE was logging the areas being assessed. The National Estate identified areas outside reserves are currently being logged, with the AHC remaining silent.

The Department still carry out strategic logging by ripping the heart out of the best of what is still intact to ensure there is no likelihood of later inclusion in the reserve system.(eg. Yandown Creek, Brown Mountain, Goolengook River, Sassafras Crk...)

In 1991 the population of the EGFMA was 9,700 or 0.2% of Victoria. 70% had left school at 16 or younger (1986 figures). Only 5.5% had tertiary education. The logging industry employs almost exclusively men (3).

In 1996 forest workers made up 1.67% of the Gippsland region's workforce. Mill workers are lumped in with manufacturing and paper industry figures so are difficult to separate. Tourism provided 10%, retail 12% and manufacturing 14% of the region's employment.'(99) ABS figures hide the true number of people employed in the logging industry, but a realistic number would be at most 300-400 full time workers. A rough estimate is 120 in failing and transport of logs, 230 in mills.(100) Some believe this is an overestimation.

In 1991 a Saulwick poll showed that 80%of Australians wanted forests preserved wherever possible and 70% said forests were more important than jobs. The majority of Liberal and National patty voters interviewed, agreed.

The W Tree area near Buchan brings in $685,000 to its local community each year, with $550,000 being from eco-tourism. However, the government needs to clearfell the immediate landscape to meet the commitments to the industry. By contrast there is only one timber worker living in the W Tree area. (85)

In East Gippsland, tourism brings in $134m', manufacturing'$104m, agriculture' $109m with the logging industry having a mere turnover of $53m (96).

If a realistic multiplying factor is used for the tourism industry, its actual value to the community is closer to $374.6 million. The tourism industry is multi-faceted with a wide flow-down base. The activity generated from tourism stays in the region in contrast to the timber industry. (96)

The local tourism group, Lakes and Wilderness Tourism, has had a 50% increase in members over the last year. There has been a 70%;increase in sales and a 17% increase in visitor numbers to information centres during 1996.(96)

The Victorian Tourism Commission calls East Gippsland the state's tourism 'sleeper'. (96)

The 'sustainable yield' quota of 174, 000M3 of C+ grade logs (or 250,OOO M3 of D+ logs) and 800,000M3 and of ‘waste' as set by the government is a drastic overcommitment of our forests. This needs to be reduced.

What can Govts do about the above?

• Pretend there's no problem and leave it for another govt to deal with.
• Turn native forests into plantations and pander ' to the overseas demand for woodchips, keeping the community ignorant of the true agenda and conservation of threatened species on the downhill run.

• Buy back licences as mills sell up
• Raise royalties to a more realistic level
• Offer compensation or retraining schemes to workers
• Reduce the sustainable yield levels

This would:

• Drastically lower the cut.
• Allow workers to leave the industry with dignity or shift over to a pine processing industry feeding from the Bombala region's plantations.
• Send a message to the overseas parasitic woodchip barons that it would be cheaper and more secure to move into plantations which already exist in other countries.

The conversion of native forests into shining gum plantations by current regeneration methods must be exposed and stopped.

There should be a review of sustainable yield by independent forest ecologists and forest economists not beholden to the Department of Natural Resources and Environment.

There needs to be a serious and independent economic review of logging operations across the State.

(1) Busby J R The National and International Significance of National Parks in Eastern Victoria (1990)
(2) R Thackway Conservation of Forested and Wooded Vegetation Types in Nature Conservation Reserves in Australia (1990)
(3) Statement of Resources, Uses and Values CNR 1993.
(4) Timber Industry Strategy 1986
(5) Bamett, J. Parkwatch 1993-VNPA
(6) National Forest Policy Statement 1992
(7) Forest Management Plan - East Gippsland Forest Management Area. DCNR Dec 1995
(8) Pers comm. Bdan Thompson DCNR Orbost. Author of the EGFMP
(9) Pers comm Steve Henry, Senior flora and fauna officer, Orbost.
(1 0) Flora and Fauna Guarantee Act Action statement no 15 - Tiger Quoll. DCE. 1992
(11) Civenaugh R. Home Range Movements, Sooty Owl near Royal Natibnal Park, Sydney 1996.
Milledge. D. The Distribution and Home Range of Sooty Ovvis in the Mountain Ash Forests of the Victorian Central Highlands. 1996
(12) Correspondence from Richard Rawson , Exec Director Forests Services, Feb 97
(13) DCNR- Actively discouraging Fauna Surveys Potoroo Review No 142 1994
(14) CROEG local conservation groups survey results. 1994
(15) Woodgate et. al, A Study of the Old Growth Forests of East Gippsland 1994
(16) P Gell and R Wilby. 1993. Paper presented to the International Quartemery Association Conference in Canberra April 93
(17) Annual Wood Utilisation Plans DNRE
(18) Muek, Ough & Banks. How old are Wet Forest Understoreys? Australian Journal of Ecology 1996
(19) Cameron, D. A Portrait of Victoda's Rainforest. Distiibution, Diversity a nd Definition. 1992
(20) Gell, P and Mercer, D. Victoria's Rainforests. Pers~ives on Definition, C4assffication and Managermnt.
1992
(21) Victoria's Rainforests: An Overview DCFL 1990
(22) Cameron, D. Timber Harvesting within Sights of Significance Rainforests DCFL Memorandum 1990
(23) Rainforest Report 'Doctored'. The Herald 21.6.90
(24) Victorian Rare or Threatened Species.- Orbost Region. Dec 1 990
(25) Personal observation over the years. J Redwood
(26) Gell and Stewart. Human Settlement History and Environmental Impact 1989
(27) Pers corn m. Brian Cotter, forester.
(28) Meredith, C. Fire in the Victorian Environment 1988.
(29) Annual Report DCNR (?) or local newspaper item.(?)
(30) Alps Worid Heritage Bulletin No 3 1995 VNPA (Dec update).
(31) Kirkpatrick, J. The International Significance of the Natural Values of the Australian Alps. 1994.
(32) Gruen Report 1989
(33) The Impacts of Timber Production and Harvesting on Native Flora and Fauna. . Ferguson Inquiry Vol 2 1985
(34) Fire and Biodiversity. : The effects and effectiveness of fire management Proceedings of Conference In Melbourne Oct 1994. Biodiversity Unit. DEST. (There are 1 16 references after the chapter on effects on forest vertebrates and 48 on flora).
(35) On the ground evidence in most plateau coupes.

(36) Code of Forest Practices Nov 1996
(37) Ough and Murphy The effects of clearfell logging on three-fems in Victorian Wet Forests. 1996
(38) A box-full of reports, memos, internal newsletters, plans etc too numerous to mention.
(39) Rabb, M. Sediment movement in forestry environments: managing the important pathways to streams. 1996.

(40) Rabb, MA. Impact of Timber Harvesting on Soil Disturbance and Compaction 1992
(41) DCNR Internal Memo 28.7.92
(42) Letter to Fenetia Berry TWS from David Wilfiams Acting Regional Manager Orbost. 7th October 1992
(43) Letter to Jiii Redwood CROEG from Tony Bartiett Forest Planning Project Manger. 27th July 1993
(44) Calculations from local planting contractor. 1995
(45) Debate at Melbourne Uni between economist Francis Grey and Robert Bain. 1716194.
(46) Statement released by PM Keating, Sydney 2711195
(47) DCNR Investment Opportunities in Hardwood Processing East Gippstand , Australia. Expressions of Interest Memorandum. 1995.
(48) Pers corn. from Senor Forester, G Featherston, Orbost with member of CROEG, John Hermans.
(49) CSIRO Forests Division via G Featherston, Orbost.
(50) Howard or Anderson - ABC radio interview. Around the 11112196. ?????????
(51) Judy Clark. Pers corn.
(52) ABARE quarterly forest statistics bulletin. March 1995
(53) Bamett, J. Victorian Forestry Research - Are we Wasting our Money? VNPA June '93
(54) RAC Inquiry in the timber industry 1991
(55) Gross, R. PhD report into silvicultural requirements of ash forests in the Central Highlands. 1960s
(56) DCNR Discussion Paper no 53. Economic.Analysis of Alternatives to Logging National Estate 1990.
(57) Pers corn. Ross Runnells. Gany Squires, senior foresters orbost - over the years.
(58) ABC radio National Earthwonn Program. 3013188
(59), Aerial photographs taken over the years
(60) Bush ~ers unwilling to be named.
(61) Hayden et al. The Effect of Vehicle Use and Road Maintenance on Erosion from Unsealed Roads in Forests the Road 11 Experiment. Dec 1991 - MMBW.
(62) Letter to CROEG from Tony Bartiett, Manager Forest Planning Project DCNR Orbost. 2318193
(63) Bamett. J. And Mosley, G. The Rush to Send East Gippstand overseas. VNPA Dec 1996
(64) Addidonal Hervesdng Pmscdpdons for SMZ Coupe Goolongook 514114. Peter Geary 1996
(65) Maps from the EGFMP 1995
(66) ESFM report. RFA for East Gippsland. 1996
(67) Media release, Maric Tehan. Dec '96 and subsequent phone call to Peter Ford of Department of Natural Resources and Environmenk Forest Services for clarification 29.1,97
(68) John Olle. CROEG member i)f East Gippstand Forest Agreement Study Consultative Committee. 1990
(69) Dmft East Gippstand Forest Management Plan 1994
(70) CRA East Gippsland National Estate Report July'%
(71) Harcfwood rimber Resoumes in the East Gippstand Forest Management Area. DCNR 1993(72).Newton John, J. A Survey of Adherence to Prescdpfions of the Victodan Code of Forest Practice in the
Orbost Region, East Gippsland. 1992

(73) Audit of Code of Forest Practices for Timber Production 1993-94 DCNR Report
(74) Resource Assessment Commission.
(75) Dragun, A. The Subsidisation of Logging in Victoda. Jan 1995
(76) Draft Report of RAC Inquirer into Austialia's rimber hwustry July 1991
(78) ABARE 1994-95

(79) Special Report No 22. Auditor General's Office . Timber Industry Strategy May 1993 DCNR Hardwood Sawlog Gracgng Moniton-ng Repoit.March
(80) Pars Corn. Rex Fish - Apiarists Association East Gippsland - and the Association'$ RFA submission.
(81) Private Forestry Council of Tasmania. 1 990
(82) Letter dated 716M from Gary Featherston, Senior Forester NRE Orbost
(83) Pars corn. John Hermans (CROEG) meeting with Gary Featherston, 1996 & 1997.
(84) personal observation from living on a main logging road. J Redwood
(85) W Tree Progress Association.
(86) East Gippsland Foiest Agreen7ent Newsletter June 1 99 1
(87) Letter from Geoff Coleman to CROEG. 1516194

(89) Unpublished report. Ministry for Planning and Environment. Report on East Gippsland sawmill inspection 27.10.88
(90) Clerk, J. Austratia's Plantations. Industry, Employment, Environment 1995
(91) East Gippstand fact of life. Mill workers and owners admit to this practice amongst themselves.
(92) Clark, JE. Softwood Plantation Sawlog Stockpile. 1995
(93) ???? Nat Est %?????
(94) East G nd Forest Agreement Study. DCE September 1990
(95) Roading plans DCE 1990.
(96) Lakes and Wilderness Tourism. 1996.
(97) Questions in Parit. Norm Sanders. Senate Hansard 19112188
(98) ABARE Forestry Statistics.
(99) RFA CRA Social Assessment Report 1996
(100) Anecdotal from 4th generation local with some understanding of the industry.
(101) Anecdotal from Commonwealth public servant.
(102) Code of Forest Practice Department of Natural Resources and Environment (pg 15) 1996
(103) Code of Forest Practice DCFL1 989

(104) Vic Raods, Financing Options for Timber Roads, and the Gippsland Review - Local Government Board