Common use of Industry Development Clause in Contracts

Industry Development. The Parties agree that State Forest outside the CAR Reserve System is available for timber harvesting in accordance with the Victorian Forest Management System. Victoria also confirms that the Sustainable Yield for forests for the Gippsland region will continue to be based on areas available for timber harvesting outside the CAR Reserve System. Parties agree that any changes to the area of State Forest will not lead to a net deterioration in the timber production capacity of those areas available for harvesting in terms of volume, species and quality. The Parties acknowledge that the forest-based industries in the Gippsland region make an important contribution to both the regional and State economies and are an essential component of many communities in the region. The Parties intend that this Agreement will enhance opportunities for further growth and development of forest-based industries in the Gippsland region and provide long-term stability for these industries. The Parties therefore acknowledge that this Agreement must provide enhanced security of access to resources on forested land for the life of the Agreement. This, in turn will facilitate industry development including through: new investment, plantation development, reforestation, downstream processing, value-adding and jobs growth in forests-based industries; further introduction of new technology, enhanced utilisation of regrowth timber for sawn products, and more efficient utilisation of residual wood; investment in Mineral exploration and Mining; and tourism and recreation investment. As part of providing greater security of access to forest resources, the Commonwealth will not prevent enterprises obtaining, using or exporting timber, woodchips or unprocessed wood products sourced from the Gippsland region in accordance with this Agreement. The Parties: acknowledge that this Agreement is expected to provide 115,000m3 per annum of D+ sawlogs from the Gippsland region comprising: the Tambo FMA (62,000 m3 per annum), eleven blocks of the Wodonga FMA (13,000 m3 per annum) and the eastern part of the Central Gippsland FMA (40,000 m3 per annum of the expected 175,000 m3 from the whole FMA) but recognise that timber supply levels in Victoria are subject to change based on periodic review of Sustainable Yield and that Sustainable Yield estimates are based on the full extent of the FMAs; recognise that the expected available volume of D+ sawlogs referred to in Clause 72 (a) includes forest stands which may be less desirable to harvest under existing market conditions, due to low yields, accessibility and product distribution. The available volume is dependent on the capacity of the timber industry to harvest these areas. Timber Resource Analyses identified that approximately 8 per cent of the total Gippsland resource and 20 per cent of the mixed species resource is sourced from forest stands which fall into this category; agree that economic and social issues have been taken into account in providing a land base that is expected to deliver the yields in Clause 2(a). It will be necessary to provide industry with sufficient time to adjust to the revised timber resource availability resulting from the RFA outcomes. The Parties agree that this adjustment will take place within two years of the date of signing this agreement in conjunction with the actions in Clause 7. Victoria agrees that Sustainable Yield levels will be reviewed based on new resource information from the SFRI when available and the use of IFPS. The Parties agree that Victoria will manage the forest estate in the Gippsland region to at least maintain its timber production capacity in terms of volume, species and quality. Wherever possible Victoria will enhance Statewide silvicultural programs and reforestation works to improve the productive capacity of State Forests. The Parties agree that the funding available through the joint Commonwealth-Victorian Hardwood Timber Industry Development and Restructuring Program (VicFISAP) has been increased to $42.6 million across the five Victorian RFA regions. The Parties agree to review the Memorandum of Understanding for the VicFISAP which establishes the respective roles and responsibilities of the two governments in administering the program to take into account the outcomes of this Agreement. The Parties acknowledge that Victoria will provide an additional $20 million dollars to facilitate improvements in the productive capacity of public native forests, establish hardwood plantations, and other forest-based initiatives that will generate significant employment opportunities in regional Victoria. This brings the total funding package associated with the five Victorian RFAs to $62.6 million. Attachment 11 provides details.

Industry Development. The Parties agree that State Forest outside the CAR Reserve System is available for timber harvesting in accordance with the Victorian Forest Management System. Victoria also confirms that the Sustainable Yield for forests for the Gippsland ▇▇▇▇ ▇▇▇▇▇▇▇▇ region will continue to be based on areas available for timber harvesting outside the CAR Reserve System. Parties agree that any changes to the area of State Forest available for timber harvesting will not lead to a net deterioration in the timber production capacity of those areas available for harvesting in terms of volume, species and qualitythe forest. The Parties acknowledge that the forest-based industries in the Gippsland ▇▇▇▇ ▇▇▇▇▇▇▇▇ region make an important contribution to both the regional and State economies and are an essential important component of many some communities in the region. The Parties intend that this Agreement will enhance opportunities for further growth and development of forest-based industries in the Gippsland region and provide long-term stability for these industries. The Parties therefore acknowledge that this Agreement must provide enhanced security of access to resources on forested land for the life of the Agreement. This, in turn will facilitate industry development including through: new investment, plantation development, reforestation, downstream processing, value-adding and jobs growth in forests-based industries; further introduction of new technology, enhanced utilisation of regrowth timber for sawn products, and more efficient utilisation of residual wood; investment in Mineral exploration and Mining; and tourism and recreation investment. As part of providing greater security of access to forest resources, the Commonwealth will not prevent enterprises obtaining, using or exporting timber, woodchips or unprocessed wood products sourced from the Gippsland ▇▇▇▇ ▇▇▇▇▇▇▇▇ region in accordance with this Agreement. The Parties: acknowledge that this Agreement is expected to provide 115,000m3 77,900 m3 per annum of D+ sawlogs from the Gippsland ▇▇▇▇ ▇▇▇▇▇▇▇▇ region comprising: the Tambo Midlands FMA (62,000 40,000 m3 per annum subject to Clause 2(c)), the Otway FMA (27,000 m3 per annum), eleven blocks of the Wodonga Portland FMA (13,000 10,000 m3 per annum) and the eastern part of the Central Gippsland Horsham FMA (40,000 900 m3 per annum of the expected 175,000 m3 from the whole FMAannum) but recognise that timber supply levels in Victoria are subject to change based on periodic review of Sustainable Yield and that Sustainable Yield estimates are based on the full extent of FMAs; acknowledge that completion of SFRI will result in updated datasets which will form the FMAsbasis of Sustainable Yield forecasts for each FMA, and agree that when these datasets become available during the course of this Agreement, Sustainable Yield will be reviewed in consultation with industry and community stakeholders and that, following this, Sustainable Yield rates are likely to change; agree that, in particular, the Sustainable Yield rate for Midlands FMA will be reviewed by 31 December 2003, in consultation with industry and community stakeholders, following completion of SFRI for this area. It should be noted that SFRI data were not available at the time of the Timber Resource Analyses used to develop the RFA; recognise that the expected available volume of D+ sawlogs referred to in Clause 72 (a2(a) includes a component of forest stands which may be less desirable to harvest under existing market conditions, due to low yields, accessibility and product distributiondistribution but not areas which are considered unproductive for sawlogs, for example less than 22 metre stand height. The available volume is dependent on the capacity of the timber industry to harvest these areas. Timber Resource Analyses identified that approximately 8 per cent of all areas contributing to the total Gippsland resource and 20 per cent of the mixed species resource is sourced from forest stands which fall into this categoryestimate; agree that economic and social issues have been taken into account in providing a land base that is expected to deliver the yields in Clause 2(a). It will be necessary to provide industry with sufficient time to adjust to the revised timber resource availability resulting from the RFA outcomes. The Parties agree that this adjustment will take place within two years of the date of signing this agreement in conjunction with the actions in Clause 7. Victoria agrees that Sustainable Yield levels will be reviewed based on new resource information from the SFRI when available available, and the use of IFPS. The Parties agree that Victoria will manage the forest estate in the Gippsland region continue to implement silvicultural programs that aim to at least maintain its timber production capacity in terms of volume, species and quality. Wherever possible Victoria will enhance Statewide silvicultural programs and reforestation works to improve the productive capacity of State Forests. The Parties agree that the funding available through the joint Commonwealth-Victorian Hardwood Timber Industry Development and Restructuring Program (VicFISAP) has been increased to $42.6 million across the five Victorian RFA regions. The Parties agree to review the Memorandum of Understanding for the VicFISAP which establishes the respective roles and responsibilities of the two governments in administering the program to take into account the outcomes of this Agreement. The Parties acknowledge that Victoria will provide an additional $20 million dollars to facilitate improvements in the productive capacity of public native forests, establish hardwood plantations, and other forest-based initiatives that will generate significant employment opportunities in regional Victoria. This brings the total funding package associated with the five Victorian RFAs to $62.6 63 million. Attachment 11 provides details.