QUESTIONS
AND ANSWERS
FOREST MANAGEMENT BILL 2013
Table of Contents:
1. Forestry Tasmania Transition
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2. Staff entitlements
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3. Governance framework
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4. Future management of production forest
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5. Future management of forest reserves
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6. Financial impacts
9
7. Access and use rights
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8. Tasmanian Forests Agreement
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9. Forest roads
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10. Environmental matters
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Department of State Growth
Forestry Tasmania Transition
What does the Forests Management Bill 2013 do?
The Bill provides for a transition of Forestry Tasmania’s business model to ensure sustainability of
the business into the long term and ensure greater clarity of focus for Forestry Tasmania on its
commercial functions. The core elements of the Bill are that it:

Repeals the Forestry Act 1920 but continues the Forestry Corporation (that is, Forestry
Tasmania) and brings the governance and operational structure of the Forestry
corporation fully under the Government Business Enterprises Act 1995.

Provides for the future management of the permanent timber production zone land by
Forestry Tasmania as the Forest Manager.

Maintains the annual minimum wood production supply requirements for high quality
sawlog and veneer logs at 137,000 cubic meters.

Continues rights of access to the permanent timber production zone land where it is not
incompatible with the functions or responsibilities of the Forest Manager.

Reinforces that the Forest Manager must manage the permanent timber production zone
land consistent with the principles of forest management established under the Forest
Practices Code.

Declares approximately 221,000 hectares of forest reserves to be either regional reserves
or conservation areas under the Nature Conservation Act 2002. Responsibility for this land
is transferred to the Department of Primary Industries, Water and Environment
(DPIPWE).

Preserves and continues a range of authorisations, entitlements and arrangements with
respect to land that is either permanent timber production zone land or land to be
declared as reserves under the Nature Conservation Act 2002.

Ensures that the “future reserve land” continues to be managed by and subject to the
Tasmanian Forests Agreement Act 2013 and that this Bill does not interfere with the TFA
process.

Strengthens the capacity of the Forest Manager to manage access to the land under its
control so that it can undertake its responsibilities and ensure the safety of people on and
within that land.

Continues to provide for the construction of, and access to, forest roads, including those
forest roads that are in forest reserves that will become regional reserves or conservation
areas.

Ensures the leave and superannuation entitlements of Forestry Tasmania employees who
accept employment offers from DPIPWE to assist in the implementation of the reserve
land transition under the Bill are recognised.
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What will happen to Forestry Tasmania as a result of this Bill?
Forestry Tasmania will continue as a government business enterprise under the Government
Business Enterprises Act 1995 (GBE Act). The Forest Management Bill 2013 (the Bill) brings its
governance and organisational arrangements fully within the GBE Act, ensuring consistency
between Forestry Tasmania and other GBEs.
Why are these changes required and why is it happening now?
Large scale changes to Tasmania’s forest industry have been taking place in recent years, leading to
adverse market conditions and structural changes in the industry. This has resulted in Forestry
Tasmania operating in a vastly different environment than it has in the past.
There has been a strategic shift in the State’s forest industry which has affected Forestry
Tasmania’s current business model as well as its financial position making it unsustainable into the
future.
In 2011 the Government recognised that Forestry Tasmania’s business model was unsustainable
and announced an independent strategic review of Forestry Tasmania to examine and report on
the future structures, governance and business models under which Forestry Tasmania may
operate, in the context of dynamic industry and market developments. It was specifically identified
that Forestry Tasmania had a very weak revenue outlook, a deteriorating cash position and that
Forestry Tasmania would not be able to continue to fund the non-commercial activities it
undertakes.
URS Australia Pty Ltd was appointed as an independent advisor to undertake the strategic review
of Forestry Tasmania. URS worked with Deloitte on the review.
The Stage 1 Report identified a number of factors making it difficult for Forestry Tasmania to
adjust to changing circumstances. These included its legislation, its business model, clarifying its
role in the industry, non-commercial activities it was required to support or had taken on, and its
traditional approach to costing and budgeting which was in part used because of the integrated
nature of its commercial and non-commercial activities.
The Stage 2 report highlighted the extent of the financial issues facing the business and
recommended separation of the commercial and non-commercial functions of Forestry Tasmania.
This Bill implements this recommendation in two ways:
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Firstly, by transferring Forestry Tasmania’s system of formal forest reserves and associated
non-commercial reserve management activities to DPIPWE, and
Secondly by providing a narrower, primarily commercial, focus for Forestry Tasmania.
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Continuing to operate under the current arrangement is not an option if the business is to return
to a sustainable commercial operation. Change is necessary to give Forestry Tasmania the best
chance to achieve this objective.
How will these reforms assist Forestry Tasmania to be sustainable into the future?
The Bill will focus the operations of Forestry Tasmania on a narrower range of functions so that
the Board, management and staff can concentrate on realising the commercial value of Tasmania’s
public production forests.
It will remove the costs currently borne by Forestry Tasmania associated with the management of
a forest reserve estate which is not being used for commercial wood production. The provision of
any Community Service Obligations (CSOs) by Forestry Tasmania will be clearly identified
separately from its commercial undertakings.
A number of regulatory and legislative provisions have been streamlined or refocused to allow
Forestry Tasmania to improve efficiencies and reduce costs. These elements are part of a package
to ensure that Forestry Tasmania is given the best opportunity possible to improve its
performance and become sustainable in the longer term.
It is recognised however, that in addition to cost reductions, markets for Forestry Tasmania
residue products will need to improve substantially and/or diversity for Forestry Tasmania’s
financial position to strengthen.
Will Forestry Tasmania continue to operate tourism ventures?
Yes, Forestry Tasmania will continue to undertake and operate tourism ventures on permanent
timber production zone land in the medium term where supported by strong business cases.
For example, Forestry Tasmania will remain responsible for the Tahune Airwalk, Hollybank
Treetop Adventure, Forest Heritage Centre at Geeveston and the Maydena Adventure Hub.
DPIPWE will become responsible for those tourism operations on forest reserves that become
reserves under the Nature Conservation Act 2002. These consist of Eagles’ Eyrie and Tarkine Forest
Adventures tourism operations.
Will Forestry Tasmania undertake Community Service Obligations?
Yes. Where Community Service Obligations (CSOs) are identified and agreed by Ministers to be
performed by Forestry Tasmania there will be a direction for them to be undertaken. This
direction will be issued through the Government Business Enterprises Act 1995.
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CSO activities potentially include fire management outside of permanent timber production zone
land, road maintenance for public amenity and the facilitation of recreation on permanent timber
production zone land.
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Staff entitlements
What happens to the staff at Forestry Tasmania?
There will be some reduction in staffing requirements within Forestry Tasmania as a result of the
transfer of forest reserves from Forestry Tasmania to the Department of Primary Industry, Parks,
Water and Environment (DPIPWE).
However, the transition to these new arrangements is being undertaken to maximise ongoing
employment opportunities for Forestry Tasmania employees.
Indeed, through collaboration between Forestry Tasmania’s and DPIPWE’s senior management, a
process has commenced with DPIPWE developing a range of new positions, to be offered to
Forestry Tasmania staff. These positions will ensure DPIPWE is appropriately resourced to
manage the additional land it will become responsible for with the declaration of the majority of
the forest reserve estate as reserves under the Nature Conservation Act 2002.
Governance Framework
What legal entity will Forestry Tasmania become as result of this Bill?
The Forestry Corporation trading as Forestry Tasmania will continue as a Government Business
Enterprise (GBE). A GBE is a statutory authority identified in the Government Business Enterprises
Act 1995 (GBE Act) that is required to follow the governance framework established by the GBE
Act. The Forestry corporation will continue to be specifically listed as a GBE in Schedule 1 of the
GBE Act.
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Future management of Tasmania’s production forests
What is happening to “State Forest”?
State forest currently includes both the forest available for multiple use including wood and timber
production and forest reserves managed by Forestry Tasmania.
As a result of this Bill, Forestry Tasmania will no longer manage approximately 221,000 hectares of
forest reserves with responsibility for this land being transferred to the Department of Primary
Industries, Parks, Water and Environment. Forestry Tasmania will only manage the newly classified
permanent timber production zone land.
Rather than having two names for the same land it has been decided to use the term ‘permanent
timber production zone land’ to reflect the primary management intent for this land.
In a general sense State forest may well continue to be a term used in the community but from a
legal perspective the new legislation reflects the future purpose and use of these forests.
What is permanent timber production zone land?
This is the land that is available for wood and timber production and for which the Forest Manager
is responsible for under this Bill. The Tasmanian Forests Agreement Act 2013 created the category
of permanent timber production zone land for all of the State forest outside the formal forest
reserves.
Who will manage the permanent timber production zone land?
Under the Bill the permanent timber production zone land will be managed by the Forest Manager
– Forestry Tasmania.
What is the Forest Manager responsible for under the Bill?
The Forest Manager has the functions of managing and controlling the permanent timber
production zone land and to undertake forest operations on that land.
In addition, every year the Forest Manager is responsible to make available from the permanent
timber production zone land the minimum aggregate quantity of eucalypt veneer logs and sawlogs
to veneer and sawmilling industries now set at 137,000 cubic metres. This is consistent with the
Forestry Act 1920, as amended by Parliament by the Tasmanian Forests Agreement Act 2013.
Why is there a Forest Manager?
The Forestry Corporation or Forestry Tasmania is to be the Forest Manager for Tasmania’s
permanent timber production zone land.
While both are one and the same, the concept of a ‘Forest Manager’ separate from the Forestry
Corporation has been introduced to more transparently describe the ‘role’ of a Forest Manager.
This is distinct from the generic provisions that relate to the Forestry corporation as
predominantly set out in the Government Business Enterprises Act 1995, and which apply to Forestry
Tasmania given that is a Government Business Enterprise (GBE).
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What are the functions of the Forest Manager?
The Forest Manager has two specific functions. These are to:
1. manage and control the permanent timber production zone land; and
2. undertake forest operations on that land for the purpose of selling forest products.
Additional functions can be granted to the Forest Manager by the Minister and the Treasurer.
How is the ability of Forestry Tasmania to carry out its functions, and the rights of
persons to use permanent timber production zone land, protected from disruptive
action?
Forestry Tasmania, as the Forest Manager, continues to have powers to close forest roads and
control access to the permanent timber production zone land particularly where there are risks of
extreme fire hazard or such access would impact on someone else’s rights to use the forests or
where a person’s safety may be at risk.
This is no different to what Forestry Tasmania can do now under the Forestry Act 1920.
In addition, however, new powers will allow the Forest Manager to request people not to enter,
or to leave a forest road or permanent timber production zone land. These powers can be
exercised in the interest of safety, or if those persons’ activities or conduct is preventing, or would
prevent, the Forest Manager from performing its functions.
These additions are to ensure that persons undertaking lawful activity should be able to go about
their business as they are required to do without disruption.
This will help to ensure Forestry Tasmania and its employees, or persons that Forestry Tasmania
has allowed access to permanent timber production zone land or forest roads can go about their
lawful business.
For example, there may be instances where it may be necessary to prevent people entering the
permanent timber production zone land because works may be needed to clear hazards caused by
storms or fire. Having the capacity to use the powers of an authorised officer to request people
not to enter such a site would be efficient where there was not time or resources to erect a sign
or a barrier to prevent that access.
Authorised officers are used in the operation of other publically owned businesses and in a range
of other Tasmanian legislation, including the Electricity Supply Industry Act 1995, the Water
Management Act 1999 and the National Parks and Reserves Management Act 2002.
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Future management of forest reserves
What will happen to the current forest reserves?
Under the Bill, approximately 221,000 hectares of current forest reserves are to be declared as
either regional reserves or conservation areas under the Nature Conservation Act 2002. The
responsibility for the management of those lands will then be with the Department of Primary
Industries, Parks, Water and Environment (DPIPWE).
Will there be any changes to mining or mineral exploration in these converted
reserve areas?
No. Currently the Mineral Resources Development Act 1995 (MRDA) does not automatically apply
to forest reserves. However, some 90 per cent of forest reserves had been made subject to the
MRDA, meaning that mineral exploration and mining is permitted on that 90 per cent.
The forest reserves being declared as regional reserves or conservation areas under the Nature
Conservation Act 2002 by this Bill are automatically brought under the MRDA unless those reserves
are already specifically excluded from the MRDA. The provisions of this Bill preserve the
application of the MRDA to each of those reserves as it was prior to this Bill commencing.
Will there still be an opportunity to have a say in the management of Tasmania’s
forests?
Yes. Third party certification requirements for forestry management, such as AFS (Australian
Forestry Standard) and FSC (Forest Stewardship Council) certification, place importance on social
engagement with the communities on the use and management of forests. As such through these
certification processes Tasmanians will continue to have an opportunity to have their say on the
management of the State’s permanent timber production zone land.
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Financial Impacts
Will this Bill improve Forestry Tasmania’s financial performance?
It is anticipated that the transfer of reserves will reduce Forestry Tasmania’s costs for management
of these non-commercial areas. It is also anticipated that some staff will accept positions with
DPIPWE resulting in a reduction in salary costs for Forestry Tasmania. This should result in an
improvement in financial performance.
While the transfer of costs on its own does not represent a net saving for Government, it is
expected that efficiencies will be achieved through the management of reserves by DPIPWE.
Although there will be a transfer of reserves that contain two current tourism sites, it is not
anticipated that this will have a material impact on revenues for Forestry Tasmania.
Access and use rights
What happens to people’s right to access the forest?
Nothing changes. The Bill provides that people will be able to access permanent timber
production zone land and enjoy that land for purposes and activities where such access is not
incompatible with the Forest Manager delivering its responsibilities to manage the land under its
control and to undertake forest operations on that land.
Are people going to be charged for accessing the forest?
Forestry Tasmania is able to charge fees for access to State Forest under the Forestry Act 1920
however this power is rarely used and the public has free access to nearly all State forest.
Similarly, the Forest Manager (which is Forestry Tasmania) will be able to charge for access to the
permanent timber production zone land. However, under this Bill, any charges put in place by the
Forest Manager must have the prior written approval of the Minister for State Growth, which was
not the case previously.
What about the rights that people now enjoy on forest reserves that are to be
transferred to DPIPWE?
The Bill specifically saves the rights, leases, licences, permits, easements or other authorisations
people now enjoy on forest reserves and transfers them to apply in the reserves to be managed by
DPIPWE. Existing rights include a range of activities such as bee keeping, access, tourist facilities,
and significant recreational events such as mountain biking competitions.
People currently enjoying authorised activities on forest reserves should see no change in their
capacity to undertake those activities in line with their current authorisations. All that will change
is the organisation that manages that authorisation. This will now be DPIPWE and not Forestry
Tasmania.
In addition any proposals for new activities will be assessed against the same management
objectives as forest reserves, given that the reserve management objectives set out in legislation
will essentially not change.
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Tasmanian Forest Agreement
Hasn’t the Tasmanian Forests Agreement Act 2013 already taken land out of
production?
Yes. The Tasmanian Forests Agreement Act 2013 places approximately 500,000 hectares of land that
is permanent timber production zone land into a category called Future Reserve Land. Future
Reserve Land is protected because native forest harvesting on that land is generally prohibited
under the Act until the land is allowed to go through the process of becoming reserves.
Separately from the Future Reserve Land, the Forest Management Bill 2013 deals with a different
parcel of land, the forest reserves, approximately 221,000 hectares of land already outside of the
production forest estate. This Bill provides that the vast majority of these areas will be declared as
regional reserves or conservation areas under the Nature Conservation Act 2002.
Would this Bill be required if not for the TFA?
Yes. The Strategic Review was originally prompted by evidence that Forestry Tasmania’s business
model was unsustainable, including:



the very weak revenue outlook for Forestry Tasmania;
its deteriorating cash position; and
that Forestry Tasmania would not be able to continue to fund the non-commercial
activities it undertakes.
Work on the Forestry Tasmania Strategic Review and Transition has been running in parallel to
work on the TFA. The progress on the TFA was taken into consideration throughout the Forestry
Tasmania Strategic Review and Transition process, but the TFA has not been the reason for this
Bill.
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Forest Roads
Who is going to manage all the forest roads?
Forestry Tasmania as the Forest Manager will still have responsibility for all forest roads within the
permanent timber production zone land.
The Department of Primary Industries, Parks, Water and Environment (DPIPWE) is proposed to
be responsible for the management of many roads on land that, as a result of this Bill, becomes
reserved land under the Nature Conservation Act 2002.
Any road constructed for or by the Forest Manager will also be a forest road.
All those forest roads within the current forest reserve areas will still be part of the existing forest
road network once they become regional reserves or conservation areas under this Bill. The
Forest Manager will still be able to use these existing roads on forest reserves to access forest
coupes outside of the reserves should it be necessary to do.
In addition, the Bill provides the ability to construct and maintain forest roads, by or for the Forest
Manager, both in and outside permanent timber production zone land.
The ability to construct and use new forest roads on land that is not permanent timber production
zone land is necessary to enable the Forest Manager to have the ability in the future to access
timber resources on permanent timber production zone land where such lands might be isolated
from other parts of the production estate by non-production land.
For example, a future forest road may need to be constructed on land that, as a result of this Bill,
becomes reserved land under the Nature Conservation Act 2002 and managed by DPIPWE.
Such a road would still be a forest road. Contractual arrangements, such as a licence or a lease
can be entered into between Forestry Tasmania and DPIPWE around the construction, access and
maintenance of that road.
The extent of this provision is consistent with that under the Forestry Act 1920 and is limited to the
use of the forest road as a road and does not provide Forestry Tasmania protection from liability
with regard to the design and construction of that road. Nor does this provision provide Forestry
Tasmania protection from liability for any environmental harm or nuisance that might be caused by
a forest road.
Will there be roads closed as a result of this Bill?
The existing Forestry Tasmania policy of restricting access will continue where there are significant
safety issues.
Where there are current access restrictions, these will be maintained until such time as the
managing authority is able to review the reasons for those restrictions.
Roads may be closed if they are not needed for:

Forestry operations, mining and other resource industries
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access to recreational sites and experiences, tourism facilities, and walking tracks
access to utilities infrastructure (telecommunications, electricity, water);
access to apiary sites
private freehold access
strategic fire management and suppression.
Will road access for bee keepers and other users be maintained?
Where the responsibility for a road transfers to DPIPWE, it will implement the same principles
previously applied by Forestry Tasmania. That is the road will be maintained if required for PWS
operational purposes or required for general public access to recreational sites; otherwise it is up
to the apiarist to maintain the road access. If the road is required only to access an apiary site
then the licensee will be able to continue to maintain the road and may be permitted to limit
access if not required by other users.
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Environmental matters
Will Forestry Tasmania continue to undertake sustainable forest management?
Yes. The concept of sustainable forest management encompasses wide economic, social and
environmental outcomes.
The Government intends the majority of public formal conservation reserves to be managed by
one entity and public wood production land managed by another.
Forestry Tasmania will now focus primarily on economic outcomes as its main contribution to
ensuring all of Tasmania’s forest estate is managed sustainably.
However, there is still a requirement for Forestry Tasmania to comply with regulatory
environmental requirements (such as the Forest Practices Code) that exist outside this Bill.
The commitment undertaken by Forestry Tasmania to maintain third party certification, such as
under the Australian Forestry Standard, and to pursue Forest Stewardship Council (FSC)
certification, will require the operations of Forestry Tasmania, as the Forest Manager, to
implement high standards of environmental outcomes and social engagement in order to achieve
and maintain that certification.
To complement this, the Government is committing to include in Forestry Tasmania’s Ministerial
Charter its expectation that Forestry Tasmania achieve FSC certification.
This Bill provides one element in the sustainable management of Tasmania’s forests by setting out
the functions of the Forest Manager in managing and controlling the permanent timber production
zone.
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