NATIONAL FOREST POLICY STATEMENT

A NEW FOCUS FOR AUSTRALIA'S FORESTS

December 1992Second edition 1995

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© Commonwealth of Australia 1992, 1995

Information presented in this document may be copied provided that full acknowledgmentis made.

Printed on Australian-made recycled paper.

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FOREWORD

During the past decade there has been considerable debate, both within Australia andinternationally, about global and domestic environmental issues, including the use andmanagement of forests. The global focus culminated in the United Nations Conferenceon the Environment and Development in Rio de Janiero in June 1992, at which Australiaendorsed the Global Statement of Principles on Forests and signed a number ofconventions relating to Biological Diversity and Climate Change.

The Commonwealth, State and Territory Governments attach the utmost importance tosustainable management of Australia's forests. In order to achieve the full range ofbenefits that forests can provide now and in the future, the Governments have cometogether to develop a strategy for the ecologically sustainable management of theseforests. The strategy and its policy initiatives will lay the foundation for forestmanagement in Australia into the next century.

This Statement has been jointly developed by the Commonwealth, States and Territoriesthrough the Australian Forestry Council and the Australian and New Zealand Environmentand Conservation Council in consultation with other relevant government agencies, theAustralian Local Government Association, unions, industry representatives, conservationorganisations and the general community. The Statement was signed by all participatingGovernments, with the exception of Tasmania, at the Council of Australian Governments'meeting, held in Perth in December 1992. Tasmania became a signatory to theStatement on 12 April 1995. The Statement has been developed concurrently with thedevelopment of the Ecologically Sustainable Development National Strategy and theNational Greenhouse Response Strategy.

In endorsing this Statement, we commit our respective Governments to implement, as amatter of priority, the policies in it for the benefit of present and future generations ofAustralians. We acknowledge that implementation of policies requiring funding will besubject to budgetary priorities and constraints in individual jurisdictions.

Prime Minister of the Commonwealth of Australia

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Premier of the State of New South Wales

Premier of the State of Victoria

Premier of the State of Queensland

Premier of the State of Western Australia

Premier of the State of South Australia

Chief Minister of the Australian Capital Territory

Chief Minister of the Northern Territory

Premier of the State of Tasmania

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CONTENTS

Page

FOREWORD iii

1 INTRODUCTION 1

2 THE VISION 3

3 NATIONAL GOALS 4

4 SPECIFIC OBJECTIVES AND POLICIES 6

4.1 Conservation 6

4.2 Wood production and industry development 15

4.3 Intergovernmental arrangements 21

4.4 Private native forests 26

4.5 Plantations 28

4.6 Water supply and catchment management 32

4.7 Tourism and other economic and social opportunities 32

4.8 Employment, workforce education and training 35

4.9 Public awareness, education and involvement 37

4.10 Research and development 38

4.11 International responsibilities 39

5 IMPLEMENTATION 41

ATTACHMENT A 'Forest Practices Related to Wood Production inNative Forests: national principles' — an extract

GLOSSARY

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This Statement outlines agreedobjectives and policies for the future ofAustralia's public and private forests.

It is the joint response of theCommonwealth, State and TerritoryGovernments to three major reports onforest issues — those of theEcologically Sustainable DevelopmentWorking Group on Forest Use, theNational Plantations AdvisoryCommittee, and the ResourceAssessment Commission's Forest andTimber Inquiry — and it builds on the1983 National Conservation Strategyfor Australia initiated by theCommonwealth Government and the1986 National Forest Strategy forAustralia developed by the AustralianForestry Council.

The three levels of government inAustralia have specific interests in andresponsibilities for forest management.State and Territory governments haveprimary responsibility for forestmanagement, in recognition of theconstitutional responsibility of theStates for land use decisions and theirownership of large areas of forest. TheStates and Territories have enactedlegislation that allocates forest landtenures and specifies theadministrative framework and policieswithin which public and private forestsare managed.

Local governments haveresponsibilities for local land useplanning and rating systems, whichaffect public and private forestmanagement and use.

Private landowners — collectively, asmanagers of large tracts of forest orcleared land suitable for plantations —

are also important in the developmentof a national forest policy.

The Commonwealth Government isresponsible for coordinating a nationalapproach to both environmental andindustry-development issues. It has aninterest in achieving the efficient andeffective management of the nation'sresources, including a nationalapproach to forest issues.

In developing this Statement, theCommonwealth, State and TerritoryGovernments have been mindful of themany values that Australia's forestshave, of forests' role in the full suite ofecological processes that sustain lifeon this continent and their function ashabitat for a diverse range of flora andfauna, and of the contribution thatforest-based activities make to thenational economy and regional andlocal employment.

Australia's forest estate comprises arange of forest types. It is oftencharacterised by marked regionaldifferences, reflecting different forestvalues and opportunities for differentuses. These differences maynecessitate differing managementapproaches.

Managing Australia's forests in asustainable manner calls for policies,by both governments and landowners,that can be adapted to accommodatechange. Pressures for change mayresult from new information aboutforest ecology and community attitudes,new management strategies andtechniques (such as those thatincorporate land care and integratedcatchment management principles),and new commercial and non-commercial opportunities for forest

1 INTRODUCTION

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use. These pressures may affect theforests themselves.

This Statement provides a frameworkwithin which pressures for change canbe identified and accommodated so asto ensure that the Australian communityderives optimal benefit from its forestsand forest resources. It also reflectsthe resolutions of theIntergovernmental Agreement on theEnvironment, which was signed by theCommonwealth, States and Territoriesand local governments. TheAgreement describes a process ofconsultation and cooperation designedto protect Australia's natural andcultural heritage in the context ofconservation and developmentinitiatives.

The Governments' vision for forestmanagement, the national goals toachieve that vision, and the specificobjectives and policy initiatives that willbe adopted are described in thisStatement. Many of the policy initiativeshave already been undertaken tovarying degrees in different States andTerritories or by the Commonwealth.

In the following pages the term 'theGovernments' refers collectively to theGovernments of the Commonwealth,the States (other than Tasmania) andthe Territories; the term 'the States'refers to the States and the Territoriesof Australia. The terms 'reserves' andthe 'reservation system' mean NationalParks and all other areas that havebeen specifically dedicated bygovernment for the protection ofconservation values.

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The Governments share a vision ofecologically sustainable managementof Australia's forests. This vision has anumber of important characteristics:

• The unique character of theAustralian forested landscapeand the integrity and biologicaldiversity of its associatedenvironment is retained.

• The total area of forest isincreased.

• There is a 'holistic' approach tomanaging forests for all theirvalues and uses so as tooptimise benefits to thecommunity.

• Private forests are managed inan ecologically sustainablemanner and in closecooperation with public forestmanagers, to complement theconservation and commercialobjectives of public forests.

• A range of sustainable forest-based industries, founded onexcellence and innovation, willbe expanding to contributefurther to regional and nationaleconomic and employmentgrowth.

• Forests and their resources areused in an efficient,environmentally sensitive andsustainable manner.

• Forest management is effectiveand responsive to thecommunity.

• The Australian community willhave a sound understanding ofthe values of forests andsustainable forestmanagement, and willparticipate in decision-makingprocesses relating to forest useand management.

2 THE VISION

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The Governments agree that, toachieve their vision for the forest estateand to ensure that the communityobtains a balanced return from allforest uses, eleven broad nationalgoals must be pursued. These goalsshould be pursued within a regionallybased planning framework thatintegrates environmental andcommercial objectives so that, as faras possible, provision is made for allforest values. The eleven broadnational goals are as follows:

• Conservation. The goals are tomaintain an extensive andpermanent native forest estate inAustralia and to manage that estatein an ecologically sustainablemanner so as to conserve the fullsuite of values that forests canprovide for current and futuregenerations. These values includebiological diversity, and heritage,Aboriginal and other cultural values.

• Wood production and industrydevelopment. The goal is forAustralia to develop internationallycompetitive and ecologicallysustainable wood production andwood products industries. Efficientindustries based on maximisingvalue-adding opportunities andefficient use of wood resources willprovide the basis for expansion inwood products manufacturing,which in turn will provide nationaland regional economic benefits.

• Integrated and coordinated decisionmaking and management. Thegoals are to reduce fragmentationand duplication in the land usedecision-making process betweenthe States and the Commonwealth

and to improve interaction betweenforest management agencies inorder to achieve agreed anddurable land use decisions.

• Private native forests. The goal is toensure that private native forestsare maintained and managed in anecologically sustainable manner,as part of the permanent nativeforest estate, as a resource in theirown right, and to complement thecommercial and natureconservation values of public nativeforests.

• Plantations. One goal is to expandAustralia's commercial plantationsof softwoods and hardwoods so asto provide an additional,economically viable, reliable andhigh-quality wood resource forindustry. Other goals are toincrease plantings to rehabilitatecleared agricultural land, to improvewater quality, and to meet otherenvironmental, economic oraesthetic objectives.

• Water supply and catchmentmanagement. The goals are toensure the availability of reliable,high-quality water supplies fromforested land and to protectcatchment values.

• Tourism and other economic andsocial opportunities. The goal is tomanage Australia's forests in anecologically sustainable manner fora range of uses, including tourism,recreation and production of non-wood products.

• Employment, workforce educationand training. The goal is to expand

3 NATIONAL GOALS

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employment opportunities and theskills base of people working inforest management and forest-based industries.

• Public awareness, education andinvolvement. The goals are tofoster community understanding ofand support for ecologicallysustainable forest management inAustralia and to provideopportunities for effective publicparticipation in decision making.

• Research and development. Thegoals are to increase Australia'snational forest research anddevelopment effort and to ensurethat it is well coordinated, efficientlyundertaken and effectively applied.This research will expand andintegrate knowledge about themany aspects of native forests,plantations, forest management,conservation, and forest productdevelopment.

• International responsibilities. Thegoals are to promote natureconservation and sustainable useof forests outside Australia and toensure that Australia fulfils itsobligations under relevantinternational agreements.

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Under the ecologically sustainabledevelopment approach accepted by theGovernments, the public and privatenative forest estate will be managed forthe broad range of commercial andnon-commercial benefits and values itcan provide for present and futuregenerations. Efficiently and sustainablymanaged public and private forests willprovide the basis for natureconservation and maintaining forestbiological diversity, and for regionaleconomic development andemployment opportunities in a widerange of sectors, including woodproduction from native and plantationforests, tourism and recreation, watersupply, grazing and the pharmaceuticalindustry.

Within this framework, and to meet thebroad national goals specified inSection 3, the Governments haveidentified a number of objectives andagreed to undertake key policyinitiatives.

The objectives and policy initiatives areunderpinned by the following agreedapproaches to forest management:

• The Governments will set theregulatory framework for the use ofnative forests in order to achievesocial and environmentalobjectives. Within thoseconstraints, market forces shoulddetermine the extent of resourceuse and the nature of industryoperations, within the parametersof government industry policy.

• Commercial uses of forests(including wood production) that arebased on ecologically sustainablepractices are appropriate and

desirable activities. In this context,the establishment of plantations forwood production should bedetermined on the basis ofeconomic viability and internationalcompetitiveness.

• The Governments will seekcomplementary management offorests for all uses throughintegrated strategic planning andoperational management acrossagencies with responsibility forforests in Australia.

• There should be a sound scientificbasis for sustainable forestmanagement and efficient resourceuse.

4.1 Conservation

Two of the principal objectives of thisStatement are the maintenance of anextensive and permanent native forestestate in Australia and the protection ofnature conservation values in forests.

Maintaining this native forest estate inAustralia will necessitate sustainableforest management on both public andprivate forested lands. This Statementdescribes a range of forestmanagement requirements, incentivesand regulatory instruments designed toensure that Australia's native forestestate is maintained. In addition, theNational Landcare Program, whichencompasses a number ofgovernment and community-basedprograms such as Save the Bush andOne Billion Trees, is already inoperation with a view to maintainingremnant vegetation, increasing nativetree cover throughout Australia, and

4 SPECIFIC OBJECTIVES AND POLICIES

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rehabilitating degraded agriculturalland.

The protection of the full range of forestecosystems and other environmentalvalues is fundamental to ecologicallysustainable forest management. Itentails the maintenance of theecological processes that sustainforest ecosystems, the conservation ofthe biological diversity associated withforests (particularly endangered andvulnerable species and communities),and the protection of water quality andassociated aquatic habitats.

The Governments recognise theunique nature of Australia's biota andthat the natural inter-relationshipbetween native flora and fauna isessential for the health of the forestecosystem. Accordingly, they willmanage for the conservation of allspecies of Australia's indigenous forestfauna and flora throughout thosespecies' ranges, and they will maintainthe native forest cover where areduction in this cover wouldcompromise regional conservationobjectives, consistent with ecologicallysustainable management. TheGovernments also recognise thatmaintaining the integrity of nativeforests and plantings in urban areas isimportant for conserving nature inthose environments.

The Governments agree to managepublic native forests for the protection ofthe range of other conservation values,such as wilderness and heritagevalues, cultural significance (includingsignificance to Aboriginal people), andlandscape and aesthetic attributes.State Governments have already madeconsiderable progress towardsmeeting these objectives.

The Governments also acknowledgethat a variety of uses of public nativeforests is desirable, provided thoseuses comply with the principles of

ecologically sustainable development.The objective here is the managementof public native forests so as to retainthe full suite of forest values over time.The Governments acknowledge,however, that some uses, includingnon-commercial uses, may inevitablycompromise other values, such astourism and recreation values, at leastin the short term.

The nature conservation objectives arebeing pursued in three ways. First,parts of the public native forest estatewill continue to be set aside indedicated nature conservation reservesystems to protect native forestcommunities, based on the principlesof comprehensiveness, adequacy andrepresentativeness. The reservesystem will safeguard endangered andvulnerable species and communities.Other areas of forest will also beprotected to safeguard special areasand to provide links where possiblebetween reserves or other protectedareas. Nature conservation reserveswill be managed so as to protect theirvalues. Second, there will becomplementary management outsidereserves, in public native forests thatare available for wood production andother commercial uses and in forestson unallocated or leased Crown land.Third, the management of privateforests in sympathy with natureconservation goals will be promoted.

A National Strategy for the Conservationof Biological Diversity is beingdeveloped jointly by the Governments toensure that biological diversity survivesand flourishes. That strategy willcomplement actions being taken by theStates to protect high conservationvalues, including biological diversityand endangered species.

Within the context of theIntergovernmental Agreement on theEnvironment, the Governments see thisStatement as a primary means by

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which the objectives of the NationalStrategy for the Conservation ofBiological Diversity will beaccomplished in forest habitats.

In developing the nature conservationreserve system and forestmanagement approaches in otherpublic native forests, each Governmentwill, where possible, ensure thateffective corridor systems link reserves,refuges and areas with a relatively largerange of altitudinal and othergeographical variation so as to take intoaccount the possible impacts of climatechange.

In relation to climate change, theGovernments acknowledge the need,identified in the National GreenhouseResponse Strategy, to manage forestsso as to maintain or increase their'carbon sink' capacity and to minimisethe emission of greenhouse gasesfrom forest activities.

Moreover, the Governments agree thatthe representative areas for reservationwill, in the first instance, be drawn fromCrown lands. Purchase of private landfor reservation purposes is appropriatein cases where high conservationvalues are inadequately representedon Crown land and wherecomplementary management practiceson those private lands are unlikely toadequately protect those conservationvalues or provide for public amenity.

Nature conservation and wildernessreservesIt is important that Australia has acomprehensive, adequate andrepresentative network of dedicatedand secure nature conservationreserves for forests and reserves forprotecting wilderness. Some StateGovernments have already madesignificant progress towards this goal.The Governments agree to review theappropriateness of the existing reserve

system to determine any further actionthat may be required to complete itsdevelopment. They agree that thesystem of reserves should be reviewedand its development completed as amatter of priority.

• Accordingly, the Governments willestablish a working group oftechnical experts under a SteeringCommittee of the Australia andNew Zealand Environment andConservation Council (ANZECC)and the Australian Forestry Council(AFC), in consultation asappropriate with other ministerialcouncils, to makerecommendations to theGovernments on broad criteria onwhich to base reserve systems toprotect the nature conservationvalues of forests. The criteria willbe based on the principles ofcomprehensiveness, adequacy andrepresentativeness.

Within these principles, the workinggroup will consider such issues asthe design and rationalisation ofreserve boundaries, the arearequired to maintain viablepopulations and genetic diversity,the need for replication of protectedcommunities, and the protection ofrare, vulnerable and endangeredspecies, in line with ANZECC'scurrent development of a nationalstrategy to protect endangeredspecies.

The working group will also considerhow the principles ofcomprehensiveness, adequacy andrepresentativeness relate toreserves to protect wildernessareas, their definition, and criteriabased on those principles. It willconsult with other appropriateagencies as necessary and providerecommendations for theconsideration of the Governments.

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Further, the working group will buildon existing work in the developmentof the current nature conservationreserve system and will draw onother sources of information asnecessary.

• In progressively developing thenature conservation reserve systemand reserves to protect wildernessareas, the Governments will givepriority to reserving those forestedareas that best meet the criteriaadopted jointly by the ministerialcouncils and endorsed by theGovernments.

• In situations where theCommonwealth has been invited bythe States to assist in assessingthe adequacy of the existing reservesystems, the Commonwealth will,when requested, consider supportfor the assessment process andthe establishment of new reserves,including those possiblyestablished as part of the NationalStrategy for the Conservation ofBiological Diversity. Suchconsideration will be on acase-by-case basis.

• The Governments will provideadequate resources for managingtheir respective nature conservationreserve systems. In accordancewith accountability principlespertaining to public sectormanagement, the financialaccounts of conservation reservemanagement will be publiclyreported.

• The Governments will continue todevelop management plans toguide management of reserves toachieve adequate protection ofnature conservation and heritagevalues. The development of themanagement plans will incorporatecommunity consultation.

• The Governments will ensure thatunique features and heritage valuesof conservation significance areprotected as part of the overallreservation systems.

• ANZECC and the AFC will reportregularly to the Governments onprogress in establishing thereserve systems. This reporting willbe consistent with the reportingmechanism provided for in theEcologically SustainableDevelopment National Strategy.

Strategy to protect old-growth forestsand wildernessThe Governments have agreed to astrategy designed to conserve andmanage areas of old-growth forestsand wilderness as part of the reservesystem. The strategy acknowledgesthe significance of these areas to theAustralian community because of theirvery high aesthetic, cultural and natureconservation values and their freedomfrom disturbance. This strategy buildson the current management regimesfor such areas.

In recent years the wood productionindustry has relied less on old-growthforests and drawn increasingly onregrowth native forests and plantations.The Governments' agreed approach toconserving and managing old-growthforests will facilitate continuation of thistransition. Further, other strategies inthis Statement — such as thoserelating to plantations and industrydevelopment and workforce educationand training — will facilitate theindustry's move from old-growth toregrowth and other managed nativeforests and plantations.

The Governments' agreed approach toconserving and managing old-growthforests and forested wilderness hasfive basic elements:

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• First, agreed criteria for old-growthforests and wilderness will bedetermined through the workinggroup process already described.

• Second, using those criteria, therelevant State agencies will, as amatter of high priority, undertakeassessments of forests forconservation values, includingold-growth values, and of forestedland for wilderness values.

• Third, until the assessments arecompleted, forest managementagencies will avoid activities thatmay significantly affect those areasof old-growth forest or wildernessthat are likely to have highconservation value.

• Fourth, forested wilderness areaswill be protected by means ofreserves developed in the broadercontext of protecting the wildernessvalues of all lands. For old-growthforest, the nature conservationreserve systems will be the primarymeans of protection, supported bycomplementary managementoutside reserves. TheGovernments agree that,conditional on satisfactoryagreement on criteria by theCommonwealth and the States, thecomprehensive, adequate andrepresentative reservation systemto protect old-growth forest andwilderness values will be in placeby the end of 1995. TheGovernments acknowledge,however, that difficulties may arisein seeking to purchase any privateland necessary for the reservationnetwork by this date. Accordingly,they agree that the 1995 time framewill apply to forest drawn frompublic lands. All necessary forestfrom private land will be included,preferably by agreement oflandowners, in the reservationnetwork as soon as possible

thereafter. The Governments' haveagreed that their objective is tocomplete, to the extent feasible, theinclusion of any private forestedland in the reservation network by1998.

• Fifth, the relevant managementagencies will develop managementplans to appropriately protectold-growth forest and wildernessvalues.

Ecologically sustainable forestmanagement and codes of practiceEcologically sustainable forestmanagement will be given effectthrough the continued development ofintegrated planning processes, throughcodes of practice and environmentalprescriptions, and throughmanagement plans that, among otherthings, incorporate sustainable-yieldharvesting practices. Themanagement plans will provide a set ofoperational requirements for woodharvesting and other commercial andnon-commercial uses of forest areas,including conservation reserves andleased Crown land.

To ensure that nature conservationobjectives are met in forests, themanagement of public native forestsoutside the reserve system willcomplement the objectives of natureconservation reserve management.Forest management agencies willcontinue to assess forest areas for thepurpose of developing strategicmanagement plans and, wherenecessary, operational harvestingplans. As a consequence of theseforest assessments, areas that haveimportant biological, cultural,archaeological, geological, recreationaland landscape values will continue tobe set aside and protected fromharvesting operations or managedduring operations so as to safeguardthose values.

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• Accordingly, and in keeping with the'precautionary principle', the StateGovernments will undertakecontinuing research and long-termmonitoring so that adverse impactsthat may arise can be detected andredressed through revised codes ofpractice and management plans.

The Governments agree that the AFC'sset of national principles of forestpractices related to wood production innative forests (see Attachment A)should be applied to all public andprivate native forests in Australia.

• The State Governments will ensurethat, for public native forests,existing or new codes of practiceare developed so as to conformwith the AFC's national principles.In structure, these codes of practicemay take different forms in differentStates, but they will be effective andeither legislatively based or legallyenforceable through contractualagreements. They will also reflect'best available practices'. Thecodes are to apply to allcommercial and high-impact non-commercial uses of public forests.They will be supported by effectiveprescriptions for non-commercialuses in these forests. They willalso apply to conservation reservesin forests and unallocated orleased Crown lands that areforested, with the aim of ensuringthat activities in these areas do notadversely affect the forests'ecological basis. The StateGovernments will regularly reviewand revise the codes of practice inlight of improved knowledge ofecologically sustainablemanagement and with appropriateindustry and communityconsultation.

• The AFC and ANZECC willestablish a joint subcommittee on

forest use and management todevelop consistent nationwidebaseline environmental standards.These will be put to Governmentsfor endorsement, and met throughthe codes of practice.

• The State Governments will ensurethat there is effective auditing of andcompliance with codes of practice.

The Governments agree that it isdesirable to maintain and protect theextent and ecological integrity of nativeforests on public land.

• Accordingly, the Governments willadopt the policy that further clearingof public native forests fornon-forest use or plantationestablishment will be avoided orlimited, consistent with ecologicallysustainable management, to thoseinstances in which regionalconservation and catchmentmanagement objectives are notcompromised.

• State Governments will seek toensure that local governments andother authorities with designatedresponsibility for management ofpublic lands adopt policiesconsistent with this approach toland clearing and codes of practice.

The Governments recognise thatsustainable management of privatenative forests will be facilitated iflandowners view these forests aslong-term assets.

• Sustainable management of privatenative forests will be encouragedthrough a combination of measuresthat may include dissemination ofinformation about and technicalsupport for forest management,education programs, conservationincentives, land-clearing controls,harvesting controls, and codes offorest practice.

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About 11.2 million hectares of publiclyowned native forest estate are eitherunallocated or occupied under leaseand may contain such forest types asdry sclerophyll, cypress pine andpaperbark, which may beunder-represented in the reservesystems or inadequately protectedunder existing management regimes.It is important that these forests arealso managed effectively in accordancewith ecologically sustainablemanagement principles and that theirforest types are adequatelyrepresented in reserves.

• The State Governments will assessthe conservation and economicvalues of these lands and ensurethat their management is consistentwith ecologically sustainablepractices, including codes ofharvesting practice andland-clearing constraints.

The Governments acknowledge theinconsistency that can arise in themanagement of private lands if codesof practice are applied to private forestsbut are not stipulated for other uses ofprivate lands.

• The State Governments will seek toencourage complem-entarymanagement approaches for otheruses of private lands.

In the case of plantations, theGovernments have agreed that

• the AFC, through its StandingCommittee on Forestry and inconsultation with the industry andthe public, will develop a set ofnational principles of forest practicefor plantations. On the basis ofthese principles, codes of practicefor public and private plantationswill be developed and adoptedthrough legislative or non-legislativemeans.

Data collection and analysisEffective management and use offorests must be based on a soundunderstanding of forest ecosystemsand their associated values.

• The Governments will cooperate toimprove the scope and extent offorest databases so that decisionmaking and management arebased on the best availableinformation.

• The National Forest Inventory willcontinue to be developed. It will bedirected by a steering committeerepresenting the Governments.This committee will jointly defineinformation requirements anddevelop data exchange principlesbetween the Governments and withother databases. Such principleswill cover, among other things,custodianship, maintenance andcost recovery.

Forest protectionProtection of the conservation andcommercial values of forests willnecessitate protecting forest areasfrom the potentially harmful effects ofdiseases, weeds, pests (including feralanimals), chemicals and wildfire.Accordingly, the Governments agree togive high priority to the protection ofpublic forests from these agents.Further, since public and private landsare closely linked, active protection ofpublic forests needs to be coordinatedwith appropriate action on privatelands.

• Forest management plans willidentify priorities and cover therange of actions to deal with threatsto forests.

• The Governments will continue towork together to ensure that

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quarantine measures minimise therisk of the introduction or movementof plant diseases and pests.

• Through the AFC and ANZECC andin conjunction with the AustralianAgricultural and VeterinaryChemicals Council, theGovernments will develop strictguidelines for the use of agriculturaland veterinary chemicals in nativeforests and plantations. Theseguidelines will be reflected in codesof forest and plantation practice.

• Forest management agencies willmonitor and appropriately controlthe threat to publicly owned nativeforest ecosystems posed by feralanimals, exotic plants, pests anddiseases. In this respect the AFCand ANZECC will continue to workwith other ministerial councils andother relevant bodies in developingthe National Weeds Strategy andthe National Strategies for theManagement of Vertebrate Pests.The forest management agencieswill adopt the principles andimplement the relevant policies ofthese agreed strategies.

• Forest management agencies willcooperate with private landownersin developing and implementingmeasures to protect adjacent publicand private forested lands fromharmful diseases, weeds and feralanimals.

Regardless of whether a forested areais in a conservation reserve or is beingmanaged for wood production andother commercial uses, managementof fire will be necessary.

• Forest management agencies andrural communities will develop andimplement fire management plansaimed at reducing the risk ofwildfires. Management programsmay include prescribed burning for

fuel reduction and to replicate thenatural fires that are required tomaintain biological diversity, takingenvironmental and economicvalues into account.

4.2 Wood production and industry development

Sustainable economic use of nativeforests and plantations is one of theprincipal objectives of this Statement.

Wood production is a majorcommercial use of Australia's forests.It can be integrated with a range ofother commercial and non-commercialuses, among them natureconservation, recreation, tourism andwater catchment protection.Ecologically sustainable managementof native forests for wood productioninvolves maintaining a permanentnative forest estate while balancingthese uses.

The following discussion of woodproduction primarily concernsproduction from public native forests.Sections 4.4 and 4.5 deal with woodproduction from private native forestsand plantations.

The wood products industry is drawingand will continue to draw wood from amix of sustainably managed softwoodand hardwood plantations and nativeforests.

The Governments recognise thatintegrated harvesting of sawlogs andpulplogs is an important use of nativeforests and that it can be done in anecologically sustainable manner. Incertain circumstances integrated

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harvesting operations assist thesustainable management of forests byimproving regeneration and forestgrowth. In this context, harvesting ofwood, whether by selective felling,thinning or clear-felling, needs tocomply with the codes of forest practicediscussed in Section 4.1.

Australia will continue to useold-growth timber for many years. It willcome from disturbed forests containingsome old-growth trees and fromold-growth forests that are not requiredfor the nature conservation reservesystem described in Section 4.1.

Other forests not required for thereserve system will also continue to beavailable to meet a range ofecologically sustainable uses,including wood production.

The State Governments will determinethe amount of wood available frompublic forests for sale to industry, takingaccount of the following:

– decisions on the natureconservation and wildernessreserve system;

– protection of ecologicalprocesses;

– requirements for other forestuses, such as water catchmentprotection, flora and faunaconservation, recreation, andtourism development;

– codes of forest practice.

Efficient use and value addingThe benefit to the community fromusing forests for wood production canbe increased through the efficient useof wood by industry. The StateGovernments recognise that they havea direct role in aiding the developmentof an internationally competitive forest

product industry by encouragingefficient management that minimiseswood production costs.

Efficient wood production and use canalso provide greenhouse benefits byreducing greenhouse gas emissionsthrough minimising soil disturbanceduring harvesting, reducing millingwaste, and producing long-lastingproducts.

The Governments agree that it isessential to foster a dynamic andefficient forest products industry thatoffers employment opportunities andeconomic benefits for the nation.Provided that social and environmentalobjectives are met, the Governmentswill keep regulations to a minimum. Inorder to attract new investment andprofitable value-adding projects, theGovernments must establish clear andconsistent policies for resourcedevelopment, providing secure accessto resources and consistentenvironmental guidelines.Unnecessary impediments to marketefficiency and access will be removed.

Measures have been introduced toencourage the development ofvalue-added forest industries. Amongthem are accelerated depreciation ofplant and equipment, facilitation ofprovision of equity capital to smallcompanies, a development allowancefor major infrastructure projects thatmeet specific criteria, and liberalisationof foreign investment policy guidelines.Furthermore, the Governments willcooperate to offer to proponents ofmajor projects a streamlined andcoordinated Commonwealth–Stateproject-assessment process ininstances where the Commonwealthhas a statutory obligation in relation tothat project. This process will includeagreed periods within which theGovernments' requirements forenvironmental impact assessmentswill be agreed.

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The Governments are committed toproviding certainty and security forexisting and new wood productsindustries to facilitate significantlong-term investments in value-addingprojects in the forest products industry.To this end the Governments haveagreed, subject to statutoryrequirements, on the followinginitiatives to satisfy the commercialrequirements of potential investors:

• Completion of comprehensiveregional assessments, as outlinedin Section 4.3, and negotiation of aCommonwealth-State regionalagreement to form the basis formeeting wood production, natureconservation and other forestallocations. In this respect theCommonwealth will give full faithand credit to accredited Stateassessment processes, practicesand procedures, consistent with theIntergovernmental Agreement onthe Environment.

• For firm and specific value addingprojects meeting guidelines agreedby the Commonwealth and theStates, the Governments willprovide either specific legislation oran intergovernmental projectagreement, where this is anecessary prerequisite for theproject to proceed. This legislationor agreement, together with State-enterprise contractual agreementsthat guarantee the long-term supplyof wood resources to the project,will define 'up front' the commercialcontractual basis providing securityof wood supplies for the project.

• The Commonwealth will not seek tovary the agreed results of thecomprehensive regionalassessment process reflected inthe project agreement, exceptwhere expressly provided for, suchas in defined exceptional or

unforeseen circumstances. In suchan event the Commonwealth andState Governments will consult withthe project principal or principalsand the views of all parties will betaken fully into account. Withdrawalof resource will be a last resort, inwhich case the provisions foralternative arrangements in theCommonwealth-State projectagreement will apply. TheCommonwealth notes that, where ithas previously been involved inchanges to the pattern of land use,assistance has been provided tofacilitate the process of structuraladjustment so that parties are notdisadvantaged. TheCommonwealth will continue withthis approach.

The Governments will seek to assistindustry development in a number ofother ways.

• The Governments will continue tosupport the introduction of highervalue adding uses of wood andgreater log recovery and utilisationrates through new technologies. Inthis context the IndustryCommission will conduct an Inquiryinto opportunities for adding valueto Australia's forest products. TheInquiry will examine possibleimpediments to the expansion ofthe forest products industry andrecommend ways of removingthose impediments. Theseobjectives will also continue to besupported through research fundingand as priority areas under theresearch and development program(see Section 4.10).

• The States will make provision forclearly defined tradeable resourcerights for the industry.

• The National EnvironmentalGuidelines for New BleachedEucalypt Kraft Pulpmills will be

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endorsed by the State Governmentsand covered in Commonwealth–State agree-ments, with the StateGovernments retaining the right toapply more stringent standards totake local environmental factors intoaccount. The Governments willcontinue to monitor developmentsand investigate alternativetechnologies in the context of theperiodic review of the NationalGuidelines. They will also considerthe need for national environmentalguidelines for other pulping andbleaching processes.

The issue of efficient use and value-added processing is particularlyrelevant to the large volumes ofpulpwood that are produced duringintegrated harvesting operations innative and plantation forests. Atpresent the CommonwealthGovernment approves the export ofunprocessed wood and woodchipsfrom integrated harvesting operationsand sawmill residues, subject tocontrols aimed at ensuring thatenvironmental values are protected,that the price obtained is consistentwith prevailing world market prices, andthat unprocessed wood is not exportedif it is commercially feasible to processand add value to it in Australia. Theexport of woodchips derived fromintegrated harvesting operations andsawmill residues enables thecommunity to derive a return from felledwood that is unsuitable as sawlogsand is not required by domesticprocessors.

• The Commonwealth will removecontrols over the export ofunprocessed public and privateplantation wood, subject to theapplication of codes of practice toprotect environmental values.

• Approvals for the export ofwoodchips from public and privatenative forests for terms longer than

the current annual renewal periodwill be considered where thoseforests are covered as part of acomprehensive regionalassessment and aCommonwealth–State regionalagreement. These longer termapprovals will be consistent withother Commonwealth policies andcommitments.

• Commonwealth–State regionalagreements based oncomprehensive regionalassessments (see Section 4.3) oragreements between a State andthe Australian HeritageCommission on the managementof forests listed on the Register ofthe National Estate (including theapplication of harvesting codes ofpractice) will constitute the basis onwhich the Commonwealth will meetits legislative obligations unders. 30 of the Australian HeritageCommission Act 1974. For areasnot covered by comprehensiveregional assessments, existingprocesses and annual exportapprovals will apply.

• In relation to pulpwood productionfrom native forests, theGovernments will ensure thatdomestic processors are given thefirst opportunity to purchase theresource at a price acceptable tothe grower. This policy will comeinto effect when consideration isgiven to major changes or renewalsto wood resource access.

• The Commonwealth Governmentwill review the adequacy of existingmechanisms pertaining to transferpricing in wood products.

Structural adjustment and improvinginternational competitivenessLike all industries, the forest and woodproducts industries need to adjust

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constantly to changing consumerpreferences, changing marketconditions, and changes in theavailability and quality of the woodresource. Wherever possible, marketforces should determine the directionin which the adjustment takes place.Although this is essentially a matter forindustry, government does have a roleto play in minimising any adversesocial and economic effects,particularly on regional communities,where alternative employmentopportunities may not always beavailable.

Where the Commonwealth decidesthat it is appropriate for it to providestructural adjustment assistance toaffected communities and industries,the type of assistance will be assessedon a case-by-case basis and besubject to needs-based criteria. Ingeneral, the assistance measurescould include relocation, retraining,redeployment and social adjustmentcomponents.

Changes involving increasingdependency on wood from regrowthforests and plantations will continue torequire industry to invest in newtechnology and practices, and in somecircumstances to relocate. Theadjustment implications of this aresignificant. The objective is to ensurethat adjustments necessitated by thechanging nature of Australia's forestresources lead to more competitiveand viable wood products industries,while at the same time minimisingsocial dislocation and meetingenvironmental standards.

The Governments acknowledge theirrole in facilitating investment in industryrestructuring in the sawmilling andprocessing sectors. In keeping withthis, there is a range of existinggovernment initiatives designed to helpAustralian industries to readjust tochanging circumstances, to invest in

efficiency and productivityimprovements, and to adoptinternationally competitive 'bestpractices'.

• The Governments will continue tosupport and promote, among theforest and wood productsindustries, a range of industrydevelopment programs designed toenhance the internationalcompetitiveness of Australianindustry.

Communication betweengovernments, industry, unions andconservation organisationsThe Governments recognise theimportance of enabling those that maybe directly affected by policy decisionsto have an input into the policydevelopment process.

• The Commonwealth will establish apolicy advisory body, with balancedrepresentation, to provide advice onspecific forest product industry andconservation issues. Theeffectiveness of this body will bereviewed before the end of 1995.

Wood pricing and allocationThe pricing and allocation system forwood from public native forests has amajor bearing on the structure andefficiency of the wood products industryand on the return to the communityfrom use of a publicly owned resource.The State Governments will encouragethe use of logs for their highest netvalue-added end use. Accordingly, theywill adopt the following principles asthe general basis for pricing andallocation arrangements for wood frompublic native forests:

– Prices will be market based, atleast cover the full cost ofefficient management (includingregeneration) attributable to

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wood production, include a fairreturn on capital, and provide anadequate return to thecommunity from the use of apublic resource.

– Harvesting rights will reflectsecurity of supply for woodusers, will be clearly defined,and will be transferable whenthis does not result in thecreation of excessive marketpower.

– The allocation system will beflexible and will involvecompetitive biddingarrangements for appropriateamounts of the resource, thusenabling the entry of newprocessors and allowing smalloperators to compete for nichemarkets.

Forest services have made significantchanges to their pricing and allocationsystems. They will continue to developtheir systems to reflect the foregoingprinciples, including approachesinvolving competitive bidding systemswhere regional wood markets exist.Where competitive markets are notachievable, prices set throughadministratively determined allocationsystems should at least cover theefficient costs of wood production andprovide an adequate return to thecommunity.

• Forest services will, where feasible,allocate a substantial proportion ofharvesting rights throughcompetitive bidding, with varyingtime frames and varying woodvolumes, to allow opportunities forthe entry of new processors andniche operators.

• Following the current review ofcompetition policy, the StateGovernments will consider optionsfor increasing the public

accountability of their commercialforest operations, including throughthe possible application of theprinciples and provisions of theTrade Practices Act 1974.

• The pricing and allocation policiesfor public plantations will bedetermined on the basis ofcommercial criteria, although theGovernments acknowledge thatsome plantations established in thepast for other than purelycommercial reasons may not meetthese criteria.

Wood production and communityservice obligationsGovernments have a sharedresponsibility to ensure that thecommunity receives the optimum returnfrom all uses of public native forests.This involves two aspects ofmanagement of those forests: first,meeting community service obligationssuch as providing recreation accessand facilities, and meeting other socialand conservation objectives; second,managing forests for commercialproducts and uses.

To effectively account for these differentresponsibilities, the costs of meetingcommunity service obligations andcommercial wood operations shouldbe clearly separated and accuratelyreported. In this way the Governmentsand the community will be able todetermine the commercial andcommunity service performance offorest services in accordance withstated management objectives.

Assessment of commercialperformance requires accountingconventions that allow forest servicesto accurately and fairly report on theirproduction of wood and othercommercial activities. Costs incurredin the commercial management offorests and plantations in one year will

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frequently not generate a financialreturn for many years. Furthermore,determining the basis for allocation ofcosts to commercial andnon-commercial activities is crucial.

• Accordingly, the Governments willcooperate in carrying out an urgentreview of the relevant accountingissues for native forests andplantations, with a view toestablishing suitable accountingapproaches to identifyingcommercial costs and returns.This will be done in closeconsultation with the AustralianAccounting Research Foundation,which is undertaking a study ofaccrual accounting conventions forlong-term regenerative assets.

• Consistent with this, forest serviceswill report on commercialperformance (covering the costs ofand returns from wood productionfrom native forests and plantations)and publicly report this separatelyfrom the costs of and returns fromother services such as conservationand the provision of recreationfacilities.

4.3 Intergovernmental arrangements

Land use decision makingUnder the Australian Constitution, StateGovernments have primaryresponsibility for land use decisionmaking and management. As aconsequence, State processes arewell established, and they areperiodically reviewed to take account ofcommunity priorities. Several Statesare introducing changes to increaseopportunities for consultation, to reflectchanges in societal values, and topromote more effective State–Commonwealth cooperation in landuse decision making.

The Commonwealth Government has anumber of nature conservation andheritage obligations arising from Actsof Parliament and internationalconventions, and it needs to assureitself that the processes andmechanisms used allow it to honour itsresponsibilities and satisfy itsinterests.

The Intergovernmental Agreement onthe Environment identifies thecircumstances in which theCommonwealth Government may havean interest in land usedecision-making processes. Thesecircumstances involve the nationalinterest or international responsibilitiesand include the following:

– where the Commonwealth isrequired to consider the impactof proposals on places listed onthe Register of the NationalEstate, including where a StateGovernment (with industry) isrequired to seekCommonwealth approval forexport licences or foreigninvestment to use areas on theRegister of the National Estate;

– where a State Government (withindustry) seeks Commonwealthinvolvement in relation tosecurity of resource access;

– where, in the light of scientificevidence, the CommonwealthGovernment has obligationsunder international conventions;

– where the CommonwealthGovernment, in conjunction witha State Government, proposesan area for nomination under theWorld Heritage Convention;

– where the regional implicationsof proposals for the use of aresource transcend State

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boundaries and affect two ormore jurisdictions;

– where there are relevantresponsibilities underCommonwealth Acts ofParliament such as theEnvironment Protection (Impactof Proposals) Act 1974;

– where other conditions underthe IntergovernmentalAgreement on the Environmentinvolve the CommonwealthGovernment.

Local governments also have aninterest in decision-making processesthat can influence regional land useand as a consequence the nature ofregional communities and economies.

The Governments agree that strategicland use decision making in relation toforests should be based oncomprehensive evaluation of thepotential uses and values of aparticular area. As provided for in theIntergovernmental Agreement on theEnvironment, the Governments agreeon the following:

– the application and evaluation ofcomparable, high quality datawhich are available to allparticipants in the process;

– the assessment of the regionalcumulative impacts of a seriesof developments and not simplythe consideration of individualdevelopment proposals inisolation;

– consideration of the regionalimplications where proposalsfor the use of a resource affectseveral jurisdictions;

– consultation with affectedindividuals, groups andorganisations;

– consideration of all significantimpacts;

– mechanisms to resolve conflictand disputes over issues whicharise during the process;

– consideration of anyinternational or nationalimplications.

The Governments believe it isimportant to ensure that they haveaccess to the same information andthat as far as possible they considerissues concurrently rather thansequentially, so as to avoid duplicationand fragmentation in decision making.

The Intergovernmental Agreement onthe EnvironmentThe Intergovernmental Agreement onthe Environment provides for theidentification of the interests of both theCommonwealth and StateGovernments in land use decisionmaking and the accommodation ofthose interests where there are jointresponsibilities. The objective is toreduce uncertainty about land usedecisions by adopting a cooperativedecision-making process that resultsin agreed and durable decisions. Suchan approach should lead to a moreefficient resolution of land use issuesand result in more timely decisionsabout land use for conservation, newdevelopment projects, or otherpurposes.

In keeping with the IntergovernmentalAgreement on the Environment, theCommonwealth and the relevant StateGovernment will adopt the followingprocess:

– When a regional land use issueis identified by either level ofgovernment, the Commonwealthand the State concerned will

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jointly determine whether theCommonwealth Governmenthas an interest in the matter.

– Where there is disagreement asto whether or not there is aCommonwealth interest, theGovernments concerned will'use their best endeavours' toresolve the disagreement atHeads of Government level.

– Where there is aCommonwealth interest in anenvironmental matter it mayaccredit a State's processes. Inthe event that theCommonwealth is of the viewthat the processes areinadequate to accommodate theCommonwealth interest, theState will consider whether itwishes to review and modify itssystems and processes and willconsult with the Commonwealthon terms of reference for such areview. Where theCommonwealth has accrediteda State system or process, theCommonwealth will give full faithand credit to the results of thatsystem or process whenexercising its ownresponsibilities.

– A State may use the sameapproach where it considers thatits interests can beaccommodated by accreditingCommonwealth processes.

Wherever possible, theCommonwealth will use thisaccreditation process. In the case ofregional assessments of nationalestate values having been jointlyundertaken by the Australian HeritageCommission and State authorities, theCommonwealth will give 'full faith andcredit' to these assessments.

The Governments will adopt theapproach that, once decisions inwhich they have a mutual interest aremade, agreements will be used toformalise the decisions and to clearlyidentify the appropriate managementand monitoring arrangements.

If the Governments agree that theprocess of accreditation is unlikely orunable to meet all the obligations ofthe Commonwealth, the Governmentswill also use other measures, such ascomprehensive regionalassessments.

Comprehensive regionalassessmentsThe Governments have identified asingle, comprehensive regionalassessment process whereby theStates can invite the Commonwealthto participate in undertaking allassessments necessary to meetCommonwealth and State obligationsfor forested areas of a region.

Comprehensive regionalassessments will involve thecollection and evaluation ofinformation on environmental andheritage aspects of forests in theregion. The Commonwealth willensure that its evaluation ofinformation is efficient, avoidingduplication and delays whereverpossible and taking into account theanalyses of other Commonwealthagencies where appropriate.

These assessments will provide thebasis for enabling the Commonwealthand the States to reach a singleagreement relating to their obligationsfor forests in a region.Commonwealth obligations includeassessment of national estate values,World Heritage values, Aboriginalheritage values, environmentalimpacts, and obligations relating tointernational conventions, including

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those for protecting endangeredspecies and biological diversity.

• The relevant State agencies jointlywith the Australian HeritageCommission, acting as the agentof the Commonwealth, and withcommunity and industryconsultation, will coordinate thecollection of the informationnecessary for assessments.

• The relevant Commonwealthagencies will undertake analyses,based on the information collected,in order to meet their obligations.Wherever possible, theseanalyses will be undertakenconcurrently and take into accountthe analyses of otherCommonwealth agencies.

• The Commonwealth-State regionalagreement resulting from theassessment will also coverguidelines for all aspects ofecologically sustainablemanagement of the forests inquestion, taking into account theexisting regulatory framework inthe States and building on forestmanagement strategies andpractices. In this respect, theguidelines will cover, for example,management for sustainable yield,the application and reporting ofcodes of practice, and theprotection of rare and endangeredspecies and national estatevalues. They may also specify thelevels and types of disturbance thatare acceptable for a particularforest so as not to adversely affectnational estate and otherconservation values of that forest.

• The regional agreement will alsoaccredit the comprehensiveregional assessment for thepurpose of evaluating forestresource use impacts of proposeddevelopment projects, provided

those developments do not requiresubstantial alteration to the agreedforest management guidelines forthe region.

• The Governments have agreedthat, in undertaking these jointcomprehensive assessments,information that is alreadyavailable will be used wheneverpossible in order to avoidduplication, to minimise costs, andto expedite decision making.When it is agreed that existinginformation for a particular regionis insufficient for the purpose,regional surveys will beundertaken to obtain the requiredadditional data on a case-by-casebasis.

Integrated managementIf the community is to optimise thebenefits that can accrue from the manyuses of Australia's forests, it isimportant to integrate policydevelopment, strategic planning andoperational management between andwithin forest management agencies, atthe organisational and regional fieldlevels.

Integrated strategic policy formulation,planning and operational managementis being, and will continue to be,pursued at a number of levels:intergovernmental; ministerial council;organisational and institutional; andoperational.

The Governments fully support closerintegration and links betweengovernments, their departments andforest management agencies. TheGovernments acknowledge that,without strong links and an integrationof strategic decision making andplanning, management of forests fortheir full range of values and uses willbe diminished. In keeping with this, theGovernments express their clear intent

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to ensure that integration of strategicplanning at the various levels identifiedoccurs and is strengthened.

The Governments note, however, that anumber of institutional structures arecapable of achieving the essentialobjective of integrated forestmanagement. Accordingly, theyconsider that each Government shoulddetermine the most appropriateinstitutional arrangements to beadopted in its jurisdiction.

The Governments have made thefollowing resolutions:

• At the intergovernmental level,integrated and coordinated decisionmaking relating to forestmanagement will be pursuedthrough the processes of theIntergovernmental Agreement onthe Environment, involvingaccreditation of processes and,where agreed, joint comprehensiveregional assessments.

• At the ministerial council level,ANZECC and the AFC will holdsequential meetings, wherepracticable, with occasional jointmeetings to discuss commonagenda issues.

• At the organisational andinstitutional level, the Governmentswill each determine the mosteffective approach to achievingintegrated management ofconservation and commercial usesof forests. In particular, theCommonwealth will give furtherconsideration to options forintegrated or strengthenedinstitutional arrangements fordealing with forest issues. Moregenerally, each State Governmentwill seek to ensure that linksbetween and within agencies arefully effective and that opportunitiesare available for local government

and the public to participate in thedevelopment of strategic plans.

• At the operational level, the Stateswill ensure that management plansare developed by forestmanagement agencies, consultingwith local government, regionalorganisations and other authoritiesas appropriate and providingopportunities for publicconsultation. Operationalmanagement will be integrated tothe greatest extent possible,consistent with achieving agencyobjectives.

4.4 Private native forests

As well as containing significant timberresources, native forests on privatelands contain some ecosystems andspecies that are not well represented innature conservation reserves. Theyalso help to maintain environmentaland aesthetic values and basicecological processes, and underconditions of climate change they mayprovide refuges or corridors for themovement of native species.

Accordingly, the objectives in relation toprivate native forests are to encouragethe maintenance of the existing privatenative forest cover and to facilitate theecologically sustainable managementof such forests for nature conservation,catchment protection, wood productionor other economic pursuits.

The Governments recognise that theseobjectives will be more easily achievedif landowners recognise the economicadvantages that forests can provide.Encouraging private landowners tomanage forests for long-termeconomic use (such as for wood, otherforest products or commercialconservation activities) by removing anyunnecessary impediments ordisincentives will assist in this regard.

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Where private forest owners aremanaging native forests for woodproduction they will be encouraged tomanage for the highest wood valuesand to consider the economic potentialof improving sawlog productivity.

Whilst encouraging the retention ofnative forests, the Governmentsacknowledge that private forest ownersmay wish to clear native forest for arange of economic uses. They agreethat land clearing can be permittedprovided it complies with State andregional conservation and catchmentmanagement objectives, relevantplanning schemes and legislation.

Those State Governments that have notalready done so will establishstrategies to ensure that regionalconservation, catchment managementand other objectives are notcompromised, consistent withecologically sustainable management.This may involve controls over landclearing and/or land use covenantsbetween landowners and Governmentor mechanisms to encourage retentionof native vegetation. This may includelegislatively backed controls.

The Governments' objectives will bepromoted through six specificinitiatives:

• The Governments will develop arange of incentives and programs topromote sustainable managementof native forests on private land.These incentives and programs willbe designed to ensure activemanagement of private nativeforests for both ecologicallysustainable wood production andnature conservation, so that theprivate native forest estate willremain a permanent resource thatcomplements the public nativeforest estate. Programs mayinclude provision of technical advice

and assistance through privateforest councils, extension services,heritage agreements, voluntarywildlife refuges and conservationcovenants, and other means suchas limited grants for privatemanagement or, in specialcircumstances, purchase of forestto protect endangered species andcommunities in forest ecosystems.

• The Governments will continue toemphasise, through Landcare andother community groups, theimportance of maintaining privateforests as components of thepermanent native forest estate andfor their many environmental andcommercial benefits. Theimportance of incorporating forestmanagement as economiccomponents in whole-farm planswill be promoted through the land-care movement.

• By making the codes of practice forwood production in public nativeforests applicable to private nativeforests, the State Governments willcontinue to encourage private forestowners to ensure that theirmanagement operations are of ahigh standard and protect natureconservation and catchment values.

• Approvals for the export ofwoodchips from private nativeforests for terms longer than thecurrent annual renewal period willbe considered where those forestsare included in a comprehensiveregional assessment and aCommonwealth–State regionalagreement.

• Through a comprehensive publicruling by the Australian TaxationOffice, the Commonwealth willclarify the taxation treatment ofnative forests and plantations usedfor commercial wood production(see Section 4.5). This ruling will

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be provided by the middle of 1993.Any further action on forestrytaxation issues will be consideredby the Commonwealth following thetaxation ruling.

• The review of s. 75D of the IncomeTax Assessment Act 1936, which isscheduled for 1994–95, will assessthe effectiveness of the section incombating land degradation,including provisions dealing withexpenditures for the protection ofareas of native vegetation.

4.5 Plantations

Plantations can provide a wide range ofcommercial, environmental andaesthetic benefits to the community,and they will become increasinglyimportant. Regardless of the purposefor which they are planted, plantationsshould be based on sustainablemanagement techniques.

The Governments have severalobjectives in relation to Australia'splantation resource: to increasecommercial plantation development oncleared agricultural land and, wherepossible, to integrate plantationenterprises with other agricultural landuses; to improve the productivity ofexisting plantation areas by means ofimproved technology, breeding ofgenetically improved stock, andselection of species; and to continue toencourage industrial growers, andwhere appropriate public forestryagencies, to expand their plantationbase to satisfy specific requirements.

To achieve the Governments'objectives it will be necessary toensure the impediments to plantationdevelopment are minimal in areassuch as taxation, planning and accessto information. Pricing policies andexport controls are also relevant, as areresearch and development relating to

plantations; these matters arediscussed in Sections 4.2 and 4.10respectively.

The Governments agree that decisionsto establish plantations for woodproduction should rest on theireconomic viability. Australia'scommercial plantation resourcealready contributes significantly to thedomestic wood-processing industryand is dominated by softwoods; thereare also increasing marketopportunities for hardwood plantations.The contribution of forest managementagencies and private industrialgrowers to plantation development hasbeen enormous and their continuedinvolvement will provide stability andgrowth in the industry.

The Governments recognise that, toensure a reliable supply of wood fromplantations as feedstock forworld-competitive processing plants,large areas of plantation, such asthose normally planted by privateindustrial and investment companiesor public forestry agencies, arenecessary. Accordingly, State and localgovernments will provide a planningframework that facilitates thedevelopment of large-scale industrialplantations.

All States share the policy, consistentwith ecologically sustainablemanagement, of not clearing publicland for plantation establishmentwhere this would compromise regionalconservation and catchmentmanagement objectives. This is theposition of Queensland and theNorthern Territory. Further, SouthAustralia, Western Australia and theAustralian Capital Territory have apolicy of not clearing public nativeforests for plantation development, andVictoria has a policy of not clearingpublic native forests for softwoods.New South Wales supports the policyof not clearing for plantation

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development with the proviso that itmay undertake incidental clearing ofland it purchases.

In some circumstances it may beappropriate to clear forests that havebeen severely affected by disease(such as 'eucalyptus dieback') so as toenable rehabilitation throughreplanting.

The States will adopt commercialapproaches for their plantationresources in a variety of ways. Theywill also continue to ensure that thepublic plantation resource is activelymanaged in order to maximise netreturns.

The Governments see merit in havingsome commercial wood productionintegrated with other agriculturalpursuits. There is considerable scopefor the commercial growing of wood tobe extended on cleared agriculturalland, particularly in higher rainfall areasthat are close to markets. Plantationson cleared agricultural land have thepotential to increase the area of woodproduction and enhance regionaldevelopment. In some cases they canoffer opportunities to increaseagricultural productivity and profitabilityand diversify farm income. In addition,they can play a major role in land andwater conservation, and in therehabilitation of degraded lands.Plantations on cleared agricultural landcan also provide a carbon sink, whichmay have benefits in reducing theimpacts of the enhanced greenhouseeffect.

To minimise the taxation difficultiescommercial wood producers face as aresult of the concentrated nature ofincome derived from private forestryoperations, the ceiling on the IncomeEqualisation Deposit Scheme hasbeen raised.

• As mentioned in Section 4.4, theAustralian Taxation Office is toissue a comprehensive publicruling relating to private forestryactivities covering wood productionfrom native forests and plantationinvestments. Any further action onforestry taxation issues will bebased on the outcome of this ruling.

• The Commonwealth will removecontrols on the export ofunprocessed wood from privateplantations, as mentioned inSection 4.2.

There is also a need for landowners tobe able to separate legal ownership oftrees and the land on which they grow.For example, landowners may wish toraise money by creating an asset forlater sale while retaining ownership ofthe land, or they may wish to enter intojoint venture arrangements.

• Accordingly, where it has notalready occurred, the StateGovernments will establish asound legal basis for separatingthe forest asset component fromthe land asset for the purposes ofselling timber.

Joint ventures between plantationdevelopment companies andlandowners are subject to the fund-raising provisions of the CorporationsLaw. The Commonwealth isconscious of the need to ensure thatthe legal framework regulating jointventure schemes adequately andeffectively protects the interests ofinvestors and promotes commercialstability and efficiency in capital raisingand formation. The provisions of theCorporations Law applying to fund-raising schemes, including jointventure arrangements, are currentlybeing reviewed by the Australian LawReform Commission and theCompanies and Securities AdvisoryCommittee.

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• The Commonwealth will consideraction relating to this matterfollowing the completion of thereview in early 1993.

The Governments recognise that thelong-term nature of plantationinvestments, often in excess of twentyyears, can cause difficulties inattracting investment capital. Whencapital is committed for such a longtime before a return is received,companies, individuals and farmersmay be reluctant to invest inplantations. A solution to this problemis to make the trading of capital (forexample, shares) invested in plantationdevelopments more flexible and hencemore attractive. This would change theperception of plantations being along-term investment whereby capitalis locked up for decades to aperception of plantations being atradeable, short-term investment.

• The Commonwealth will encouragethe establishment of 'pooleddevelopment funds' and sees themas a useful mechanism forpromoting long-term investments,including plantation development.These funds are investmentcompanies that provide 'patientequity capital' for Australiancompanies, subject to someconditions. Companies registeredas pooled development funds areconcessionally taxed at a rate of 30per cent rather than at the generalcompany tax rate of 39 per cent.The funds will provide an incentivefor companies and individuals toinvest in a range of plantationcompanies.

There is also a need for State and localgovernments to simplify planningprocedures and to ensure that landuse planning controls and land ratingsystems do not discriminate against

plantation development. In this regardthe States will take two actions:

• With appropriate publicinvolvement, the State Governmentswill pursue planning policies thatprovide zoning suitable forcommercial planting on privatelands and give security to thatzoning. Within this zoningframework, tree planting andsubsequent harvesting forcommercial wood production willbe an 'as of right' use.

• The State Governments will seek toensure that the rating basis used bylocal government authoritiessupports the retention of nativeforests and expansion of the forestestate by removing disincentives tothe conservation of native forestsand the establishment ofplantations on cleared agriculturalland.

The Governments also recognise thatthere is a need for further publiceducation and better training in relationto plantation development, particularlywhen such development is integratedwith agriculture. Information about thefinancial, social and environmentalbenefits of tree planting on clearedland for commercial purposes needsto be directed not only at farmers andother landowners but also atinvestment advisers, bankers,accountants and investmentinstitutions. Links with local Landcareand other rural groups should also beencouraged.

• The Governments will assist privateplantation development byfacilitating the provision of technicaladvice and market information toprivate growers and other relevantparties, on a fee-for-service basisas appropriate, through theestablishment of private forestcouncils or by means such as

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providing support for enhancing theskills of extension officers.

• The Governments will facilitatedemonstration opportunities onfarms that integrate commercialwood production with farming.

As discussed in Section 4.10, theGovernments support an enhancedplantation research and developmenteffort, particularly in relation toimproved technology and processes,tree breeding, species selection, landcapability assessment, and integrationof commercial wood production withagricultural activities.

The Governments acknowledge theimportance of reforestation forenvironmental and aesthetic purposes.As with maintaining the existing treecover on farms, reforestation can offermajor economic benefits for privatelandowners: shelter for stock andcrops; fodder; alleviation of soildegradation problems such aserosion, waterlogging and salinity;creation of predator habitats to assistin pest control; and improving farmamenity. Reforestation can alsoprovide widespread communitybenefits by maintaining catchmentsand providing aesthetic plantings toenhance landscape and recreationalvalues. Native plantings can also beimportant in facilitating theconservation of native fauna throughthe provision of feed sources andhollows for nesting and shelter.

• The Governments will seek topromote the wider benefits ofplantations through Landcare andother community groups.

4.6 Water supply and catchmentmanagement

It is now recognised that integratedmanagement of land, water and

vegetation resources is essential to theecological and economic sustainabilityof those resources and to maintainingwhole-catchment values. Forestscontribute significantly to the qualityand quantity of water supplies fordomestic, industrial and agriculturaluses.

The value to the community of areliable, high-quality water supply isvery great and the States willappropriately consider water availabilityand quality in deciding land useallocations or managementprescriptions for public forests.

Forests are equally important foroverall catchment maintenance andprotection. The vegetative cover slowsrun-off, thus mitigating flooding in thecatchment, and it reduces landdegradation from soil loss anderosion, which in turn reduces the levelof turbidity and sedimentation instreams and reservoirs. Forest cover,particularly in catchment rechargezones, also reduces the developmentof waterlogging and dryland salinityproblems.

• The Governments will promoteintegrated catchment managementobjectives among public and privateforest owners through theapplication of codes of practice,forest management plans and,where appropriate, land-clearingcontrols. In addition, bydisseminating information throughLandcare and other communitygroups, the Governments willpromote among landowners theobjective of establishing andmaintaining forest.

4.7 Tourism and other economicand social opportunities

The Governments recognise thatAustralia's forests provide a broad

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range of economic and socialopportunities. In addition to thosealready discussed, other forest-basedeconomic activities include tourism,mining, grazing, and pharmaceutical,honey and seed production. They mayalso include production of other woodproducts (for example, charcoal andfuelwood). Recreation andemployment opportunities are majorsocial benefits that forests can provide.

Tourism and recreationEconomically, tourism is one ofAustralia's most significant industries,and it has considerable potential forfuture growth. In an increasinglycompetitive tourist market, Australia'snatural environment is a majorattraction for domestic and overseasvisitors.

Expanding opportunities for the use offorests for tourism and recreation willresult in many benefits to thecommunity, including increasedemployment opportunities, enhancedrecreational facilities, and greaterappreciation of nature conservationvalues. Many different tourism andrecreation activities take place inforests, among them generalrecreation, sport and adventureactivities, and visits to appreciate andlearn about the cultural andenvironmental values of these areas(ecotourism).

Without proper management, theexpansion of forest tourism andrecreational use of forests coulddegrade the forest environment and itsecological processes. It is, however,possible for forest-based tourism andrecreation to be developed andundertaken in an ecologicallysustainable manner that maintains theresource base. The codes of practiceto be developed by the States and

applied to all users of forests (seeSection 4.1) can minimise or avoid anynegative environmental effects oftourism.

• In consultation with the StateGovernments and relevant industryorganisations, the CommonwealthGovernment will develop anecotourism strategy for Australia asan extension of the NationalTourism Strategy. The ecotourismstrategy will, among other things,cover the use of Australia's forests inNational Parks and elsewhere fortourism. The Commonwealth willseek to facilitate ecologicallysustainable tourism activities inforests through funding research,marketing, the provision ofinterpretation facilities for visitors,the training of tourism operators,and the planning and managementof tourism activities. Other elementsof the broader ecotourism strategyare being developed concurrently.

• Where economically feasible andconsistent with managementobjectives, the Governments willensure the provision of appropriateinfrastructure and visitor facilities,including improved access andinterpretation displays.

The Australian Tourist Commissionand a number of State tourismagencies have already establishedpolicies focussing on Australia'snatural environment, including forests;the objective is to seek opportunities torealise the tourism potential of thenatural environment.

• In co-operation with appropriateState agencies, the CommonwealthGovernment, through the AustralianTourist Commission, is conductingan international marketingcampaign to attract overseasvisitors to Australia. TheCommission will continue to market

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and promote the attractions ofAustralia's natural environment,including World Heritage areas andNational Park forests. An elementof this campaign will focus on thetheme of 'The Great AustralianOutdoors', which is designed tohighlight Australia's uniqueenvironment.

• The Commonwealth Government,through the Bureau of TourismResearch, will undertake tourism-oriented forest research, includingeconomic research into the existinguse and current and potentialeconomic value of forests fortourism and recreation. This willinvolve liaison with forestmanagement agencies and tourismresearch authorities to encouragethe coordination and collection ofstandardised data on the types andlevel of visitor use of protected andother areas.

• Relevant government agencies willmonitor the use of forests fortourism and recreation to assessthe impact on forest ecosystems.Where necessary, forest access willbe managed to protect andconserve forest ecosystems.

GrazingGrazing in public native forests canhave a significant impact on and severeimplications for forest ecosystems. Inparticular, grazing in National Parks orreservation areas is usuallyinconsistent with protectingconservation values.

• In relation to National Parks andother public nature conservationreserves, the State Governmentswill only issue new licences forgrazing if it is assessed thatconservation values will not becompromised.

• Consistent with the objectives ofecologically sustainablemanagement, the Governments willtake steps to ensure that grazing inpublic native forests is controlled,so that forest ecosystem andregional conservation values andcatchment management objectivesare not adversely affected.

Mining and mineral explorationThe Governments recognise that, inmaking land use decisions for publicnative forests, it is necessary to takeinto account access for mineralextraction and exploration activities. Toensure that this occurs, theGovernments agree that mineralresource agencies will be consulted ina timely fashion on strategic land useplanning proposals that may haveimplications for mineral extraction andexploration in public forests.

Mining activities will often have asignificant localised impact on forestedareas. Where mining does occur, it willbe managed to minimise impacts andto ensure that regeneration accordswith soundly based principles.

Other economic and social usesThe Governments will seek to ensurethat other economic and social uses offorests conform with ecologicallysustainable practices. Prescriptionswill be applied for non-commercial usesin order to minimise adverse impacts.

As is the case with the use of forestsfor wood production, the Governmentsagree with the principle that thebeneficiaries of forest use should payfor that use and the associated coststhat are imposed on public agencies.

• Forest management agencies willcharge commercial forest users foruse of public forest resources.Further, to cover the costs ofproviding facilities and services, the

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agencies will institute, whereappropriate and administrativelyand financially feasible, costrecovery mechanisms fornon-commercial users. The costsof and returns from these serviceswill be publicly reported.

The Governments acknowledge that insome cases areas of forest will need tobe cleared to provide access tominerals and for power transmissionand transport routes. In suchcircumstances consultation betweenforest management agencies andrelevant parties is necessary to ensureappropriate management.

• The Governments will require allgovernment authorities andinstrumentalities that use forestedland in pursuit of their objectives toconsult fully with forestmanagement agencies to ensurethat their actions are in accord withthe integrated management plansfor the forest region.

4.8 Employment, workforceeducation and training

Sustainable commercial and non-commercial uses of forests providesignificant employment benefits toAustralian society. There areconsiderable employmentopportunities in the areas ofconservation management, forestmanagement for wood production andother resources, forest productmanufacturing, tourism and research.A range of minor forest-basedindustries can also create employmentbenefits. These employmentopportunities are of particularimportance to regional and localcommunities.

Aboriginal communities in regionalareas often experience very high levelsof unemployment and limited job

prospects. In some regions, forestmanagement and new forest-basedindustries will provide enhancedemployment prospects for thesecommunities and enable them to usetheir knowledge and forestmanagement skills.

The Governments acknowledge theeconomic and social value ofsustainable commercial and non-commercial uses of forests. Throughthe policies and initiatives described inthis Statement they seek to stimulateand maximise sustainable employmentopportunities.

A highly skilled and productive labourforce will provide the springboard foreconomic growth and expansion inforest-based industries. Dynamic andinternationally competitive industrieswill in turn result in employment growth.The microeconomic reforms beingpursued by the Governments willsupport the policies detailed in thisStatement.

Moreover, industry will be better able toaccommodate structural andtechnological change and increaseoverall levels of efficiency if it has acompetent, skilled, safety-consciousand flexible workforce.

Maximising sustainable employmentand skills development in forest-basedindustries will require a strong focus oneducation and training in all areas ofthe forest-based workforce. TheGovernments, industry bodies andeducation and training institutionsshould be involved in meeting thisneed. Specifically,

• The Governments will encouragekey tertiary institutions to providehigh-quality education and trainingfor Australia's professional forestand forest industry managers, atboth undergraduate andpostgraduate levels.

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• The Governments and industry willcooperate to sponsor appropriateforest training centres at State orregional level. These centres willprovide education and skills trainingrelating to environmentally soundforest operations.

• Education programs will deal withthe issues of ecologicallysustainable management andclearly relate these to managementrequirements for conservation andto the codes of forest practicegoverning activities in both publicand private forests.

Governments have an important role infacilitating increases in labourproductivity through skills upgradingand better use of new technology in theforest products industry.

• Accordingly, the Governments willcontinue a range of existingworkplace reform programinitiatives, seeking to promote thedevelopment of more appropriatework and management practices,better forms of work organisation,and improved industrial relations,encompassing award restructuringand enterprise agreements.Improvements in labour productivitywill also be facilitated by thedevelopment and implementation ofenterprise consultative committees,assistance with the development ofnew skills-based classificationstructures, resolution ofdemarcation issues, and provisionof funds for various traininginitiatives.

Structural adjustment can haveemployment consequences. Asmentioned in Section 4.2, theGovernments acknowledge their role inseeking to minimise any adverse socialand economic effects of the structuraladjustment process, particularly where

alternative employment is not alwaysavailable.

Occupational health and safety issuesare of continuing concern. The forestand forest products industries areinherently dangerous, and there is aconstant need to seek ways ofimproving the safety of employees andthe general public.

• In this respect, the Governmentswill emphasise occupational healthand safety reforms designed tofacilitate improvements inworkplace health and safety.

4.9 Public awareness, educationand involvement

Forest management agencies managepublic forests on behalf of thecommunity. It is important that theseagencies be accountable to thecommunity for their stewardship of thecommunity's assets.

It is equally important to fostercommunity understanding of andsupport for ecologically sustainableforest management, by providinggreater opportunities for the communityto obtain information about forestecology, the management of Australia'sforests, and forests' natureconservation, heritage, and economicand wood production values. This willenable the community to make a moreconsidered contribution within the landuse decision-making process and toforest management issues.

Accordingly, the Governments' strategywill involve the following:

• provision to the community ofinformation about forests and forestmanagement;

• continued support for theestablishment of forest information

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facilities, such as demonstrationforests and visitor informationcentres;

• further development of schooleducation programs about forestsand sustainable forestmanagement and uses, inconsultation with relevanteducational bodies and drawing onsuccessful Australian models;

• continued development by theStates of comprehensive andpublicly available forestmanagement plans based onextensive public consultation andadvanced planning techniques;

• forest management agencies'provision to the AFC and ANZECCof appropriate information fromwhich to produce and publish a'state of the forests' review every fiveyears. The review will summariseavailable information, including thebasis of sustainable forest yieldand other values, moves to achievea comprehensive natureconservation reserve network, andthe results of long-term monitoringof the impacts of forest use.

4.10 Research and development

An enhanced, better coordinated andbetter focussed research anddevelopment effort will be essential ifthe Governments' vision and goals forAustralian forests and forest industriesare to be achieved. Further research isneeded in a number of broad subjectareas: forest ecosystems andbiological diversity; resource evaluationand inventory; the ecological andenvironmental impact of forestdisturbance and managementregimes; forest protection, coveringdisease, pests and fire; silviculturaltechniques; forest productivity; woodprocessing and utilisation; product

development; economic and marketingaspects; and other non-wood aspectsof forests, such as wildfiremanagement, recreation, and culturaland heritage values.

An adequate research capacity will bemaintained by forest managementagencies; it will be augmented by theCommonwealth Government throughthe CSIRO, the cooperative researchcentres, universities and otherresearch bodies. Other users of theforest estate will also need to maintainor support an effective researchcapacity. The results of forest-relatedresearch should be disseminated in atimely and effective manner.

More specifically, the followinginitiatives will be taken:

• The Commonwealth Government,in partnership with the forestindustries, will establish the Forestand Wood Products Research andDevelopment Corporation, thecharter of which will be to identifypriorities and to commission,administer and subsequentlyevaluate research into a broadrange of issues relating to woodproduction, extraction, processing,economics and marketing. Amongthese issues will be the impacts ofdisturbance resulting from woodproduction, silviculture, andmanagement of native forests andplantations; the commercial andeconomic aspects of woodproduction; and research ofrelevance to the wood productsindustries. The new Corporationwill be encouraged to ensureeffective communication ofresearch results to scientists,industry, land managers and thewider community through ascientific journal and more widelydistributed magazines. It will alsoadminister the Forestry

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Postgraduate Research AwardProgram.

• The Commonwealth Governmentwill support plantations researchthrough the new Corporation.Research into commercial woodproduction on farms will be dealtwith by the new Corporation incooperation with the jointagroforestry research anddevelopment program developed bythe Rural Industries Research andDevelopment Corporation and theLand and Water ResourcesResearch and DevelopmentCorporation. Where appropriate,the State Governments and industrywill support this.

• The Governments will continue tosupport the National PulpmillsResearch Program to investigatealternative pulping technologiesand use of alternative fibres,including recycling, and they willsupport the introduction of suchtechnologies where appropriate.

• The Governments support the needfor additional 'public good' researchinto conservation andenvironmental aspects of forestsand for assessment of forests forconservation and other commercialand non-commercial values. Publicgood research will supplementexisting research undertaken byCommonwealth research agenciessuch as the CSIRO, the CooperativeResearch Centres for TemperateHardwood Forestry and forHardwood Fibre and PaperScience, universities, and Stateresearch bodies. Industry fundingfor public good research will beencouraged.

• The Governments and industry willcooperate under suitable terms andconditions to expand the NationalHardwood Tree-Breeding Program,

already established within theSouthern Tree BreedingAssociation.

• The Commonwealth Governmentwill continue to support specificindustry-development researchprograms.

• The Land and Water ResourcesResearch and DevelopmentCorporation will work with otherministerial councils to investigate arange of matters of relevance tointegrated catchment managementof land, water and vegetationresources; for example, thedevelopment of effluent disposalsystems for the irrigation ofplantations. Appropriate links willbe maintained with the new Forestand Wood Products Research andDevelopment Corporation.

4.11 International responsibilities

The Governments believe that, as wellas pursuing sustainable forestmanagement practices within Australia,the nation should, wherever possible,assist in the sustainable managementof forest resources in other countries.

As a leading nation in developingsustainable forest management andpractices and community involvementin forestry, Australia will continue to bea model for the conservation andsustainable use of forests. This willrequire the provision of assistance tocountries that wish to improve theirforest management. It will also requirethe observation of internationalforest-related agreements to whichAustralia is a signatory.

Consistent with the IntergovernmentalAgreement on the Environment and thePrinciples and Procedures forCommonwealth-State Consultation onTreaties, the Commonwealth will

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consult with the States on any futurerelevant international agreements.

• To this end, Australia participated inthe United Nations Conference onEnvironment and Development,signed the United NationsFramework Convention on ClimateChange and the Convention onBiological Diversity, and endorsedthe Global Statement of Principleson Forests. Australia will alsoparticipate in any negotiations forthe possible development of aninternational convention on forests,consistent with the Conventions onClimate Change and BiologicalDiversity, and will work towardsimplementing its internationalobligations under Agenda 21 of theUnited Nations Conference onEnvironment and Development.

• Australia will continue to support theInternational Tropical TimberOrganisation in its efforts to realisethe target of achieving trade intropical timber only from sustainablymanaged sources by the year 2000.

• The Governments will continue tosupport a range of bilateral andmultilateral activities, consistentwith Australia's internationalresponsibilities, to help developingcountries to conserve and managetheir forests in an ecologicallysustainable manner and toencourage the development ofrelevant conservation andmanagement skills. In this regard,the Governments will fosterawareness of the benefits of suchcooperation by supporting research,by training, and by providingprofessional and technicalexpertise.

The policy measures outlined in thisStatement should make a contributionto efforts at the international level toreduce the impact of greenhouse gas

emissions. By achieving the nationalgoals relating to ecologicallysustainable management of Australia'sforests, by maintaining and increasingnative forest cover, and by increasingvegetative cover through plantationdevelopment, Australia can make acontribution to reducing the impact ofgreenhouse gas emissions andconserving biological diversity.

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The preceding sections identify a widerange of agreed policy responses andcommitments by the Governments toachieve the objectives of the Statement.All the Governments take seriously theirresponsibilities for implementing thesepolicies, and they are committed toensuring that policy implementationoccurs as a matter of priority.

The effective implementation of thepolicies identified in this Statementrequires a funding commitment by theGovernments. Both theCommonwealth and the States arealready providing significant funding ina number of areas covered by theStatement. Consideration will be givenin future budgets to the financialimplications arising from the policiesidentified in the Statement.

A number of the policies can beestablished forthwith; others aredependent on further work. As areflection of their commitment to theobjectives and policies of theStatement, the Governments haveagreed that the secretariats of theStanding Committees of the AFC andANZECC will be jointly responsible forthe preparation of reports (for theinformation of the ministerial councils)on the implementation of the programsand initiatives described in thisStatement. The Governments agreethat the reporting mechanism will beconsistent with that adopted by them forthe Ecologically SustainableDevelopment National Strategy. Tofacilitate the compilation of thesereports, the Standing Committees ofthe AFC and ANZECC will establish ajoint sub-committee.

5 IMPLEMENTATION

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This document was prepared by theStanding Committee of the AustralianForestry Council in May 1991.

The Australian Forestry Council,representing the States' and theCommonwealth's forestry authorities,has decided to develop a set ofnational principles to be applied in themanagement of native forest resourcesused for wood production.

These principles determine aconsistent and scientific basis forsound management to which all Statesare committed. Specific prescriptionsby the different States conforming to thenational principles take into account thewide range of forest types, conditions,and situations applying due to naturaland cultural variations.

The principles have been structuredinto several sections, relating todifferent activities associated with woodproduction in the native forests. Exceptwhere stated the principles apply topublic and private forests.

1. AUTHORISATION

1.1 Legislation in each State willprovide for the management ofState Forests under sustainablemanagement principles and therelationship with associatedindustry to ensure conservationand protection of theenvironment.

1.2 Principles should also apply toother Crown native forests

subject to wood production andprivate forests to the extent thiswould be consistent withstatutory powers and the State'sforest management strategy.

1.3 Each State will provide anappropriate system for thespecification, control, andaccountability for forest practicesrelating to wood productionactivities.

1.4 The system may involve eitherseparate legislation, legallyenforceable contract, licenceunder other legislation, somecombination, or other means.

1.5 The system will provide forcode(s) of forest practicesuitable for the State.

1.6 The purpose of the code(s) offorest practice related to woodproduction is to ensure thattimber growing and timberproduction activities forcommercial purposes, areconducted in a manner thatsafeguards the identifiedenvironmental values and isconsistent with definedminimum standards associatedwith those forests.

1.7 Review of the code(s) of forestpractice related to woodproduction will be conducted atintervals permitting responsesto developments in knowledgeand technology. Community

ATTACHMENT A

'Forest Practices Related to Wood Production in Native Forests: national principles' — an extract

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views should be actively soughtas part of the review process.

2. SAFETY

2.1 All wood production activities willbe conducted to comply withrelevant safety legislation andpolicy. In particular, all operatorsshould be trained to designatedstandards in the safe andefficient use of equipment andmachinery and be responsiblefor safe working practices.

3. PRINCIPLES OFENVIRONMENTAL CARE

The principles of environmental carewith regard to planning and conductingof timber growing and harvestingoperations applying particularly topublic land are:

3.1 the floristic and faunal diversityof native forests, including theirsuccessional stages, bemaintained on public land;

3.2 where assessed as important,forest values such as intensiverecreation, high scenic quality,significant geomorphic,biological, or cultural heritagesites, be protected from theadverse effects of forestoperations on public land;

Principles applying to both private andpublic land are:

3.3 water quality (physical, chemical,or biological), be protected bymeasures controllingdisturbance resulting from forestactivities;

3.4 water yield be managed asrequired by careful planning ofoperations;

3.5 soil stability be protected bymeasures which regulate sitedisturbance;

3.6 soil, water catchment, culturaland landscape values beprotected by the careful location,construction, and maintenanceof timber extraction roads andtracks, and regulation of theiruse;

3.7 fauna, floristic, and landscapevalues be protected by thecareful planning of operationsand the reservation ofappropriate patches andcorridors of vegetation;

3.8 forests be protected from theadverse effects of fire and fromthe introduction of, and spreadof, plant, insect, and animalpests, and plant diseases.

4. IMPLEMENTATION

4.1 Planning

4.1.1 For public land strategicplanning should be achievedthrough regional managementplans.

4.1.2 For public lands the distributionof wood production throughoutthe management plan areashould be achieved byoperations plans, subject to themanagement plan.

4.1.3 Individual forest operations, willbe conducted in accordance withapproved action plans, whichincorporate a map and aschedule specifying relevantconditions.

4.1.4 The action plan will includedetails of any necessary

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planned access to the coupeadditional to the road systemapproved under themanagement plan or operationsplan.

4.2 Access

4.2.1 Planning of road systems inpublic forests will be based onthe economic principle ofminimising the combined cost ofsnigging and roading and on thePrinciples of EnvironmentalCare.

4.2.2 Road design will be tostandards capable of carryingthe anticipated traffic withreasonable safety.

4.2.3 Construction of roads andassociated works will beundertaken in a manner whichwill ensure compliance with thePrinciples of EnvironmentalCare.

4.2.4 Timber salvage should be astandard practice during roadclearing operations.

4.2.5 Maintenance of roads throughminimising erosion will beundertaken to protect the roadsurface and water quality.

4.2.6 Roads will be closed in wetconditions when unacceptabledamage would occur, or whensuch other conditions maywarrant.

4.3 Timber Harvesting

4.3.1 Timber harvesting will beplanned and carried out to meetthe Principles of EnvironmentalCare. The action plan will beapproved by relevant authorities

prior to commencement ofharvesting.

4.3.2 The action plan for harvestingwill consider factors such ascoupe size, slope and location,design and location of landingsand snig tracks, harvestingequipment and areas excludedfrom logging, protection, andreforestation.

4.3.3 Harvesting operations should besuspended where the Principlesof Environmental Care will becompromised, or where thesafety of workers is atunacceptable risk.

4.3.4 Soil and water values should beprotected by progressiverestoration of drainage and snigtracks and temporary roads.

4.4 Forest Establishment

It should be noted that this documentdoes not cover afforestation on clearedland, for example amenity orcommercial planting on agriculturalland.

4.4.1 Planning for reforestation will bebased upon the use ofsilvicultural methods that areeconomically andenvironmentally appropriate forthe particular type of forest, andapplied with local variations tosuit specific stand and siteconditions.

4.4.2 Reforestation of extensivelymanaged native forest shouldbe with species andprovenances native to the areaor an equivalent locality to helpconserve species patterns andgene pools present prior toharvesting.

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4.4.3 Reforestation of native forestdesignated for intensive woodproduction may involve theintroduction of selected species,provenances or populations toincrease productivity or value.

4.4.4 Where permitted, thereforestation of native forestsites to plantation of exotic ornative species will comply withany requirements of legislationor policy controlling suchpractices.

4.4.5 Intensive managementpractices, such as sitepreparation, fertilising, weedcontrol, pest and diseasecontrol, and other operations willbe carried out in accordancewith standard instructions, andconsistent with the Principles ofEnvironmental Care.

4.4.6 Stocking assessments will beundertaken, where appropriate,to monitor the success of forestestablishment practices and toprovide a basis for correctivemeasures.

4.5 Forest Protection

4.5.1 Fire protection planning shouldbe undertaken in coordinationwith relevant land managementagencies.

4.5.2 Where pests or diseases causesignificant damage, decline, ordeaths of trees, specialist adviceshould be sought.

4.5.3 Where forest operations areplanned for healthy forestvegetation, known to besusceptible to important andrecognised pests or diseases,specialist advice should be

sought before commencingwork.

4.5.4 Use of chemicals, such asherbicides, in forest operationswill be strictly in accordance withState policies and procedures.

5. MONITORING AND REVIEW

5.1 Forest operations should besupervised and monitored byqualified and authorised officersand be subject to possible audit.

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GLOSSARY

Biological diversity a concept encompassing the diversity of indigenousspecies and communities occurring in a given region. Alsocalled 'biodiversity', it includes 'genetic diversity', whichreflects the diversity within each species; 'species diversity',which is the variety of species; and 'ecosystem diversity',which is the diversity of different communities formed byliving organisms and the relations between them.

Biological diversity is the variety of all life forms — theplants, animals and micro-organisms — the genes theyconstitute, and the ecosystems they inhabit.

Ecologically sustainabledevelopment

There is no common definition in the literature for the term'ecologically sustainable development'. In considering thisissue, the Ecologically Sustainable Development WorkingGroup on Forest Use specified three requirements forsustainable forest use: maintaining the ecologicalprocesses within forests (the formation of soil, energyflows, and the carbon, nutrient and water cycles);maintaining the biological diversity of forests; andoptimising the benefits to the community from all uses offorests within ecological constraints. The National ForestPolicy Statement adopts these principles as the basis forecologically sustainable development.

Endangered species andcommunities

species in danger of extinction and whose survival isunlikely if the causal factors continue operating. Includedare species whose numbers have been reduced to acritical level or whose habitats have been so drasticallyreduced that the species are deemed to be in danger ofextinction. Also included are species that are possiblyalready extinct but have definitely been seen in the wild inthe past fifty years and have not been subject to recentthorough searching.

Enhanced greenhouseeffect

see Greenhouse gases

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Forest an area, incorporating all living and non-living components,that is dominated by trees having usually a single stemand a mature or potentially mature stand height exceeding5 metres, and with existing or potential projective cover ofoverstorey strata about equal to or greater than 30 per cent.This definition includes Australia's diverse native forestsand plantations, regardless of age. It is also sufficientlybroad to encompass areas of trees that are sometimesdescribed as woodlands. The focus of this Statementexcludes woodlands.

Forest estate all forests growing on public or private lands.

Forest managementagencies

public agencies that manage forests on Crown land formany uses, including wood production, conservation,fauna and flora protection, recreation and water supply.This includes agencies with responsibility for themanagement of unallocated and leased Crown lands thatare forested.

Forest service the 'forest management agency' within a State that has thespecific responsibility for managing public forests for woodproduction.

Full faith and credit as defined in the Intergovernmental Agreement on theEnvironment:

a reference to 'give full faith and credit' means thatGovernments, acting in accordance with the laws inforce in their jurisdictions, will accept and rely on theoutcomes of mutually approved or accredited systems,practices, procedures or processes, as the case maybe, as a basis for their decision making.

Greenhouse gases gases that affect the temperature of the Earth's surface andhave a large bearing on the Earth's climate. They includewater vapour, ozone, chlorofluorocarbons, carbon dioxide,methane and nitrous oxide. The 'enhanced greenhouseeffect' refers to changes in the Earth's climate as a result ofincreasing levels of greenhouse gases in the atmospheredue to human activity.

Integrated harvesting the harvesting of more than one product (for example,sawlogs and pulplogs) in a single operation.

Management plans the range of plans dealing with strategic and operationalissues of forest management prepared for specifiedregional or local areas and integrating environmental andcommercial objectives.

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Native forest any local indigenous community the dominant species ofwhich are trees — see Forest — and containing throughoutits growth the complement of native species and habitatsnormally associated with that forest type or having thepotential to develop these characteristics. It includesforests with these characteristics that have beenregenerated with human assistance following disturbance.It excludes plantations of native species and previouslylogged native forest that has been regenerated with non-endemic native species.

Nature conservationreserves

areas of publicly owned land, including forested land,managed primarily for nature conservation and providingmultiple benefits and uses, such as recreation and watercatchment but excluding wood production.

This Statement asserts that the nature conservationreserve system will be developed on the basis of threeprinciples: comprehensiveness, adequacy andrepresentativeness. These terms are defined thus:

comprehensiveness — includes the full range of forestcommunities recognised by an agreed nationalscientific classification at appropriate hierarchicallevels;

adequacy — the maintenance of the ecological viabilityand integrity of populations, species and communities;

representativeness — those sample areas of the forestthat are selected for inclusion in reserves shouldreasonably reflect the biotic diversity of thecommunities.

Old-growth forest forest that is ecologically mature and has been subjectedto negligible unnatural disturbance such as logging,roading and clearing. The definition focuses on forest inwhich the upper stratum or overstorey is in the late matureto overmature growth phases.

Patient equity capital capital for investment where the expectation is that therewill be a capital return in the long term rather than anyshort-term dividend or income.

Plantations intensively managed stands of trees of either native orexotic species, created by the regular placement ofseedlings or seed.

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Precautionary principle as defined in the Intergovernmental Agreement on theEnvironment:

where there are threats of serious or irreversibleenvironmental damage, lack of full scientific certaintyshould not be used as a reason for postponingmeasures to prevent environmental degradation.

In the application of the precautionary principle, publicand private decisions should be guided by:

(i) careful evaluation to avoid, wherever practicable,serious or irreversible damage to theenvironment

(ii) an assessment of the risk-weighted consequencesof various options.

Public forest any forest on Crown land for which managementresponsibility has been delegated to governmentagencies, local governments or other instrumentalities.

Regional conservationand catchmentmanagement objectives

this term also encompasses conservation and catchmentmanagement objectives at the national and State levels

Regrowth forest native forest containing a substantial proportion of treesthat are in the younger growth phase and are activelygrowing in height and diameter. Regrowth forests maycontain scattered individuals or small occurrences ofecologically mature, or old-growth, trees.

Vulnerable species andcommunities

species believed likely to move into the 'endangered'category in the near future if the causal factors continueoperating. Included are species of which all or most of thepopulations are decreasing because of over-exploitation,extensive destruction of habitat or other environmentaldisturbance; species with populations that have beenseriously depleted and the ultimate security of which hasnot been assured; species with populations that are stillabundant but are under threat from severe adverse factorsthroughout their range; and species with low or localisedpopulations or dependent upon limited habitat and thatwould be vulnerable to new threatening processes.

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Wilderness land that, together with its plant and animal communities,is in a state that has not been substantially modified by,and is remote from, the influences of European settlementor is capable of being restored to such a state; is ofsufficient size to make its maintenance in such a statefeasible; and is capable of providing opportunities forsolitude and self-reliant recreation.