Communications log-jam between federal and NSW governments over timber plantation funding program

Senator for NSW Jim Molan announced last week that "the Morrison government will invest more than $86million over five years to support the establishment of new plantations in Eden-Monaro to lock-in future wood supply".

Senator Molan said the government would look to partner with the NSW government to deliver a grant program as well as other support for the forestry industry.

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The grant program proposes the federal government funds 40 per cent, with the participating state or territory funding 60 per cent. The grants would then be offered as matched grants to foresters to fund the establishment costs of new plantations. This means if a forester is offered $5m for example, they must match it with $5m.

There's only one problem: the NSW government appears to know nothing about the proposal.

When ACM asked the NSW government to comment on the funding proposal, a Department of Primary Industries spokesperson said they had heard nothing.

"The NSW government welcomes the Commonwealth government's funding announcement, however at this stage we have not received any formal communication on the proposed program," the spokesperson said.

"We look forward to working with the Commonwealth government and the forestry industry to identify the best opportunities to grow our plantation estate," the spokesperson added.

When questioned further, Senator Molan's office said the federal government was engaging with the NSW government regarding this program following the announcement on February 22.

"A letter was sent to the NSW Minister last Friday (February 25)," a spokesperson for Senator Molan said on Monday, February 28.

"It is up to the Minister to notify their Department of Primary Industries," Senator Molan's spokesperson said.

The NSW Minister for Agriculture, which includes the portfolio of forestry is Dugald Saunders, the Nationals MP for the seat of Dubbo.

But the holes in this funding announcement don't stop at what at best could be called a communications issue.

The announcement spruiked "more than $86million over five years to support the establishment of new plantations in Eden-Monaro to lock-in future wood supply".

However it's not $86.2m for Eden-Monaro - because the program is for all states and territories.

When questioned further, Senator Molan's office said the $86.2m was all new money but there was no set amount for the Eden area, it would be up to growers to apply for the funding.

"This program will create jobs in regional Australia, not just in the planting phase, but in 25 or 30 years' time when that wood is harvested and processed," Senator Molan's office said.