Nannup Timber Mill investigation

An investigation into whether the Nannup Timber Mill contravened its contract by on-selling whole unprocessed jarrah logs has been deemed inconclusive.

The timber mill had its marri log contract with the Forest Product Commission terminated in November last year after an investigation found the company had exported unprocessed marri logs overseas.

A second independent investigation was launched to determine if NTP had on-sold or exported unprocessed jarrah logs as well.

William Buck Consulting were engaged to perform a review to determine if NTP had breached its contract.

In a report tabled in parliament last week, the accounting firm stated their organisation had attempted to contact NTP on several occasions but did not receive the requested documents to proceed with the review.

The report stated, William Buck were unable to determine if NTP had unlawfully on-sold or exported jarrah logs supplied by the FPC.

South West MLC Diane Evers said the inconclusive finding was symptomatic of a broken native timber industry in WA and the FPC's inability to protect native forests from malpractice.

Ms Evers said she believed her oncoming Bill seeking to repeal the Forest Products Act and disband the FPC was the clear and necessary approach needed by the state government to enact permanent reform of the industry.

"This investigation is yet another example, revealed in parliament, of the Forest Products Commissions failings," she said.

"Our native forests need to be protected so we can tackle climate change and ensure they are there for everyone to enjoy for generations to come.

"The native timber industry constitutes a small proportion of the WA forest industry and there are sustainable timber sources available to invest in and transition employment.

"I am calling on the Labor Government to repeal the Forest Products Act to protect our native forests - we cannot allow the destruction of our precious environment to continue."

In parliament, Agricultural Region MLC Darren West spoke on behalf of the forestry minister saying, the FPC was investigating the scope of damages that could be claimed if contracts were breached.

"The FPC is investigating with the Department of Biodiversity, Conservation and Attractions the possibility of imposing future statutory penalties for this type of default," he said.

"The FPC has written to all its customers to remind them of their current contractual conditions.

"In addition, I have asked the FPC to strengthen its contractual conditions for future supply contracts to include the ability to terminate all concurrent contracts with the FPC if breach of one contract occurs."