Statement: Forestry Corporation’s ongoing losses show public forests are worth more standing

The Wilderness Society is again calling for NSW Premier Chris Minns to chart a course out of industrial native forest logging, following another disastrous loss for Forestry Corporation of NSW that will cost taxpayers tens of millions of dollars.

Forestry Corporation of NSW lost $32 million from its hardwood logging division over the last financial year according to its latest annual report, continuing a long-term trend of unprofitable operations. This year’s loss adds to a total of more than 100 million dollars in losses over the past five years, including $29 million in 2023-24, $15 million in 2022-23, $9 million in 2021-22 and $20 million in 2020-21.

More than $60 million of these losses have occurred while NSW Premier Chris Minns has been at the helm. Taxpayers will yet again be forced to foot the bill for Forestry Corporation’s losses because it’s a state-owned organisation.

Not only is logging public native forests economically unviable, it’s also environmentally unsustainable. Logging is a key driver of habitat destruction and Forestry Corporation continues to break environmental and logging laws, resulting in logging of protected areas and of trees prohibited from logging (including hollow-bearing trees).

The NSW Government must protect the greater glider and other iconic species from extinction by transitioning NSW out of industrial native forest logging. Ninety one percent of logs harvested in Australia already come from plantations. The Wilderness Society says it’s time to complete the transition to a plantation-based industry that preserves the future of our forests, wildlife and the long-term livelihood of regional communities in NSW.

Victoria Jack, NSW Campaigns Manager for the Wilderness Society, said,

“The last year’s losses continue an ongoing annual trend of losses by Forestry Corporation, and it’s taxpayers who are forced to cough up to cover the costs. Taxpayers shouldn’t be forced to fund the destruction of habitat for endangered species that are found in no other Country on Earth—like the koala, greater glider and swift parrot.

“Forestry Corporation of NSW have shown time and again that they can’t be trusted to manage precious public forests in NSW. They cause environmental destruction, they continue to break the law and their business model is economically unviable.

“The fact that Forestry Corporation can’t turn a profit for native forest logging proves what we already know: these forests are worth more standing. The science tells us that protecting these forests is a pathway to stopping extinctions, providing a safer climate and reducing bushfire risk. There is far greater economic benefit to be gained from stopping the logging and completing the transition to plantations.”