Legislative Council Wednesday 25 March, 2020

Ms FORREST question to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT

(1) On page 46 of Sustainable Timber Tasmania's annual report, and also commented on by the Auditor-General on page 78, the 're-establishment provision' relates to the expected costs of forest re-establishment under provisions of the Forest Practices Act 1985 and the Forest Practices Code, a figure of $8.3 million is noted as the re-establishment provision as at 30 June 2019, an increase of $2.1 million over 12 months -

(a) How much was added to the provision in 2018-19?

(b) What were the reductions in the provision in 2018-19?

(c) How much of the reductions were spending amounts?

(d) Given that the additions to the forest estate were neglible, how was the spending recorded?

(2) Regarding accrued expenses of $10.5 million (on page 51 of the annual report) -

(a) What does the accrued expenses relate to?
(b) Why was there such a large increase from 2018?

(3) Regarding the accrued revenue of $ I 26m (on page 48 of the Annual Report) and assuming revenue is recognised then control of the asset paceee to the buyer -

(a) What does this accrued revenue relate to?
(b) Why the large increase from 2018?

ANSWER

Mr President, I thank the member for Murchison for her question.

(1) (a) $2.5 million

(b) ($0.4 million)

(c) ($0.4 million)

(d) Spending is recorded at the individual coupe level per activity type (e.g. tracking, burning, sowing and so on)

(2) (a) The expenses relate to export costs and co- mingle woodchip sales from two vessels. The revenue for products sold 'Free on Board' is recognised when the vessel departs port; payment is received after the vessel departs port. Expenses are accrued.

Co- mingle woodchip sales occur where Sustainable Timber Tasmania acts as the sale counter party (with the customer) on behalf of all the owners of the woodchips sold (multiple parties contribute woodchips to the sale). Once payment is received, proceeds are dispersed proportionately.

(b) At 30 Iune 2019, two vessels had departed port with payment awaiting.

(3) (a) The revenue relates to the total value of co-mingle woodchip from two vessels. The revenue for products sold 'Free on Board' is recognised when the vessel departs port; payment is received after the vessel departs port. Revenues are accrued.

Co-mingle woodchip sales occur where Sustainable Timber Tasmania acts as the sale counter party (with the customer) on behalf of all the owners of the woodchips sold (multiple parties contribute woodchips to the sale). Once payment is received, proceeds are dispersed proportionately,

(b) At 30 June 20 19, two vessels had departed port with payment awaiting