Federal Environment Minister Peter Garrett faces a tough early test of his new portfolio powers after a Federal Court decision yesterday to allow logging in the Wielangta forest on Tasmania's east coast.
Under federal law, Mr Garrett has the power to intervene to prevent logging of the old growth rainforest.
If he refuses to act, furious opposition is expected from the Greens and peak conservation groups, which would quickly embroil the newly elected Labor Government. Greens preferences delivered about 21 seats for Labor during last Saturday's election.
In Hobart yesterday, the appeal bench of the Federal Court unanimously over-ruled a previous decision by Justice Shane Marshall that logging in the 10,000ha old growth forest was illegal because of its impact on the habitat of endangered wildlife.
After a trial involving scientists and 33 days of hearings, Justice Marshall ruled last year that logging would destroy the habitat of Tasmania's wedge-tailed eagle, swift parrot and one of Australia's rarest insects, the Wielangta stag beetle.
The Federal Court win by Australian Greens leader Bob Brown was hailed by environment groups and scientists as a watershed decision upholding the protection of Australia's native forests.
But after yesterday's decision upholding an appeal by Forestry Tasmania, Senator Brown faces more than $25,000 in costs and the prospect of another costly battle if he has legal grounds to lodge an appeal with the High Court.
Senator Brown has written to Mr Garrett asking him to take "urgent action to protect Wielangta and other native forests in Australia." The Federal Court appeal bench upheld the Justice Marshall's previous finding that logging had "a significant and unacceptable impact" on endangered species in the Wielangta forest, but ruled logging was exempt from federal environment protection laws.
Forestry Tasmania and the National Association of Forest Industries welcomed the decision as providing the forestry industry with certainty for future timber supplies.
"This has been an expensive, emotionally draining and time consuming exercise but it has been worth it. There is now no doubt that our forestry operations are legal," Forestry Tasmania's managing director Bob Gordon said.
The court found once a 20-year regional forestry agreement was signed by state and federal governments, the impact of it could continue if both signatories agreed to allow it.
"It's a case of the law intends to protect endangered wildlife but if Canberra and Hobart ignore logging which endangers their existence, they can," Senator Brown said.
In his letter to Mr Garrett, Senator Brown pointed out the minister had the power, under clause 102 of the federal Environment Protection and Biodiversity Conservation Act, to "insist that the intention of the Regional Forestry Agreement to protect rare and endangered species be upheld".
Senator Brown wrote, "Or else, you may nullify the RFA and bring forestry operations directly under the Act."
Mr Garrett's office did not return calls yesterday.
The two high-profile politicians and environmental activists were friends when Mr Garrett was president of the Australian Conservation Foundation and singer with Midnight Oil.
But when Mr Garrett, as opposition environment spokesman, declared his support for the controversial Tasmanian pulp mill last month, Senator Brown publicly declared their long friendship was over and accused Mr Garrett of abandoning his principles.
The decision to allow logging to proceed in the Wielangta forest could be an embarrassment for the Australian government delegation at the United Nations climate change conference in Bali next week.
One of seven priority mitigation measures listed for discussion is curbing greenhouse emissions from clearing of forests.
"It sends a message of contempt and indifference to critical climate change issues by the government of Australia," Senator Brown said.
About 15,000 politicians, government officials and lobbyists are due to attend the Bali conference.
UN officials have warned the meeting is not expected to result in "big announcements on cuts" to emissions but say deforestation is one area where the meeting might break new ground.
Developing nations will seek to establish incentives and financial support from developed nations to stop cutting down their forests. Australia is the only developed nation among the world's top 20 land-clearing countries, a list that includes Cambodia, Burma, the Sudan, Bolivia and the Philippines.