Victoria's state-owned logging corporation has recorded a net loss of $60.1 million as the end of native timber harvesting looms.
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In its annual report tabled in parliament on Thursday, VicForests revealed the deficit and blamed court action brought on by environmental groups that led to logging bans because of threats to protected glider populations.
VicForests planned to harvest $112 million in timber, returning a profit of $27 million.
Instead, VicForests harvested $17.9 million in timber and paid $110 million in compensation for undersupply to customers, as well as $41 million to contractors who were not able to work.
The corporation did receive $149 million from the state to fund the compensation, but it also had to write-down the value of its native-timber rights to zero because of the government's decision in May to close the industry by January 1, 2024.
In June, Victoria's Court of Appeal held up a previous Supreme Court decision to halt logging in parts of the state after finding the forestry company failed to adequately survey for protected possums.
In the annual report, chief executive Monique Dawson said VicForests gave the court strong evidence that it had taken steps to manage the risk.
The state government referenced the legal action as a reason behind closing the industry.
It had planned to phase out native logging in 2030, but the industry will now be closed by the end of 2024.
In 2022, VicForests posted a loss of $52.4 million.
Australian Associated Press
