Victorian forestry transition audit finds workers worse off

In 2023, the whole sector was shocked by the news native timber harvesting would cease in Victoria on 1 January 2024. The industry had been given an end date of 2030 and expectations had been built around a phased transition. Suddenly, that was out the window.

In lieu of those six years, the Victorian Government committed $1.5 bn to support the transition, including $320 million allocated to the Forestry Transition Program, which provides services and financial support for workers, businesses and communities affected by the end of native timber harvesting.

Earlier this month, the Victorian Auditor-General tabled its report on that program. It found the program was well designed, but the results have been a mixed bag, and there were questions around the Department of Energy, Environment and Climate Action’s administration of the program and assessment of its outcomes.
The key findings included: “Of the workers made redundant after the decision to end native timber harvesting, 87% are in new employment or have retired. But full-time roles have decreased from around 80% to around 60% and part-time, contract and casual roles have increased. It is not clear if workers’ new jobs meet their needs or are sustainable. All the businesses we looked at are still in operation.

“The department acted quickly after the government brought forward its decision. This included establishing well designed program guidelines to administer grants and support packages.

“But it is not clear if the department has applied these guidelines consistently. We found gaps in the department’s records about its decisions, including payment approvals without records of how it verified eligibility. This reduces transparency over how it has allocated support and increases the risk of ineligible payments.

“The department is also not adequately monitoring the program’s effectiveness. It cannot reliably show outcomes, such as job security or business viability, or know if businesses and workers will need more support after the program’s scheduled end 
in 2026.”

While the report noted that ForestWorks, a partner engaged by the government to deliver the program, had gone as far as to engage a third-party provider to help determine eligibility and payment amounts, it added that “the department does not verify the eligibility assessments made by this third-party provider. This reduces confidence that the department is effectively overseeing how ForestWorks and its partners administer worker support payments.”

Melina Bath MP, member for Eastern Victoria Region, has long protested the closure of native timber harvesting in the state. The report has confirmed her position.

“The Auditor General found that despite budgeting $1.5 billion to shut the industry, the Allan Government cannot demonstrate whether displaced timber workers are better off,” she said.

“Job quality has declined and employment is less secure, with Labor failing to track income or job security outcomes.

“These are not the markers of a successful industry transition. Instead of transitioning and supporting displaced workers, Labor’s plan has driven economic instability that continues to harm regional communities.”
Bath, who was scathing about the lack of consultation before the original changed timeline, pulled no punches.

“The Allan Government has no credible plan beyond 2026 to manage the ongoing impacts on workers and affected communities,” 
Bath said.

“The report confirms Labor shut a sustainable industry first and considered the consequences second. Our regional communities deserved fairness, consultation, secure jobs and accountability, but instead they received disingenuous government spin.

“The Allan Government must urgently review remaining transition funding to ensure it directly supports workers, families and communities and not further bureaucracy.”