Forestry Tasmania’s (FT) controversial small native forest coupe in the Flowerdale river catchment area at Lapoinya in NW Tasmania is one of its better coupes. FT is adamant clearfelling will be a profitable exercise.
After a relentless pattern over the years of failing to cover even $1 in staff wages from its operations this looks like a real live test case to establish which exactly of FT’s operations are profitable, if any.
From a strict financial accounting viewpoint, each year FT adjusts the value of its forest estate so that as at 30th June FT’s balance sheet contains the current value of its forest estate.
Hence clearfelling a coupe merely realises its current value. It is simply swapping trees for cash.
The accounting profits from the Lapoinya coupe should have already been recorded in FT’s books over the years if the current value of the trees as recorded is correct. The small profits over time scarcely dented losses from other sources.
Chopping down a coupe is a realisation exercise not a profit making one.