The AFA is pleased to provide AFA Members with the following information from this month’s VicForests annual report.
VicForests has posted a profit of $3.4 million for the 2013/14 Financial Year.
This is a positive financial result following the tabling of VicForests’ Annual Report in the Victorian Parliament on Wednesday the 17th of September. Returning a profit of 3.4 million is a great achievement for VicForests making for a successful 2013/14. Having paid a dividend of $250,000 back to the state following the profit posted in 2012/13, VicForests are proposing to pay another $500,000 dividend on the back of this year’s positive results. By corporate standards these are not large dividends , however, they clearly highlight the fact that VicForests is profitable and providing a financial return to Victorians alongside helping meet the demand for timber.
VicForests have generated more than $1 billion in revenue over the last ten years, with almost all of that being re-invested back into the Victorian economy. Melbourne’s population is forecast to grow to the size of London over the next 30 – 40 years and the need for renewable products like native timber will continue to increase.
There are other significant milestones for VicForests during the 2013/14 year including:
- Contributing to bushfire fighting efforts across the State
- Retaining certification to the Australian Forestry Standard and progressing towards our goal of
achieving Forest Stewardship Council certification
- Working as a member of the Leadbeater’s Possum Advisory Group
- Having operations audited by the Victorian Auditor General’s Office
The Victorian Auditor-General’s Office undertook an extensive audit in late 2013 looking at the management of Victoria’s native forests. The VAGO report confirmed VicForests has operated profitably since being established in 2004 and stated categorically that it does not receive Government subsidies.
The audit also found VicForests activities generate considerable direct and indirect socio-economic benefits for regional communities, and that they have demonstrated an ability to balance the need for long-term profits with the need to support a sustainable industry.
Despite VicForests financial result for the current year being boosted by a re-valuation of the forestry assets on their books, operating profit after tax was still $1.531 million, almost double the figure for 2012/13.