Foreword

Timber is an important resource. It is a popular building material used in the construction of homes, furniture, and floorboards. The timber industry contributes nearly $1 billion to the state economy each year and directly supports over 7,000 jobs in regional towns across NSW.

Various governments have transferred large parcels of state forests to national parks to preserve the natural heritage. Today, state forests make up around ten per cent of forested areas in NSW. Ninety per cent of state forests are native forests and only two per cent are hardwood plantations. The remaining eight per cent are softwood plantations.

Logging of native forests can be controversial and can generate a lot of interest in the community. Some community groups raise concerns about the negative impacts that logging can have on the forest ecosystem and the preservation of native fauna. Others are concerned about the effect that any reduction in timber supply will have on the industry.

It is the role of Forests NSW to sustainably manage state forests and timber supply. It also provides community amenities such as camping areas and picnic grounds. In order to achieve this, Forests NSW must balance resource management with conserving the natural environment and comply with the many laws and regulations that control where and what may be logged.

This audit examines whether Forests NSW manages the supply of hardwood to meet wood supply commitments and sustain our native forests.

Peter Achterstraat

Auditor-General

April 2009