Private Native Forestry in NSW: Environmentally Benign, Economically Important but Silviculturally Challenged?

Abstract

With large areas of public native forests now converted into National Parks and unavailable for timber harvest, private native forests (PNF) in New South Wales (NSW) are becoming increasingly important in providing timber for the wood processing industry. At the same time, there is increasing interest in the role that these private forests play in providing and maintaining habitat for wildlife. Historically, timber production from these forests has been opportunistic, with little or no silviculture to maintain wood production potential. Market circumstances and policy settings have not favoured sound silvicultural practice, generating an exploitative and short-term view of the timber resource to maximise short-term returns. This has occurred at a time when these forests are an important and increasing source of log supply to industry. This paper discusses payment of biodiversity credits (incentives) to improve both environmental management and timber production outcomes, and examines the findings of some recent studies on the ‘sustainability’ of PNF. Willingness-to-pay (WTP) and willingness-to-supply studies reveal a disparity between the demand and supply prices for biodiversity and habitat ‘services’ in many cases. Recent ‘sustainability’ studies indicate forestry operations are relatively benign in their impacts on biodiversity, compared to other land uses. However, in the absence of increased financial returns from PNF and in the face of increased public demand for greater environmental outcomes, there seems little alternative to meeting the competing demands of biodiversity and timber production than to implement a system of incentive payments which reward sound private forest management for a multiplicity of objectives.