By Rachael Ward, AAP
A state-owned forestry company is being wound up after a ban on logging native trees, legal troubles and battles with environment and wildlife groups.
Victoria’s state-owned logging company will shut down within months.
A June 30 end date was revealed on Wednesday during a court hearing involving VicForests and environmental group Wombat Forestcare.
The winding-up of the body is part of the Victorian government’s decision to end native forest logging, which took effect on January 1.
Stand-down payments to VicForests contractors are due to end on June 30.
Community and Public Sector Union industrial organiser Kassey Dickie said VicForests’ 100 employees were aware the company would close on June 30.
She said workers were able to apply for about 80 other government jobs, including five-year contracts with Forest Fire Management Victoria.
“Everyone’s going to lose their job at VicForests, whether or not a large portion find other work, that remains to be seen,” Ms Dickie told AAP.
The government initially planned to phase out native logging in 2030 but brought that forward over claims the sector had become unviable because of ongoing legal action.
Ms Dickie said many workers were stressed and finding new roles had been a “very fast process” for them.
“They’re sad I think, to sum it up, many of them have worked together for a very long time,” she said.
“They have been rushed through a process made by government in a hurry that has been pretty stressful.”
The decision comes after a series of court actions against VicForests, including a Supreme Court finding in 2022 that it failed to adequately survey and protect two endangered glider species.
In 2023 the Victorian Information Commissioner revealed the business used taxpayer money to illegally spy on environmentalists, using a private investigator to try to discredit them.
The case involving Wombat Forestcare will now go to mediation.
A Victorian Government spokesperson said it had helped workers transition into new roles or take redundancies since the end of 2023, with a range of support services on offer.
They said forest planning, seed collection, forest regeneration and other responsibilities would be transferred from VicForests to the the Department of Energy, Environment and Climate Action.
Victorian Greens deputy leader Ellen Sandell accused VicForests of being “environmental vandals” and said it was about time it was shut down.
“We now need Labor to focus its environment department on restoration and protection of our forests, with specialised staff who have these skills,” she said.
Nationals Leader Peter Walsh told AAP VicForest workers had been treated “appallingly”.
“The government has no comprehension of the stress hard working VicForests employees have been under carrying out government policy directions,” he said.
“They have done everything asked of them and deserve much better.”
VicForests recorded a net loss of $60.1 million in the 2022/23 financial year, blaming court action brought on by environmental groups.
During that time it harvested $17.9 million in timber, paid $110 million in compensation for undersupply to customers and $41 million to contractors who were not able to work.
It received $149 million from the state to fund the compensation.
VicForests, through the Department of Energy, Environment and Climate Action, directed media queries to the government.
