The promotion of farm forestry for both productive and environmental purposes has continued in all regions.

In the Southeast the emphasis is now changing to silvicultural management and the harvesting of plantations, with products including plantation grown firewood and eucalypt saw logs. During 2003-2004 a series of first and second rotation plots were finalised to assess issues involved in establishing second rotation hardwood plantations by replanting or coppicing. In addition the growth information on Blue gum plantations collected by ForestrySA over the past 10 years was reassessed resulting in a revision of the growth model.

ForestrySA was also represented on the South East Natural Resources Consultative Committee (SENRCC) as part of its commitment to the role of forestry in integrated natural resource management and sustainable landscapes.

On Kangaroo Island the establishment and silvicultural management of plantations, including pruning, continues to be the main focus of interested growers. During 2003-2004 a further 65ha of eucalypt plantations were established on Kangaroo Island. This was a combination of Natural Heritage Trust and Envirofund supported wide-spaced sawlog plantings. These plantings will assess the potential for the production of appearance grade timber.

In the Mount Lofty Ranges a management plan for the Gumeracha Farm Forestry Demonstration Area has been developed. The management plan identifies each planting area and defines a management schedule for the next six years that will assist in achieving the objectives of each area.

In addition to its direct involvement in farm forestry, ForestrySA continues to support the three South Australian Private Forestry Development Committees located in the Green Triangle, Mount Lofty Ranges and Kangaroo Island. In collaboration with all levels of government, industry and the community, these committees provide a national network to support the development of a sustainable private forestry industry.

ForestrySA continued its involvement in the Green Triangle Treefarm Project (GTP). The project is about to move into a new phase of harvesting with a trial shipment of hardwood woodchip anticipated in July 2004. The focus of the Project continues to be on securing growers to ensure a sustainable supply of wood. ForestrySA has also used its knowledge and expertise in environmental management to assist the development of an environmental management system for the Portland Treefarm Project in western Victoria.

ForestrySA involvement with the Australian Low Rainfall Tree Improvement Group (ALRTIG) continued with the identification of plantation species suitable for low rainfall areas. ForestrySA involvement has included the setting up of new trials in the Southeast, Mid-north and Kangaroo Island in association with landholders. The measurement of new and existing trials has also continued with some areas being pre- commercially thinned. Seed collection of Eucalyptus occidentalis and Eucalyptus cladocalyx commenced at Bundaleer, Red Hill and Gumeracha for commercial sale to support farm forestry.

ForestrySA and Primary Industries and Resources SA coordinated the re-measurement of the Farm Tree Improvement plots located across the Mid-north, Mt Lofty Ranges, the Mallee and in the South-east. These sites were established between 1990 and 1993 with the intention of evaluating the performance of different seed sources for a range of species and sites. The data will be valuable in estimating growth rates of over 35 species of various provenances in a wide range of regions and soil types across the State.

The Corporation’s Charter requires it to foster and support the growth of an internationally competitive forestry industry within South Australia, to encourage and facilitate regionally based economic activities based on forestry and other industries, and to support the concept of environmental sustainability which assists in the protection of natural assets and market accessibility.

In undertaking these responsibilities, ForestrySA is involved in a range of activities, at the national, State and regional level, to promote a sustainable forest industry and regional development.

At the national level, ForestrySA is playing a key role in developing policies to encourage the development of plantations where their benefits to the environment and to regional economic development will be maximised. ForestrySA is contributing to national water policy development to ensure that the role of plantations in sustainable land use is appropriately acknowledged and promoted.

ForestrySA was involved at the State and regional level in developing the framework for plantations and water use in the South East that promotes certainty of expansion for plantations whilst ensuring sustainable use of the groundwater resource in the region.

ForestrySA has also established the Forest Forum, which meets biannually and provides an opportunity for forest and wood processing industry chief and senior executives in the State to meet to discuss forestry policy directions and strategic issues and to exchange information with equivalent agency representatives.

ForestrySA supports the principles of reconciliation between indigenous and non-indigenous Australians, including an understanding of South Australia’s indigenous history and cultural heritage.

ForestrySA is working with other Agencies and indigenous communities to develop and implement practical reconciliation initiatives with a distinct focus on the well being and quality of life for indigenous people in South Australia.

ForestrySA continues to develop a framework for consultation with regional communities, including indigenous parties, regarding forestry related issues. This consultation will be further enhanced to ensure a better appreciation and understanding of Aboriginal culture and issues.

ForestrySA is contributing to the development of the National Indigenous Forestry Strategy, a joint initiative between the Department of Agriculture, Fisheries and Forestry Australia and the Aboriginal and Torres Strait Islander Commission. The strategy will identify how the forest and timber industry can work more closely with indigenous communities to help highlight emerging employment, training and new industry opportunities. It is also envisaged that local engagement with indigenous communities will help improve understanding by forest managers of the cultural significance ascribed to many forest areas and lead to changes in management practices.

As part of ForestrySA reconciliation initiatives, ForestrySA employees have had the opportunity to attend a variety of indigenous information forums and cultural awareness training sessions.

ForestrySA participates in the South East Indigenous Employment Program titled “Nunga Links”, a program that seeks to formulate sustainable employment strategies for indigenous job seekers within the forest industry.

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	POLICY AND FORESTRY DEVELOPMENT
	FORESTRY DEVELOPMENT The promotion of farm forestry for both productive and environmental purposes has continued in all regions. In the Southeast the emphasis is now changing to silvicultural management and the harvesting of plantations, with products including plantation grown firewood and eucalypt saw logs. During 2003-2004 a series of first and second rotation plots were finalised to assess issues involved in establishing second rotation hardwood plantations by replanting or coppicing. In addition the growth information on Blue gum plantations collected by ForestrySA over the past 10 years was reassessed resulting in a revision of the growth model. ForestrySA was also represented on the South East Natural Resources Consultative Committee (SENRCC) as part of its commitment to the role of forestry in integrated natural resource management and sustainable landscapes. On Kangaroo Island the establishment and silvicultural management of plantations, including pruning, continues to be the main focus of interested growers. During 2003-2004 a further 65ha of eucalypt plantations were established on Kangaroo Island. This was a combination of Natural Heritage Trust and Envirofund supported wide-spaced sawlog plantings. These plantings will assess the potential for the production of appearance grade timber. In the Mount Lofty Ranges a management plan for the Gumeracha Farm Forestry Demonstration Area has been developed. The management plan identifies each planting area and defines a management schedule for the next six years that will assist in achieving the objectives of each area. In addition to its direct involvement in farm forestry, ForestrySA continues to support the three South Australian Private Forestry Development Committees located in the Green Triangle, Mount Lofty Ranges and Kangaroo Island. In collaboration with all levels of government, industry and the community, these committees provide a national network to support the development of a sustainable private forestry industry. ForestrySA continued its involvement in the Green Triangle Treefarm Project (GTP). The project is about to move into a new phase of harvesting with a trial shipment of hardwood woodchip anticipated in July 2004. The focus of the Project continues to be on securing growers to ensure a sustainable supply of wood. ForestrySA has also used its knowledge and expertise in environmental management to assist the development of an environmental management system for the Portland Treefarm Project in western Victoria. ForestrySA involvement with the Australian Low Rainfall Tree Improvement Group (ALRTIG) continued with the identification of plantation species suitable for low rainfall areas. ForestrySA involvement has included the setting up of new trials in the Southeast, Mid-north and Kangaroo Island in association with landholders. The measurement of new and existing trials has also continued with some areas being pre- commercially thinned. Seed collection of Eucalyptus occidentalis and Eucalyptus cladocalyx commenced at Bundaleer, Red Hill and Gumeracha for commercial sale to support farm forestry. ForestrySA and Primary Industries and Resources SA coordinated the re-measurement of the Farm Tree Improvement plots located across the Mid-north, Mt Lofty Ranges, the Mallee and in the South-east. These sites were established between 1990 and 1993 with the intention of evaluating the performance of different seed sources for a range of species and sites. The data will be valuable in estimating growth rates of over 35 species of various provenances in a wide range of regions and soil types across the State. POLICY The Corporation’s Charter requires it to foster and support the growth of an internationally competitive forestry industry within South Australia, to encourage and facilitate regionally based economic activities based on forestry and other industries, and to support the concept of environmental sustainability which assists in the protection of natural assets and market accessibility. In undertaking these responsibilities, ForestrySA is involved in a range of activities, at the national, State and regional level, to promote a sustainable forest industry and regional development. At the national level, ForestrySA is playing a key role in developing policies to encourage the development of plantations where their benefits to the environment and to regional economic development will be maximised. ForestrySA is contributing to national water policy development to ensure that the role of plantations in sustainable land use is appropriately acknowledged and promoted. ForestrySA was involved at the State and regional level in developing the framework for plantations and water use in the South East that promotes certainty of expansion for plantations whilst ensuring sustainable use of the groundwater resource in the region. ForestrySA has also established the Forest Forum, which meets biannually and provides an opportunity for forest and wood processing industry chief and senior executives in the State to meet to discuss forestry policy directions and strategic issues and to exchange information with equivalent agency representatives. ABORIGINAL RECONCILATION STATEMENT ForestrySA supports the principles of reconciliation between indigenous and non-indigenous Australians, including an understanding of South Australia’s indigenous history and cultural heritage. ForestrySA is working with other Agencies and indigenous communities to develop and implement practical reconciliation initiatives with a distinct focus on the well being and quality of life for indigenous people in South Australia. ForestrySA continues to develop a framework for consultation with regional communities, including indigenous parties, regarding forestry related issues. This consultation will be further enhanced to ensure a better appreciation and understanding of Aboriginal culture and issues. ForestrySA is contributing to the development of the National Indigenous Forestry Strategy, a joint initiative between the Department of Agriculture, Fisheries and Forestry Australia and the Aboriginal and Torres Strait Islander Commission. The strategy will identify how the forest and timber industry can work more closely with indigenous communities to help highlight emerging employment, training and new industry opportunities. It is also envisaged that local engagement with indigenous communities will help improve understanding by forest managers of the cultural significance ascribed to many forest areas and lead to changes in management practices. As part of ForestrySA reconciliation initiatives, ForestrySA employees have had the opportunity to attend a variety of indigenous information forums and cultural awareness training sessions. ForestrySA participates in the South East Indigenous Employment Program titled “Nunga Links”, a program that seeks to formulate sustainable employment strategies for indigenous job seekers within the forest industry.		CORPORATE PROFILE CORPORATE SCORECARD EXECUTIVE INTRODUCTION CORPORATE OVERVIEW LEGISLATION ADMINISTERED BY FORESTRYSA SIGNIFICANT ACHIEVEMENTS AND INITIATIVES 2003-2004 KEY INITIATIVES AND TARGETS FOR 2004-2005 CORPORATE STRUCTURE SOUTH AUSTRALIAN FORESTRY CORPORATION BOARD AND CORPORATE GOVERNANCE FREEDOM OF INFORMATION STATEMENT CHARTER OF THE SOUTH AUSTRALIAN FORESTRY CORPORATION SOCIAL SOCIAL SCORECARD COMMUNITY FORESTRY SPONSORSHIPS AND MAJOR COMMUNITY EVENTS Forest Reserves COMMUNITY EVENTS FORESTRY DEVELOPMENT POLICY ABORIGINAL RECONCILIATION STATEMENT HUMAN RESOURCES MATTERS ORGANISATIONAL DEVELOPMENT EQUAL EMPLOYMENT OPPORTUNITY PROGRAMS OCCUPATIONAL HEALTH, SAFETY & INJURY MANAGEMENT ENVIRONMENTAL ENVIRONMENTAL SCORECARD FORESTRYSA’S ENVIRONMENTAL MANAGEMENT POLICY INTEGRATED MANAGEMENT SYSTEMS AND CONTINUAL IMPROVEMENT INTEGRATED RISK MANAGEMENT RESEARCH AND FOREST HEALTH NATIVE FOREST MANAGEMENT FOREST FIRE PROTECTION ENERGY EFFICIENCY ACTION PLAN ECONOMIC ECONOMIC SCORECARD BUSINESS PERFORMANCE PRODUCTION ACTIVITIES CONTRACTURAL ARRANGEMENTS FRAUD USE OF CONSULTANTS ACCOUNT PAYMENT SUMMARY INTERNATIONAL TRAVEL FOREST STATISTICS FINANCIAL STATEMENT STATEMENT OF FINANCIALperformance AT 30 JUNE 2004 STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2004 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2004 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 1 ROLE AND FUNCTION OF THE SOUTH AUSTRALIAN FORESTRY CORPORATION 2 summary of significant accounting policies 3 CHANGES IN ACCOUNTING POLICIES 4 FUNDING 5 CHANGE IN NET MARKET VALUE OF GROWING TIMBER 6 PROFIT 7 INCOME TAX 8 BAD AND DOUBTFUL DEBTS 9 AUDITORS REMUNERATION 10 RECEIVABLES 11 INVENTORIES 12 OTHER CURRENT ASSETS 13 (a) PROPERTY, PLANT AND EQUIPMENT 13 (b) PROPERTY, PLANT AND EQUIPMENT MOVEMENT SCHEDULE 14 Tax asssets 15 CREDITORS AND ACCRUALS 16 Employee benefits 17 INTEREST BEARING LOAN 18 tax liabilities 19 OTHER LIABILITIES 20 EQUITY 21 contributed equity 22 RETAINED PROFITS 23 DIVIDENDS PAID AND PROPOSED 24 RESERVES 25 EXPENDITURE COMMITMENTS 26 STATEMENT OF CASH FLOWS 27 SCHEDULE OF ADMINISTERED ITEMS 28 REMUNERATION OF DIRECTORS AND EMPLOYEES 29 RELATED PARTY DISCLOSURES 30 FINANCIAL INSTRUMENTS AUDITOR GENERAL’S REPORT GLOSSARY
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