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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Wood Processing (WESFI) Agreement Bill 2000
CONTENTS
1. Short title 1
2. Commencement 2
3. Interpretation 2
4. Agreement ratified and implementation authorised 2
Schedule 1 -- Wood Processing (WESFI)
Agreement
page i
42--1
Western Australia
LEGISLATIVE ASSEMBLY
Wood Processing (WESFI) Agreement Bill 2000
A Bill for
An Act to ratify, and authorise the implementation of, an agreement
between the State and WESFI Limited relating to the continued
supply of plantation softwood for the manufacture of wood based
panel products.
The Parliament of Western Australia enacts as follows:
1. Short title
This Act may be cited as the Wood Processing (WESFI)
Agreement Act 2000.
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Wood Processing (WESFI) Agreement Bill 2000
s. 2
2. Commencement
This Act comes into operation on the day on which it receives
the Royal Assent.
3. Interpretation
5 (1) In this Act --
"the Agreement" means the Wood Processing (WESFI)
Agreement, a copy of which is set out in Schedule 1, and
includes that Agreement as varied from time to time, in
accordance with its provisions.
10 (2) The notes following plans A and B of the Agreement do not
form part of this Act or the Agreement.
4. Agreement ratified and implementation authorised
(1) The Agreement is ratified.
(2) The implementation of the Agreement is authorised.
15 (3) Without limiting or otherwise affecting the Government
Agreements Act 1979, the Agreement operates and takes effect
despite any other Act or law.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
Schedule 1 -- Wood Processing (WESFI) Agreement
[s. 3(1)]
THIS AGREEMENT is made this eighth day of August 2000
BETWEEN
5 THE HONOURABLE RICHARD FAIRFAX COURT, B. Com., M.L.A.,
Premier of the State of Western Australia acting for and on behalf of the said
State and instrumentalities thereof from time to time (hereinafter called "the
State") of the first part, and
WESFI LIMITED ACN 008 672 740 a company incorporated in the State of
10 Western Australia and having its registered office at 1-27 Somersby Road,
Welshpool (hereinafter called "the Company") of the second part
WHEREAS:
A. The State has established substantial softwood plantations in the
vicinity of the Perth Metropolitan area and in the South West of the
15 State. Approved forestry practice requires that these softwood
plantations be periodically thinned. Such thinning produces
substantial quantities of softwood timber that is not suitable for
sawlogs. Softwood thinnings (together with softwood plantation and
pine sawmill residues) are raw materials used in the production of
20 wood based panel products of the nature currently manufactured by
the Company at its Welshpool and Dardanup factories.
B. It is in the interests of the State that plantation softwood thinnings be
fully utilised and processed within the State and accordingly the State
has encouraged the establishment by the Company of a particleboard
25 factory in the Dardanup area and a medium density fibreboard factory
at Welshpool.
C. The original design capacity of the factories was predicated on the
assumption that the volumes of plantation softwood thinnings
(together with softwood plantation residues, sawmill residues and
30 other industrial wood suitable for the manufacture of wood based
panel products) available within economic distances of the factories
would progressively increase. Accordingly in the interests of
economy of operation and in recognition of the need for world-scale
competitiveness the factories were built with a design capacity
35 considerably in excess of the markets for their products.
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
D. The Company before establishing the factories required (inter alia) to
be assured of the availability of certain facilities and services to
operate the factories and that it would be able to procure a continuous
supply of softwood resource within economic distances of the
5 factories and requested the State to assist in these matters.
E. The State recognising that:
(a) the Company's undertaking promotes and assists the State's
policy of decentralization of industry;
(b) wood based panel products manufacture promotes the
10 efficient development of the softwood plantations; and
(c) there are other factors peculiar to the nature of the Company's
undertaking which require special rights
agreed to give effect to the Company's requirements by entering into
the 1975 Agreement for an initial term of 25 years from 23 May 1975.
15 F. Clause 32 (1) of the 1975 Agreement provides that (subject to the
terms of the Clause) the State will if satisfied that the Company needs
to have supplies of softwood resource suitable for the manufacture of
wood based panel products assured to it by a further agreement enter
into negotiations with the Company for that purpose.
20 G. Having satisfied itself that the Company needs to have assured to it:
(a) the continued supply of adequate volumes of softwood resource
suitable for the manufacture of wood based panel products
within economic distances from the factories; and
(b) the intentions of the State to use all reasonable endeavours to
25 ensure that a continuous supply of softwood resource suitable
for the manufacture of wood based panel products is available
within economic distances from the factories throughout the
term and that the Company has the opportunity to purchase
volumes of softwood resource in addition to those volumes
30 provided for under this Agreement where such softwood
resource becomes available,
the State desires in pursuance of the obligations undertaken by it in the
1975 Agreement and for the purpose of continuing to promote
employment opportunity and industrial development especially in
35 regional areas of Western Australia to assist by extending the supply
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
arrangements under the 1975 Agreement upon and subject to the terms
and conditions of this Agreement.
H. The Company in recognition of the State's commitment to continue its
support for industry in Western Australia based on plantation
5 softwoods has agreed as a discrete agreement (having no impact on
the terms and conditions of this Agreement) to negotiate in good faith
with the State to secure an arrangement whereby the Company will
contribute a minimum of $1,000,000 per annum during the term of
this Agreement to a scheme for the creation and management by the
10 State on Crown Reserves of softwood plantations of the species Pinus
radiata on commercial terms acceptable to the Company and the State.
NOW THIS AGREEMENT WITNESSES:
1. In this Agreement subject to the context -
"advise", "apply", "approve", "approval", "consent", "certify",
15 "direct", "notice", "notify", "request", or "require", means advise,
apply, approve, approval, consent, certify, direct, notice, notify,
request or require in writing as the case may be and any inflexion or
derivation of any of those words has a corresponding meaning;
"CALM" means the Department of Conservation and Land
20 Management established under the Public Service Act 1978;
"CALM Act" means the Conservation and Land Management
Act 1984;
"Clause" means a clause of this Agreement;
"Commonwealth" means the Commonwealth of Australia and
25 includes the Government for the time being thereof;
"Company" means WESFI LIMITED ACN 008 672 740 a company
incorporated in the State of Western Australia and having its registered
office at 1-27 Somersby Road Welshpool and includes its controlled
entities;
30 "cubic metre" means cubic metre of resource true volume under bark;
"Dardanup factory" means the Company's factory at Dardanup and
all necessary ancillary buildings works plant and equipment and
services for the production of panel products;
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
"date of commencement" means the date on which the Bill referred
to in Clause 3 of this Agreement commences to operate as an Act;
"EP Act" means the Environmental Protection Act 1986;
"Executive Director" means the Executive Director of CALM;
5 "factories" mean the Dardanup factory and the Welshpool factory
and any other factory as may be agreed to by the Minister;
"factory sites" means:
(i) the Dardanup factory site being Boyanup Agricultural Area
Lots 353 and 354 and being part of Lot 2 on diagram 46933
10 the whole of the land in certificate of title volume 1729
folio 657; and
(ii) the Welshpool factory site being Lot 5 on Diagram 77208
the whole of the land in certificate of title volume 1867
folio 996 together with part of Lot 96 on Plan 2653 the
15 whole of the land in certificate of title volume 1549
folio 869;
"forest officer" means any officer of CALM designated as a forest
officer under the CALM Act;
"forest produce and timber" have the same respective meanings as
20 in the CALM Act;
"LA Act" means Land Administration Act 1997;
"loading points" means such places within the softwood plantations
as shall be selected by the Executive Director after consultation with
the Company and which so far as possible shall be selected so as to
25 minimise distance between them and the places where the trees are
felled whilst providing reasonable access to and use by vehicles
transporting the resource to the factories;
"local government" means the council of a municipality that is a city,
town or shire constituted under the Local Government Act 1995;
30 "Minister" means the Minister in the Government of the State for the
time being responsible for the administration of the Act to ratify this
Agreement and pending the passing of that Act means the Minister for
the time being designated in a notice from the State to the Company
and includes the successors in office of the Minister;
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
"Minister for Planning" means the Minister in the Government of
the State for the time being responsible for the administration of the
Town Planning and Development Act 1928;
"month" means calendar month;
5 "panel products" means reconstituted wood based panel products
including particle board and medium density fibreboard and such
other allied products as the Minister may approve from time to time
for the purpose of this definition;
"person" or "persons" includes bodies corporate;
10 "public road" means a road as defined by the Road Traffic Act 1974;
"related bodies corporate" means bodies corporate related within the
meaning of that term under the Corporations Law of the
Commonwealth;
"resource" means softwood logs and woodchips, suitable for the
15 manufacture of panel products, obtained from softwood plantation
harvesting operations;
"said State" means the State of Western Australia;
"softwood" means timber of the genus Pinus;
"softwood plantations" means the existing plantations of softwood
20 timber coloured either green or blue on the CALM map plan A
attached hereto and initialled by or on behalf of the parties hereto for
the purposes of identification and all future plantations of softwood
timber under the control of the Executive Director where those
plantations are located on State forest or land which is held or
25 occupied by the Executive Director under the CALM Act or in respect
of which an agreement for harvesting and selling softwood from that
land has been made between the Executive Director and another
person under or pursuant to the CALM Act and all future plantations
established by the Executive Director either as principal or agent for
30 which the Executive Director has control over the marketing of
resource;
"subclause" means subclause of the Clause in or in relation to which
the term is used;
"term" means the term defined in Clause 21 of this Agreement;
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
"the 1975 Agreement" means the agreement defined in section 2 of
the Wesply (Dardanup) Agreement Authorisation Act 1975;
"this Agreement" "hereof" and "hereunder" refer to this
Agreement (including the Schedules) whether in its original form or as
5 from time to time added to varied or amended;
"Trade Practices Act" means the Commonwealth Trade Practices
Act 1974;
"Welshpool factory" means the Company's factory at 1-27 Somersby
Road, Welshpool or such other factory or factories as agreed to by the
10 Minister (other than the Dardanup factory) which uses resource
supplied under this Agreement;
"year" means a financial year.
Interpretation
2. (1) In this Agreement
15 (a) monetary references are references to Australian
currency unless otherwise specifically expressed;
(b) power given under any Clause other than Clause 13
to extend any period or date shall be without
prejudice to the power of the Minister under
20 Clause 13;
(c) Clause headings do not affect interpretation or
construction;
(d) words in the singular shall include the plural and
words in the plural shall include the singular
25 according to the requirements of the context;
(e) one gender includes the other gender;
(f) reference to an Act includes the amendments to that
Act for the time being in force and also any Act
passed in substitution therefor or in lieu thereof and
30 the regulations for the time being in force
thereunder; and
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
(g) reference to the Executive Director includes the
person or body for the time being exercising the
statutory powers and functions relevant to this
Agreement exercised by the Executive Director at
5 the date of this Agreement.
(2) Nothing in this Agreement shall be construed to exempt the
State or the Company from compliance with or to require the
State or the Company to do anything contrary to, any law
relating to native title or any lawful obligation or requirement
10 imposed on the State or the Company, as the case may be,
pursuant to any law relating to native title.
(3) Nothing in this Agreement shall be construed to exempt the
Company from compliance with any requirement in
connection with the protection of the environment arising out
15 of or incidental to its activities under this Agreement that may
be made pursuant to the EP Act.
Ratification and Operation
3. (1) The State shall introduce and sponsor a Bill in the State
Parliament of Western Australia to ratify this Agreement and
20 endeavour to secure its passage as an Act prior to 31
December 2000 or such later date as may be agreed between
the parties hereto.
(2) The provisions of this Agreement other than this Clause and
Clauses 1 and 2 shall not come into operation until the Bill
25 referred to in subclause (1) has been passed by the Parliament
of Western Australia and comes into operation as an Act.
(3) If by 31 March 2001 the said Bill has not commenced to
operate as an Act then unless the parties hereto otherwise
agree this Agreement shall then cease and determine and no
30 party hereto shall have any claim against any other party
hereto with respect to any matter or thing arising out of, done,
performed, or omitted to be done or performed under this
Agreement.
(4) On the said Bill commencing to operate as an Act all the
35 provisions of this Agreement shall operate and take effect
notwithstanding the provisions of any Act or law.
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
Termination of 1975 Agreement
4. Upon and subject to the said Bill commencing to operate as an Act the
1975 Agreement is hereby cancelled and the rights and obligations of
the parties thereunder are hereby terminated.
5 Supply of resource
5. (1) (a) For each year of this Agreement the State shall ensure
that the Executive Director makes available for supply
to the Company not less than 330,000 cubic metres of
resource to the factories (except to the extent that a
10 lesser aggregate requirement is specified in the
statement of the Company's requirements for resource
provided by the Company to the Executive Director
for any such year in accordance with subclause (5) of
this Clause).
15 (b) Except as otherwise agreed by the Minister the
Executive Director shall not be obliged to supply to
the Company in any year a quantity of resource in
excess of 330,000 cubic metres. Nothing in this
paragraph prevents the Executive Director in his
20 discretion from supplying to the Company in any year
a quantity of resource in excess of 330,000 cubic
metres by agreement with the Company.
(c) The Executive Director shall:
(i) supply to the Company from time to time
25 details of its best estimates of the availability
of resource from the softwood plantations
for each year of this Agreement; and
(ii) notify to the Company prior to 31 December
in each year the maximum quantity of
30 resource available for supply to the
Company during the next ensuing year.
(d) During the term the State shall ensure that the
Executive Director shall supply to the Company
(without the Company being under any obligation to
35 obtain any permit or licence from the Executive
Director) the quantity of resource from the softwood
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
plantations agreed upon or determined in respect of
each year pursuant to the provisions of subclause (6)
of this Clause.
(e) For the purposes of giving effect to the obligations of
5 the State under paragraph (a) of this subclause the
State shall ensure that the Executive Director:
(i) replants to Pinus radiata or Pinus pinaster
such suitable areas of State forest and fee
simple land held in the name of the
10 Executive Director which have previously
been planted to Pinus species and have been
clearfelled, except for those softwood
plantations occurring in State forest 65
(Gnangara), 70 (Peel) and 3 (Hamel); and
15 (ii) causes to be planted to Pinus pinaster within
as close a proximity to the Welshpool
factory as is reasonably possible such areas
of available land
as may be necessary to endeavour to ensure that
20 sufficient volumes of resource can be made available
to the Company.
(2) On or before 31 December in each year during the
continuance of this Agreement the Company shall deliver to
the Executive Director an estimate of its resource
25 requirements for each of the next ensuing 6 years.
(3) With due regard for sound forest practice, the Executive
Director's other log supply commitments and the aim of
minimising the haulage distance to the factories the Executive
Director shall by 28 February in each year advise the
30 Company of the softwood plantations from which it is planned
to supply the Company's estimated requirements for resource
for each of the factories for each of the next ensuing 6 years
notified pursuant to subclause (2) of this Clause.
(4) Within 60 days of being advised by the Executive Director of
35 the softwood plantations from which resource is planned to be
supplied in accordance with subclause (3) of this Clause, the
Company may advise the Executive Director if the Company
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
considers the volume weighted average haulage distance from
the nominated softwood plantations to the factories to be
uneconomic. If the Company advises the Executive Director
that it considers the volume weighted average haulage
5 distance is uneconomic then the Executive Director will
consider the basis on which the Company has reached that
conclusion and if the Executive Director agrees then the
Executive Director will use all reasonable endeavours in a
responsible manner to reduce the volume weighted average
10 haulage distance.
(5) On or before 15 May in each year during the continuance of
this Agreement the Company shall provide to the Executive
Director a statement of the Company's requirements for
resource for each of the factories for the ensuing year.
15 (6) On or before 31 May in each year agreement shall be reached
between the Company and the Executive Director as to the
quantity of resource to be supplied by the Executive Director
to the Company during the next ensuing year. In default of
agreement the matter shall be determined by arbitration.
20 (7) The State shall ensure that the Executive Director shall as far
as is practicable control the softwood plantations so as to
ensure that (consistent with in his opinion approved forestry
practice) the quantity of resource agreed between the
Executive Director and the Company or determined (pursuant
25 to subclause (6) of this Clause) is available to the Company in
priority to other prospective uses of resource of a specification
which would ordinarily be intended for supply to the
Company.
Specifications of Resource
30 (8) The Executive Director shall provide to the Company
resource, which is in accordance with the specifications in the
Second Schedule which may be varied from time to time by
agreement between the Executive Director and the Company.
Suspension if plantation damaged
35 (9) If any of the softwood plantations are damaged or destroyed
by fire disease or other cause to such an extent that it is
impracticable for the State to comply with the provisions of
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
subclause (1)(a) of this Clause or if by reason of anything
beyond its reasonable control the State is prevented from
complying with those provisions the Company shall have no
claim against the Crown in right of the State or the Executive
5 Director for the nonfulfilment of their obligations under those
provisions so far as nonfulfilment is due to any such cause.
Executive Director's commitments
(10) (a) As it is agreed that it is in the best interest of the
Executive Director and the Company to encourage
10 economy in felling and extraction to loading points
and (where applicable) chipping of resource, the State
undertakes that the Executive Director shall from time
to time as occasion requires (after consultation with
the Company as to the terms and conditions thereof)
15 call tenders for such felling and extraction and
chipping. The Executive Director shall not accept any
tender for the felling and extraction and (where
applicable) chipping of resource that is to be supplied
to the Company unless before acceptance the tender
20 has been considered jointly by the Executive Director
and the Company.
(b) The State shall ensure that the Executive Director will
construct and maintain roads suitable for transport of
the resource by the Company and its contractors from
25 loading points to the boundaries of land controlled by
the Executive Director.
Price of resource
(11) As to all resource made available to and accepted by the
Company, the Company shall pay to the Executive Director in
30 respect thereof:
(a) the several rates of stumpages set out in the First
Schedule hereto provided always that the Minister
may from time to time if he considers it appropriate so
to do vary any of the said several rates of stumpages
35 set out in the First Schedule hereto to such amount or
amounts and for such period or periods as he may
determine;
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
(b) the costs and expenses of felling and extraction of
resource to the loading points and chipping of logs at
the rates or prices set out in the contracts of sale
resulting from tenders called pursuant to subclause
5 (10)(a) of this Clause respectively accepted therefor
but if such tender includes logs other than resource
then as otherwise agreed or failing agreement as
determined by arbitration to be fair and equitable;
(c) the cost of haulage from the loading point to the
10 factories where the Executive Director is responsible
for the haulage of the resource;
(d) 5 per centum of the costs and expenses referred to in
subclauses (b) and (c) of this subclause representing:
(i) the costs directly incurred in controlling and
15 supervising the work of contractors engaged
in the felling and extraction to the loading
points and (where applicable) chipping of
resource; and
(ii) 15 per centum of the costs referred to in
20 subclause (d)(i) of this subclause to cover
overheads and other indirect costs associated
with such work; and
(e) a charge for the construction use and maintenance of
roads in the softwood plantations and State forests
25 levied at a rate as set out in the First Schedule hereto.
(12) At intervals of not less than three years either party may
request that the provisions of either or both paragraphs (d) and
(e) of subclause (11) be reviewed. If under the review the
parties fail to agree as to whether an adjustment is required or
30 on the amount of the adjustment then the matter shall be
referred to arbitration.
(13) (a) In this subclause (13) "GST" and "supply" have the
meanings given to those terms in the A New Tax
System (Goods and Services Tax) Act 1999 of the
35 Commonwealth and "GST" includes GST equivalents
made payable by the law of Western Australia.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
(b) Notwithstanding anything express or implied in this
Agreement (other than this subclause (13))to the
contrary, if GST is imposed or is payable on or in
respect of any supply of goods, services, or other
5 things, (including without limitation the licensing of
any right) by the State under or in connection with this
Agreement, or if the amount of GST is calculated by
reference to any such supply, or if GST is imposed or
is payable on or in respect of or by reference to any
10 amount payable to the State under or in connection
with this Agreement, then the Company must pay the
State an extra amount equal to the amount of that
GST.
(c) The Company must pay the State all amounts payable
15 under this subclause (13) at the time of the payment to
which they relate, or otherwise on demand.
(d) The obligations of the Company under this
subclause (13) only apply if the State has provided the
Company with a valid tax invoice for the relevant
20 supply which:-
(i) meets the requirements of the legislation and
any regulations governing the GST and any
relevant requirements of the Australian
Taxation Office (or other relevant
25 administering body or person); and
(ii) sets out the amount in respect of which GST
is payable and the amount of that GST.
(e) If after the date of this Agreement there is any
abolition or reduction of taxes duties or statutory
30 charges (including but not limited to sales tax, fuel
excise, stamp duty, financial institutions duty, debits
tax and any impost in lieu of any of the foregoing
under any tax equivalent regime) the amounts
otherwise payable by the Company under this
35 subclause (13) will be reduced so that the full benefit
of any such abolition or reduction applicable to the
performance of this Agreement is passed on to the
Company.
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
Company's commitments
6. (1) (a) Subject to the provisions of Clause 12 hereof the
Company shall be bound in each year to take delivery
of the quantity of resource agreed or determined
5 pursuant to subclause (6) of Clause 5 hereof provided
that if it takes less than 90 per centum of such quantity
in any year, the Company shall pay stumpage to the
Executive Director on the quantity less than 90%
(deficiency) at a rate equal to the stumpage rate
10 payable in that year under subclause (11)(a) of Clause
5 hereof; and
(b) if the Company during either or both of the two years
immediately following any year in respect of which it
is required to make a payment to the Executive
15 Director pursuant to paragraph (a) of subclause (1) of
this Clause takes resource in excess of the lesser of:
(i) 90% of the quantity of resource notified by
the Executive Director to the Company
pursuant to subclause (1)(c)(ii) of Clause 5
20 as available for supply to the Company
during the relevant year; or
(ii) 330,000 cubic metres,
then the stumpage payable on such excess (excess)
shall be reduced by the amount of stumpage which
25 had been paid in respect of the deficiency, but such
that if the amount payable on the deficiency is greater
than the amount payable on the excess, then the
stumpage payable on the excess will be nil. Under no
circumstances will the reduction in stumpage payable
30 on the excess, whether occurring in either or over both
of the two years immediately following any year in
which the deficiency occurs, be greater than the
amount of the payment made in respect of the
deficiency.
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Wood Processing (WESFI) Agreement Bill 2000
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(2) The following provisions shall apply with respect to stumpage
rates and costs and expenses payable under this Agreement:
(a) the stumpage rates shall be payable at such times after
the amounts have been ascertained as provided for in
5 subclause (11)(a) of Clause 5 and in such manner as
the Executive Director from time to time determines;
and
(b) if any sum in respect of stumpage rates or any of the
costs and expenses referred to in subclauses (11)(b)
10 (11)(c) (11)(d) and (11)(e) of Clause 5 hereof remains
unpaid for 30 days after the due date the Executive
Director may, without limiting the obligations of the
Company under subclause (1) of Clause 6 hereof by
not less than 7 days notice in writing to the Company
15 suspend its right to obtain resource under this
Agreement until payment is made.
(3) (a) The quantity of resource upon which the stumpage is
payable shall be:
(i) measured in such manner and by such
20 method (allowance being made for bark) as
may be agreed upon from time to time by
the Executive Director and the Company
provided that such methods are consistent
with the Regulations made under the CALM
25 Act; and
(ii) accurately recorded in writing by the
Company in such manner as the Executive
Director reasonably directs and no resource
shall be removed from the place referred to
30 in subclause (3)(b) of this Clause until the
measurement has been completed and so
recorded and within 3 business days
following the date of delivery of the
resource the Company shall furnish to the
35 Executive Director a return in writing
showing the quantity of resource upon
which stumpage is payable.
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(b) The place at which the quantity of resource is to be
measured shall be as fixed by the Executive Director
from time to time after consultation with the Company
and no resource shall be removed therefrom until such
5 measurement has been completed and recorded.
(c) If the stumpage so payable is to be determined by
weight:
(i) the Company shall provide a weighbridge of
a pattern which meets the requirements of
10 the Weights and Measures Act 1915 and
shall while this Agreement remains in force
have the weighbridge maintained and
periodically verified and stamped in
accordance with the provisions of that Act;
15 (ii) at all times while the weighbridge is in
accurate working order the quantity of
resource upon which stumpage is payable
under this Agreement shall be measured by
weighing in on the weighbridge; and
20 (iii) at all times while the weighbridge is not in
accurate working order the quantity of
resource upon which stumpage is payable
under this Agreement shall be determined in
such manner as may be agreed upon by the
25 Executive Director and the Company or
failing agreement within 14 days as the
Executive Director may direct.
(4) Save as varied or modified by this Agreement the Company
shall comply with the provisions of the CALM Act.
30 Maintenance of public roads
7. (1) The State shall maintain or cause to be maintained those
public roads under the control of the Commissioner of Main
Roads or a local government which may be used by the
Company for the purposes of this Agreement to a standard
35 similar to comparable public roads maintained by the
Commissioner of Main Roads or a local government as the
case may be.
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Upgrading of public roads
(2) (a) In the event that for or in connection with the
Company's activities hereunder the Company or any
person engaged by the Company uses or wishes to use a
5 public road (whether referred to in subclause (1) or
otherwise) which is inadequate for the purpose, or any
use by the Company or any person engaged by the
Company of any public road results in excessive damage
to or deterioration thereof (other than fair wear and tear)
10 then the Company shall pay to the State or the local
government as the case may require an equitable part as
reasonably determined by the Commissioner of Main
Roads of the total cost of any upgrading required or of
making good the damage or deterioration having regard
15 to the use of such public road by others.
(b) It is declared and agreed for the purposes of this
subclause that the Executive Director supplying
resource to the factories pursuant to this Agreement is
not a person engaged by the Company referred to in
20 paragraph (a) of this subclause.
No discriminatory charges
8. Except as provided in this Agreement the State shall not impose nor
shall it permit or authorise any of its agencies or instrumentalities or
any local government or other authority of the State to impose
25 discriminatory taxes rates or charges of any nature whatsoever on or
in respect of the titles property or other assets, products, materials or
services used or produced by or through the factories' operations nor
will the State take or permit to be taken by any such authority any
other discriminatory action which would deprive the Company of full
30 enjoyment of the rights granted and intended to be granted under this
Agreement.
Zoning and other issues
Zoning
9. (1) The State shall ensure after consultation with the local
35 governments having jurisdiction in respect of the factory sites
that the factory sites shall be and remain zoned for use or
otherwise protected during the term so that the activities of the
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
Company hereunder may be undertaken and carried out
thereon without any interference or interruption by the State
or by any State agency or instrumentality or by any local
government or other authority of the State on the ground that
5 such activities are contrary to any provision of a regional
planning scheme, town planning scheme or local law.
Surrounding land
(2) Provided the Company implements a reasonable ongoing
improvement program in its operations at the Dardanup
10 factory to the satisfaction of the Minister:
(a) the State will make reasonable endeavours to use
expeditiously provisions contained in the EP Act, the
Western Australian Planning Commission Act 1985
and other relevant legislation after consultation with
15 the Company and the relevant local government to
define a buffer boundary and apply suitable planning
and zoning controls to land within the buffer boundary
to preclude land uses and development incompatible
with the approved operations of the Dardanup factory
20 so that the Company will be able to operate on a
continuous basis at the Dardanup factory;
(b) the State agrees to have regard to existing noise
emission contours shown on plan B attached hereto
when creating the buffer boundary; and
25 (c) the State agrees that zoning and planning controls that
may be put into place pursuant to subclause 9(2)(a)
shall not be changed during the term in any manner
that is determined by the Minister for Planning after
consultation with the Company the Minister and the
30 relevant local government to be incompatible with or
likely to restrict or adversely affect the activities of
the Company at the Dardanup factory.
Resumption for the purposes of this Agreement
(3) (a) The State is hereby empowered, as and for a public
35 work under the Public Works Act 1902 and Parts 9
and 10 of the LA Act, to take or resume for the
purposes of this Agreement any land which in the
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
reasonable opinion of the Company is necessary for
the operation of the factories and which the Minister
determines is appropriate to be taken or resumed for
the operation of the factories and notwithstanding any
5 other provisions of those Acts may grant leases,
licences or easements in respect of the whole or
portions of that land to the Company.
(b) In applying the Public Works Act 1902 and Parts 9
and 10 of the LA Act for the purposes of this Clause -
10 (i) "land" in those Acts shall be read as
extending to any land or to any portion of
any land or to the subsoil, surface or
airspace relating thereto and to any estate,
right, title, easement, lease, licence,
15 privilege, native title right or interest or
other interest, in, over, under, affecting, or in
connection with that land or any portion,
stratum or other specified sector of that land;
(ii) sections 170, 171, 172, 173, 174, 175 and
20 184 of the LA Act do not apply; and
(iii) the LA Act shall be deemed modified in
section 177(2) by inserting -
(A) after "railway" the following -
"or land is being taken pursuant to a
25 Government agreement as defined in
section 2 of the Government
Agreements Act 1979"; and
(B) after "that Act" the following -
"or that Agreement may be".
30 (c) The Company shall pay to the State on demand the
costs of and incidental to any taking or resumption of
land pursuant to this Clause including but not limited
to any compensation payable to any person including
any holder of native title or of native title rights and
35 interests in the land.
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Other
(4) If the Minister in his discretion believes it is reasonable to do so
he will at the Company's request make submissions to any
relevant State agency or instrumentality in respect of applications
5 made by the Company to obtain relief or exemption from
specific legislation or regulations subject to the Company
demonstrating to the Minister's satisfaction that the Company is
making all reasonable endeavours to comply with the legislation
or regulations the subject of the applications.
10 Assignment
10. (1) Subject to the provisions of this Clause the Company may at any
time assign mortgage charge sublet or dispose of to any company
or persons with the consent of the Minister the whole or any part
of its rights hereunder and of its obligations hereunder subject
15 however in the case of an assignment subletting or disposition to
the assignee sublessee or disponee (as the case may be) executing
in favour of the State (unless the Minister otherwise determines)
a deed of covenant in a form to be approved by the Minister to
comply with observe and perform the provisions hereof on the
20 part of the Company to be complied with observed or performed
in regard to the matter or matters the subject of such assignment
subletting or disposition.
(2) Notwithstanding anything contained in or anything done
under or pursuant to subclause (1) the Company shall at all
25 times during the currency of this Agreement be and remain
liable for the due and punctual performance and observance of
all the covenants and agreements on its part contained in this
Agreement PROVIDED THAT the Minister may agree to a
release from such liability where the Minister considers such
30 release will not be contrary to the interests of the State.
Variation
11. (1) The parties to this Agreement may from time to time by
agreement in writing add to substitute for cancel or vary all or
any of the provisions of this Agreement for the purpose of
35 more efficiently or satisfactorily implementing or facilitating
any of the objects of this Agreement.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
(2) The Minister shall cause any agreement made pursuant to
subclause (1) to be laid on the Table of each House of
Parliament within 12 sitting days next following its execution.
(3) Either House may, within 12 sitting days of that House after
5 the agreement has been laid before it pass a resolution
disallowing the agreement, but if after the last day on which
the agreement might have been disallowed neither House has
passed such a resolution the agreement shall have effect from
and after that last day.
10 Force majeure
12. This Agreement shall be deemed to be made subject to any delays in
the performance of the obligations under this Agreement and to the
temporary suspension of continuing obligations under this Agreement
that may be caused by or arise from circumstances beyond the power
15 and control of the party responsible for the performance of those
obligations including (without limiting the generality of the foregoing)
delays or any such temporary suspension as aforesaid caused by or
arising from Act of God force majeure earthquakes floods storms
tempest washaways fire (unless caused by the actual fault or privity of
20 the party responsible for such performance) act of war act of public
enemies riots civil commotions strikes lockouts stoppages restraint of
labour or other similar acts (whether partial or general) acts or
omissions of the Commonwealth shortages of labour or essential
materials reasonable failure to secure contractors delays of contractors
25 or inability (common in the panel products industry) to sell profitably
panel products or factors due to overall world economic conditions or
factors due to action taken by or on behalf of any government or
governmental authority (other than the State or any authority of the
State) or factors that could not reasonably have been foreseen
30 PROVIDED ALWAYS that the party whose performance of
obligations is affected by any of the said causes shall promptly give
notice to the other party of the event or events and shall use its best
endeavours to minimise the effects of such causes as soon as possible
after the occurrence.
35 Power to extend periods
13. Notwithstanding any provision of this Agreement the Minister may at
the request of the Company from time to time extend or further extend
any period or vary or further vary any date referred to in this
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
Agreement for such period or to such later date as the Minister thinks
fit whether or not the period to be extended has expired or the date to
be varied has passed.
Determination of Agreement
5 14. (1) In any of the following events namely if
(a) (i) the Company makes default which the State
considers material in the due performance or
observance of any of the covenants or
obligations of the Company in this
10 Agreement; or
(ii) the Company abandons or repudiates this
Agreement or its activities under this
Agreement
and such default is not remedied or such activities
15 resumed within a period of 180 days after notice is
given by the State as provided in subclause (2) or if
the default or abandonment is referred to arbitration,
then within the period mentioned in subclause (3); or
(b) the Company goes into liquidation (other than a
20 voluntary liquidation for the purpose of reconstruction)
and unless within 3 months from the date of such
liquidation the interest of the Company is assigned to an
assignee approved by the Minister under Clause 10,
the State may by notice to the Company determine this
25 Agreement.
(2) The notice to be given by the State to the Company in terms
of paragraph (a) of subclause (1) shall specify the nature of
the default or other ground so entitling the State to exercise
such right of determination.
30 (3) (a) If the Company contests the alleged default
abandonment or repudiation referred to in
paragraph (a) of subclause (1) the Company shall
within 60 days after notice given by the State as
provided in subclause (2) refer the matter in dispute to
35 arbitration.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
(b) If the question is decided against the Company, the
Company shall comply with the arbitration award
within a reasonable time to be fixed by that award
PROVIDED THAT if the arbitrator finds that there
5 was a bona fide dispute and that the Company was not
dilatory in pursuing the arbitration, the time for
compliance with the arbitration award shall not be less
than 90 days from the date of such award.
(4) If the default referred to in paragraph (a) of subclause (1) of this
10 Clause shall not have been remedied after receipt of the notice
referred to in that subclause within the period specified in that
paragraph or within the time fixed by the arbitration award as
aforesaid the State instead of determining this Agreement as
aforesaid because of such default may itself remedy such default
15 or cause the same to be remedied (for which purpose the State by
agents workmen or otherwise shall have full power to enter upon
lands occupied by the Company and to make use of all plant
machinery equipment and installations thereon) and the actual
costs and expenses incurred by the State in remedying or causing
20 to be remedied such default shall be a debt payable by the
Company to the State on demand.
Effect of cessation or determination of Agreement
15. On the cessation or determination of this Agreement:
(a) except as otherwise agreed by the Minister the rights
25 of the Company to in or under this Agreement shall
thereupon cease and determine but without prejudice
to the liability of either of the parties hereto in respect
of any antecedent breach or default under this
Agreement or in respect of any indemnity given under
30 this Agreement;
(b) the Company shall forthwith pay to the State all
moneys which may then have become payable or
accrued due;
(c) save as aforesaid and as otherwise provided in this
35 Agreement neither of the parties shall have any claim
against the other of them with respect to any matter or
thing in or arising out of this Agreement.
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Indemnity
16. The Company shall indemnify and keep indemnified the State and its
servants agents and contractors in respect of all actions suits claims
demands or costs of third parties arising out of or in connection with
5 any work carried out by or on behalf of the Company pursuant to this
Agreement or relating to its activities hereunder or arising out of or in
connection with the construction maintenance or use by the Company
or its servants agents contractors or assignees of the Company's works
or services the subject of this Agreement or the plant apparatus or
10 equipment installed in connection therewith PROVIDED THAT
subject to the provisions of any other relevant Act such indemnity
shall not apply in circumstances where the State, its servants, agents,
or contractors are negligent in carrying out work for the Company
pursuant to this Agreement.
15 Subcontracting
17. Without affecting the liabilities of the parties under this Agreement
either party shall have the right from time to time to entrust to third
parties the carrying out of any portions of the activities which it is
authorised or obliged to carry out hereunder.
20 Arbitration
18. (1) Any dispute or difference between the parties arising out of or
in connection with this Agreement the construction of this
Agreement or as to the rights duties or liabilities of either
party under this Agreement or as to any matter to be agreed
25 upon between the parties under this Agreement shall in default
of agreement between the parties and in the absence of any
provision in this Agreement to the contrary be referred to and
settled by arbitration under the provisions of the Commercial
Arbitration Act 1985 and notwithstanding section 20(1) of that
30 Act each party may be represented before the arbitrator by a
duly qualified legal practitioner or other representative.
(2) Except where otherwise provided in this Agreement, the
provisions of this Clause shall not apply to any case where the
State the Minister or any other Minister in the Government of
35 the said State is by this Agreement given either expressly or
impliedly a discretionary power.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
(3) The arbitrator of any submission to arbitration under this
Agreement is hereby empowered upon the application of any
of the parties to grant in the name of the Minister any interim
extension of any period or variation of any date referred to
5 herein which having regard to the circumstances may
reasonably be required in order to preserve the rights of that
party or of the parties under this Agreement and an award may
in the name of the Minister grant any further extension or
variation for that purpose.
10 Consultation
19. The Company shall during the term consult with and keep the State
fully informed on a confidential basis concerning any action that the
Company proposes to take with any third party (including the
Commonwealth or any Commonwealth constituted agency authority
15 instrumentality or other body) which might significantly affect the
overall interest of the State under this Agreement.
Notices
20. Any notice consent or other writing authorised or required by this
Agreement to be given or sent by the State to the Company shall be
20 deemed to have been duly given or sent if signed by the Minister or by
any senior officer of the Public Service of the said State acting by the
direction of the Minister and forwarded by prepaid post or handed to
the Company at its address hereinbefore set forth or other address in
the said State nominated by the Company to the Minister and by the
25 Company to the State if signed on its behalf by any person or persons
authorised by the Company or by its solicitors as notified to the State
from time to time and forwarded by prepaid post or handed to the
Minister and except in the case of personal service any such notice
consent or writing shall be deemed to have been duly given or sent on
30 the day on which it would be delivered in the ordinary course of post.
Term of Agreement
21. (1) This Agreement shall remain in force for a period of 25 years
commencing on the date of commencement and expiring on
the day next preceding the twenty fifth anniversary thereof or
35 until sooner determination in accordance with the provisions
hereof.
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
(2) For the purpose of subclause (1) subsection (2) of section 91
of the CALM Act shall be deemed to be modified by the
deletion of "15 years" and the substitution of "25 years".
(3) The parties will confer 10 years after ratification of this
5 Agreement and each subsequent 10 years on the Company's
intentions with respect to the continuance of the factories'
operations.
(4) Within 5 years before the expiration of the term the State will
confer with the Company with respect to the parties agreeing
10 to commence negotiations for a new Agreement.
Applicable law
22. This Agreement shall be interpreted according to the law for the time
being in force in the State of Western Australia.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
FIRST SCHEDULE
(Supply and Price of Resource Clause 5)
1. During the several periods set out or referred to in this First Schedule
the stumpage rates and roading charges referred to in Clause 5(11) of
5 this Agreement shall be payable at the relevant rates set out and
calculated in accordance with the provisions of this First Schedule
subject to the conditions and in the manner set out in this Agreement.
The rates for resource for the Welshpool factory shall continue to be
agreed or determined and be applicable with respect to the rates for
10 resource for the Dardanup factory notwithstanding that the Company
may not from time to time be carrying on operations at the Welshpool
factory.
2. Stumpage rates for resource for the Welshpool factory
(1) Subject always to the provisions of Clause 5(11)(a) of this
15 Agreement the stumpage rate for resource for the Welshpool
factory shall be:
(a) for the period from the date of commencement to
30th April 2001:
$12.90 per cubic metre of logs with the price
20 for resource of other specifications or
measured by weight being equivalent to this
rate but varied by conversion factors as
agreed from time to time by the Company
and the Executive Director;
25 (b) for each successive period of 3 years commencing on
1st May 2001:
the rate agreed upon by the Executive
Director and the Company pursuant to
subparagraph (4) of this paragraph or failing
30 agreement within the time therein provided
at the rate calculated by varying the rate
payable during the relevant preceding period
in the same proportion as the proportional
variation in the relative figures published or
35 otherwise provided by the Australian Bureau
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
of Statistics as the Consumer Price Index for
Perth (All Groups)(CPI)for the quarter
immediately preceding the commencement
of the relevant preceding period (which, for
5 the purposes of any determination to be
made for the period commencing 1 May
2001 shall be deemed to be 1 May 1998) and
for the quarter immediately preceding the
end of the relevant preceding period.
10 (2) (a) If the figures for the CPI cease to be published by or
to be available from the Australian Bureau of
Statistics or become immutable or if the CPI has its
reference base changed so that its use becomes
inappropriate for the purposes of subparagraph (1)(b)
15 a new method of calculating any variation in the real
value of money over time which most accurately
reflects the role performed by the CPI at the date of
this Agreement will be agreed between the State and
the Company (or failing agreement within 30 days of
20 one party giving notice to the other invoking the
provisions of this paragraph) will be determined by
the Minister in his reasonable discretion and such new
method will be applied for the purposes of
subparagraph (1)(b) in lieu of applying proportional
25 variations in the CPI;
(b) The provisions of subparagraph (2) (a) will apply,
mutatis mutandis, to any new method of calculating
variations determined pursuant to such subparagraph
from time to time if the use of such new method
30 becomes inappropriate for the purposes of
subparagraph (1)(b).
(3) If any variation in the stumpage rate for a period is not agreed
or determined prior to the commencement of that period the
Company will continue to pay stumpage at the rate payable
35 during the relevant preceding period and as soon as any new
rate has been agreed or determined an adjustment shall be
made retrospectively to the commencement of that period.
(4) The parties hereto shall confer within 90 days preceding
the expiry of each of the periods referred to in
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
subparagraphs (1)(a) and (1)(b) of this paragraph in a bona
fide effort to reach agreement within such 90 days (or
thereafter within such extended time as the Minister may
allow as provided in Clause 13 of this Agreement) as to the
5 stumpage rate to be payable for the succeeding period and in
so doing shall give full consideration to the economies of
growing resource in the softwood plantations and processing
and marketing the panel products and all matters incidental
thereto including roading and other charges and the extent if
10 any to which during the immediately preceding period the
Minister in exercise of his discretion under subclause (11)(a)
of Clause 5 of this Agreement or subclause (1)(a) of Clause 7
of the 1975 Agreement may have varied any of the several
rates of stumpage set out in this First Schedule for a period or
15 periods.
3. Stumpage rates for resource for the Dardanup factory:
(1) Subject to paragraph 4 of this First Schedule the stumpage rate
payable for resource for the Dardanup factory shall be five
sixths of the rate from time to time applicable (pursuant to
20 paragraph 2 of this First Schedule) in respect of resource for
the Welshpool factory.
(2) The provisions of paragraph 2(3) of this First Schedule shall
apply mutatis mutandis to stumpage rates payable under this
paragraph.
25 (3) It is acknowledged and agreed by the parties hereto that the
stumpage rates provided for in this First Schedule in respect of
resource used in the Dardanup factory are of a concessional
nature based on the bulk of the panel products manufactured
by the Company at the Dardanup factory being delivered
30 beyond the boundaries of the said State.
(4) The Company shall if so requested by the Executive Director
inform the Executive Director prior to the expiration of the
period referred to in paragraph 2(1)(a) of this First Schedule
and of each successive 3 year period calculated from
35 1 May 2001 of details of distribution of its panel products.
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
(5) If the Executive Director considers in respect of a period
reported on by the Company pursuant to paragraph 3(4) of this
First Schedule that:
(a) there has been a material reduction in the quantity of
5 panel products delivered beyond the said State
compared to that in the preceding period; or
(b) at the end of the period the Company will be able to
compete on an equal footing with its competitors in
the markets for its panel products outside the State
10 without the benefit of concessional rate of stumpage
for resource used in the Dardanup factory
the parties agree that in determining the stumpage rate to
apply in the succeeding period for resource used in the
Dardanup factory due regard will be given to determining
15 whether it is reasonable in the circumstances that such
stumpage rate should be aligned with the rate from time to
time applicable (pursuant to paragraph 2 of this First
Schedule) in respect of resource for the Welshpool factory
without the benefit of any concession. Failing agreement on
20 the withdrawal of the concession the matter shall (if so
required by the Executive Director) be determined by
arbitration under the provisions of this Agreement.
4. Roading Charge
The roading charge referred to in subclause (11)(e) of Clause 5 of this
25 Agreement shall (subject to subclause (12) of Clause 5) be:
(1) for the period from the date of commencement until 30th June
immediately following the date of commencement, 52 cents
per cubic metre of resource where that resource is measured
by volume, or 52 cents per tonne where that resource is
30 measured by weight; and
(2) for each ensuing year at the rate calculated by varying the rate
payable during the preceding year in the same proportion as
(1+0.5(Ni-Bi)/Bi) bears to 1.0. where Ni refers to the Consumer
Price Index for Perth (All Groups) published by the Australian
35 Bureau of Statistics in respect of the quarter immediately
preceding the particular review date and Bi is the Consumer
Price Index for Perth (All Groups) published by that Bureau in
respect of the corresponding quarter one year earlier.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
SECOND SCHEDULE
(SPECIFICATIONS Clause 5(8))
Log specifications
1. Industrial wood logs delivered to the Dardanup factory
5 Species: Pinus radiata (preferred species), P. pinaster or other Pinus
species as available
Preparation: Logs shall be freshly cut and have all branches flush trimmed.
Dimensions:
Diameter: minimum 75 millimetres under bark
10 maximum 350 millimetres under bark
Length 5.4 metres and such other lengths as agreed
by the Company and the Executive Director:
Defects (i) The following defects are not permitted:
- blue stain (except where delivery has been
15 unreasonably delayed by the Company)
- abrupt changes in diameter
- sharp kinks
- massive knot whorls
(ii) The following defects are permitted to the limits shown:
20 - Cone holes as they occur.
- Bent or curved logs if they will pass through the
debarkers at Dardanup without interfering with
production
- The moisture content of the logs at the time of
25 delivery shall not be less than 75%.
- Burnt bark provided that the timber has not been
affected
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
2. Oversized industrial wood logs delivered to the Dardanup factory
Species: Pinus radiata (preferred species), P. pinaster or other Pinus
species as available
Dimensions: Diameter: maximum 550 millimetres under bark
5 Length: random length between 3.0 and 7.0 metres
Defects All defects will be allowed such that the whole piece can be
efficiently chipped with the available chipping equipment.
Burnt bark provided that the timber has not been affected.
3. Industrial wood logs delivered to the Welshpool factory
10 Species: P. pinaster (preferred species), Pinus radiata or other Pinus
species as available
Preparation: Logs shall be freshly cut and have all branches flush trimmed.
Dimensions: Diameter: minimum 75 millimetres under bark
maximum 350 millimetres under bark
15 Length: A minimum of 4 metres ranging to a maximum of
5.4 metres.
Defects The following defects are not permitted:
- blue stain (except where delivery has been
unreasonably delayed by the Company)
20 - abrupt changes in diameter
- sharp kinks
- massive knot whorls
The following defects are permitted to the limits shown:
Cone holes as they occur.
25 Bent or curved logs if they will pass through the debarker
without interfering with production.
Burnt bark provided that the timber has not been affected.
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
4. Woodchips delivered to the Dardanup and Welshpool factories
Species: Pinus radiata (preferred species for the Dardanup factory), P.
pinaster (preferred species for the Welshpool factory) or other
Pinus species as available.
5 Chip Size: Nominal size:
Minimum: 16mm x 16mm x 5mm
Maximum: 25mm x 25mm x 8mm
Sieve size Proportion of chips delivered
>37.5 mm maximum 10%
26.5 37.5mm Maximum 30%, optimum 10%
16.0 26.5mm minimum 50%
4.0 16.0mm Minimum 10%, optimum 30%
<4.0mm maximum 2%
Bark maximum 1%
Quality limits:
· Rot: maximum 0.1% by weight
10 · Charcoal (carbon): maximum 0.1% by weight
· Dry (seasoned) wood: maximum 1% by weight
· Blue stain, not accepted except where delivery has been
unreasonably delayed by the Company
· Free of sand
15
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
IN WITNESS WHEREOF this Agreement has been executed by or on behalf of
the parties hereto the day and year first hereinbefore mentioned.
SIGNED by the said THE HONOURABLE RICHARD }
FAIRFAX COURT, M.L.A., in the presence of:
} RICHARD COURT
}
5 COLIN BARNETT
MINISTER FOR RESOURCES DEVELOPMENT
THE COMMON SEAL of WESFI LIMITED was }
hereunto affixed by authority of the Directors in the
presence of: } [C.S]
}
10 DENIS CULLITY
Director:
JAMES MALONE
Director:
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Wood Processing (WESFI) Agreement Bill 2000
Wood Processing (WESFI) Agreement Schedule 1
Note: The existing plantations of softwood timber referred to in the definition of "softwood
plantations" in the Agreement are shown on this plan as CALM Managed State
Plantations Coniferous and CALM Managed Sharefarms Coniferous.
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Wood Processing (WESFI) Agreement Bill 2000
Schedule 1 Wood Processing (WESFI) Agreement
Note: The inner noise emission contour is the May 2000 Model.
page 38
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