Government accused of ripping off taxpayers with 'economically unviable' practice: 'We know that it's ... unsustainable'

Experts are slamming unsustainable forestry practices in Australia as a burden to taxpayers and are advocating for changes to the current system.

What's happening?

As detailed by the Guardian, the native forest logging industry in New South Wales has resulted in consistent financial losses for the state government's forestry corporation, according to an NSW Independent Pricing and Review Tribunal, which reported its findings in its annual report.

The review found that increased protections for wildlife like koalas and greater gliders, pushback by community groups, and extreme weather led to more than $72 million down the drain since 2020-21.

Justin Field, part of the Forest Alliance NSW coalition, bluntly called native forestry "a bad deal for taxpayers" and found it shocking people were paying into it. Similar issues led to the suspension of similar programs in Victoria and Western Australia.

"This is just another piece of evidence to show that native forest logging in New South Wales is economically unviable," Field said. "We know that it's ecologically unsustainable, and we know that the forestry corporation has been losing money on its hardwood division for the last decade."

Why is deforestation troubling?

In addition to costing taxpayers money, native foresting in Australia is removing protections and other economic benefits that unspoiled areas provide.

Watch now: How bad is a gas stove for your home's indoor air quality?

Graham Phelan, an economist who dug into NSW's financial data in 2023, explained to the Guardian that native forests can boost tourism, help limit erosion, and mitigate flooding. He also cited one Victoria report that found the financial benefits of keeping the forests far outweighed the perks of harvesting timber — by more than $10 billion.

Moreover, forests help soak up carbon, a heat-trapping gas that contributes to an overheated planet. Experts agree that phasing out dirty fuels is the best thing to do to bring Earth's temperatures back into balance and combat the uptick of supercharged extreme weather.

However, deforestation isn't helping matters. According to the Arbor Day Foundation, one mature tree can capture more than 48 pounds of carbon dioxide every year.

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What's being done to protect forests in NSW?

Field believes that the tribunal's report offers a prime opportunity for the state government to pivot away from native foresting and toward sustainable plantations, adding that taxpayers were "literally" sending their money to a practice that could reduce their drinking water quality — not to mention destroy the habitats of koalas and other creatures.

The findings may inspire even more people to take action, including by donating to organizations focused on protecting native forests or by voting for eco-friendly policymakers.

For its part, the tribunal recommended that the state government investigate whether native forestry is a worthwhile long-term investment, with wood supply renewal agreements up for review in 2028, per the Guardian. It also laid out price and cost management strategies.

The state forestry corporation said it intends to implement the tribunal's price and cost management tactics, but it didn't elaborate further on other potential actions.