LOGGING IN NATIVE FOREST WATER CATCHMENTS An Embarrassingly Simple Issue by

1. LOGGING IN NATIVE FOREST WATER CATCHMENTS An Embarrassingly Simple Issue by Christopher J. Tipler. B.Comm (Hons) December 1, 1999

2. Water is the most precious resource inSouth West Victoria. It will be increasingly in short supply. • Water is life • Water supply in the region is already an issue: • rationing • pressure on our river systems • The region’s population will probably increase by 50,000+ in the next 20 years: • Industry growth is likely to be ‘water intensive’: • tourism growing at 10% p.a. • Growth of processing industries • Water demand is likely to rise by 5% p.a. over the long term Resident Population of the Barwon Region. 000’s. Compound Growth Rate 1991-1996 = +0.45% p.a. Source: ABS Census

3. The Otway State Forest Supplies Drinking Water to over 250,000 people in Western Victoria City/Town Catchment Otways Water Geelong Barwon 60-70% Queenscliff Barwon 60-70% Drysdale Barwon 60-70% Ocean Grove Barwon 60-70% Torquay Barwon 60-70% Anglesea Barwon 60-70% Lorne St Georges 100% Apollo Bay West Barham 100% (Under moratorium) Colac Olangolah 100% (No logging allowed) Warrnambool Gellibrand 100% Camperdown Gellibrand 100% Simpson Gellibrand 100% Glenormiston Gellibrand 100% Lismore Gellibrand 100% Allensford Gellibrand 100% The Otway Ranges are the principal source of water supply forSouth Western Victoria, extending from Geelong to Warrnabool. The nine catchments in the Otways, which account for 48% of the State Forest, supply water to over 250,000 people.

4. Our native forests are a truly wonderful natural reservoir. • The forest is the catchment and the reservoir: • a huge collector of water • a giant ‘sponge’ that holds the water and releases it steadily • a natural filter that keeps the water clean • Forest catchments enable us to avoid the need to invest in man-made reservoirs: • enormous cost to the community of dams • adverse impact of new dams on our river systems

5. Our forest catchments in the Otways are being heavily logged. Logging in the West Barwon Catchment 1970 to 2000 Source: OREN analysis of DNRE data.

6. A Typical Clearfell Logging Scenario (T.W. Spur Track 1996, Cumberland River System) What does Clearfell Logging do? Clearfell Logging involves the removal of almost all vegetation from a given area, leaving the site bare and the soil highly disturbed. The process is similar to clearing the forest for agricultural purposes. Once logged, an area is ‘revegetated’. An even age crop of trees (which is similar to a plantation) replaces the native forest which grew there before. Clearfelling is destroying the biodiversity of the Otway native forest. The habitat of forest plants, birds and animals is being systematically demolished. Logging is overwhelmingly by clearfelling.

7. The market value of woodchips and timber harvestedfrom Otway water catchments is less than $8 million p.a. (1997/98). Source: DNRE and AF&F

8. The value of water lost through logging is around $22 million p.a.based on mid-range assumptions. This is almost three times the value of woodchips and timber. • Assumptions: • 80 year rotation • yield loss of 2.6 megalitres per hectare p.a.* • water price of $700 per megalitre (current Barwon Water tariff $640, Melbourne tariff $710) • Analysis (for Otway FMA): Value of Water Lost by Logging per Hectare Value of Woodchips and Sawn timber per Hectare 2.6 megalitres p.a. x $700 per megalitre x 80 years = $146,000 $7.6 million ÷ 150 hectares = $51,000 * Note: Average rainfall in Otway catchments is c 1,500 mm (15 megalitres per hectare). Assume ‘old growth’ yield is 50% of rainfall = 7.5 megalitres (CRC analysis). Assume yield loss at 80 year rotation as per Kuczera, of 35%.

9. The variable price charged for water does not reflect its full cost. • The tariff of $640/$710 is a variable usage charge, and includes no charge for water infrastructure. Typically, the fixed charge for water is similar in magnitude to the variable charge, i.e. the total charge would be $1,400 per megalitre • Even this amount is only $1.40 per thousand litres consumed

10. The level of water loss assumed, within any reasonable range, does not affect the conclusion that water is more valuable than woodchips and timber. Otway Water Catchments Value of Water Lost Through Logging - Per Hectare Price of Water Per Megalitre: Timber value is $51,000 Water Yield Loss

11. 90% of Melbourne’s water comes from protected catchments. Information Board at Maroondah Reservoir Dam Wall Information Board at Upper Yarra Reservoir Dam Wall Upper Yarra Water Supply Reservoir The Maroondah Reservoir To ensure the quality of the water supply the reservoir is surrounded by protected catchments. Protected catchments are the lands surrounding a reservoir that contribute to the creeks and rivers that flow into it. In the case of Maroondah, the catchments consist of a number of native forest ecosystems covering an area of over 14,680 hectares. People are neither allowed to live in the catchments nor carry out any activities which would adversely affect either the quality or quantity of the water harvested. For instance, access is restricted to walking tracks, no fishing is allowed in the reservoir and no logging is permitted in the catchments. ENTRY PROHIBITED Ninety per cent of Melbourne’s water comes from protected wilderness catchments like this one, some of which have remained untouched for over one hundred years. Public access is restricted to ensure that the water is kept free of contaminants. This means Melbourne Water can provide safe, high quality drinking water with a minimum of chemical treatment. For information on Melbourne Water call 92357100 or visit Melbourne Water’s internet site: http://www.melbwater.vic.gov.au

12. The community in South West Victoria does not want its catchments logged. • Geelong City Council has passed a unanimous motion raising serious concerns about logging in catchments. The Council has recommended that logging in catchments be deferred • Surf Coast Shire is opposed to logging, due to impacts on water and tourism These Shires represent 84% of the region’s population • A recent petition calling for the immediate cessation of clearfell logging in Otway water catchments obtained more than 6,000 signatures in two days

13. To allow logging in water catchments isstupid. It is an embarrassing failure of public policy. • The economics overwhelmingly favour water • this has been the case for many years, and will be even more so in future • Social equity overwhelmingly favours water • the value of water accrues to the whole community, whereas the value of woodchips and timber accrues to only a few (three sawmills, one chip mill, a handful of workers) • We are putting our most precious resource at risk • This argument does not even take into account the other major negative effects of logging in catchments: • destroying biodiversity in areas of high conservation value • adversely affecting the potential of tourism - the region’s most important industry • The onus of proof is not on the community. The logging, woodchipping and sawmilling industry must prove immediately why it should be allowed to log our water catchments