New South Wales Timber Industry Faces Job Cuts Amid Great Koala National Park Plans

Concerns about the sustainability of the New South Wales timber industry are growing, with the state's Forestry Corporation announcing plans to axe more than 50 jobs across Coffs Harbour and other parts of the state.

Forestry Corporation NSW (FCNSW) said a mix of management, office and field-based roles would go.

It said the decision to slash 32 jobs in Coffs Harbour was "related to the impacts of the proposed Great Koala National Park (GKNP)".

"The proposed GKNP will move management of 176,000 hectares from State forests to national parks and lead to reduced harvest volumes and operations," FCNSW said in a statement.

"These are predominantly on the north coast."

Another 19 jobs will go "in response to financial challenges that the business is facing including as a result of a weak softwood timber market and is unrelated to the establishment of the GKNP".

FCNSW said those losses would be spread across the state.

NSW Nationals leader and Coffs Harbour MP Gurmesh Singh said the loss of 32 jobs in his electorate would have broad ramifications.

"That's less people coming into the CBD every day for coffees, for lunches; that obviously does have a flow-on effect for the rest of our economy," he said.

"These are families that have been working in this area for quite some time.

Logging has been suspended in the area of the proposed park since September as the government works to introduce legislation to formally gazette the GKNP.

It will run inland of Coffs Harbour, south to Kempsey and as far north as Grafton, and will become the state's largest national park at 476,000 hectares.

The cuts come as Pentarch announced it would slash 25 jobs and close one of its mills at Herons Creek, south-west of Port Macquarie.

Director Steven Dadd said his operation had been relying on stockpiles, which had now run out.

"We haven't had any wood supply coming in from Forest Corporation since last July, when the wood supply stopped," he said.

Alternative employment

A NSW government spokesperson said in a statement that it was working to move affected Forestry Corporation staff to suitable roles in the National Parks and Wildlife Service (NPWS).

It said creation of the GKNP would add 100 additional NPWS roles.

"Transition arrangements are being developed and there is a generous support package for workers who do not move into a role with FCNSW or NPWS," the spokesperson said.

The government did not respond to concerns raised about the future of the timber industry.

Legislation to gazette the Great Koala National Park by 2028 has not yet been introduced to state parliament.

University of the Sunshine Coast Adjunct Professor and former Parks Victoria chief executive Bill Jackson said transitioning away from native logging has had mixed success across the country.

"The impact on regional and rural economies [in places like Victoria] hasn't always been great," he said.

Co-owner of M&M Timbers at Bostobrick, near Dorrigo, Kristy Parker said the industry needed to see more certainty from the government.

"We're trying to find a way forward, which is particularly difficult when we don't know what's going to happen after 2028," Ms Parker said.

"I'm all for a restructure when a business needs restructuring, however, you need to get the right people in the right jobs."

Community and Public Sector Union NSW branch assistant secretary Troy Wright said while consultation about the GKNP had been drawn out, a firm decision was welcomed.

"We now want to get on with the job in negotiating with both Forestry Corporation and government generally about finding roles for those people ... who would no longer be required," he said.

"They have skill sets that should be utilised by government and hopefully we can manage to negotiate to get them successfully redeployed into other agencies."