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									                                                                      In Association with Diana Gibbs and Partners




 A Socio-economic Assessment of the
    Timber Industry in Gippsland

             -Proposal for Services-
                             Task 1: Resource &
                             production
                                                                   Part 2 – Industry

                             Task 2: Mill door value             Task 4: Description



                             Task 3: Supply                      Task 5: Value




                        PART 1:
                                                       Forest & Forest
                                                                                             STAGE 1

                        Resource
                                                       Industry Picture


                            Task 6: Economic impacts
                                                              Part 3 – Social and Economic
                                                              Impacts of the Industry
                            Task 7: Social impacts



                            Task 8: Impacts on local govt
                            & the community

                                                                            Forum
                            Task 9: Future scenarios
                                                                                             STAGE 2




                            Task 10: Socio-economic              Part 4 – The Future
                            impacts

                            Task 11: Assessment of
                            overall impacts
                                                                          Development
                                                                           Scenarios
                            Task 12: Perceptions
                                                            Part 5 – Community
                                                            Attitudes & responses
                            Task 13: Attitudes
                                                                      Community Issues




           Gippsland Private Forestry Inc.



                      March 1st, 2004




MBAC CONSULTING PTY. LTD.                                                                PHONE (61) 2 6232 4777
A.B.N. 97 099 270 130                                                                    FAX (61) 2 6282 4022
UNIT 1, 35 GEILS COURT
PO BOX 262 DEAKIN WE ST
ACT 2600                                                                                 www.mbac.com.au
AUSTRALIA                                                                                info@mbac.com.au
A socio-economic assessment of the Timber Industry
 in Gippsland



PREFACE

        Gippsland Private Forestry Inc. (GPF), on behalf of GPF and the Department of
        Sustainability and Environment (DSE) has called for tenders to undertake a Socio-
        Economic Assessment of the Timber Industry in Gippsland. This study is required now, to
        address the needs imposed by an increasing focus on the use of forests, and the rapidly
        changing supply and demand for forest products in Australia and overseas.

        To conduct this study, MBAC Consulting has formed a consortium with Diana Gibbs and
        Partners. This consortium offers four consultants, who have worked together for between
        15 and 25 years, and who will provide the unique blend of socio economic, resource,
        processing, product, market and consultative skills required to meet the needs of this
        study. These skills will be used in the study to provide a strong base for the future
        development of the forest and forest product industry in Gippsland.

        Diana Gibbs is located at Cootamundra, NSW. She has a proven track record in assessing
        socio economic issues in the timber industry throughout Australia.

        John Cameron, as Local Project Manager, is a Traralgon-based forestry consultant with
        substantial experience in the Gippsland region, after a range of senior responsibilities for
        Grand Ridge Plantations, Australian Paper Plantations and AMCOR. John operates his own
        consulting company and has recently joined the MBAC Consulting Group.

        Chris Borough is located in Canberra. Chris has extensive experience in plantation
        forestry in Australia and worked with GPF on an earlier study.

        Rod Meynink, Project Director, is located in SE Queensland, with an office in Canberra.
        He has extensive Australian and international experience and good understanding of the
        processing and marketing of timber products.

        Rod Meynink                                                    Diana Gibbs




        MBAC Consulting Pty Ltd                                 ph 02 6232 4777
        PO Box 262                                              fx 02 6282 7262
        Deakin West ACT 2600                            rod.meynink@mbac.com.au

        Diana Gibbs and Partners                                ph 02 6942 3898
        PO Box 134, Cootamundra                                    02 6942 3800
        NSW 2590                                         whyte_wool@bigpond.com

        1 March, 2004




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                                                        Table of Contents
                                                                                                                                                      Page No.

INTRODUCTION ................................................................................................................................................ 1
     Our understanding of your needs .............................................................................................................. 2

APPROACH ............................................................................................................................................................ 3

PART 1              FOREST RESOURCES. ................................................................................................................ 5
     Task 1 –Resource and Production ............................................................................................................... 5
     Task 2 – Mill Door Value............................................................................................................................... 5
     Task 3 – Supply .............................................................................................................................................. 6

PART 2              TIMBER PROCESSING INDUSTRY ........................................................................................ 6
     Task 4 – Description ..................................................................................................................................... 6
     Task 5 –Value .................................................................................................................................................. 7

PART 3.             THE SOCIAL AND ECONOMIC IMPACT OF THE INDUSTRY ........................................ 7
     Task 6 – Economic Impacts ......................................................................................................................... 7
     Task 7 – Social Impacts ............................................................................................................................... 8
     Task 8 – Impacts on Local Government and Communities .................................................................... 9

PART 4.             LOOKING FORWARD ................................................................................................................ 10
     Task 9 – Future Scenarios ......................................................................................................................... 10
     Task 10 – Socio-Economic impacts ............................................................................................................ 11
     Task 11 – Assessment of Overall impacts ............................................................................................... 11

PART 5.             COMMUNITY ATTITUDES ...................................................................................................... 11
     Task 12 – Perceptions ................................................................................................................................. 12
     Task 13 – Attitudes ..................................................................................................................................... 12

DELIVERABLES ................................................................................................................................................. 12

PROJECT TEAM ................................................................................................................................................ 13
RELEVANT COMPANY EXPERIENCE ........................................................................................................... 15
     MBAC Consulting .......................................................................................................................................... 15
     Diana Gibbs and Partners ........................................................................................................................... 16

TIMING AND COST ESTIMATES ............................................................................................................. 22
FEE STRUCTURE ............................................................................................................................................. 22
INSURANCE ..................................................................................................................................................... 23

REFEREES .......................................................................................................................................................... 23

CONFLICT OF INTEREST ............................................................................................................................ 23

APPRECIATION OF THE TIMBER INDUSTRY AND THE GIPPSLAND REGION .......................... 24




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Figures
Figure 1:       Proposed Approach to Project ................................................................................................... 4
Figure 2:       Project team – brief background ............................................................................................ 13
Figure 3:       Key project experience MBAC ................................................................................................. 18
Figure 4:       Insurance details ....................................................................................................................... 23


Appendices
        Appendix 1: Currucilum Vitae

        Rod Meynink

        John Cameron

        Chris Borough

        Diana Gibbs




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INTRODUCTION
        MBAC Consulting, in association with Diana Gibbs and Partners, is pleased to present this
        proposal to assist the Gippsland Private Forestry Inc (GPF) and the Victorian Department
        of Sustainability and Environment (DSE) in planning for the future.

        The timber industry is important to the State of Victoria, in that it provides royalties to
        government and provides jobs and incomes for numerous local economies and communities.
        More importantly, the timber industry provides a sustainable “driver” for regional
        economies, adding value to a local resource. Traditional markets have been in Victoria,
        New South Wales, Queensland and South Australia as well as export markets which have
        been developed more recently.

        This proposal outlines a study which will meet the needs of the industry and stakeholders
        to understand and appreciate the important socio-economic role of the industry, and which
        will also involve the community. In order to meet these needs, a consortium has been
        created which will provide a unique blend of skills and experience, including:

            Socio-economic experience, in relation to regionally based industry sectors

            Proven consultation methodologies
            Specialist market investigation knowledge in the Australian and international forest
             and forest products industry
            Strong understanding of the special properties of Victoria’s unique forests and
             plantation potentials

            Proven ability to deliver complex projects, on-time, that meet objectives

        Key members of our team are:

               John Cameron

               Diana Gibbs
               Chris Borough

               Rod Meynink

        These are the consultant who will undertake the work. Between them, they have 100 years
        of experience in this industry.

        All four consultants have worked together on a range of projects over the last 15 to 25
        years.




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    Our understanding of your needs
        The objectives of the proposed study is to provide information on the socio-economic
        benefits of the forest and forest product industry and associated downstream industries
        in the Gippsland Region and prepare a report that communicates the data and analysis to
        relevant stakeholders and the community. The information will allow all stakeholders to
        achieve levels of understanding on the importance of the industry in the face of increasing
        resource restrictions, offsetting plantation opportunities as well as processing and market
        related challenges and opportunities.

        We are also mindful of other investigations into the industry, being conducted as part of
        the state wide process. Changing resource access requires greater emphasis on private
        forestry and industry must be innovative in identifying options to ensure continued
        viability, so that regional and community benefits can continue to be delivered.

        There are two primary objectives of this study:

            To describe the current socio-economic influence of the timber industry on the
             Gippsland region, focusing on the resource and primary processing contributions, and

            To describe the anticipated socio-economic implications of recent changes to resource
             levels from State Forests in the region and estimate the extra activity that would
             occur assuming realistic projections of an expansion of the region’s plantation estate
             and fuller utilisation of private native forest resources.

        In order to meet these primary objectives in an authoritative manner, there are a number
        of other needs which must be met. These include quantifying as far as possible:

            Current contribution of the Gippsland forest and timber industry to the region’s
             economy, and estimates of predicted impacts under a range of realistic future
             scenarios for the industry

            Current and predicted future social benefits arising from the industry in Gippsland,
             and

            An understanding of the Gippsland community’s attitudes towards the industry.


        Our approach will allow all these objectives to be met.




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APPROACH
        Members of our team have assisted in the development of a number of socio-economic
        studies for industry groups and regional communities, often involving extensive
        consultation with a large number of disparate groups of stakeholders. This experience has
        allowed us to formulate and test an approach to the development of such studies which has
        proved to be effective in a variety of different circumstances.

        Our approach allows for several opportunities for consultation, and for the various
        participants (industry and other stakeholders) to be able to express their various
        perspectives and provide information.

        Central to this approach are a number of fundamental issues. These are:

            The ability to ensure the project is fully compatible with local and regional needs.
            The project will fit the requirements of the broader State needs i.e. Our Forests Our
             Future developments
            The current and future pictures of where Gippsland can be in the medium to long term
             will be authoritative.

            A strong platform will be developed at the start to record contact details, discussions
             and provision of data. Important contacts will be documented (to the extent
             necessary).
            We will state clearly what has been collected as part of the study and what has been
             obtained from available literature and data.

        The project will be undertaken systematically, working through our proven approach. To
        meet the time requirements, the project has been divided into two Stages, five Parts and
        thirteen discrete Tasks, as demonstrated in the following diagram.

        The approach taken to complete each of the thirteen tasks is set out in the following
        section.




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Figure 1:       Proposed Approach to Project




             Task 1: Resource &
             production
                                                       Part 2 – Industry

             Task 2: Mill door value                 Task 4: Description



             Task 3: Supply                          Task 5: Value




      PART 1:
                                           Forest & Forest




                                                                                 STAGE 1
      Resource
                                           Industry Picture


           Task 6: Economic impacts
                                                  Part 3 – Social and Economic
                                                  Impacts of the Industry
           Task 7: Social impacts



           Task 8: Impacts on local govt
           & the community

                                                                Forum
           Task 9: Future scenarios                                              STAGE 2

           Task 10: Socio-economic                   Part 4 – The Future
           impacts

           Task 11: Assessment of
           overall impacts
                                                              Development
                                                               Scenarios
           Task 12: Perceptions
                                                Part 5 – Community
                                                Attitudes & responses
           Task 13: Attitudes
                                                          Community Issues




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STAGE 1

PART 1                   FOREST RESOURCES.
        As requested in the brief, this part of the project will review the profile of the current
        forest resources – native and plantation, softwood and hardwood.

        This phase of work will be undertaken via a combination of:

            desk research of statistical information
            review of existing publications

            interviews with private forest growers

            interviews with public forest agencies

        The contact with growers will be undertaken by MBAC consultants, rather than 3 rd party
        persons, given our strong contacts within this sector and need for both structured and
        free flowing questioning and listening.

        Where possible, key indicators will be presented spatially in Mapinfo, building on the
        existing spatial material within GFP (some of which was prepared by Rod Meynink and Chris
        Borough).


    Task 1 –Resource and Production
        The key issues are area (available for sustainable production), volume, species, ownership,
        age class (plantations), quality and location relative to markets.

        We will review various data sources (including National Plantations Inventory data) and
        update by direct contact to forest growers. We will work with growers and GPF to ensure
        we have an up-to-date picture of the resource. Public forest information will be supplied
        by DSE/VicForests.

        The level of production over the past five years will be described ensuring that all sales
        are covered (including exports and interstate sales if applicable).


    Task 2 – Mill Door Value
        Increasingly, log sales are mill-door basis. MBAC maintains some databases on harvest,
        extraction, load, process, transport and handling costs in certain sectors of the industry1.
        This component requires collating mill door values for various log categories and data on
        costs such as transport and harvest to allow stumpage values to be determined.

        In our industry census we will also obtain direct stumpage information where this is
        relevant.


1
 MBAC monitors landed wood costs in southern China for Wood Resources International (USA); regularly audits the hardwood plantation
sector in certain parts of Australia and provides periodic benchmarking advice to certain sectors of the softwood sawmilling industry.


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    Task 3 – Supply
        Recent supply changes (and any changes scheduled) from the public native forests will be
        described. Any likely change to supply from privately owned plantations (particularly any
        significant demand driven expansion) will be also identified.

        Again, this will be based on updating existing NFI data and by direct grower contact.

        Results will be presented in an appropriate format – regional arrow diagram in Mapinfo.
        These maps will become important in the public presentation phase (i.e. the required
        Powerpoint document).


PART 2                   TIMBER PROCESSING INDUSTRY
        The next Part (which will be undertaken concurrently with Part 1) is an assessment of the
        Industry. Tasks in this part involve:

            Desk research by consultants to describe the industry that draws on the resource
             identified in Part 1.

            Develop contacts database with steering committee to ensure complete coverage.

            Direct industry contact (Industry census) by MBAC consultants.

            Analysis and interpretation of information gathered, based on the extensive
             experience and technical knowledge of the consultant team i.e. to determine mill door
             and mill gate values

            Assessment of volumes processed within and external to the study region.

        Both primary and secondary industries will be identified, although the linkage from
        primary to secondary may not necessarily be clear. We will assess the level of vertical
        integration by tracking mill output to markets, so that secondary processing which occurs
        within the region can be included in the overall assessment of economic impact. Industry
        results will be assigned to the subregion (where confidentiality dictates) in which they
        reside, while labour and forest resource will be assigned within the subregion they are
        provided (where external i.e. contractors) where this is possible.

        Where possible, key indicators will be presented spatially in Mapinfo.


    Task 4 – Description
        Define current primary (sawmilling, panel mills, roundwood users, pulp and paper, woodchip
        export and roundwood export) and secondary (i.e. further processing, manufacturing,
        engineering, furniture, joinery, kitchens through to landscape and related producers)
        manufacturing industry that draws on Gippsland resource.

        We will directly contact processors to obtain information on:

            Log inputs – type, location, volume, price over the last five years
            Markets – turnover, products, uses, demand



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            Scale – volumes of potential expansions
            Production - methods, influences

            Integration – with other wood using industries and forest growers
            Output – product mix, major markets
            Waste – utilisation, disposal

            Recoveries

            Socioeconomics – employment, wages, rates, payments to government (royalty,taxes),
             payments to local suppliers. Employment direct from survey and indirect employment
             derived from multipliers.

        The outputs will be a clear and concise picture of the existing industry suitably described
        in terms of inputs, capacities and outputs. The data will be stored spatially in MapInfo,
        and provided to GPF where not confidential.


    Task 5 –Value
        Industrial value will be determined by direct contact. Where such information is not
        available, MBAC will use simple (appropriate) processing models to assist in determining
        cost of production to assist in determining value of output where turnover is unavailable.

            Quantify mill door or FOB value of all timber products following primary conversion
            Estimate value of products following further processing

            Quantify volume and value processes outside the Region

        We will do this for primary and secondary processing industries where possible and
        present the results in absolute terms and in percentage terms (i.e. % of regional value).

        At the end this phase, we will have a clear statement of the resource, the industries that
        depend upon that resource and the value of the production from that resource.

        The primary team involved in Part 1 and 2 the phase will be John Cameron, Rod Meynink
        and Chris Borough.



PART 3.                  THE SOCIAL AND ECONOMIC IMPACT OF
                         THE INDUSTRY
        The next part of the project requires a detailed examination of the socio-economic issues
        facing the industry. This is a focal point of the study as it is a critical input into scenarios
        modelling and it sets the platform for community and stakeholder discussions in Part 5.


    Task 6 – Economic Impacts
        The output from Parts 1 and 2 will provide raw data on the value of output from the forest
        and the processing sectors, as well as quantifying levels of employment in these sectors.


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        The industry census will also have identified major markets for the output from the
        primary processing sector, which will in turn identify the secondary processing and
        assembly sectors of the industry.

        This information will be aggregated by sector (softwood, hardwood, etc) so as to maintain
        confidentiality. It can then be presented in terms of each subregion within the region,
        indicating the overall role of the industry (in terms of the major economic criteria of
        output values and employment) at both a regional and a sub-regional level.

        It is not proposed to develop unique multipliers for the industry in this study. This is not
        considered necessary, as:

            the industry census will allow the actual quantification of the output values (and
             employment levels) in associated (indirect) sectors such as forest management, harvesting,
             transport, and secondary processing.

            Indicative (generic) multipliers, obtained via desk research, will be used to make an
             assessment of consumption generated (induced) impacts of the direct industry output and
              employment levels.

        Using such generic multipliers as are available, and drawing on the data obtained from the
        industry itself, an overall assessment can then be made of the total (direct, indirect, and
        induced) impact of the industry on the regional economy.


    Task 7 – Social Impacts
        As well as the economic role identified and quantified in Task 6, the industry also plays an
        important role in the social welfare of the regional community.

        Foremost in this social impact is the creation of employment opportunities. This task will
        therefore involve preparing an overall assessment of the total number of jobs which can
        be considered to be supported (directly and indirectly and consumption induced) by the
        industry, and comparing this level to total levels of employment and unemployment in the
        region. This analysis will be conducted at the subregion level, so that communities which
        are particularly dependent on the forest and timber industry can be identified. Such
        “dependent” communities may not always be related to the location of major processing
        activity, as smaller operations may be providing a large share of limited employment
        opportunities in some communities.

        An analysis will also be made of other social characteristics (from ABS Census data) at the
        subregion level within the region. In this way, the value of wages generated as a result of
        employment based on the industry can be assessed in social terms, by comparison with
        average levels of household (and individual) incomes within each subregion. Similarly, data
        on home ownership and qualifications achieved will be used as surrogates for wealth and
        skill levels in each subregion, so that the impact of the forest and timber industry can be
        assessed in terms of social characteristics of the region.

        It is expected that a considerable amount of social data will be available from studies
        conducted as part of the Regional Forest Agreement process in the region. Latest data
        compiled as part of this study will be compared to these previous studies, so that changes
        observed over recent periods can be assessed. The ability to quantify these changes will

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        be an important base-line for the assessment of the impact of possible future industry
        supply scenarios developed in subsequent stage of the project.


    Task 8 – Impacts on Local Government and Communities
        In addition to the assessment of social and economic impacts outlined above, an important
        task will involve the assessment of the wider role of the industry in :

            contributing to public sector revenue flows, including royalties and taxes
            contributing to local government rates incomes

            contributing to road maintenance costs for local government
        These impacts will be assessed via consultation with relevant State agencies and local
        Councils.
        In addition, the total socio-economic impact of the industry will be compared to gross
        output/employment estimates available for other important sectors within the regional
        economy. Data will be compiled on the gross value of agricultural production (by
        commodity) and on estimates of total tourism revenue received by the region. From the
        census, employment levels in broad industry sectors can also be obtained. These data will
        be compared with the levels assessed for the timber industry, so that the relative
        importance of this sector for the regional community can be assessed.

        This Part 3 will be undertaken by Diana Gibbs and John Cameron.

STAGE 1 Culmination– Futures Forum

        Part 3 of the study will culminate with the “Futures” Forum. The concept of the Forum is
        to provide participants with factual information on the social and economic role of the
        current industry, and propose a range of possible scenarios that could evolve. The aim
        would not be to restrict the Forum to such scenarios but rather provide guidance on those
        considered possible. A likely scenario might be an expansion of the pulp and paper capacity
        such that increased volumes of blue gum plantations would be required. Participants in the
        Forum will then be facilitated to discuss the relative merits (and likely impacts) of each
        the “futures” or industry development scenarios considered relevant.

        This Forum will be run by Diana Gibbs and Rod Meynink. All consultants will be present, to
        be able to answer queries on all the research and analysis presented, and to work with
        groups during the Forum as they develop ideas to tackle Parts 4 and 5.

        The base information collected to this stage will be presented in a tabular, spatial and
        “wiring diagram of log flows” form, which both compliments existing works (i.e. The Timber
        Industry in North East Victoria – A Socio-Economic Assessment and the Socio-Economic
        Study of the Forest Industries in Central Victoria, both of which use excellent study area
        flow diagrams. Importantly, we will ensure our work can be incorporated in state wide
        assessments of the industry.




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STAGE 2

PART 4.                  LOOKING FORWARD
        It is likely that a set of resource and industry scenarios will result from this Forum,
        rather than one scenario.       These could be status quo, steady development, rapid
        development or development focusing on local industries and value-adding to development
        focusing on industries within and outside the study area and more commodity study-area
        ‘export’ focus.

        The output from the Forum will provide the basis for the development of a view of the
        future and provide a platform for community consultation.

        The integration of social, resource, economic, processing and market factors will occur
        here, as community consultation cannot occur in isolation. Some of the issues we expect to
        see developed from the process could be community perceptions of factors such as:

            possible scale of resource supply

            possible new processing facilities to be established in the region
            changes in output and employment

            impacts on particular communities
        Concerns as to negative impacts on other land uses and infrastructure availability will
        determine broad details of the scenarios including the key resource and product for each.
        The task for the consultants is to ensure that these are realistic, achievable, and based on
        the sound analysis undertaken in earlier tasks of the study. It will also be necessary to
        carefully consider the various actions that will be required to implement such scenarios.

        The management experience of Diana Gibbs and John Cameron will be important in
        ensuring that this important section is adequately addressed.


    Task 9 – Future Scenarios
        Based on the results of the Industry Forum, the consultants in close collaboration with the
        steering committee will develop a serious of scenarios for future consideration by
        stakeholders prior to taking this forward to the community (Part 5). A decision will be
        made to either model the region’s industry holistically or individually (i.e. softwood
        sawmilling, hardwood pulp etc).

        The nature of the industry would be described and the ability for the plantation industry
        to expand (i.e. suitable land availability). The relationships between industrial expansion
        and key socio-economic outputs would be assessed. Critically, positive and negative
        benefits would be identified.

        The volume of additional resource that would result from each Scenario would be
        calculated.




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    Task 10 – Socio-Economic impacts
        In the same way that Tasks 6, 7, and 8 assessed the social and economic impacts of the
        current industry, an assessment will be made of the potential social and economic impacts
        which could result from the identified future industry scenarios.

        Some of these future scenarios will involve an increased level of impact, while others
        might involve a reduction in activity levels for the industry. Others are likely to introduce
        new forms of value-adding (via new processing activity) which could be expected to cause
        significant changes to the role of the industry in the regional economy.

        These “future” assessments will be based on a combination of a pro-rata change from the
        current situation, using multipliers identified previously and our consultant’s specific
        knowledge of the scale and characteristic of various processing activities.


    Task 11 – Assessment of Overall impacts
        The final task in this Part is to provide an assessment of the net socio-economic impacts
        resulting from the selected resource and industry development scenarios.

        This will provide the platform for the final step, integrating community concerns and
        attitudes to development. Output from the Forum will be used to indicate likely reactions
        from the community to the various alternatives being proposed for the future operations
        of the industry.

        Part 4 will be undertaken by MBAC Consultants.




PART 5.                  COMMUNITY ATTITUDES
        The final part is to assess key private and public forestry issues in the region as perceived
        by landowners and the broader community,

        We will survey the attitudes of landowners and the broader community in Gippsland
        towards private forestry and related industrial development in the region. MBAC recently
        successfully completed a major landowner contact project in Queensland (for Timber
        Queensland and AFFA). We will also assess the likely response if plantation development
        scenarios considered above were to occur.

        The key areas we will focus on and develop with the steering committee are change in land
        use, scale, aggregation, location, species, rotation, markets etc.

        The approach (telephone, forum, mail) will be developed with the steering committee, well
        before this phase is required. Flexibility is required here.




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    Task 12 – Perceptions
        Assess the perceptions of community towards public and private forestry. There are many
        issues to consider here, including use of infrastructure, water issues, species, area,
        aggregation, impact on agricultural land, rates, etc.


    Task 13 – Attitudes
        Survey the attitude towards private forestry. Two key groups

            Landowners
            Broader community

        The final task in this Part is to provide an assessment of the net socio-economic impacts,
        combining perceptions and attitudes, based on the scenarios developed in the Forum
        process.

        Part 5 will be undertaken by MBAC.




DELIVERABLES
        MBAC will provide two hardcopies of the final report, complete with Executive Summary.
        As well as two CDs containing as separate files a MS Word version of the report a MS
        Word version of a summary of the document and a MS Powerpoint version of the key
        findings. MBAC will also supply non-confidential MapInfo layers are required.

        We will attend the initial meeting to clarify project brief and intended methodology;
        prepare two mid-term progress reports and attend briefing meetings; present the draft
        report for review and present the final report.

        MBAC is well known for being flexible and meeting the challenges usually associated with
        delivering work of this nature. This requires strong project management.

        MBAC is well known for delivering the required work within the timelines specified (in this
        case 20 weeks). This requires strong project management.

        MBAC is using Senior Consultants; well know in the industry with a strong successful track
        record undertaking work of this nature.

        We direct you to our referees.




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PROJECT TEAM
        MBAC was formed in 2002 to satisfy the increasing demand for highly experienced,
        affordable forest and forest industry consulting services. The Directors, Rod Meynink,
        and Chris Borough have a combined 60+ years experience in over 30 countries. Both have
        extensive consulting experience nationally internationally. The firm has a permanent
        office in Canberra, Australia. MBAC provides a broad range of services for the forest and
        forest industries, ranging from forest, industry and market services, to policy,
        environmental and logistical projects. A consortium has been put together specifically for
        this project, to ensure that all appropriate skills are provided, and that all relevant
        expertise and experience can be accessed. We are confident that our team can meet
        these needs.

        The team comprises:

            Rod Meynink – Team leader Industry and markets                                      MBAC Consulting

            John Cameron – Local Project Manager – Forests/Industry                             MBAC Consulting

            Chris Borough – QA                                                                  MBAC Consulting

            Diana Gibbs – Regional socio-economic assessment                           Diana Gibbs and Partners

Figure 2:       Project team – brief background

Team member                          Brief background

Rod Meynink                          Rod Meynink is a professional forester, graduating from ANU in 1979.
Team Leader
                                     He worked as a forester in the softwood plantation industry in South
- MBAC Consulting
                                     Australia for three years, followed by a range of forest management and
                                     utilisation responsibilities for Hardboards Australia Ltd in Queensland and
                                     New South Wales. He then returned to ANU-Forestry for two years
                                     undertaking practical teaching in Wood Science and Harvesting before
                                     setting up Forfront Pty. Ltd., a forestry consulting company specialising in
                                     forest inventories and woodflow planning systems.

                                     Rod sold this business to and joined Jaakko Pöyry Consulting in 1990, working
                                     extensively in North and South America, throughout Asia and the Pacific
                                     principally in project management, resource assessment, woodflow planning,
                                     industry analysis and strategic planning. From a Singapore base, his focus was
                                     resource and industry projects in China and Indonesia.

                                     Over the last twenty years or so Rod has undertaken over 300 consulting
                                     projects in China, Lao PDR, Malaysia, Indonesia, Singapore, Philippines,
                                     Vietnam, Australia, New Zealand, Fiji, Solomon Islands, Vanuatu, United
                                     States, Argentina, Surinam, South Africa, Finland, England and Ireland.

                                     In 2001, Rod became one of three founding Directors of MBAC Consulting Pty
                                     Ltd, a Canberra-based Forest and Forest Industry Consulting firm. MBAC
                                     Consulting has completed many projects in Australia, Indonesia, China and the
                                     Pacific.

                                     His recent projects include major resource assessments of private native
                                     forests in Australia (2 million ha); a sawmill study on Cape York, detailed
                                     mapping of a Sumatran province using remotely sensed data and a market
                                     study for sawn lumber from Cape York and Erromango in Vanuatu.


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Team member                          Brief background

John Cameron                         John occupied Senior Positions in Grand Ridge Plantations (GRP), Australian
(Local Project Manager)              Paper Plantations (APP) and AMCOR from 1984 to 2003. At APP Here, he
 - MBAC Consulting                   delivered a “business turnaround” with 30% pa profit growth, business
                                     divestments, a merger, safety map and ISO 14001 accreditation and
                                     organizational renewal. Chaired Australian tree breeding cooperative through
                                     a threefold increase in growth. More recently John launched his own
                                     consulting business, Cameron Consulting and has more recently joined the
                                     MBAC Consulting Group. He has undertaken a wide range of projects for
                                     Amcor including Paperlinx, Willmott, Plantation Timber Association, Gippsland
                                     Private Forestry Farm Plantations, Australian Development Assistance
                                     Bureau, Kimberley Clark, CSR, Treecorp, and Celbi. Projects included
                                     feasibility studies, industry analysis, strategic development, development
                                     projects, resource modelling, reviews and submissions, major contract
                                     strategies, and reviewing aid projects

Diana Gibbs                          Diana is an economist, with post-graduate qualifications in environmental
- Diana Gibbs & Partners             studies. She has operated her own consultancy (Diana Gibbs and Partners)
Socio-Economics                      for the last eighteen years. She works with major resource industries, and
                                     also specialises in community strategic planning, and regional economic
                                     development planning. She has also conducted numerous analyses of the
                                     economic impact of proposals, ranging from regional investments such as a
                                     sawmill, to national projects such as an aluminium smelter, and international
                                     projects such as further developments of Australia’s natural gas resources.

                                     In 2000, she was awarded the RIRDC NSW Rural Womens’ Award. She
                                     currently chairs the NSW Regional Community Consultative Council, chairs
                                     the National Timber Development Council, and is a Board member of the
                                     Forest and Wood Products Research and Development Corporation.

Chris Borough                        Chris Borough has been active in a wide range of forestry fields for over 36
- MBAC Consulting                    years. He has extensive experience in tropical forest inventory, management
                                     and plantation management research. Chris has 14 years experience as a
                                     consultant and is known for delivering projects to budget and on-schedule.
                                     Prior to founding MBAC Consulting, Chris worked with Jaakko Pöyry
                                     Consulting as a senior consultant and was leader on a wide range of projects
                                     in Australia and overseas. He left Jaakko Pöyry Consulting in 2000 to
                                     further develop Forest Science Consultancy Pty Ltd but continued to work
                                     with Jaakko Pöyry Consulting until 2002.

                                     Chris has been involved in a wide range of projects with a particular emphasis
                                     on fast-growing plantations. He has specialist skills in carbon sequestration
                                     and bioenergy and has undertaken numerous briefs in this area for both
                                     Corporate and Government clients. Chris' wide range of experience including
                                     management, training, research and consulting brings a wealth of experience
                                     to this project and will ensure that a quality result is provided within the
                                     expected time-frame and within budget.




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RELEVANT COMPANY EXPERIENCE

    MBAC Consulting
        Since 2002, MBAC has undertaken work for the World Bank, International Paper (via
        Jaakko Pöyry USA), Futuris Corporation, ITC, Timbercorp, Australian Greenhouse Office,
        Norske Skog Australia, Hancock Natural Resources Group and Zurich Capital Markets,
        Connell Hatch, Victorian Association of Forest Industries (VAFI), Boral, AFFA,
        Queensland Timber, NAFI, Future Corporation, Weyerhaeuser, Det Norske Veritas, APRIL
        (RAPP), Forestry Tasmania, Macquarie Bank, Agricultural Loss Management and the WA
        Forest Products Commission.

        MBAC completed twenty five projects in calendar year 2003. These were:

        1)      Wood for bioenergy – (in progress). Joint project with NAFI (Chris B)

        2)      Timbercorp Carbon Valuation (Chris B)

        3)      Marketing Study - solid wood products Lockhart River & Erromango (Rod M and
                Chris B)

        4)      Landed pulpwood cost in Southern China - for Wood Resources International (Rod M)

        5)      Assessment of Ireland Forestry - 7th Forestry Fund for investor (Rod M)

        6)      Yield Review – Native Forest NSW North Coast (Chris B)

        7)      Weyerhaeuser - sawn softwood 5 yearly price review for contract negotiations (Rod
                M)

        8)      Review of SGARA Valuation Methodology ACT Forests (Chris B)
        9)      NGAC carbon verification

        10)     ITC Carbon valuation (Chris B)

        11)     Processing options on Erromango (Vanuatu) (Chris B and Rod M)

        12)     Assessment of Forestry Potential Erromango (Vanuatu) Chris B)
        13)     Inventory of Lockhart River natural forest (Rod M)
        14)     Confidential Australian forest sale advise (MBAC)

        15)     Gunns AFS Certification Audit with DNV
        16)     APRIL remote sensing/ground based mapping of several million ha (Indonesia) (Rod
                M)

        17)     Timbercorp - Outlook 2003 paper (Rod M)
        18)     Western Hardwoods Qld private native forest inventory 1.3 million ha - (Rod M)

        19)     ACT Fire Loss Assessment team (Chris B)
        20)     Forestry Tasmania Renewable Energy Study (Chris B)
        21)     Western Hardwoods region Industry Development Study (Rod M)
        22)     AFS Pre-Assessment for Gunns with DNV


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        23)     Review of yield projections and growth modelling prior to sale – Tasmania (Chris B)
        24)     SE Queensland private native forest inventory 1 million ha (Rod M and Chris B)

        25)     WA FPC - Global best practice in inventory control systems (Rod M)

        MBAC has already completed or is WIP seven (7) projects in calendar year 2004. These
            were/are:

        26)     Confidential review plantation hardwood stumpage pricing model and prepare brief
                market report

        27)     State Forests potential buyer sale positioning advisory
        28)     Confidential review of Product Disclosure Statement (PDS)
        29)     Confidential yield assessment, covering site evaluation, silviculture, inventory and
                growth modelling

        30)     Confidential – Independent Forestry Report
        31)     Confidential – Yield report for major Australian hardwood plantation grower

        32)     Confidential – retained as forestry advisor (ongoing)

        33)     Confidential – retained as Responsible Entity (ongoing)

        The Practice has been particularly successful. The Directors have leveraged off their
        substantial experience by combining with select specialist sub-consultants who provide
        critical specialists inputs.

        Rod Meynink and Chris Borough were active participants in the Gippsland Regional Profile
        project and we are keen to demonstrate MBAC’s capabilities to GPF.


    Diana Gibbs and Partners

        Member of the core team assisting the Sunraysia Regional Development Strategy
        Taskforce to prepare a Strategy for integrated development of the region, under the
        (Federal) ILAP program. The Sunraysia region covers areas in both Victoria and NSW, and
        the Development Strategy required attention to social, planning, and environmental
        aspects as well as economic and employment development for the community.

        Preparation of the NSW Softwood Strategy, via a consultation and analysis process which
        involved regional groups to ensure that all specific needs were met. A comprehensive
        analysis of issues relating to the industry, ranging from forestry to processing aspects,
        and to social and regional development needs, was made. Opportunities arising from this
        examination of issues were then identified, and a plan of action prepared to address the
        needs of the industry at a regional level, within an overall State context. This study
        represented an update of earlier work for the NSW Softwood Industry Working Party.

        For ANM, an analysis of the net benefits available to the State from use of some recycled
        newsprint as part of the resource used in their Albury paper mill, as compared to the
        benefits derived from use of virgin pulp alone.




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        Provision of an economic input to the Environmental Impact Statement (EIS) required for
        the application to extend the export license currently held by Harris-Daishowa (Australia)
        Pty. Ltd. for their woodchip operation at Eden, N.S.W. An equivalent study was completed
        to meet the legal requirements for the extension of the woodchip export license held by
        Sawmillers Exports Pty. Limited (a division of Boral Limited).

        For State Forests of N.S.W., the preparation of that section of an Environmental Impact
        Statement (EIS) which assessed the economic implications of the continuation of the
        current integrated sawlog/pulpwood operations in the State Forests on the far South
        Coast of N.S.W. An equivalent economic input has also been provided for the EIS required
        for on-going management by State Forests of N.S.W. of certain sections of North Coast
        forest, in the Dorrigo Forest District, and in the Grafton, Casino, and Murwillumbah
        Management Areas.

        An assessment of the regional economic impacts likely to result from the prevention of
        logging in all areas of State Forest nominated for inclusion on the register of the National
        Estate, for the industry body representing all forest-based activity in the S.E. forests
        of N.S.W.

        Preparation of a comprehensive study, in association with Margules Pöyry Pty. Ltd., to
        document the economic role of the forest products industry within the economy of the
        State of NSW. This study was commissioned by the NSW State Government, to assist in
        policy development. The analysis provided multipliers for use in assessing the total
        economic impact of the industry, at a sector and regional level.

        For the N.S.W. Department of State Development, an assessment of some of the national
        and regional economic impacts likely to be experienced as a result of a proposal to
        establish a brightening facility at the ANM newsprint mill at Albury, N.S.W. This report
        was used to support the development proposal, at a Commission of Inquiry held under the
        E.P.A. Act as part of the development application process. A subsequent report examined
        the implications for the regional, State, and national economies of the establishment of a
        recycling plant, to replace part of the pulp input with used papers.

        Involvement as economist in a team commissioned by the (then) Commonwealth
        Department of Primary Industries and Energy, in an investigation of opportunities for
        further value-adding in the sawmilling industry of the South-East forests of N.S.W.
        Three separate studies were prepared, each examining the feasibility of alternative means
        of increasing the utilisation of timber for sawlog production, and in adding further value to
        the output of the sawmilling industry of the region.

        Commissioned by the Riverina Regional Development Board to lead a study to provide a
        Regional Economic Development Strategy for the Riverina region of N.S.W. Opportunities
        for future development were identified, via an analysis of the strengths and weaknesses
        of the existing economic structure of the region, and of likely growth prospects. First
        prepared in 1991, this Strategy was reviewed and updated in 1994, following extensive
        consultation with the regional community.

        In association with Margules Pöyry, the preparation of a Business Plan to guide the
        operations of the Victorian Association of Forest Industries and the Timber Promotion



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        Council into the future, and to provide the services required by the Victorian industry
        following the Regional Forest Agreement process.

        Also in association with Margules Pöyry, working with the Queensland Department of
        Primary Industry and the Queensland forest industries to prepare a Strategic Plan for
        future operations and activities of the State's forest and timber industry.

        Member of a three-person committee of inquiry, established by the Prime Minister of
        Australia, to examine the impact of the Trade Practices Act on the recruitment and
        retention of rural doctors. Specific involvement in the year-long inquiry was to represent
        the interests of rural communities.

        Provision of economic analysis to a team addressing the options facing the ACT
        Government regarding the possible replanting of the plantation forest areas destroyed in
        the fires of January 2003


Figure 3:       Key project experience MBAC

 Year           Client                     Project                                           Involvement

                                                                                             CB = Chris Borough
                                                                                             RM = Rod Meynink


 2003           National Association       AUSTRALIA: – Opportunities for renewable          CB
                of Forest Industries       energy production from wood waste – project
                                           under Renewable Energy Industry
                                           Development (REID 7) program

                Queensland Timber          AUSTRALIA: - Development of a strategy for        RM/CB
                Board                      the timber industry in the Western
                                           Hardwoods Region

                Agricultural Loss          AUSTRALIA: – Review of SGARA valuation            CB
                Management Group.          methodology applied to ACT Forests fire loss

                Department of              AUSTRALIA: - Inventory of private forests         RM/CB
                Agriculture Forestry       in Western hardwoods Region of Queensland
                and Fisheries              (approx 4 million ha over an area of 30 million
                (Commonwealth) in          ha)
                conjunction with
                Queensland Timber
                Board and Qld. Dept
                State development

                Norske Skog Australia      AUSTRALIA: - Review of plantation estate          CB
                (Boyer)                    including yield tables and growth projections

                Gerard Industries          AUSTRALIA: - SGARA Valuation of Plantation        CB
                                           estate at Rosewood NSW




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 Year           Client                     Project                                           Involvement

                                                                                             CB = Chris Borough
                                                                                             RM = Rod Meynink


                Weyerhaeuser               AUSTRALIA: Independent advice on saw log          RM
                                           haulage costs, stumpage costs, sawnlumber
                                           grade recoveries, softwood sawntimber
                                           market changes 1995 to the present and
                                           interstate sawntimber road freight rates.
                                           Required for 5 yearly royalty review
                                           submission

                Forestry Tasmania          AUSTRALIA: – Analysis of the Southwood            CB
                                           Project in southern Tasmania and preparation
                                           of documentation on the eligibility of the
                                           Project under the Renewable Energy
                                           (Electricity) Act

                Indonesian Pulp &          INDONESIA: - 7 million ha Land use study          RM
                Paper Company              and establishing GIS system using satellite
                                           imagery and ground assessments

                Agricultural Loss          AUSTRALIA: – Analysis of factors relating to      CB
                Management Group.          ACT Forests plantation loss due to Jan 18th
                                           fire (in excess of 10 000 ha)

                Forestry Tasmania          AUSTRALIA: – Analysis of the Southwood            CB
                                           Project in southern Tasmania and preparation
                                           of documentation on the eligibility of the
                                           Project under the Renewable Energy
                                           (Electricity) Act

                Norske Skog,               AUSTRALIA: - Assistance with sale of              CB
                Tasmania                   plantation resource focusing on resource
                                           assessment and yield projections

 2002/03        Agriculture Fisheries      AUSTRALIA: – Inventory of the 1.7 million ha      RM/CB
                and Forestry Australia     of private native forests of South-East
                                           Queensland and Western Hardwoods region.
                                           Project involves trial of aerial laser scanning
                                           as well as field inventory for timber & non-
                                           wood values and landowner contact

 2002           Boral Timber               AUSTRALIA: - Review of yield modelling            CB
                                           methodology used by State Forests NSW to
                                           predict yields in native forests on NSW
                                           North Coast

 2002           Victorian Association      AUSTRALIA: – Report on forest industry            CB
                of Forest Industries       development in Victoria.

 2002           Australian Forest          AUSTRALIA – Review of carbon modelling and        CB
                Fund Limited               assumptions for major international carbon
                                           trading opportunity based on Australian fast
                                           growing plantations
                ITC                        AUSTRALIA - Advice on exchange rates and          RM/CB
                                           forest product prices.



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 Year           Client                     Project                                         Involvement

                                                                                           CB = Chris Borough
                                                                                           RM = Rod Meynink


                Futuris/ITC                AUSTRALIA: - Global, Asia Pacific and           RM/CB
                                           Australian forest and forest products
                                           industries overview – preparation of Board
                                           White Paper
                World Bank (JP             VIETNAM: - Plantation feasibility and           RM
                Development)               markets for plantation products in Central
                                           Vietnam and Asia.

 2001           Australian merchant        AUSTRALIA: – Due Diligence of Australian        RM
                bank and Jaakko Pöyry      Plantation Timber (APT) Eucalyptus and land
                Consulting                 resource in SW Western Australia and the
                                           Green Triangle Region of SW Victoria and SE
                                           South Australia.

                Auspine Ltd. (with         AUSTRALIA: - Due diligence for 60 MW            CB
                Jaakko Pöyry               biomass electricity generation plant –
                Consulting)                Tarpeena, SA.
                Norske Skog – Albury       AUSTRALIA - valuation advice Albury             CB
                                           plantation resource.
                Norske Skog –              AUSTRALIA - Valuation advice Tasmanian          CB
                Tasmania                   plantation resource.

                Asia Pulp and Paper        CHINA: – Due diligence and valuation of APP’s   RM
                (APP)                      100 000 ha estate in Hainan Island,
                                           Guangdong and Guangxi, southern China
                                           involving on-site inventory and mapping work.
 2000           Consortium of              AUSTRALIA: – Due diligence of Visy Pulp and     CB
                Australian Banks           Paper Mill Project, Tumut NSW.
 1999           Hancock Victorian          AUSTRALIA: - Market Revaluation of HVP’s        RM
                Plantations (HVP)          Victorian forest assets, incorporating
                                           AASB1037 (SGARA) accounting standards.

 1999           North Forest               AUSTRALIA: Due diligence of North Forest        RM/CB
                Products -                 Products NE Tasmanian plantation sale, in
                                           conjunction with Macquarie Bank.

 1998           CSR Ltd (with Jaakko       AUSTRALIA: - Review of wood supply for          CB
                Pöyry Consulting)          potential mill upgrade at Tumut, NSW.
 1998                                      AUSTRALIA Gippsland Farm Plantation -
                                           Project Director to develop strategic issues
                                           for Gippsland Farm Plantations, encouraging
                                           farm forestry in the Gippsland Region of
                                           Victoria.


 1997           Beecham Wright and         AUSTRALIA: - Valuation of Public and            RM
                Victree Forests            Company log access rights as part of forest
                                           estate and related wood licences valuations.
 1997           Westralian Forest          AUSTRALIA: - Development of softwood            RM
                Industries (WESFI)         pulpwood, sawlog and sawmill residue price
                                           indices for Australia and New Zealand



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 Year           Client                     Project                                          Involvement

                                                                                            CB = Chris Borough
                                                                                            RM = Rod Meynink


                                           domestic and export sales.
 1997           Confidential               AUSTRALIA: - Project Director of due             RM
                Corporation                diligence of major corporate softwood
                                           plantation sale in Australia, acting for the
                                           potential buyer.
 1996           Confidential Company       AUSTRALIA: - Valuation of a number of            RM
                                           crown softwood sawlog log access rights and a
                                           plantation estate, as a prelude to sale of the
                                           company by way of public float.
 1995           Midway                     Australia: - Due Diligence of the Smorgon        RM
                                           plantations prior to sale. Full MARVL
                                           inventory, with taper function development
                                           and digital mapping of 6,000 ha P. radiata
                                           estate in Victoria.
 1995           Hancock Bros Ltd           Australia: - Valuation of four log access        RM
                                           rights.
 Pre 1995       Numerous companies         Numerous resource assessments and                RM
                                           industrial studies in Australia and overseas




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TIMING AND COST ESTIMATES
         The brief has specified a required time frame for this project. We can meet the required
         timeline as (a guide) follows:
 Weeks from               Activity
 commencement
 to completion
 (due w/c Monday)
 1        (15 Mar)        Brief the steering committee soon after commencement on the methodologies and
                          approach to be followed in undertaking the project
                          STAGE 1
 2-4       (5 Apr)        Task 1- Resource and production
 2-4       (5 Apr)        Task 2 – Mill door value
 3-6       (12 Apr)       Task 3 – Supply
 3-6       (12 Apr)       Task 4 – Timber processing industry description
 3-6       (12 Apr)       Task 5 – Industry values
 4-8       (26 Apr)       Task 6 – Employment
 4-8       (26 Apr)       Task 7 – Economic
 4-8       (26 Apr)       Task 8 – Social
                          Progress report/meeting
 9         (31 Apr)       Futures Forum
                          STAGE 2
 10-11     (10 May)       Task 9 – Future scenarios
 11-12     (17 May)       Task 10 – Socio-economic impacts
 12-13     (24 May)       Task 11 – cost benefit analysis
 13        (24 May)       Development Scenarios
                          Progress report/meeting
 14-16 (14 Jun)           Task 12 – Community perceptions
 14-16 (14 Jun)           Task 13 – Community attitudes
 17       (21 Jun)        Community Issues
 18-20 (12 Jul)           Draft Reporting and meeting
 20 (12 Jul)              Final report and presentation




         MBAC is well known for flexibility and getting the job done. The Project Manager and
         Director will be available as required.


FEE STRUCTURE
         It is noted in the consultant’s brief that the indicative budget is $60,000 including GST
         and all expenses. Project fees would be payable in instalments as follows:

                                                                                              Fee amount
     Milestone                                                    Fee instalment            (including GST)
     Project initiation                                           25%                           $15,000

     Mid-term progress                                            25%                           $15,000

     Presentation of draft report                                 50%                           $15,000

     Presentation of final report                                 25%                           $15,000


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        Project fees are inclusive of professional fees, travel, telephone, email, report preparation
        etc.


INSURANCE
        MBAC Consulting maintains insurance policies for both public liability and professional
        indemnity. Policy details are shown in Figure 4.


Figure 4:       Insurance details

   Policy coverage                 Policy no. and provider     Insurance coverage     Expiry Date

 Public liability            Policy No. 114BL83025BPK, QBE   $10,000,000            1st February 2005
                             Mercantile Mutual

 Professional                Policy No. 02N-013-M0342-       $5,000,000             1st August 2004
 indemnity                   001475, Resource Underwriting
                             Pacific Pty Ltd




REFEREES
                Private sector
                Rod McInnes – Chief Executive Timber Queensland – ph (07) 3254 1989

                Public sector
                Rod Keenan – Bureau Rural Sciences – ph (02) 6272-5582



CONFLICT OF INTEREST
                None




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APPRECIATION OF THE TIMBER INDUSTRY AND THE
         GIPPSLAND REGION
        MBAC Consultants have worked in Victoria’s forest and forest product industry on many
        occasions. Rod Meynink has been involved with most sectors of the industry specifically in
        Gippsland on several projects over the last 15 years. These include residue studies on
        state native forest sites, inventories of forest, due diligence on major industrial units that
        have been sold or considered for sale, major woodflow planning exercises and major
        valuations (ie VPC). MBAC consultants have undertaken a number of Victorian projects
        since commencing business in 2002.          These include a report on forest industry
        development for VAFI and a Timber pricing review from public forest in Victoria.

        Importantly, John Cameron (Cameron Consulting), previously with Grand Ridge Plantations,
        Australian Paper Plantations and AMCOR, has joined the MBAC Consulting Group and brings
        substantial Gippsland and Victorian knowledge and experience to this project.

        Prior to forming MBAC, Rod Meynink or Chris Borough undertook the following:

            Developed strategic issues for Gippsland Farm Plantations, encouraging farm forestry
             in the Gippsland Region of Victoria. Chris Borough worked on this project.
            Rod also developed detailed plantation profiles for all regions in Victoria for a number
             of corporate clients.

            Assessment of the value-adding performance of the hardwood sawmills in the Otways
             and Midlands Forest Management Areas in Victoria for the purposes of log allocation
             and pricing decisions.

            The effect of various pulpwood procurement levels on sawlog supply and gross revenue
             to the Department of Conservation and Environment, Victoria.

            Timber pricing review for Victorian Department of Natural Resources and
             Environment. Review of pricing methodologies for timber products derived from public
             land in Victoria to ensure that prices are market based, cover efficient costs of
             management, provide a fair return on public capital investment and an adequate return
             to the community from a public resource.

            Evaluation of FARMTREE model for the Department of Conservation and Natural
             Resources (Victoria).
            Research project to examine the performance of a wide range of eucalypt species and
             provenances (including some rare and endangered species) under plantation conditions
             in NE Victoria.

            Established clonal forestry project field trials in Victoria.

            Diana Gibbs in association with Margules Pöyry, prepared of a Business Plan to guide the
             operations of the Victorian Association of Forest Industries and the Timber Promotion
             Council into the future, and to provide the services required by the Victorian industry
             following the Regional Forest Agreement process.
        The consultants bring Victoria and Gippsland experience along with substantial national and
        international experience which we believe will provide a good balance of ‘internal’ and
        external skills and methods.


                                                                                                    24
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A socio-economic assessment of the Timber Industry
 in Gippsland




                                                        Appendix 1

                                                     Consultant CVs




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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




Name                             :         Rodney William MEYNINK


Date of Birth                     :        1955


Citizenship                       :        Australian


Qualifications                    :        BSc (For), Australian National University, Australia (1979)


Professional Affiliations         :        Member, Institute of Foresters of Australia


Fields of Expertise               :        Project management, team leadership, strategic planning, resource assessment,
                                           wood fibre supplies, valuation, remote sensing, yield regulation, global fibre
                                           resources, information systems, decision support systems, China’s forest
                                           resources, development forestry.
                                           The countries worked in include China, Lao PDR, Malaysia, Indonesia, Singapore,
                                           Philippines, Vietnam, Australia, New Zealand, Fiji, Solomon Islands, Vanuatu, United
                                           States, Argentina, Surinam, South Africa, Finland, England, Ireland.


Other Languages                   :        English - Mother tongue


EMPLOYMENT RECORD


2001 - present                             MBAC Consulting Pty. Ltd., Canberra
                                           Director Consultant


2000 - 2001                       :        Jaakko Pöyry Consulting (Asia-Pacific) Pty Ltd, Singapore
                                           Vice President – Engagement Management


1999 - 2000                       :        Jaakko Pöyry Consulting (Asia-Pacific) Pty Ltd, Canberra
                                           Vice President – Fibre Resources & Wood Products


1997 - 1998                       :        Margules Pöyry Pty Ltd, Canberra
                                           Director


1990 - 1997                       :        Margules Pöyry Pty Ltd, Canberra
                                           Associate Director


1987 - 1990                       :        Forfront Pty Ltd, Canberra
                                           Managing Director


1985-1987                         :        Australian National University, Forestry Department, ACT
                                           Senior Technical Office and Post-Graduate Studies


1981-1985                         :        Hardboards Australia Ltd (CSR Timber Products Ltd), NSW
                                           Forester


1979-1981                         :        Woods and Forests Department, South Australia
                                           Forester




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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




RELEVANT EXPERIENCE


2004 AUSTRALIA                             Confidential – prepare hardwood woodchip market report

2004 AUSTRALIA                             Confidential – Review yield projection methodology, focusing on growth models and
                                           management procedures for land selection.

2004 AUSTRALIA                             Confidential – Review residual stumpage pricing model and review formal Public
                                           Disclosure Statement

2003 AUSTRALIA                             Future Corporation – Markets for solid wood products from Lockhart River and
                                           Erromango (Vanuatu), focusing on Cairns and Brisbane for scantling and value-add
                                           (flooring) products.

2003 AUSTRALIA                             Confidential – Advise leading up to the potential sale of State Forest NSW
                                           plantations, involving regional mapping of forests, industry and ageclass using
                                           Mapinfo.

2003 AUSTRALIA                             Timber Queensland - Inventory of approximately 1 million hectares of private
                                           native forest in The Western Hardwoods Region of Queensland to assess area by
                                           forest type as well as a range of wood and non wood values.

2003 AUSTRALIA                             Future Corporation – Sawmill study Lockhart River, Far North Queensland.

2003 AUSTRALIA                             Future Corporation – Inventory of 135 000 ha native forest of Mangkuma Land
                                           Trust (Lockhart River) Far North Queensland.

2003 AUSTRALIA                             Queensland Timber Board (QTB) - The technical and practical feasibility of
                                           processing small diameter hardwood sawlogs through a national and international
                                           review of companies that are currently processing a similar resource.

2003 INDONESIA                             Indonesian Pulp and Paper client (confidential) - Landuse assessment of 7.1 million
                                           hectares of land using LANDSAT 7 and SPOT 5 satellite imagery as well as ground
                                           assessment. Collection of approximately 1 000 ground control points in several
                                           landuse types (plantation, oilpalm, rubber, grasslands etc) using GPS and local
                                           forestry crews. Mapping from raster imagery to vector GIS and technology
                                           transfer. Lead company with Geoimage (Brisbane).

2003 CHINA                                 Wood Resources International - Landed wood cost in Southern China. Quarterly
                                           reporting, with commentary on supply and demand for softwood and hardwood
                                           fibre by the pulp and paper industry.(ongoing)

2003 AUSTRALIA                             Weyerhaeuser Australia - Independent advice on saw log haulage costs, stumpage
                                           costs, sawnlumber grade recoveries, softwood sawntimber market changes 1995 to
                                           the present and interstate sawntimber road freight rates. Required for 5 yearly
                                           royalty review submission

2003 AUSTRALIA                             Timbercorp - International Hardwood Fibre Markets, focusing on Japan, China and
                                           Australia’s cost competitiveness relative to South Africa, Chile and Brazil.

2003 AUSTRALIA                             Forest Products Commission (WA) - Global best practices in log inventory
                                           (woodflow planning) systems, covering North America, South America (Chile), New
                                           Zealand, Australia, South Africa, United Kingdom and Scandinavia. Contact with



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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                           twenty eight global organisations.

2002 AUSTRALIA                             Department of Agriculture Fisheries and Forestry Australia (AFFA) and
                                           Queensland Timber Board (QTB) - Inventory of approximately 1.5 million hectares
                                           of private native forest in south east Queensland. Lead company, engaging
                                           GeoImage, the Queensland Herbarium, MapInfo, QASCO, AAM Surveys, Forest
                                           Data and Australian Farm Forestry to assess area by forest type as well as a range
                                           of wood and non wood values.

2002 AUSTRALIA                             Monaro Logging – update logging contract program written by me in the 1980s (still
                                           operating after 15 years).

2002 AUSTRALIA                             Timbercorp – update the market section of their 2002 Prospectus.

2002 AUSTRALIA                             Futuris Corporation and Integrated Tree Cropping (ITC) – Global, Asia Pacific and
                                           Australian forest and forest products industries overview – preparation of Board
                                           White Paper.

2002 ASIA                                  Jaakko Pöyry Consulting – Jaakko Pöyry Consulting and confidential North
                                           American client – Analysis of the China pulp, paper and solid wood sectors.
                                           Economics, wood products supply and demand, non wood products supply and
                                           demand, wood demand and supply, resources and industry location, strategic issues
                                           and manufacturing production. Developed detailed pulp and paper fibre supply and
                                           demand assessments by region as well as wood demand by type, forest ownership
                                           and growth rates, delivered wood cost and manufacturing wood consumption by
                                           major processor. Asia-Pacific Project Manager with full responsibility for the
                                           China (and Vietnam) components of this global project.

2002 AUSTRALIA                             ITC – Advice on exchange rates and forest product prices.


2002 AUSTRALIA                             Founded MBAC Consulting Pty Ltd


2001 AUSTRALIA                             Team Leader – Due Diligence of Australian Plantation Timber (APT) Eucalyptus and
                                           land resource in SW Western Australia and the Green Triangle Region of SW
                                           Victoria and SE South Australia – Australian merchant bank and Jaakko Pöyry
                                           Consulting – December 2001.


2001 VIETNAM                               Team Leader, Forest and Forest Industry Economist - Study on the Development
                                           Potential of Vietnamese Wood Growing Sector, focusing on the Central Coastal
                                           Provinces of Quang Binh, Quang Tri, Thua Thien Hue Da nang ,Quang Nam, Quang
                                           Ngai and Binh Dinh. Plantation Development, smallholder issues, industries and
                                           markets– World Bank and Jaakko Pöyry Development – October 2001.


2001 CHINA                                 China’s Forest Industries – Opportunities and Challenges – Forest Resources.
                                           Jaakko Pöyry Consulting Multi-client report, Joint Principle Author and Project
                                           Director. – Published August, 2001. China’s industry, forest resources, wood
                                           supply, demand drivers, costs and prices of wood, forestry sector dynamics and
                                           business outlook.


2001 CHINA                                 Team Leader – Valuation of Asia Pulp and Paper’s Chinese plantation estate,
                                           involving on-site assessment on Hainan Island and in Guangdong for APP.




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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




2001 AUSTRALIA                             Confidential – Project Director for the Development of an Australian Timberland
                                           Fund – structure, acquisition opportunities, macro economic environment, investor
                                           appetite.


2001 AUSTRALIA                             Confidential – Project Director - Strategic planning for Australian afforestation
                                           company.


2001 CHINA                                 Jaakko Pöyry Consulting Oy – Strategic advice on pulp and paper opportunities in
                                           Southern China for a major European client. Focus on regulations and taxes
                                           pertaining to fibre use in the sector in Guangdong and Hainan Island. Landed wood
                                           cost in Southern China.


2000 AUSTRALIA                             Confidential – Valuation of Eucalypt pulpwood log licence


2000 INDONESIA                             Riau Andalan Pulp and Paper – Strategic advise for long term woodflow harvesting
                                           and transport associated with mill expansion in Indonesia


2000 AUSTRALIA                             NSW Government – Project Director - Strategic Plan to develop user-pays system
                                           for forest growers to use NSW transport infrastructure


2000 CHINA                                 Hutai (Peoples Daily) – Strategic Plan for expansion of pulp and paper facilities in
                                           Shandong Province, China – Project Manager


2000 SURINAME                              Turn Best Industries – Resource assessment of select Suriname natural forest
                                           concessions and identification of sustainable utilisation options – Project Director


2000 AUSTRALIA                             Brown and Dureau – Wood supply in South East Australia.


2000 AUSTRALIA                             Industrial Bank of Japan, Australia – Regional afforestation options concentrating
                                           on Carbon sequestration.


2000 AUSTRALIA                             Carter Holt Harvey – Plantation resource and softwood industry review in
                                           Australia.


1999 AUSTRALIA                             Integrated Tree Cropping (ITC) – Solid wood processing and marketing options
                                           from fast grown eucalypt plantations in South Africa, South America and
                                           Australia.


1999 AUSTRALIA                             Hancock Victorian Plantations (HVP) - Market Valuation of HVP’s Victorian forest
                                           assets, incorporating AASB1037 (SGARA) accounting standards.


1999 AUSTRALIA                             North Forest Products - Project Director of due diligence of North Forest
                                           Products’ NE Tasmanian plantation sale, in conjunction with Macquarie Bank.


1999 INDONESIA                             North American confidential client - Strategic resource advice assessing
                                           opportunities for a major acquisition in Indonesia.


1999 AUSTRALIA                             Lensworth (Queensland) - Strategic Advisor for development options for privately
                                           owned softwood plantation in SE Queensland.




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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




1999 AUSTRALIA                             Integrated Tree Cropping (ITC) - Author of Independent Foresters’ Report for
                                           three blue gum prospectuses in Western Australia and the Green Triangle Region
                                           of South Australia/Victoria.


1999 AUSTRALIA                             Hancock Victorian Plantations (HVP) - Assisted in development of FOLPI estate
                                           model.


1999 INDONESIA                             Riau Andalan Pulp & Paper (RAPP) APRIL Group - Due Diligence and Information
                                           Memorandum based on woodflow to the RAPP Kerinci pulp and paper mill in
                                           Sumatra, Indonesia.


1998 AUSTRALIA                             Hancock Natural Resources Group (USA) - Project Director for valuation of CSR
                                           Timber Plantation in South Australia and Victoria.


1998 AUSTRALIA                             Canterwood - Analysis of shortwood and longwood harvesting systems for Hyne &
                                           Sons (Canterwood) softwood woodchip export operation at Maryborough in
                                           Queensland.


1998 AUSTRALIA                             Hancock Natural Resources Group - Project Director for due diligence and
                                           strategic advice on HNRG’s bid for the 116,000 net hectare plantation estate in
                                           Victoria.


1998 INDONESIA                             Confidential client - Project Director for strategic study of Asia Pulp and Paper
                                           (APP) paper operations in Indonesia.


1998 FIJI                                  Fiji Forest Industries - Preparation of Concession Renewal Proposal and
                                           development of a coupe level GIS incorporating harvesting history, ownership,
                                           forest type (from satellite imagery) and proximity to infrastructure. Documents
                                           and maps at 1:150,000 and 1:50,000, the latter using GPS road data.


1998 AUSTRALIA                             Gippsland Farm Plantation - Project Director to develop strategic issues for
                                           Gippsland Farm Plantations, encouraging farm forestry in the Gippsland Region of
                                           Victoria.


1998 AUSTRALIA                             Forestry Tasmania, Environment Australia and Commonwealth DPIE - Review of
                                           Native Forest Pricing and Allocation Policy for Forestry Tasmania, in conjunction
                                           with Access Economics.


1998 AUSTRALIA                             Plantations North East - Regional Profile and stakeholder database for the area
                                           between Melbourne and the Murray River (south to north) and Shepparton and the
                                           Dividing Range (west to east) as part of a package to encourage plantation
                                           investment in the region.


1997 MALAYSIA                              Borneo Pulp and Paper (BPP) - Preparation of report on wood supply and cost of
                                           presentation to financial institutions. Project covered all land and volume issues
                                           such as customary land, vegetation and terrain classifications and landed wood cost
                                           calculations for native and plantation resource for a major pulp mill development
                                           project in Sarawak.


1997 AUSTRALIA                             Beecham Wright and Victree Forests - Valuation of Public and Company log access
                                           rights as part of forest estate and related wood licences valuations.



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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




1997 AUSTRALIA                             Westralian Forest Industries (WESFI) - Development of softwood pulpwood,
                                           sawlog and sawmill residue price indices for Australia and New Zealand domestic
                                           and export sales.


1997 AUSTRALIA                             Confidential Corporation - Project Director of due diligence of major corporate
                                           softwood plantation sale in Australia, acting for the potential buyer.


1997 AUSTRALIA                             NSW Forestry Structural Adjustment Unit - Assessment of supplementation
                                           options, following volume reductions on the NSW North Coast.


1997 SURINAME                              Confidential Corporation - Prefeasibility study of industrial opportunities in
                                           Suriname South America.


1997 AUSTRALIA                             Confidential Corporation - Assessment of Asian helicopter logging company as part
                                           of a due diligence prior to acquisition.


1996 AUSTRALIA                             Confidential Corporation - Forestry Adviser to acquisition team assessing
                                           acquisition opportunities in Oceania.


1996 AUSTRALIA                             Confidential Company - Valuation of a number of crown softwood sawlog log access
                                           rights and a plantation estate, as a prelude to sale of the company by way of public
                                           float.


1996 AUSTRALIA                             State Forests of NSW - Investor participation mechanisms and structures for
                                           investment into hardwood plantation in NSW. Development of innovative financial
                                           and operational mechanisms involving existing fibre supply, infrastructure,
                                           industrial development and financial structures.


1996 AUSTRALIA                             Glen Innes Regional Development Board - Project Manager for a 3 person team to
                                           identify regional opportunities for the hardwood and softwood forests and forest
                                           industry in the face of increasing mechanisms involving existing fibre supply,
                                           infrastructure, industrial development and financial structures.


1996 CHINA                                 Food and Agricultural Organisation (FAO) - Paper presentation to Forestry Policies
                                           and Institutions in a Market Economy Asia Region Project covering global wood
                                           supply, demand and value, with insights into centrally planned, mixed and free
                                           markets. Attendees from Myanmar, China, Mongolia and Vietnam . Presentation in
                                           Kunming China.


1996 LAO PDR                               Transfield and Electricité de France - Forestry works associated with Nam Theun
                                           II Dam Feasibility Study. Demarcation of high water level on the ground, yield
                                           assessments and wood supply/demand assessments.


1995 AUSTRALIA                             Australian Corporate - Wood intake optimisation model, looking at fibre intake at
                                           two sites and the delivery, cost and quality features of supply.


1995 USA                                   North American Corporate - Resource, business and manufacturing white papers on
                                           several potential investment arenas, covering forest attributes such as land and
                                           forest areas, distribution, ownership, species, age class, productivity,
                                           afforestation and reforestation rates, volumes and commitments, growing costs



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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                           and wood costs.


1995 AUSTRALIA                             Port Kembla Port Authority - Background paper on wood chip export contenders
                                           for Port Kembla. Assessment of their fibre sources and business structures.


1995 AUSTRALIA                             Austrade - Plantation Benchmarking Study. Comparing Australia and 12 other
                                           countries in Asia, South America, North America and Oceania in terms of key
                                           plantation investment and resource, business and manufacturing attributes.


1995 AUSTRALIA                             Australian Corporate - Private plantation areas in NSW and Victoria by age class
                                           and species.


1995 AUSTRALIA                             Australian Corporate - Due Diligence of the Smorgon plantations prior to sale. Full
                                           MARVL inventory, with taper function development and digital mapping of 6,000 ha
                                           P. radiata estate in Victoria.


1995 CHINA                                 CSR - Assessment of circa 100,000 hectares of Pinus plantations in South Central
                                           China using SPOT Image 1:50,000 Multi-spectral and Panchromatic satellite images
                                           and Global Positioning System (GPS). Project involved data capture; image analysis
                                           using ER Mapper; polygonisation (vectors) of pixel (raster) data and GIS
                                           development using ARCVIEW/2.


1995 AUSTRALIA                             Midway Wood Products - Assessment of forest residues in East Gippsland and
                                           Tambo Forest Management Areas (FMAs) prior to calls for Expressions of
                                           Interest in wood purchase. Project involved data compilation from about
                                           300,000 ha using GIS; on-ground assessment of select coupes using 3P sampling
                                           and volumes estimation by species, wood size and distance to mill.


1995 AUSTRALIA                             Dr Shepherd Group - Assessment of 25,000 ha of privately owned Pinus radiata
                                           plantations in southeastern Australia and development of a GIS to attract wood
                                           buying/forest buying interests and for valuation purposes.


1995 VANUATU                               Australian International Development Assistance Bureau (AIDAB) - Inventory and
                                           computer (GIS) systems specialist on Vanuatu Sustainable Yield Project in
                                           conjunction with Hassall and Partners and ANUTECH. 5 year project commencing
                                           1995.


1995 AUSTRALIA                             Hancock Bros Ltd - Valuation of four log access rights.


1995 AUSTRALIA                             Australian Newsprint Mills Ltd - Valuation of ANM Forests forest estate for
                                           internal reporting.


1994 USA                                   Confidential Company - International expansion strategy, looking at global wood
                                           basket opportunities in North America, South America, Europe and Oceania,
                                           providing comparative resource, business and manufacturing environment
                                           information.


1994 AUSTRALIA                             Australian Newsprint Mills Ltd - Development of a Recycled Paper Stock Inventory
                                           Geographic Information system to monitor and plan fibre intake activities.
                                           Ongoing development.




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ROD MEYNINK STATEMENT OF QUALIFICATIONS AND EXPERIENCE




1994 USA                                   Confidential Company - Resource and wood supply options for their USA operations,
                                           looking at potential markets and landed wood costs and forest ownership options in
                                           conjunction with Jaakko Pöyry Consulting Inc., USA.


1994 AUSTRALIA                             Australian Newsprint Mills Ltd, Tasmania - Inventory of Forestry Commission of
                                           Tasmania’s West Coast softwood plantations as part of a due diligence prior to
                                           ANM’s successful tender for the resource.


1994 AUSTRALIA                             Australian Newsprint Mills Ltd, Albury - Inventory design, planning, processing and
                                           reporting for ANM Forests 8,000 ha Pinus radiata estate in NSW and Victoria,
                                           using MapInfo and MARVL systems.


1994 PAPUA NEW GUINEA                      Turama Forest Industries - Development of a Geographic Information System to
                                           assist in combining inventory data with remotely sensed (LANDSAT) data for the
                                           preparation of a feasibility study for ongoing resource utilisation.


1994 USA                                   American Forest and Paper Association - Development of an international database
                                           and Geographic Information System using MapInfo. The database contains
                                           country specific solid wood products production, imports and exports in US dollars
                                           and cubic metres for all years from 1982 to the present. Products include sawn
                                           timber, plywood, particleboard, fibreboard, veneer and logs with softwood and
                                           hardwood separations. Data can be viewed and aggregated at the regional (ie
                                           North America, South America), sub-regional (Canada, USA, Central America and
                                           Latin America) or country (USA, Mexico, Brazil) levels in mapped, tabular or
                                           graphical formats.


1994 USA                                   Confidential Company - Development of a MapInfo database system to determine
                                           international investment opportunities at global, country and regional levels.
                                           Several critical value databases, covering resource, manufacturing, infrastructure,
                                           politics, social, risk and investment attributed were developed. Data quality
                                           importance and critical value weighting labels were attached to all data to screen
                                           investment opportunities at the country and regional level.


        Full CV available at www.mbac.com.au




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JOHN CAMERON STATEMENT OF QUALIFICATIONS AND EXPERIENCE




Name                             :         John Neil CAMERON


Date of Birth                     :        27th March, 1947


Citizenship                       :        Australian


Qualifications                    :        Master of Business Administration (Monash University 1992)
                                           Major in economics towards Bachelor of Arts (Monash University) (1976)
                                           Diploma of Horticulture (Vic. College of Agriculture & Horticulture)(1967)


Professional Affiliations         :        Institute of Foresters of Australia;
                                           APPITA (Technical Association of the Australian and New Zealand Pulp and Paper
                                           Industry);
                                           Australian Management College Association


Fields of Expertise               :        Feasibility studies, industry analysis, strategic development, development projects,
                                           resource modelling, reviews and submissions, major contract strategies, and
                                           reviewing aid projects


Other Languages                   :        English - Mother tongue


EMPLOYMENT RECORD


2004 – present                       :     MBAC Consulting Pty. Ltd., Canberra, ACT
                                           Senior Consultant
2002 - present                    :        Cameron Consulting, Traralgon, Victoria
                                           Principle
2001-2002                         :        Grand Ridge Plantations (subsidiary of HVP)
                                           General Manager
1998-2001                         :        Australian Paper Plantations (AAP, subsidiary of Paperlinx)
                                           General Manager
1998                              :        AMCOR Resources & Timber Products Group
                                           Manager - Business Improvement & Strategy
1995-1997                         :        AMCOR Gippsland Wood & Paper Products Group
                                           Manager – Group Development
1994-1995                         :        AMCOR Paper Group
                                           Manager – Corporate Development
1984-1994                         :        Australian Paper Plantations (APP)
                                           Silvicultural Manager then Development Manager
1975-1984                         :        Australian Paper Plantations (APP)
                                           Research Forester then Senior Research Forester then Senior R&D Forester
1972-1975                         :        Technical officer
                                           APM Forests
1971-1972                         :        Plant Quarantine inspector
                                           Dept. Agriculture, Victoria
1968-1971                         :        Technical Officer
                                           WA Forests Department & Dept of Agriculture




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JOHN CAMERON STATEMENT OF QUALIFICATIONS AND EXPERIENCE




RELEVANT EXPERIENCE


2002 AUSTRALIA                             Consulting mainly to the Australian natural resources sector, forestry, forest
                                           products and pulp and paper industry. Clients including earlier consulting work on
                                           behalf of Amcor include Paperlinx, Willmott, Plantation Timber Association of
                                           Australia, Gippsland Private Forestry, Australian Development Assitance Bureau,
                                           Kimberley Clark, CSR, Treecorp, and Celbi. Projects included feasibility studies,
                                           industry analysis, strategic development, development projects, resource
                                           modelling, reviews and submissions, major contract strategies, and reviewing aid
                                           projects.

2001-2 AUSTRALIA                           As General Manager, Grand Ridge Plantations (subsidiary of HVP), managed
                                           turnover of ca $100Mpa on the supply of 1.7 million m3 pa from an 82 000 net ha
                                           plantation estate. PBIT and operating cash flow considerable exceeded target in
                                           the first year following acquisition and were well ahead of target for the first
                                           quarter of 2002/2003. Other achievements include successfully outsourced all
                                           plantation operations, managed the associated 30% downsizing with sensitivity and
                                           goodwill, successfully merged the APP and HVP Latrobe operations.


Pt. 2000 NORTH AMERICA                     Canada & USA to study their forest products industry and developments in
                                           environmental certification.


1998-2001 AUSTRALIA                        As General Manager, Australian Paper Plantations (subsidiary of Paperlinx)
                                           Managed turnover of ca $100M pa on the supply of 1.9 million m3 pa of wood
                                           sourced from the company’s 54,000net ha plantation and external suppliers.
                                           Managed a “turnaround” that delivered profit growth of over 30% per annum
                                           compound over three years. However, the business was non-core and was
                                           successfully prepared for sale to a new owner (HVP). Other achievements are
                                           described below. Better supply-chain management delivered ca. 20% cost reduction
                                           and the introduction of safer mechanised felling of native eucalypt. Higher haul
                                           payloads (introduction of quaddogs) and better utilisation of contractors harvest
                                           and haul equipment were delivered. A program of organisational renewal resulted in
                                           a commercially oriented and output-focused team that delivered on undertakings.
                                           A new proactive environmental strategy was implemented based on continuous
                                           improvement and avoiding community outrage through community engagement which
                                           lifted APP’s environmental performance and credibility. APP achieved ISO 14001
                                           accreditation of our Environmental Management System and implemented a Three-
                                           Year Environmental Improvement Plan. APP’s R&D program was refocussed on the
                                           key cost and profit drivers of the business and made a greater contribution to
                                           business improvement. Several million dollars of idle assets were sold lifting
                                           profitability.
1998 AUSTRALIA                             Manager, Business Improvement & Strategy of the Resources & Timber Products
                                           Group of AMCOR. Operational responsibility for delivering on major profit
                                           improvement opportunities across the Group. Achievements include delivered a new
                                           strategy and three year plan that provided the platform for subsequent profit
                                           growth of APP and B & D; Implemented a new wood supply and market mix that
                                           increased PBIT by ca $1M pa; Implemented new pine fertiliser and harvest regimes
                                           that permitted APP to subsequently increase sawlog sales revenue by $3M to $6M
                                           pa.
1995-1997 AUSTRALIA                        Manager, Group Development, Gippsland Wood & Paper Products group of AMCOR.
                                           Managed strategic development of Amcor’s forestry, sawntimber and pulp/paper
                                           businesses. Achievements include; Explored strategic options for non-core
                                           business that resulted in the subsequent divestment of the plantation [APP] and




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JOHN CAMERON STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                           sawntimber [B&D] businesses; Optimised the pine “sawlog to sawntimber” value-
                                           adding chain, delivering ca $1M pa additional PBIT; Negotiated new eucalypt wood
                                           supply contract and JV plantation proposal for Amcor’s Tasmanian mills;
                                           Negotiated a more commercial pine pulplog supply contract.


1994-1995 AUSTRALIA                        Manager, Corporate Development, AMCOR Paper Group. Responsible for strategies
                                           for Amcor’s forestry (Australian Paper Plantations – APP), sawntimber (Brown and
                                           Dureau) and pulp/paper (Australian Paper) businesses. Achievements include;
                                           Developed a long-term strategy for the groups three businesses based on a vision
                                           and wood supply capability for the industry in Gippsland; Developed the wood supply
                                           plan for the new $300M fine paper machine at Maryvale [M5]; Benchmarked global
                                           pulpmill fibre costs and the profitability of Australian softwood sawmills.


Pt. 1994 SOUTH AMERICA                     Brazil, Argentina, Uruguay & Chile to study forest products industry.


Pt. 1992 EUROPE                            Portugal, Spain, Morocco, France and Holland to study plantation management.
                                           Funded by Government grant.


Pt. 1990 PORTUGAL UK                       Portugal and United Kingdom to study plantation management.
                                           Funded by Government Grant.


1990-1994 AUSTRALIA                        Development Manager, Australian Paper Plantations (APP). Managed APP’s
                                           strategic development, resource planning, R&D, seed and nursery operations.
                                           Developed a strategy for APP embracing secure but flexible wood supply for Amcor
                                           pulpmills at Maryvale and sawmill at Morwell. Helped set up APP as a profit centre.
                                           Chaired the STBA through a threefold increase in growth, establishing it as a
                                           national tree breeding co-operative with sufficient scale to deliver maximum
                                           benefits to members. Relieve as Manager of APP.


Pt 1988 INTERNATIONAL                      Zimbabwe, South Africa, Swaziland, France, Spain and Portugal to study
                                           developments in plantation management.


Pt. 1986 CHINA HK                          China and Hong Kong to review and report on a forestry aid project for Australian
                                           Development Assistance Bureau. Funded by ADAB.


1984-1990 AUSTRALIA                        Silvicultural Manager, Australian Paper Plantations (APP). Managed APP’s R&D,
                                           seed and nursery operations. Developed APP’s Eucalypt Plantation Management
                                           regimes. Focused R&D on enormous opportunities for improving sawntimber, pulp
                                           and paper properties. Initiated ca. 40 collaborative research programs funded by
                                           APP and several million dollars in government grants. Expanded APP’s eucalypt
                                           breeding programs based on new strategies to increase gain, ensure gene
                                           conservation and capitalise on co-operation with other Australian agencies.
                                           Established 100ha conservation stand of native bluegum. Built APP’s new eucalypt
                                           nursery and pioneered large scale commercial production of P.radiata cuttings
                                           (world first). Turned our unprofitable nurseries into efficient, profitable
                                           operations funding expansion of our eucalypt R&D on profits from sale of surplus
                                           seed, seedlings and cuttings. Relieve as Chief Forester.


Pt. 1985 NEW ZEALAND                       New Zealand to study plantation management. Presented two papers at
Pt. 1982                                   conferences in 1982 (NZ).


1982-1984 AUSTRALIA                        Senior Research & Development Forester, Australian Paper Plantations (APP).
                                           Managed APP’s R&D, seed orchards and nurseries, including marketing of seed and



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JOHN CAMERON STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                           seedlings and technology transfer. Introduced new machines and methods that
                                           shaved >$200/ha or 15% off the cost of plantation establishment. Relieve as
                                           Technical Manager and Operations Superintendent.


1981-1982 AUSTRALIA                        Senior Research Forester, Australian Paper Plantations (APP). Management of
                                           breeding programs and silvicultural research in Victoria, Queensland and New
                                           South Wales. Focused APP’s breeding programs on delivering financial gain per
                                           dollar invested in the shortest lead-time. Relieve as Technical Manager, Chief
                                           Forester and Operations Superintendent.


Pt. 1979-1980                              United Kingdom, USA and Fiji to study plantation management.


1975-1980 AUSTRALIA                        Research Forester, Australian Paper Plantations (APP). Lead genetics, weed
                                           control and nutritional research in APP’s Victorian, New South Wales and
                                           Queensland plantations. Pioneered the introduction of new pine establishment that
                                           led to ecologically sustainable prescriptions and realised gains of ca. 50% in volume
                                           worth several million dollars pa. Produced APP’s first rigorous safety regulations
                                           for pesticide use and pioneered the replacement of hormone herbicides 2,4,D and
                                           2,4,5,T with ecologically sounder alternatives. Relieve as Technical Manager and
                                           District Forester.




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




Name                                   Chris BOROUGH


Date of Birth                          1943


Citizenship                            Australian


Qualifications                         BSc (Forestry), Australian National University (1965)


Professional Affiliations              Member, Association of Consulting Foresters of Australia
                                       Member, Bioenergy Australia committee


Fields of Expertise                    Project management, carbon sequestration and carbon trading, bioenergy, tropical
                                       and temperate forest inventory, education and training in forest management,
                                       forest silviculture, environmental use including land degradation and effluent re-
                                       use, research, including agroforestry, nutrition, clonal forestry.


                                       The countries worked in include Australia, Papua New Guinea, Ethiopia, India,
                                       Solomon Islands, Samoa, Fiji, Sri Lanka, China, New Zealand and Denmark.


Other Languages                        English - Mother tongue
                                       Melanesian Pidgin - fluent


EMPLOYMENT RECORD


2002 - present                         MBAC Consulting Pty. Ltd.
                                       Director, Consultant


1995 - 2000                            Jaakko Pöyry Consulting (Asia-Pacific) Pty Ltd
                                       Senior Consultant


1988 - Present                         Forest Science Consultancy Pty Ltd
                                       Principal Consultant/Managing Director


1987                                   Forestry Technical Services Pty Ltd
                                       Senior Consultant


1975-1986                              CSIRO Division of Forest Research
                                       Agroforestry/Ecophysiology Research


1972-1975                              Forest Research Institute, Canberra
                                       Forest Mensuration


1970-1971                              PNG Forestry College
                                       Senior Lecturer, Forestry Management


1965-1969                              PNG Department of Forests
                                       Forest Inventory




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




RELEVANT EXPERIENCE
2003                                   AUSTRALIA: Forestry Tasmania. Review of eligibility of wood waste from
                                       harvesting of native forests for generation of renewable energy


                                       AUSTRALIA: Australian Greenhouse Office. Review of use of wood wastes for
                                       generation of renewable energy. (in conjunction with the National Association of
                                       Forest Industries)


                                       AUSTRALIA: Australian Forest Growers. Invited Paper: Wood for Energy. Aust.
                                       For. Grower 26(1) Special Liftout No. 63 Autumn 2003


                                       AUSTRALIA: Norske Skog Boyer (Tasmania). Analysis of actual and predicted
                                       yields from plantation resource.


                                       AUSTRALIA: Agricultural Loss Management Group. Analysis of factors relating to
                                       ACT Forests plantation loss due to Jan 18th fire (in excess of 10 000 ha)


2002                                   AUSTRALIA: AFFA – Inventory of the private native forests of South-East
                                       Queensland. Project involves trial of aerial laser scanning as well as field inventory
                                       for timber and non-wood values.


                                       AUSTRALIA: Boral Timber – Review of State Forests assumptions on yield
                                       projections for native forests in NSW.


                                       AUSTRALIA: VAFI – Report on industry development.


                                       AUSTRALIA: Australian Forest Growers – Invited paper “Fighting for Profitable
                                       Private Forestry” presented at AFG Conference, Albany WA, October 2002.


                                       AUSTRALIA: Futuris/ITC - Global, Asia Pacific and Australian forest and forest
                                       products industries overview – preparation of Board White Paper


                                       AUSTRALIA: BioEnergy Australia Ltd – Preparation of report on high value timber
                                       species and bioenergy species


                                       AUSTRALIA: Zurich Capital Markets/Hancock Natural Resource Group – Review of
                                       carbon models


                                       AUSTRALIA: ERM - Feasibility study into the value of carbon sinks for Defence


                                       AUSTRALIA: Forest Industry Engineering Association - Wood wastes under MRET
                                       – paper presented to Wood Wastes 2002 Conference, Melbourne


                                       AUSTRALIA: Appointed to Committee of Bioenergy Australia


                                       AUSTRALIA: ITC – Advice on exchange rates and forest product prices – inclusion
                                       of statement in ITC 2002 Prospectus




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2ede32c3-385d-459c-a795-2d8080eeb5d7.doc                                                                            39
CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                       AUSTRALIA: South Resources Ltd – Independent check of South wood resources
                                       model


                                       AUSTRALIA: ITC Ltd – Analysis of wood-price trends and exchange rates


                                       AUSTRALIA: Australian Greenhouse Office - Invited to join the Panel of Verifiers
                                       – Greenhouse Friendly Program


                                       AUSTRALIA: Founded MBAC Consulting Pty Ltd


2001                                   AUSTRALIA: Auspine Ltd. - Due diligence for 60 MW biomass electricity
                                       generation plant – Tarpeena, SA.

                                       AUSTRALIA: Australian Greenhouse Office. Review of GGAP Projects – Round II.

                                       AUSTRALIA: Bioenergy Australia – IEA Task 30 Short Rotation Cropping.
                                       Attended IEA Task 30 meeting in Viborg, Denmark as Australian representative.

                                       AUSTRALIA: Holmes Sackett & Assoc., Wagga Wagga – Blue gum – an opportunity
                                       for farmers? Article prepared for Australian Farm Business Review.

                                       AUSTRALIA: Bioenergy Australia – elected to committee of national organisation
                                       representing bioenergy interests.

                                       AUSTRALIA: Australian Forest Growers – Wood as Renewable Energy. Special
                                       Liftout No. 56. (Joint authorship with Stephen Schuck – Bioenergy Australia).

                                       AUSTRALIA: Australian Plantation Timber Ltd and Cosmo Oil – Annual verification
                                       of carbon sequestered by Eucalyptus plantations in Western Australia to support
                                       major carbon trade arrangement.

                                       AUSTRALIA: The development of a national wood products model – Paper
                                       presented to IEA Bioenergy Task 38 Workshop on Carbon Accounting and
                                       Emissions Trading relating to Bioenergy.

                                       AUSTRALIA: Australian Plantation Timber Ltd and IBJ Australia Bank Limited –
                                       Initial due diligence audit and development of carbon verification procedures for a
                                       major carbon trading agreement involving Eucalyptus plantations in Western
                                       Australia.

                                       AUSTRALIA: Eagledale Forestry – review of establishment procedures for
                                       management of blue gum plantations.

                                       NEW ZEALAND: Confidential Client – Carbon sequestration and potential carbon
                                       value for Kyoto compliant P. radiata plantation estate in New Zealand.

                                       AUSTRALIA: Pulp and Paper Manufacturers Federation of Australia – Advice on
                                       the impact of carbon trading on the pulp and paper sector in Australia.

                                       AUSTRALIA: Australian Forest Growers – Blue Gum – the Path Ahead. Special
                                       Lift-out No.55 (Joint authorship with David Valentine).




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                       AUSTRALIA: Australian Director of Operations – BioForest Ltd and BioEnergy
                                       Australia Ltd (resigned July 2002)

                                       AUSTRALIA: Visy Pulp and Paper – Ongoing advice on wood supply aspects of Tumut
                                       pulpmill project.

                                       AUSTRALIA: Melbourne University Private – International training course; Land
                                       Use, Land-use Change and Forestry sector.

                                       AUSTRALIA: Australian Forest Growers – Alternative timber species – River Oak
                                       (Casuarina cunninghamiana). Special Lift-out (joint authorship with Ken Groves).

                                       AUSTRALIA: Australian Greenhouse Office – Development of CAMFor manual.

                                       AUSTRALIA: Integrated Tree Cropping – Independent Foresters report for
                                       inclusion in solid wood and pulpwood prospectuses.

                                       AUSTRALIA: International Greenhouse Partnerships Office – Preparation of
                                       workbook on Land-use change and Forestry.

                                       AUSTRALIA: Norske Skog – Valuation advice Albury plantation resource.

                                       AUSTRALIA: Norske Skog – Valuation advice Tasmanian plantation resource.

2000                                   AUSTRALIA: Australian Greenhouse Office – Review of wood product accounting
                                       options for National Carbon Accounting System.

                                       AUSTRALIA: Consortium of Australian Banks – Due diligence of Visy Pulp and Paper
                                       Mill Project, Tumut NSW.

                                       AUSTRALIA: Dr R. Vance – Sale of mature pine plantation at Tumut NSW.

                                       AUSTRALIA: State Forests of NSW – Review of potential species, growth rates
                                       and market opportunities in relation to a Greenhouse Gas Abatement Program
                                       proposal.

                                       AUSTRALIA: South Resources Ltd – Review of forestry potential – Brookvale.

                                       CHINA: Sino Forests – Sustainable Development Land Management Workshop,
                                       Gaoyao. Presentation on carbon sequestration.

                                       AUSTRALIA: Sydney Futures Exchange – Paper to Sydney Futures Exchange
                                       Workshop on Verification.

                                       AUSTRALIA: Confidential Client – Review of carbon plantation opportunities and
                                       development of carbon model.

                                       AUSTRALIA: Australian Greenhouse Office – Specialist advice on applications for
                                       funding under Greenhouse Gas Abatement Program.

                                       AUSTRALIA: NSW Department of State and Regional Development. Development
                                       of Manual - Plantations and Reafforestation Act – Infrastructure Contributions.




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                       SAMOA: Environment Australia - Implementation of Code of Harvesting Practice
                                       to Samoa

                                       FINLAND: Jaakko Pöyry Group (Helsinki) – Climate Change Position Paper.

                                       AUSTRALIA: Australian Forest Grower – Special lift-out – “Is carbon farming
                                       worthwhile?”

1999                                   AUSTRALIA: Wesfarmers – Valuation of carbon credits in Bunnings Treefarms.

                                       AUSTRALIA : North Forest Products - Due diligence of North Forest Products’ NE
                                       Tasmanian plantation sale, in conjunction with Macquarie Bank.


                                       AUSTRALIA: Hassall & Associates – Greenhouse, carbon trading and land
                                       management, report for consortium led by LWRRDC.

                                       FIJI: International Greenhouse Partnerships Office - Presentation to Pacific
                                       Islands nations on role of carbon sequestration in reducing greenhouse gas
                                       emissions

                                       AUSTRALIA: Visy Paper – Preparation of Information Memorandum for Kraft Mill
                                       at Tumut, NSW.

                                       AUSTRALIA: Australian Greenhouse Office (Nation Carbon Accounting Strategy) –
                                       Usage and life cycle of wood products.

                                       AUSTRALIA: South Resources Ltd – Review of contractual arrangements with ACT
                                       Forests.

                                       AUSTRALIA: Bunnings – Review of Forest Information System.

                                       AUSTRALIA: Fletcher Challenge Paper – Review of performance of pulpmill
                                       effluent irrigation project at Ettamogah and recommendations for future
                                       management.

                                       AUSTRALIA: Woodside Australian Energy - Biomass as an option for carbon
                                       dioxide abatement.

                                       AUSTRALIA: Fletcher Challenge Paper Pty Ltd - Valuation advice for potential sale
                                       of plantations (6,000 ha) in southern NSW and north Victoria.

                                       AUSTRALIA: Australian Forest Growers - Technical Editor of AFG journal.

1998                                   AUSTRALIA: Gippsland Farm Plantations Inc. - Strategy for plantation and farm
                                       forestry in Gippsland.

                                       AUSTRALIA: Fletcher Challenge Paper Pty Ltd - Valuation advice for potential sale
                                       of plantation (20,000 ha pine, 5,000 ha eucalypt) in southern Tasmania.


                                       AUSTRALIA: Queensland Timber Board/Department of Primary Industry -
                                       Forestry - Hoop pine market price review.




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                       AUSTRALIA: CO2 Forest Sinks Pty Ltd - Appointed Director - Technical advice on
                                       carbon sequestration by forests.

                                       AUSTRALIA: CSR Ltd - Review of wood supply for potential mill upgrade at Tumut,
                                       NSW.

                                       AUSTRALIA: State Forests of NSW - Audit of three carbon trades between
                                       State Forests and Pacific Power/Delta Energy.

                                       AUSTRALIA: CSIRO Division of Forestry and Forest Products - Review of CSIRO
                                       publication Principles and Practice of Effluent Irrigated Plantations.

                                       AUSTRALIA: Australian Bureau Agricultural & Resource Economics (ABARE) -
                                       Preparation of yield tables for all plantation species in Australia.

                                       AUSTRALIA: Department of Primary Industries and Energy (Commonwealth) -
                                       Review of Farm Forestry Program (in conjunction with Hassall & Associates).

                                       AUSTRALIA: Piper Alderman - Solicitors - Advice on matters relating to
                                       determination of prices paid to covenant holders by AUSPINE.

                                       AUSTRALIA: Department of Conservation and Natural Resources (Victoria) -
                                       Evaluation of FARMTREE model.

                                       AUSTRALIA: Gerard Industries Pty Ltd - Development of clonal propagation
                                       strategy for radiata pine estate at Rosewood NSW.

1997                                   AUSTRALIA: Victree Forests Pty Ltd - Valuation of plantation estate - Colac.

                                       AUSTRALIA: Timber 2000 Pty Ltd - Preparation of Information Memorandum.

                                       AUSTRALIA: Plantations North-East Inc. - Preparation of Regional Profile.

                                       AUSTRALIA: Peter C Thompson, Solicitor, Sydney - Ann Hopkins vs Seymour
                                       Softwoods - report on plantation Black Andrew.

                                       AUSTRALIA: Gerard Industries Pty Ltd - Plantation management and marketing of
                                       products, Tumbarumba, NSW.

                                       AUSTRALIA: Visy Paper Pty Ltd - Valuation of private plantations east of Tumut,
                                       NSW.

                                       AUSTRALIA: Nolan-ITU Pty Ltd - EIS Visy Pulp & Paper Mill Project Tumut -
                                       Effluent Re-use, Resource Supply.

                                       AUSTRALIA: Visy Paper Pty Ltd - Securing and managing public and private wood
                                       resources.

                                       AUSTRALIA: Forestry Structural Adjustment Unit - Financial analysis of options
                                       for readjustment in NSW North Coast.

                                       AUSTRALIA: Australian Newsprint Mills Ltd - Develop digital mapping system for
                                       all effluent plantations.




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




1996                                   AUSTRALIA: State Forests of NSW - Status report on private native forests in
                                       NSW.

                                       AUSTRALIA: Beecham Wright Pty Ltd        - Valuation of plantation estate of
                                       5,000 ha.

                                       AUSTRALIA: Forestry Tasmania - Impact of bark-encased knots on Tasmanian
                                       softwood sawlogs.

                                       AUSTRALIA: North Pine Products - Assessment of Canberra region resource.

                                       AUSTRALIA: Australian Newsprint Mills Ltd - Design system for permanent
                                       growth plots - Ettamogah effluent forest.

                                       AUSTRALIA: Lower Murray Water - Wastewater re-use management study. Sub-
                                       consultant to Consulting Environmental Engineers.

                                       AUSTRALIA: Albury City Council - Specialist advice on forest management and
                                       marketing; Albury Sewerage Augmentation Project.

                                       AUSTRALIA: North Forest Products - Assessment of the private forest resources
                                       in the ACT/Southern Tablelands Region.

                                       AUSTRALIA: Melbourne Water, Sub-consultant to Agricultural Investments
                                       Australia Pty Ltd - Specialist advise on forestry as part of review of Werribee
                                       Project.

1995                                   AUSTRALIA: Australian Nature Conservation Agency - Sub consultant for Hassall
                                       & Associates. Evaluation of the role of farm forestry program in carbon
                                       sequestration.

                                       AUSTRALIA: Freehill, Hollingdale & Page - Retrospective valuation of private
                                       forestry resource for Rural Property Trust.

                                       AUSTRALIA: In conjunction with Margules Groome Pöyry (now Jaakko Pöyry
                                       Consulting), development of assessment techniques and yield models for private
                                       plantation inventory.

                                       AUSTRALIA: RCA Management Ltd - Ongoing management of 3,800 ha plantation.

                                       AUSTRALIA: Gerard Industries Pty Ltd - Ongoing management of 1,200 ha
                                       plantation at Tumbarumba.

                                       AUSTRALIA: NSW Public Works through Patterson Britton & Partners Pty Ltd -
                                       Regional Effluent Management Strategy for Jervis Bay/Nowra. Concept
                                       development of preferred option.

                                       AUSTRALIA: Joint project with Roger Johnson, Agricultural Consultant, for
                                       Australian Newsprint Mills Ltd - Detailed analysis of research data for effluent
                                       irrigation trials.

                                       AUSTRALIA: In conjunction with Dunchue and Sinclair Pty Ltd: Albury City Council
                                       - Plan of management for effluent irrigated woodlots.




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CHRIS BOROUGH STATEMENT OF QUALIFICATIONS AND EXPERIENCE




                                       AUSTRALIA: J. Bryan - Pruning review - examination and recommendations for
                                       high pruning project “Pmara” Oberon.

                                       AUSTRALIA: Cathedral Valley Softwood Co-operative - Negotiate sale of forests
                                       near Taggerty.

                                       AUSTRALIA: Montgomery Watson Australia Pty Ltd - Irrigated forests - report
                                       on irrigation of natural forest for Wallaga Lake Sewerage Study.

                                       AUSTRALIA: Department of Employment Education & Training (Commonwealth) -
                                       Feasibility study - Effluent forests in the Shoalhaven.

                                       AUSTRALIA: NE Farm Forestry Program Group - Comparison of STANDPAK and
                                       FARMTREE.

1994                                   AUSTRALIA: Margules Groome Pöyry - Resource audit of plantation resource in
                                       Oberon area.

                                       AUSTRALIA: Bega Valley Shire Council - Plan of Management for Murrunna Point
                                       Reserve.

                                       AUSTRALIA: Pacific Pine Plantations Ltd - Inventory and valuation of pine
                                       plantation forest at Carabost. Joint project with Lethlean Valuers.

                                       AUSTRALIA: Illawarra Electricity - Valuation of trees - Electricity easement.

                                       AUSTRALIA: Pacific Pine Plantations Ltd - Technical advice and supervision of the
                                       valuation of pine plantation forest at Braidwood (Percheron Group).

                                       AUSTRALIA: RCA Management Ltd - Preparation of forestry aspects of a
                                       prospectus offering investment in forest farming with radiata pine.

                                       AUSTRALIA: Tree Owners Plantations Ltd - Preparation of independent forester’s
                                       report for a prospectus offering investment in plantations of radiata pine.

                                       AUSTRALIA: Australian Newsprint Mills, Boyer, Tasmania - Report on the potential
                                       for use of pruning as a tool to value-add private plantations in Tasmania.

                                       AUSTRALIA: Roads and Traffic Authority - Valuation of timber affected by road
                                       realignment - Tomerong.

                                       AUSTRALIA: RCA Management Ltd - Development of 440 ha site for pine
                                       plantation establishment. Plan roading, setbacks, contact with authorities,
                                       contractor supervision.

                                       AUSTRALIA: Margules Groome Pöyry Pty Ltd - Undertake field survey and update
                                       ski run and ski lift information into MapInfo for Thredbo Alpine Resort.

1993                                   AUSTRALIA: RCA Management Ltd - Tree breeding program to develop specialist
                                       radiata pine breeds - high density, Dothistroma resistant, high fertility. Pollen
                                       collection, controlled pollination, and extraction of core for wood properties.


        For full CV see www.mbac.com.au




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CONSULTANT PROFILE

NAME        Diana M.H. Gibbs


QUALIFICATIONS:B.Sc. Hons (Upper             Second) Agriculture with Economics, London
University (U.K.), 1972.

M.Env.Stud. (Cost-Benefit Analysis for Environmental Impact Assessment), Macquarie
University, 1986.

Graduate Member of the Australian Institute of Company Directors (Company Directors
Course Diploma, Order of Merit)

Diana Gibbs is an economist with nearly thirty years' experience as a consultant, involving
projects throughout Australia and in the Asia-Pacific region. She has previously been
employed by one of Australia's leading firms of management consultants for seven years,
and by a specialist firm of environmental engineers and planners for three years. Her own
consulting practice has now been successfully operating for nineteen years, primarily
involved with the provision of applied economic analyses, often within the context of
environmental assessment.

Her academic qualifications are in Agricultural Economics (B.Sc. Hons), and in
Environmental Economics (M.Env.Stud.). She has been accepted as a Member of both
relevant professional bodies (the Institute of Management Consultants of Australia, and
the Environment Institute of Australia).          Her consulting experience has been
predominantly in the field of applied micro-economics, relating particularly to primary
industries such as agriculture, mining, and forestry, and to issues of resource utilisation
amongst competing uses.

Her particular areas of expertise include:

   Regional economic development planning

   Feasibility studies

   Benefit-cost analysis
   Economic and financial evaluations
   Economic and socio-economic impact assessment

   Industry strategic planning
   Environmental economic analysis

She has particular experience in the forest and wood products industry, having conducted
a number of assignments relating to this sector (see below). As a result of this
experience, she has recently been re-appointed as a Director of the Forest and Wood
Products Research and Development Corporation (FWPRDC). As a Director, she is
responsible for determining the allocation of levy payers funds to research and
development projects, with matching funding being provided by the Commonwealth
Government. As part of her Board responsibilities, she is Chair of the National Timber
Development Council, an industry advisory group which recommends projects in the market
DIANA GIBBS STATEMENT OF QUALIFICATIONS AND EXPERIENCE                                            47



        development area. The knowledge and market development program represents around 1/3
        of the R&D budget administered by the FWPRDC. She is also chair of the Knowledge and
        Communications Committee of the Board.

        Diana Gibbs has completed assignments both as a sole consultant, and as part of a
        multi-disciplinary team. She has provided both technical input, and management
        responsibilities.

        Over the past ten years, some of the projects which are particularly relevant to the
        forest and timber industries which Diana Gibbs has undertaken in Australia, for clients in
        both the public and private sectors, have included the following:

            preparation of a comprehensive study, in association with Margules Pöyry Pty. Ltd., to
             document the economic role of the forest products industry within the economy of the
             State of NSW. This study was commissioned by the NSW State Government, to
             assist in policy development. The analysis provided multipliers for use in assessing the
             total economic impact of the industry, at a sector and regional level.
            Preparation of the NSW Softwood Strategy, via a consultation and analysis process
             which involved regional groups to ensure that all specific needs were met. A
             comprehensive analysis of issues relating to the industry, ranging from forestry to
             processing aspects, and to social and regional development needs, was made.
             Opportunities arising from this examination of issues were then identified, and a plan
             of action prepared to address the needs of the industry at a regional level, within an
             overall State context. This study represented an update of earlier work for the NSW
             Softwood Industry Working Party (the “Softwood Plan”).
            for ANM, an analysis of the net benefits available to the State from use of some
             recycled newsprint as part of the resource used in their Albury paper mill, as
             compared to the benefits derived from use of virgin pulp alone.

            for Pine Australia, an analysis of competing demands for research funding, and the
             merits for the softwood sector of ongoing participation in the National Market
             Development Committee.

            provision of an economic input to the Environmental Impact Statement (EIS) required
             for the application to extend the export license currently held by Harris-Daishowa
             (Australia) Pty. Ltd. for their woodchip operation at Eden, N.S.W. An equivalent study
             was completed to meet the legal requirements for the extension of the woodchip
             export license held by Sawmillers Exports Pty. Limited (a division of Boral Limited).
            for State Forests of N.S.W., the preparation of that section of an Environmental
             Impact Statement (EIS) which assessed the economic implications of the continuation
             of the current integrated sawlog/pulpwood operations in the State Forests on the far
             South Coast of N.S.W. An equivalent economic input has also been provided for the
             EIS required for on-going management by State Forests of N.S.W. of certain sections
             of North Coast forest, in the Dorrigo Forest District, and in the Grafton, Casino, and
             Murwillumbah Management Areas.

            an assessment of the regional economic impacts likely to result from the prevention of
             logging in all areas of State Forest nominated for inclusion on the register of the




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DIANA GIBBS STATEMENT OF QUALIFICATIONS AND EXPERIENCE                                                  48



             National Estate, for the industry body representing all forest-based activity in the
             S.E. forests of N.S.W.
            similar studies have been conducted for the forest products industry in NSW, to
             assess the regional economic impacts of :
                     -          Wilderness nominations which included current areas of production
                                forest in NSW
                     -          the proposed South-East Forest Protection Bill, which would have
                                imposed a moratorium on logging in large areas of forest in S.E. NSW
                     -          the "Rainforest Decision" made in 1982, which halted all logging in several
                                newly-declared National Parks in northern NSW. These Parks, intended
                                to conserve areas of rainforest, also contained significant volumes of
                                eucalypt sawlog resource
                     -          various proposals for resource allocation, defined as part of the Regional
                                Forest Agreement process

            for the N.S.W. Department of State Development, an assessment of some of the
             national and regional economic impacts likely to be experienced as a result of a
             proposal to establish a brightening facility at the ANM newsprint mill at Albury,
             N.S.W. This report was used to support the development proposal, at a Commission of
             Inquiry held under the E.P.A. Act as part of the development application process. A
             subsequent report examined the implications for the regional, State, and national
             economies of the establishment of a recycling plant, to replace part of the pulp input
             with used papers.

            for the NSW Softwood Industry Working Party, preparation of a strategic plan to
             guide future development in the softwood industry of the State. Goals of the
             "Softwood Plan" produced from this study were to achieve an optimal use of the
             softwood resource, to allow the industry to become increasingly world-competitive, to
             fulfil the industry potential in regional development, and to contribute to
             environmental management and sustainable development objectives in the State.

            for APM Ltd. (now part of the Amcor Ltd. group), an analysis of various aspects of the
             company's operation, for inclusion in a submission to the IAC Inquiry into the Pulp,
             Paper, and Printing Industries. These analyses included an assessment of the regional
             economic impact of the company's pulp and paper-making operations, the economic
             significance of the company's patterns of resource utilisation (including the recycling
             of waste paper) and of the distribution of costs and benefits of the company's
             environmental control measures.
            involvement as economist in a team commissioned by the (then) Commonwealth
             Department of Primary Industries and Energy, in an investigation of opportunities for
             further value-adding in the sawmilling industry of the South-East forests of N.S.W.
             Three separate studies were prepared, each examining the feasibility of alternative
             means of increasing the utilisation of timber for sawlog production, and in adding
             further value to the output of the sawmilling industry of the region.
            in association with Margules Pöyry, the preparation of a Business Plan to guide the
             operations of the Victorian Association of Forest Industries and the Timber Promotion
             Council into the future, and to provide the services required by the Victorian industry
             following the Regional Forest Agreement process.



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            also in association with Margules Pöyry, working with the Queensland Department of
             Primary Industry and the Queensland forest industries to prepare a Strategic Plan for
             future operations and activities of the State's forest and timber industry. This
             Strategic Plan came at a crucial time for the industry, as it was seeking to adjust to
             the changes imposed by the Regional Forest Agreement process.

            retained by the NSW Forest Products Association, and the Queensland Timber Board,
             to provide economic input and analysis in the development of Regional Forest
             Agreements in NSW and Queensland.
            Provision of economic analysis to a team addressing the options facing the ACT
             Government regarding the possible replanting of the plantation forest areas destroyed
             in the fires of January 2003.


        In addition to undertaking sole responsibility for projects, Diana Gibbs has established an
        on-going relationship with other consultants, in order to combine specialist skills and
        knowledge, or to provide a technical input. In the forestry area, these include MBAC Pty.
        Limited.

        In addition to her consulting responsibilities, and her role with the FWPRDC, Diana is also
        Chair of the NSW Regional Communities Consultative Council. This body, established by
        the Premier of NSW in 1996, provides advice to the Government on the impact of
        programs and policies on rural communities, and recommends issues where new initiatives
        are required.




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