2017-10-13 Special Meeting - Hinterland Environmental Conservation Project - Further Report

SPECIAL MEETING REPORT                                                             13 OCTOBER 2017


2.2. Shadow Minister for Environment and Heritage Protection

Mr Elmes also arranged a deputation with Dr Christian Rowan MP, Shadow Minister for
Environment and Heritage Protection. Dr Rowan was briefed on the project and he provided an
assurance that if there was a change of government at the upcoming election, an incoming LNP
government would honour and support the continuation of this project. Dr Rowan indicated that
this type of partnership model to enhance the conservation estate was one that would have the
Opposition’s full support.

3.    Format of the MOU

As flagged in the original report to the Special Meeting, the format of the draft MOU had not been
signed off by HQP or DAF at the time that report was finalised. Indeed, while our informal
understanding was that DAF was somewhat comfortable with the earlier version of the MOU, their
subsequent formal advice on 10 October 2017 was that they would prefer a simplified MOU at this
stage with the detail to be included in the formal transaction agreements. At a meeting on 11
October 2017, HQP indicated a similar view.

The parties have therefore developed a “short version” MOU (see attachment 1). This MOU will
achieve the following:
    Allow all of the parties to the project to sign off the project “in principle” and then work through
     the details to be contained in the transactional documents;
    Allow for a Ministerial announcement of the project at an earlier stage rather than waiting for
     the finalisation of the transactional documents;
    Allow for the Transition Committee to commence sooner rather than later which will be
     beneficial as the project unfolds; and
    Not bind the parties into the detail (which can be done via the transactional documents) but
     rather simply confirm the intent to work towards that outcome (noting that an MOU is not
     legally binding in any event).

The intention is to use the format of the MOU attached to this report rather than the draft MOU
attached to the original report.

4.    Further information

In my original report to the Special Meeting, I set out some details of what would be addressed in
the different transaction agreements. Further information has been provided since that report
(particularly from HQP) which clarifies certain elements. Details are as follows:

4.1. Early access to PLA area
HQP have shared (on a “commercial in confidence basis”) details of their proposed pine cut
schedule for the PLA area. It seems likely that HQP may finish their harvest of their pine
(particularly at Yurol) before the 5-year timeframe. HQP and Council have also discussed further
how Council may wish to access some of the existing PLA areas in the first 5 years (particularly
the recently fallow PLA pine areas) in the event that we are able to secure external funding for
remediation. It was agreed that these matters can be managed through the Transition Committee
process with, for example, early access for remediation work to be dealt with via a permit from
HQP. This may reduce the Council’s long term remediation costs.




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