A CORRYONG sawmill is facing closure, with the loss of 22 jobs, after a court ordered an immediate stop to native timber harvesting by VicForests.
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Walkers Sawmill buys low-grade logs and ash from VicForests to make pallets.
However, the Supreme Court of Victoria this month ordered VicForests to halt logging, determining the state-owned enterprise needed to better comply with biodiversity rules.
They centre on two species, greater and yellow-bellied gliders, in coupes in the Central Highlands and East Gippsland.
Justice Melinda Richards ordered surveying for the gliders be done before harvesting can resume.
Corryong sawmill owner Graham Walker said he had ordered 12,740 cubic metres of timber from VicForests for 2022-23 which was now stymied by the court ruling.
He has been using Black Summer bushfire salvaged logs since January 2020 and now has only 3300 cubic metres remaining.
"We'll be out of wood by the end of March," Mr Walker said.
"I think it's absolute crap, sawmilling has been in our family for 87 years and we've never been faced with this situation.
"Corryong has had a sawmill since 1965 that's supplied constant work."
Mr Walker's hopes of continuing rest on a successful court appeal by VicForests or a Coalition win in the Victorian election to open coupes not affected by the ruling.
If neither occurs, he says "we will be forced to close up shop once all our logs are gone".
"We would be forced to accept the government's opt-out package which will pay workers a redundancy but nothing substantial for the business that's been in town for 58 years, or to the contractors and businesses that we have supported, our sawmill plant would only be worth scrap steel value," Mr Walker said.
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"There is no opportunity to for us to cut softwood as our sawmill does not have the equipment to do that."
Walkers has a five-year deal to June 30, 2024 to supply pallets to a major Australian company.
In 2021-22, it produced 158,000 pallets and was on track for 140,000 in 2022-23 prior to the court decision.
The 12,740 cubic metres that is under order equates to 96,000 pallets.
Mr Walker said if his mill was unable to supply the contracted pallets it was likely to argue force majeure, that an extraordinary circumstance has resulted in the goods not being delivered.
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