{"id":"forests-bowater-scott-agreement-act-1986","name":"Forests (Bowater-Scott Agreement) Act 1986","slug":"forests-bowater-scott-agreement-act-1986","collection":"act","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":174019,"registerId":"vic-forests-bowater-scott-agreement-act-1986-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Forests (Bowater-Scott Agreement) Act 1986","content":"Victorian Legislation and Parliamentary Documentsi\nVersion No. 001\nForests (Bowater-Scott Agreement) Act 1986\nAct No. 71/1986\nVersion incorporating amendments as at 6 July 1999\nTABLE OF PROVISIONS\nSection Page\n1. Purpose 1\n2. Commencement 1\n3. Definition 1\n4. Act to bind Crown 1\n5. Ratification of Agreement 2\n6. Repeal of 1971 Act 2\n7. Amendment or termination of Agreement 2\n__________________\nSCHEDULE—Bowater-Scott Agreement 3\nSCHEDULE 1—Softwood veneer logs 26\nSCHEDULE 2—Softwood sawlog licence 27\nSCHEDULE 3—Measuring and allowing for defect softwood\nsawlogs 29\n═══════════════\nENDNOTES 31\n1. General Information 31\n2. Table of Amendments 32\n3. Explanatory Details 33\n\nVictorian Legislation and Parliamentary Documents1\nVersion No. 001\nForests (Bowater-Scott Agreement) Act 1986\nAct No. 71/1986\nVersion incorporating amendments as at 6 July 1999\nPreamble\nThe Treasurer, the Minister for Conservation,\nForests and Lands, the Forests Commission and\nBowater-Scott Limited have agreed to certain\narrangements for the supply of softwood for\ncertain operations undertaken by Bowater-Scott\nLimited:\nIt is expedient to ratify, validate approve and\notherwise give the force of law to the Agreement:\nThe Parliament of Victoria therefore enacts as follows:\n1. Purpose\nThe purpose of this Act is to ratify, validate,\napprove and otherwise give effect to an\nAgreement with Bowater-Scott Limited for the\nsupply of softwood for certain operations\nundertaken by Bowater-Scott Limited.\n2. Commencement\nThis Act comes into operation on the day on\nwhich it receives the Royal Assent.\n3. Definition\nIn this Act, \"Agreement\" means the agreement a\ncopy of which is set out in the Schedule.\n4. Act to bind Crown\nThis Act binds the Crown.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n2\n5. Ratification of Agreement\n(1) The Agreement is ratified, validated, approved\nand given the force of law and takes effect as if its\nprovisions had been expressly enacted in this Act.\n(2) The Director-General of Conservation, Forests\nand Lands is empowered to carry out the\nAgreement or the Agreement as amended from\ntime to time.\n6. Repeal of 1971 Act\nThe Forests (Bowater-Scott Agreement) Act\n1971 is repealed.\n7. Amendment or termination of Agreement\nIf the Agreement is amended or terminated in\naccordance with its provisions, the Minister must\ncause a report giving details of such amendment\nor termination to be laid before the Legislative\nCouncil and the Legislative Assembly before the\nexpiration of the fourteenth sitting day of the\nLegislative Assembly or the Legislative Council,\nas the case may be, after the Agreement is\namended or terminated.\n__________________\ns. 5\nS. 5(2)\namended by\nNo. 41/1987\ns. 103(Sch. 4\nitem 26.1).\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n3\nSCHEDULE\nSection 3\nBOWATER-SCOTT AGREEMENT\nTHIS AGREEMENT is made the twenty-third day of April, One thousand\nnine hundred and eighty-six.\nBETWEEN:\nThe Treasurer. State of Victoria, of the first part\nAND\nThe Minister for Conservation, Forests and Lands of the second part\nAND\nFORESTS COMMISSION incorporated by the provisions of the Forests\nAct 1958 of the State of Victoria of the third part\nAND\nBOWATER-SCOTT LIMITED a Company incorporated in the State of\nVictoria and having its registered office at Ailsa Street, Box Hill of the fourth\npart\nWHEREAS:\nI. The Company has for some time been engaged in large scale operations\nin connection with the manufacture of veneer, plywood, sawn timber, dressed\ntimber and wood pulp at Myrtleford and ancillary processing at other\nlocations in the State of Victoria.\nII. The Company desires to be satisfied that sufficient softwood will be\navailable to it over a period of time which will enable it to improve\ncommercial viability.\nIII. The Government desires to provide a means by which the Company\ncan be assured of its long term supply of softwood and which also ensures\nthat the public of Victoria receives an adequate return to cover the costs of\ncertain forest production activities.\nIV. The supply after 1990 from Government plantations is planned on\nclear fall at approximate age 30 years until the year 2010, minimum small\nend diameter under bark of 15 cm. After the year 2010, it is expected that\nrotation age will gradually move out to 35 year clear fall.\nV. The Company will use its best endeavours to source supply of logs\nfrom private plantations to supplement volumes supplied by the Commission\nunder this Agreement in a manner which is not inconsistent with law or\ngovernment policies and without conditions or qualifications or if subject to\nconditions or qualifications then satisfactory to the Company. Such supply is\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n4\nprojected to begin in year 2010 and rise to approximately 65 000 m3 by year\n2020. The Company will take steps within the next three years to commence\nprograms which will lead to sourcing at the levels indicated.\nVI. The parties hereto desire to enter into this Agreement so that upon an\nenabling Act being passed by Parliament and coming into operation the\nprovisions hereinafter appearing shall have full force and effect and the\nForest (Bowater-Scott Agreement) Act 1971 shall be repealed as to any\nfuture operations from the commencement of the Act.\nNOW IT IS HEREBY AGREED as follows:\nPART I—PRELIMINARY\n1. In this Agreement unless inconsistent with the context or subject-\nmatter—\n\"the Act\" means the enabling Act of the Parliament of Victoria to\nbe passed to give effect to this Agreement;\n\"this Agreement\" includes this Agreement as from time to time\namended;\n\"CDOB\" means centre diameter over bark;\n\"CDUB\" means centre diameter under bark;\n\"commencement date\" means the latest of the date of this\nAgreement, the day of Royal Assent to the Act and (if any)\nthe day the Act comes into operation as provided in the Act;\n\"Commission\" means the Forests Commission its successors or\nassigns;\n\"Company\" means Bowater-Scott Limited and upon each\nassignment to any other company in accordance with sub-\nclause (1) of clause 4 hereof means that assignee company;\n\"forest officer\" has the same meaning as in the Forests Act\n1958;\n\"forest produce\" has the same meaning as in the Forests Act\n1958;\n\"the industry\" means the manufacture by the Company of\nveneer, plywood, sawn timber, dressed timber, wood pulp,\nround logs for preservation treatment and paper from\nsoftwood;\n\"minimum annual supply\" means that set out in clause 12;\n\"Minister\" means Minister for Conservation, Forests and Lands;\n\"month\" means calendar month;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n5\n\"person\" and \"persons\" include a body corporate and any\nassociation of persons whether or not incorporated as a\ncompany or other body corporate;\n\"SEDUB\" means small end diameter under bark;\n\"veneer log\" means softwood meeting the specifications as set\nout in the first Schedule hereto or such other specification\nas is determined from time to time by the Commission after\nconsultation with the Company;\n\"year\" means a period of twelve months commencing on the first\nday of July and includes the period between the\ncommencement date and the 30th day of June 1987;\n\"Benalla Plantations\" means the State Softwood Plantations\nexisting from time to time within the present Benalla\nRegion of the Department of Conservation, Forests and\nLands;\n\"Koetong Plantations\" means the State Softwood Plantations\nexisting from time to time within the present Wodonga\nRegion of the Department of Conservation, Forests and\nLands;\n\"Ovens Plantations\" means the State Softwood Plantations\nexisting from time to time within the present Wangaratta\nRegion of the Department of Conservation, Forests and\nLands.\n2. (1) In this Agreement unless inconsistent with the context or\nsubject-matter references to any Act shall include all\namendments and re-enactments thereof for the time being in\nforce and all supplemental legislation for the time being in\nforce whether by regulation rule proclamation or order made\nor continuing under that Act or any amendment or\nre-enactment thereof and references to sections in any Act\nshall be deemed to include corresponding sections in any\namending or re-enacting Act.\n(2) The headings and sidenotes shall not affect the interpretation\nof this Agreement.\n3. (1) This Agreement shall not be of any force or effect until the\nAct has been passed by the Parliament of Victoria and has\ncome into operation and the passing of the Act and its\ncoming into operation are both conditions precedent to this\nAgreement having any force validity or effect.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n6\n(2) Upon and after the commencement date, this Agreement\nshall supersede all previous Agreements, licences, and\narrangements for the supply of veneer log, sawlog and\npulpwood to the Company as to the supply of such softwood\nto the Company from the commencement date but without\nprejudice to the obligations of either the Company or the\nCommission under any previous agreements, licences or\narrangements for the supply of veneer logs, sawlogs or\npulpwood to the Company which have arisen prior to the\ncommencement date. All representations and warranties\ninducing the Company to enter into this Agreement shall\nmerge into this Agreement.\n4. (1) The Company shall be at liberty at any time to assign its\nrights under this Agreement—\n(a) to any company with which pursuant to the\nCompanies (Victoria) Code it is deemed to be\nrelated but notwithstanding any such assignment\nBowater-Scott Limited shall remain responsible to the\nCommission for the performance of all the obligations\nand conditions imposed upon the Company by this\nAgreement; or\n(b) with the prior consent of the Commission to any\ncompany, such consent not to be unreasonably\nwithheld, and thereupon Bowater-Scott Limited\n(whether or not there has been any previous\nassignment) shall be released totally and forever from\nall obligations and conditions imposed on the\nCompany by this Agreement which are not up to the\ntime of the assignment required to have been fulfilled.\n(2) Upon each such assignment the assignee company shall by\nvirtue of the Act be subject to all the obligations and\nconditions imposed upon the Company by this Agreement\nso far as they remain in force and are capable of taking\neffect and, save to the extent the contrary may be agreed,\nwhich are not required to have been performed by the\nCompany prior to such assignment.\nPART II—OPERATION OF INDUSTRY\nDivision A—Duration of Agreement\n5. This Agreement shall remain in force until the 30th day of June,\n2026 or until sooner determination in accordance with the\nprovisions hereof.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n7\n6. The expiration or determination of this Agreement shall not affect\nthe enforcement of any right obligation or liability theretofore\nacquired accrued or incurred.\nDivision B—Softwood Rights\n7. Nothing in the Agreement shall affect the rights powers and\nprivileges already acquired by any person under the Forests Act\n1958 or any other Act.\n8. Subject to compliance by the Commission with its obligations\nunder clauses 11(1) and 12 hereof to make available to the\nCompany certain supply of softwood nothing in this Agreement\nshall restrict the Commission's rights pursuant to the Forests Act\n1958 to sell or grant licences and permits to obtain forest produce\nnot detrimental to the Company's rights under this Agreement.\n9. (1) Forthwith in respect of the year 1986–87 and not later than\nthe 31st day of December 1986 in respect of the year\n1987–88 and not later than the 31st day of December in each\nyear thereafter the Commission in consultation with the\nCompany shall draw up and deliver to the company a plan\nof utilization for the supply of softwood for the following\nyear and a provisional plan for supply of softwood for the\nfurther four following years.\n(2) The Company within 60 days after delivery of the plan of\nutilization under clause 9(1) may at its discretion request\nmodification of the plan of utilization with respect to supply\nfor the immediately following year and provided that such\nproposed modification can be shown to be to the\ncommercial benefit of the Company and the Commission\nand consistent with the principles of proper forest\nmanagement the Commission will not unreasonably refuse\nsuch modification and in the event that the Company\nconsiders the Commission has unreasonably refused to\nconsent to such modification the modification shall be\nreferred to arbitration in accordance with clause 28 hereof.\n(3) Subject to the provisions of clauses 12 and 13 hereof, the\nplan of utilization shall set out the locations from which\nsoftwood may be obtained during the relevant period and\nshall specify the specific location area in hectares and the\nrespective species, quantities, qualities and dimensions of\nsoftwood including the volume of sawlog and veneer log of\neach of the size and classes referred to in clause 17(2) hereof\nwhich the Commission estimates will be obtainable in each\narea, as well as the location and standard of road to be\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n8\nprovided by the Commission and/or with the consent of the\nCompany by the Company for each location.\n(4) The Commission and the Company may during the currency\nof any plan of utilization agree to a modification of the plan.\n(5) The Company shall conform with each plan or modified\nplan of utilization.\n10. (1) The Company shall comply with the provisions of the\nForests Act 1958 and with all regulations for the time being\nin force under the Forests Act as if the rights granted by this\nAgreement had been granted by licence.\n(2) Unless inconsistent with specific provisions of this\nAgreement, the Commission may impose additional\ncovenants terms and conditions (in this clause called\n\"Conditions\") as if this Agreement were a licence issued\nunder section 52 of the Forests Act 1958. Initially, such\nConditions shall be those set out in the Second Schedule\nhereto. Within one month of the commencement date and\nwithin thirty days prior to the first day of July in each year\nof this Agreement the Commission may deliver to the\nCompany in written form changed (including additional)\nConditions as if on each first day of July the Company was\nbeing granted a further or renewed licence under the said\nsection 52 but such changed Conditions shall be no more\nonerous on the Company than those the Commission applies\ngenerally throughout the State of Victoria in corresponding\ncircumstances of forest management to those being so\nimposed. Any conditions (whether initially or from time to\ntime changed) shall remain imposed until replaced by some\nchanged Conditions or further changed Conditions.\n11. (1) Subject to the provisions of this Agreement, the Company\nshall have the right to cut and remove softwood by its\nservants agents or contractors as provided in clause 12\nhereof.\n(2) Subject to the provisions of clauses 12 and 13 hereof, the\nCompany may be required to obtain softwood suitable from\nwhich to satisfy the provisions of this Agreement from—\n(a) standing trees indicated by a forest officer;\n(b) softwood produced in conjunction with a logging\noperation conducted by a person or persons other than\nthe Company; or\n(c) softwood felled or felled and removed by or on behalf\nof the Commission.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n9\n(3) The Commission may in its discretion if so requested by the\nCompany modify the Company's obligation to take\nsoftwood felled or felled and removed by or on behalf of the\nCommission which has been included in the plan of\nutilization for that year but any of such softwood not taken\nby the Company shall for the purposes of clause 12 hereof\nbe softwood made available to the Company by the\nCommission.\n12. (1) Subject to the provisions of clauses 24 and 26 hereof and to\nthe payment of the licence fee as provided in clause 17\nhereof and not taking into account any softwood not\naccepted according to the provisions of clause 13 hereof the\nCommission, subject always to the existing entitlement to\nanother person of about 20 000 m3 of softwood sawlogs in\nthe Ovens Plantations, shall make available to the Company\nfrom the locations set out below a minimum annual supply\nof softwood with Radiata Pine as the major species but able\nto include up to 13 500 m3 of Corsican Pine in any one year\nand up to 5000 m3 of Douglas Fir in any one year which\nunless increased pursuant to the provisions of sub-clauses\n(3) and (4) hereof shall be—\n(a) sawlogs and veneer logs—\n(i) for the period year 1986–87 to year 1989–90—\n174 000 m3 per annum from the Ovens\nPlantations and to the extent Ovens Plantations\ncannot supply from the Koetong Plantations,\nand 16 000 m3 per annum from the Benalla\nPlantations;\n(ii) for the period year 1990–91 to year 1994–95—\n235 000 m3 per annum from the Ovens\nPlantations and to the extent Ovens Plantations\ncannot supply from the Koetong Plantations;\nand\n25 000 m3 per annum from the Benalla\nPlantations;\n(iii) for the period year 1995–96 to year\n1999–2000—\n310 000 m3 per annum from the Ovens\nPlantations and to the extent Ovens Plantations\ncannot supply from the Koetong Plantations;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n10\n(iv) for the period year 2000–01 to year 2004–05—\n360 000 m3 per annum from the Ovens\nPlantations and to the extent Ovens Plantations\ncannot supply from the Koetong Plantations;\n(v) for the period year 2005–06 to year 2025–26—\n400 000 m3 per annum from the Ovens\nPlantations and to the extent Ovens Plantations\ncannot supply from the Koetong Plantations:\nPROVIDED THAT the Commission gives to the Company\nthe right of first refusal on all volumes of sawlog and veneer\nlog available from the Ovens Plantations and subject always\nto the existing entitlement hereinbefore referred to—\n(b) pulpwood from the Ovens Plantations—\n(i) for the year 1986–87—21 500 m3;\n(ii) for the year 1987–88—18 000 m3;\n(iii) for the year 1988–89—14 000 m3;\n(iv) for the year 1989–90—10 000 m3;\n(v) for the year 1990–91—6000 m3;\n(vi) for the year 1991–92—2000 m3;\n(vii) for the years 1992–93 to 2025–26—Nil.\n(2) Should the Company take less than the minimum annual\nsupply of sawlog and veneer log or of pulpwood in any one\nyear, it has the right to carry forward the deficiency of that\ntype quantity and quality to any of the five years next\nfollowing so that such as is carried forward will be used in\naddition to the minimum annual supply in the year or years\nof utilization.\n(3) The Commission may in its discretion offer the Company in\nany year a quantity of softwood additional to the minimum\nannual supply.\n(4) The Commission and the Company may from time to time\nagree that in addition to any other softwood agreed herein to\nbe made available by the Commission and upon such terms\nand conditions and at such royalty as may be offered the\nCompany shall have the right to cut and remove by its\nservants agents or contractors softwood in round logs for\npreservation treatment. The Company may from time to\ntime seek from the Commission the right to cut and remove\nby its servants agents and contractors softwood in round\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n11\nlogs for preservation treatment and upon any such request\nbeing made the Commission shall use its reasonable\nendeavours to reach an agreement with the Company to\nmeet that request.\n(5) The Commission may by written agreement with the\nCompany increase for any period commencing from the first\nday of July next following the date of such agreement the\nminimum annual supply referred to in sub-clause (1) hereof\nfor that period and any minimum annual supply so agreed\nupon may likewise be further increased.\n(6) The Commission shall ensure that the softwood sawlog or\nveneer log equal to and greater than 20 cm CDUB of each\nstandard and grade made available to the Company is as\ngood in species, size, and quality in any year as that which is\nmade available by the Commission to any other person or\npersons in that year from the Benalla Plantations, the\nKoetong Plantations and the Ovens Plantations.\n13. (1) The Company shall not be bound to accept—\n(a) any pulpwood which is not sound, clean and free from\nrot, doze, blue stain and charcoal;\n(b) any sawlog or veneer log which not being sound,\nclean and free from rot, doze, blue stain, hail damage\nand the result of Sirex wasp infestation is beyond the\ntolerances provided in the Code of Practice Measuring\nand Allowing for Defect Softwood Sawlogs (Metric\nUnits), a copy of which is set out as the Third\nSchedule hereto, or such other code as from time to\ntime may be adopted in lieu thereof but should any\nsawlog or veneer log be accepted by the Company\nwhich is not, sound, clean and free from rot, doze,\nblue stain, hail damage and the results of Sirex wasp\ninfestation then that sawlog and veneer log shall only\nbe accepted when measured and allowed for defect in\naccordance with that code of practice;\n(c) any sawlog or veneer log which is below the\nfollowing specification—\n(i) 15 cm SEDUB;\n(ii) for size classes 3 and 4—log length of 3·0 m\nand sweep equal to or less than 20% of CDOB\nfor a 3·0 m log length;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n12\n(iii) for size classes 1 and 2—log length of 3·0 m\nand sweep equal to or less than 10% of CDOB\nfor a 3·0 m log length.\n(2) Unless inconsistent with the preceding paragraphs (b) and\n(c) the defect allowance and produce specifications which\napply generally to the clients, that is to say the various\npurchasers and/or licensees and/or persons bound by\nagreement to the Commission, shall apply with respect to\nthis Agreement.\n(3) During the years 1986–87 to 1989–90, the annual volume of\nsawlog and veneer log equal to or greater than 20 cm CDUB\nshall be at least 160 000 m3, and of the annual volume less\nthan 20 cm CDUB, the Commission shall endeavour to\nmake supply available such that—\n(i) at least 50% of the volume shall have a sweep of\nequal to or less than 5% of CDUB for a 3·0 m log\nlength;\n(ii) at least 50% of the volume shall be between 18·0 cm\nCDUB and 19·9 cm CDUB; and\n(iii) knot size and frequency does not render the logs\nunsuitable for the manufacture of lining boards and\nsimilar material—\nand if the Company declines from time to time in any one\nyear to take any sawlog and/or veneer log below 20 cm\nCDUB then so declining that sawlog and/or veneer log shall\nnot prejudice the Company's right to continue to take sawlog\nand/or veneer log above 20 cm CDUB in that year and if the\nCompany declines from time to time in any one year to take\nany sawlog and/or veneer log above 20 cm CDUB and then\nso declining that sawlog and/or veneer log shall not\nprejudice the Company's right to continue to take sawlog\nand/or veneer log below 20 cm CDUB in that year.\n(4) During the years 1990–91 to 2025–26, the annual volume of\nsawlog and veneer log equal to or greater than 20 cm CDUB\nshall be at least 90 per cent of the minimum annual supply\nof sawlog and veneer log as provided for in clause 12 hereof\nand of the remaining annual volume less than 20 cm CDUB,\nthe Commission shall endeavour to make supply available\nsuch that—\n(i) at least 50% of the volume shall have a sweep of\nequal to or less than 5% of CDUB for a 3·0 m log\nlength;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n13\n(ii) at least 50% of the volume shall be between 18·0 cm\nCDUB and 19·9 cm CDUB; and\n(iii) knot size and frequency does not render the logs\nunsuitable for the manufacture of lining boards and\nsimilar material—\nand if the Company declines from time to time in any year\nto take any sawlog and/or veneer log below 20 cm CDUB\nthen so declining that sawlog and/or veneer log shall not\nprejudice the Company's right to continue to take sawlog\nand/or veneer log above 20 cm CDUB in that year and if the\nCompany declines from time to time in any one year to take\nany sawlog and/or veneer log above 20 cm CDUB and then\nso declining that sawlog and/or veneer log shall not\nprejudice the Company's right to continue to take sawlog\nand/or veneer log below 20 cm CDUB in that year.\n14. (1) For all softwood obtained by it under this Agreement the\nCompany shall pay—\n(a) as to softwood which the Company by its servants\nagents or contractors removes or fells and removes the\nroyalty payable from time to time under this\nAgreement; and\n(b) as to softwood either felled or felled and removed by\nor on behalf of the Commission the royalty as\naforesaid and a charge to be agreed upon from time to\ntime between the Commission and the Company\nfor—\n(i) the cost to the Commission of felling or felling\nand removal of softwood in or from the\nparticular area; and\n(ii) the overhead expenses of the Commission in\nconnection therewith.\n(2) Failing agreement within fourteen days on the charge\nreferred to in paragraph (b) of sub-clause (1) hereof subject\nto the arbitration provisions in clause 28 hereof the charge\nshall be determined by the Commission but so that the\ncharge for the cost of felling or felling and removal of\nsoftwood in or from any area shall not exceed the actual cost\nto the Company of or the payment made by the Company to\ncontractors for felling or felling and removal (as the case\nmay be) of softwood at that time in similar form in or from\nareas which are similar with respect to yield of softwood\nphysical circumstances of extraction and situation in regard\nto means of transport.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n14\n15. (1) Subject to the provisions of clauses 26 and 27 hereof the\nCompany shall be bound in each year in which the\nminimum annual supply of softwood to which it is entitled\nin that year is available to it either—\n(a) to take—\n(i) not less than 90% of the minimum annual\nsupply of pulpwood; and\n(ii) not less than 90% of sawlog and veneer log\nequal to or greater than 20 cm CDUB required\nto be made available in the plan of utilization;\nor\n(b) if it takes less than the quantities set out in the\npreceding paragraph (a) hereof to pay royalty to the\nCommission on the deficiency at a rate equal to the\nroyalty rate payable in that year under clauses 18\nor 19 (as the case may be) hereof.\n(2) If the Company during any of the five years next following\nany year in which there is a deficiency obtains a quantity of\nsoftwood in excess of the minimum annual supply the\nroyalty payable on such excess shall be reduced by the\namount of royalty paid in respect of the deficiency and\ninterest accrued thereon. Interest shall be calculated from the\ndate of payment of the royalty paid on such excess with\ndaily rests until the date of utilization at a rate equal to 60%\nof the 90 day bank bill rate from time to time adopted from\ndate of payment until the relevant excess has been utilized\nby the State Bank of Victoria in Melbourne or failing that by\nWestpac Banking Corporation in Melbourne and failing\nboth by arbitration as set out in clause 28 hereof.\n16. The following provisions shall apply with respect to royalty\npayable under this Agreement:\n(a) Royalty shall be payable at such times and in such manner\nas the Commission from time to time determines after the\namounts have been ascertained by weighing and/or\nmeasuring in accordance with this Agreement.\n(b) Without prejudice to the obligations of the Company under\nclause 15 hereof if any royalty due by the Company remains\nunpaid for sixty days after the last day of the month\nfollowing the date of supply the Commission may without\nlimiting the obligations of the Company under clause 15\nhereof by notice in writing to the Company suspend its right\nto obtain softwood under this Agreement until payment is\nmade.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n15\n(c) If the Company disputes the amount of any payment\ndemanded by the Commission it shall make the payment\nunder protest and thereafter shall be entitled to take\nproceedings for recovery of, and recover, any amount in\nexcess of the amount it was liable to pay, and interest\nthereon at the rate from time to time provided in the Penalty\nInterest Rates Act 1983.\n17. (1) In addition to royalty payable in accordance with clause 14\nhereof an annual licence fee shall be paid by the Company\nto the Commission with respect to the acquisition by the\nCompany of the right to cut and remove sawlog and veneer\nlog as provided in clause 11(1) hereof.\n(2) The annual licence fee shall relate to volumes of sawlog and\nveneer log size classes 3 and 4, and size class 2 greater than\n20 cm CDUB required to be made available in the plan of\nutilization referred to in clause 9 hereof.\n(3) The annual licence fee will be due and payable first on the\ncommencement date as provided in clause 3 hereof or the\n30th day of June 1986 (whichever is the later) and in each\nyear thereafter on the 30th day of June with respect to\nsoftwood required to be made available from within the\nminimum annual supply in the following year, but shall not\napply to softwood made available under the provisions of\nclauses 12(2), 12(3), 12(4) and 25 hereof and softwood not\ntaken under the provisions of clause 13(1) hereof.\n(4) The annual licence fee shall be at the rate of $1 per m3 for\nthe period between the commencement date of this\nAgreement and the 30th day of June 1987 (\"the base fee\")\nand for each of the years commencing on the 1st day of July\n1987, 1988, 1989 and 1990, the base fee will be adjusted in\nthe same percentage rate as the rate of change in the royalty\nrate in the year preceding the 30th day of June 1987 in the\ncase of any adjustment to be made for the year commencing\nthe 1st day of July 1987 and in respect of the remaining\nyears in the same percentage rate as the rate of change in the\nroyalty rate during the preceding twelve months.\n(5) The amount of the annual licence fee will be reviewed\nbetween the 1st day of April 1991 and the 30th day of June\n1991 and thereafter between the 1st day of April and the\n30th day of June at five yearly intervals from the 1st day of\nApril 1991 and so that—\n(a) a review is to be conducted by the Commission and\nthe Company jointly;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n16\n(b) the review will establish if a new base fee shall apply\nand if so at what rate, for the succeeding five years;\n(c) the review will take account of—\n(i) the ongoing ability of the Company to maintain\nits competitive position in domestic and\ninternational sawn timber and plywood and\nrelated products markets taking into account\ncircumstances not of its own making;\n(ii) changes in the average domestic market price\nof sawn timber and plywood relative to general\ncost increases in the community as measured by\nthe consumer price index;\n(iii) changes in the landed price of imported sawn\ntimber and plywood and related products,\nrelative to economy wide indices of capital and\nlabour costs;\n(d) the review will last no longer than the 30th day of\nJune in the year in which it commenced. In the event\nthat agreement is not reached between the\nCommission and the Company, the matter will be\nreferred to arbitration as provided by clause 28 hereof;\n(e) any new base fee so determined will be adjusted in\neach of the subsequent four years, similarly as set out\nin sub-clause (4) hereof.\n(6) In the event of any difference that can touch upon the\ncalculation of the annual licence fee which is referred to\narbitration the annual licence fee shall be paid on the 30th\nday of June as if no such difference had existed; but if the\nresolution of the difference (whether by agreement between\nthe parties or arbitration) causes a different annual licence\nfee to become applicable the Company shall pay to the\nCommission or the Commission shall pay to the Company\nforthwith an amount being the difference between the\namount of the annual licence fee so paid and the amount\nwhich would have been paid had the resolution of the\ndifference been achieved on that 30th day of June.\n18. (1) During the period between the commencement date pursuant\nto clause 3 hereof and the 30th day of June 1989 the royalty\npayable for pulpwood shall be $13.20 per m3.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n17\n(2) The royalty payable for sawlog and veneer log shall be the\nrate as determined in accordance with the Royalty Equation\nSystem and consistent with general sawlog and veneer log\npricing from public forests in the State of Victoria.\n19. (1) During each successive period of three years or part thereof,\nfrom the 1st day of July 1989 the royalty payable for\npulpwood shall be at the rate agreed upon by the\nCommission and the Company or failing agreement not later\nthan fourteen days after publication by the Australian\nBureau of Statistics of the figures referred to in paragraphs\n(a) and (b) hereof at the rate calculated by varying the rate\npayable during the preceding period of three years in the\nsame proportion as the average of the proportional variation\nin the figures at the beginning and the end of that period in\nregard to—\n(a) the Average Weekly Earnings All Males, Weekly\nTotal Earnings Victoria; and\n(b) the Price Index of Materials used in building other\nthan house building Weighted Average of six State\nCapital Cities, Wood and Wood Products.\n(2) If the Australian Bureau of Statistics ceases to publish the\nfigures referred to in either paragraph (a) or (b) of sub-\nclause (1) hereof a new method of calculating any variation\nin the royalty rate shall be agreed upon by the Commission\nand the Company or failing agreement within thirty days\nshall be determined by the Commission subject to the\narbitration provisions in clause 28 hereof.\n(3) If any variation in the royalty rate is not determined prior to\nthe commencement of any new three yearly period the\nCompany shall continue to pay royalty at the rate payable\nduring the preceding period and as soon as the new rate has\nbeen determined an adjustment shall be made\nretrospectively to the commencement of the new period.\n20. The Company shall not construct within State forest any road\ntrack or passage or any chute without the prior written consent of a\nforest officer and shall not construct within State forest any\ntramway flume or building or erect any haulage or conversion unit\nwithout the prior written consent of the Commission, such consent\nin each case not to be unreasonably withheld.\n21. (1) The quantity of softwood upon which royalty is payable\nunder this Agreement shall be determined in such manner\n(allowance being made for bark and defect) and at such\nplace as may be agreed upon by the Commission and the\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n18\nCompany or failing agreement within thirty days as the\nCommission may direct subject to the arbitration provisions\nin clause 28 hereof.\n(2) If the royalty so payable is to be determined by mass—\n(a) the Company shall provide at its plant a weighbridge\nof a pattern which meets the requirements of the\nWeights and Measures Act 1958 and shall while this\nAgreement remains in force have the weighbridge\nmaintained and periodically verified and stamped in\naccordance with the provisions of that Act;\n(b) at all times while the weighbridge is in accurate\nworking order the quantity of softwood upon which\nroyalty is payable under this Agreement shall be\ndetermined by weighing it on the weighbridge; and\n(c) at all times while the weighbridge is not in accurate\nworking order the quantity of softwood upon which\nroyalty is payable under this Agreement shall be\ndetermined in such manner as may be agreed upon by\nthe Commission and the Company or failing\nagreement within fourteen days as the Commission\nmay reasonably direct subject to the arbitration\nprovisions in clause 28 hereof.\n22. The Commission may from time to time give to the Company\nwritten notice of reasonable conditions not inconsistent with the\nprovisions and intent of this Agreement which conditions are,\nhaving regard to the overall provisions of this Agreement, of a\nminor nature and which further are of a temporary or passing\nnature and which shall apply in the areas from which the\nCompany is obtaining softwood under this Agreement. The\nCompany shall comply with the said conditions.\n23. (1) The Company shall inform the Commission in writing once\nin each year of the names of its servants agents and\ncontractors who are engaged in obtaining softwood under\nthis Agreement.\n(2) The Company shall supply to each such person for\nproduction when required by a forest officer evidence in a\nform satisfactory to the Commission that such person is\nengaged in obtaining softwood under this Agreement and\nthe Company shall forthwith inform the Commission in\nwriting whenever any such person ceases to be so engaged.\n(3) (a) The Company shall include in every contract by it\nwith a contractor for obtaining softwood under this\nAgreement provisions requiring the contractor to\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n19\ncomply with the Forests Act 1958 the regulations\nmade under the Act the conditions referred to in\nclause 22 hereof which are applicable to that\ncontractor and the conditions referred to in clause\n10(2) hereof which are applicable to that contractor.\n(b) The Company shall upon making any such contract\nforthwith give to the Commission written notice of\nthe contract specifying the name of the contractor, the\nduration of the contract and the quantity of and\nlocation from which softwood is to be obtained\nthereunder.\n24. (1) If any of the softwood plantations upon which supply is\ndependent are damaged or destroyed by fire disease or other\nsimilar cause beyond the control of the Commission to such\nextent that it is impracticable for the Commission to comply\nwith the provisions of clause 12 hereof or if by reason of\nany other cause beyond the control of the Commission it is\nprevented from complying with those provisions—\n(a) the Company shall have no claim against the\nCommission for the non-fulfilment of its obligations\nunder those provisions as far as non-fulfilment is due\nto any such cause; and\n(b) the Commission shall use its best endeavours to\nprovide a supply of softwood to the Company which\nis economically viable to the Company and having\nregard on the one hand to the obligation of the\nCommission under this Agreement to make available\nto the Company certain supplies of sawlog and of\nveneer log and of pulpwood and on the other hand the\nduty of the Commission to protect State forests and\ncontrol and manage State forests throughout the State\nof Victoria in a manner which is not unduly damaging\nfinancially to the Commission or to the revenues of\nthe State of Victoria.\n25. If, in the opinion of the Commission, extensive damage occurs to\nState forest softwood plantations within 250 kilometres road\ndistance from the Company's mill at Myrtleford, softwood as\nsawlog and/or veneer log salvaged from these plantations may be\noffered to the Company in addition to the minimum annual supply\nat a royalty after making allowance as determined by the\nCommission for additional harvesting, freight and manufacturing\ncosts necessarily incurred.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n20\n26. If—\n(a) any of the softwood plantations upon which supply is\ndependent are damaged or destroyed by fire disease or other\ncause to such an extent that it is impracticable for the\nCommission to comply with the provisions of clause 12\nhereof or if by reason of any other cause beyond the control\nof the Commission it is prevented from complying with\nthose provisions;\n(b) the Company's plant or any works used by it for the purpose\nof the industry are damaged or destroyed by fire or other\ncalamity in such circumstances as the Company is not\nreasonably (as to amount and risk) indemnified under a\npolicy of insurance (which is not avoided by the insurer)\nhaving regard to the insurance cover existing at the time of\nentering into this Agreement;\n(c) by reason of war riot civil commotion strike lockout or\naction in the nature of a strike or lockout ban or limitation\non work or restraint of labour act or restraint of any\nGovernment or semi-government or other public or statutory\nauthority (including any amendment to legislation currently\nin force or to the Act which adversely affects the Company's\nposition under this Agreement) or any other cause\nsubstantially beyond the control of the Company the\nCompany is substantially impeded from obtaining softwood\nor carrying on the industry; or\n(d) by reason of any change in the circumstances which exist at\nthe time of entry into this Agreement, which are\nsubstantially beyond the control of the Company, the\ncarrying on of the industry or the continued performance by\nthe Company of its obligations under clauses 14, 15 and 17\nhereof become commercially impracticable—\nthen in any of those events—\n(i) the Company may apply to the Commission for\ntermination, suspension or a reasonable modification\nof the extent or operation of its obligations under this\nAgreement or for an extension of time for the\nperformance or observance thereof;\n(ii) the Commission upon any such application by the\nCompany shall decide to grant or refuse termination, a\nsuspension of the said obligations or a reasonable\nmodification of their extent or operation or an\nextension of time for their performance or\nobservance;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n21\n(iii) if the Company is dissatisfied with the decision of the\nCommission upon any such application—\nA. arising out of the provisions of the preceding\nparagraphs (a) and/or (b) and/or (c); or\nB. with the delay (not being less than seven days)\nin making the decision arising out of the\nprovisions of the preceding paragraphs (a)\nand/or (b) and/or (c); or\nC. with the delay (not being less than thirty days)\nin making the decision arising out of the\nprovisions of the preceding paragraph (d)—\nthe matter shall if the Company so elects be\ndetermined by arbitration and the arbitrators may\ndetermine the matter with reference to considerations\nof general justice and fairness;\n(iv) if the Company is dissatisfied with the decision of the\nCommission upon any such application arising out of\nthe provision of the preceding paragraph (d) the\nCompany shall suggest to the Commission that the\nCompany and the Commission should negotiate in\ngood faith to reach a decision acceptable to the\nCompany and the Commission but if the Company\nand the Commission after negotiating in good faith\ncannot within a reasonable time (and in any event not\nless than fifteen weeks) reach a decision acceptable to\nthe Company and the Commission and if it is then\nafter the 1st day of July 1991 the matter shall if the\nCompany so elects be determined by arbitration and\nthe arbitrators may determine the matter with\nreference to considerations of general justice and\nfairness.\n27. If pursuant to an arbitration founded on the provisions of clause\n26(d) hereof the Company has been awarded a suspension or a\nmodification of this Agreement and if the carrying on of the\nindustry or the continued performance by the Company of its\nobligations under clauses 14, 15 and 17 hereof are considered by\nthe Commission to have returned to commercial practicability—\nthen—\n(i) the Commission may apply to the Company for a further\nreasonable modification of the extent or operation of the\nCompany's obligations under this Agreement but not so as to\nexceed the obligations of the Company initially imposed by\nthis Agreement;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n22\n(ii) the Company upon any such application by the Commission\nshall decide to grant or refuse a further reasonable\nmodification of this extent;\n(iii) if the Commission is dissatisfied with the delay (not being\nless than thirty days) in making the decision the matter shall\nif the Commission so elects be determined by arbitration and\nthe arbitrators may determine the matter with reference to\nconsiderations of general justice and fairness;\n(iv) if the Commission is dissatisfied with the decision of the\nCompany upon any such application the Commission shall\nsuggest to the Company that the Commission and the\nCompany should negotiate in good faith to reach a decision\nacceptable to the Commission and the Company but if the\nCommission and the Company after negotiating in good\nfaith cannot within a reasonable time (and in any event not\nless than fifteen weeks) reach a decision acceptable to the\nCommission and the Company the matter shall if the\nCommission so elects be determined by arbitration and the\narbitrators may determine the matter with reference to\nconsiderations of general justice and fairness but the\narbitrators shall not make any award by which the\nobligations of the Company shall exceed those obligations\ninitially imposed by this Agreement nor any award which\nhas an effect prior to the date of the Commission's\napplication made under the preceding paragraph (i) which is\nreferred to arbitration.\n28. Wherever it is provided that any matter shall or may be\ndetermined by arbitration—\n(a) the matter shall be referred to two arbitrators one to be\nappointed by the Company and one by the Commission;\n(b) the provisions of the Commercial Arbitration Act 1984\nshall apply to the reference;\n(c) each party may be represented in the arbitration process by\nCounsel and Solicitor; and\n(d) the arbitrators or umpire or some other person appointed on\ntheir behalf may investigate the Company's or Commission's\naffairs and accounts so far as may be necessary to assist\nthem to determine any matter referred to them and the\nCompany and the Commission each shall give them full\naccess to all accounts and papers necessary for that purpose\nand shall afford them full information and assistance having\ndue regard to confidential nature of investigation.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n23\n29. (1) If the Company contravenes or fails to comply with the\nprovisions of this Agreement in circumstances where the\nfailure represents a breach capable of remedy, the following\nshall apply:\n(a) The Commission shall give notice in writing in a\nprompt manner (but not more than fourteen days)\nafter either the Regional Manager of the Department\nof Conservation, Forests and Lands or an Assistant\nDirector of the said Department has become aware of\nthe same to the Company (by handing the same\npersonally to a Director or the Secretary of the\nCompany) specifying with specific detail the\ncontravention or failure complained of together with\ndetails of the date and form in which the Regional\nManager or the Assistant Director (as the case may\nbe) first became aware of the same;\n(b) If the Company fails to remedy the contravention or\nfails to cease the contravention or failure (as the case\nmay be) within ninety days of receipt of the notice\nreferred to in the preceding paragraph (a), then with\nthe approval of the Minister the Commission by\nnotice in writing under its common seal or over the\nhand of its Secretary may determine this Agreement.\n(2) If the Company contravenes or fails to comply with the\nprovisions of this Agreement in circumstances where such\nbreach is not capable of being remedied, the following shall\napply:\n(a) The Commission shall give notice in writing in a\nprompt manner (but not more than fourteen days)\nafter either the Regional Manager of the Department\nof Conservation, Forests and Lands or an Assistant\nDirector of the said Department has become aware of\nthe same to the Company (by handing the same\npersonally to a Director or the Secretary of the\nCompany) specifying with specific detail the\ncontravention or failure complained of together with\ndetails of the date and form in which the Regional\nManager or the Assistant Director (as the case may\nbe) first became aware of the same and requiring it\nforthwith to desist from repeating the contravention or\nfailure;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n24\n(b) If within a period of ninety days from the service of\nthe aforesaid notice the Company has repeated the\nbreach complained of, then with the approval of the\nMinister the Commission by notice in writing under\nits common seal or over the hand of its Secretary may\ndetermine this Agreement.\n(3) If the Company—\n(a) has had a receiver or a receiver and manager\nappointed over its property who has been in office for\nnot less than sixty days; or\n(b) enters into any scheme or arrangement for the benefit\nof its creditors generally which has not been totally\nfulfilled within sixty days—\nthen—\nwith the approval of the Minister the Commission by notice\nin writing under its common seal or over the hand of its\nSecretary may determine this Agreement.\n(4) Notwithstanding the provisions of the preceding clauses\n29(1), (2) and (3), if the Company enters into liquidation\n(other than a voluntary liquidation for the purposes of\nreconstruction) with the approval of the Minister the\nCommission by notice in writing under its Common Seal or\nover the hand of its Secretary may determine this\nAgreement.\n30. (1) The Commission and the Company may from time to time\namend this Agreement by such additions deletions and\nvariations of matters of detail as may be necessary or\ndesirable to facilitate the carrying on of the industry.\n(2) The Commission and the Company may with the approval\nof the Minister determine this Agreement upon such terms\nas they deem fit.\n31. The Company shall not be required to obtain any lease licence\npermit or authority beyond this Agreement to cut and remove\nsoftwood as provided in clause 12 hereof.\n32. (1) In the last three years of this Agreement the Commission\nshall if the Company seeks a further Agreement to assure to\nit supply of softwood for the continuance and/or expansion\nof the industry investigate the development of the industry\nand if satisfied that the Company needs to have supplies of\nsoftwood assured to it by a further Agreement enter into\nnegotiations with the Company for that purpose.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n25\n(2) If a further Agreement has been agreed upon and executed\nthe Commission shall (if necessary) recommend to the\nMinister that a Bill be introduced into the Parliament of\nVictoria as soon as possible to ratify validate approve and\notherwise give effect to it.\n33. Nothing in the Agreement shall be construed or interpreted to\nrequire the Company to alter its membership.\n34. The Minister sanctions this Agreement.\nIN WITNESS WHEREOF the parties hereto have executed as a deed this\nAgreement the day and year first before written.\nSIGNED SEALED AND DELIVERED\nby the Honourable. The Treasurer in the\npresence of:\nJ. KIDDLE\n\n\n\n\n\nR. A. JOLLY (L.S.)\nSIGNED SEALED AND DELIVERED\nby the Honourable. The Minister for\nConservation, Forests and Landsin the\npresence of:\nJ. KIDDLE\n\n\n\n\n\n\nJOAN E. KIRNER (L.S.)\nTHE COMMON SEAL of FORESTS\nCOMMISSION was hereunto affixed in\nthe presence of:\nG. GRIFFIN, Commissioner\nR. P. SMITH, Commissioner\n\n\n\n(L.S.)\nTHE COMMON SEAL of BOWATER-\nSCOTT LIMITED was hereto affixed\nby authority of the Director in the\npresence of:\nL. A. WILSON, Director\nB. J. MORLEY, Secretary\n\n\n\n\n(L.S.)\n_______________\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n26\nFIRST SCHEDULE\nSPECIFICATION\nSOFTWOOD VENEER LOGS\nLogs must exceed 22⋅5 cm in diameter over bark at the smallest and, be\nfreshly cut, the branches flush trimmed and the ends of each log must be\nsawn off square.\n1. CROSS SECTION\nThe Cross Section at any point shall be approximately round with\nmaximum ovality such that the least diameter is within 10% of the diameter\nof a circle of the same girth.\n2. STRAIGHTNESS\nThe distance between the surface of the log and a straight edge 2⋅1 metre\nlong held against the surface shall not exceed 2⋅5 cm.\n3. TAPER\nThe difference between the centre diameter over bark and the small end\ndiameter over bark of any 2⋅1 m length of log shall not exceed 3 cm.\n4. DEFECTS\n(a) The following defects are not permitted:\n(i) Decay, rot pockets:\n(ii) Crossbreaks, splits, checks:\n(iii) Large loose or partly decayed knots:\n(iv) Insect damage to wood:\n(v) Cone holes and knot holes in the wood:\n(b) The following defects are permitted within limits shown:\n(i) Sound knots not exceeding 5 cm in diameter across the\nshorter axis and encased knots not exceeding 2⋅5 cm in\ndiameter across the shorter axis, provided that the sum of the\ndiameters of all knots in any 0⋅3 metre length shall not\nexceed 20 cm.\nNOTE:\n(1) Butt logs are acceptable provided they comply with the specification.\n(2) Logs shall not be rejected for off-centre pith.\n__________________\nSch. 1\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n27\nSECOND SCHEDULE\nSOFTWOOD SAWLOG LICENCE\n1. * * * * *\n2. * * * * *\nLOGGING\n3. Logging operations shall—\n(a) be restricted to such parts of the cutting sections as may be\ndetermined from time to time and indicated on the ground by a\nforest officer;\n(b) if so directed by the district forester be carried out in cutting\nsections of the logging area other than those sections designated in\nthe schedule to the licence; and\n(c) be conducted in a manner satisfactory to the Commission and in\naccordance with the directions of a forest officer.\n4. No logs other than of the type and species specified in the licence may\nbe cut and removed.\n5. (a) The licensee shall comply fully with any directions issued by a\nforest officer restricting or suspending the transport of logs within\nState forest;\n(b) The licensee shall comply fully with any directions issued by a\nforest officer for the purpose of minimizing soil erosion and\nsiltation or pollution of streams due to the licensee's logging\noperations.\n6. If so required by a forest officer, the licensee shall at his own expense\nlop the tops off felled trees so that the limbs are left lying reasonably flat on\nthe ground.\nLOG GRADES FOR SAWMILLING PURPOSES\n7. Log grades are based on diameter classes as specified in the schedule to\nthe licence.\n8. The licensee shall utilize all timber 15 cm or more diameter over bark\ngraded as sawlog quality.\n9. The licensee shall, if required by the Commission, convert to pulpwood\nall timber 10 cm or more in diameter over bark graded as inferior to sawlog\nquality.\nSch. 2\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n28\n10. The Commission may, at its discretion, supply up to 50% of the\nvolumes as shown on the log licence in the form of logs from departmental\noperations.\n11. The licensee shall be responsible for the construction and\nmaintenance of all roads within the logging area, other than main extraction\nroads.\n12. First quality logs suitable for conversion to veneer not exceeding a\nvolume equivalent to 15% of the allocation shall be reserved from utilization\nby the licensee. The licensee shall, if so required by the Commission, carry\nout the logging of veneer timber under contract to the Commission in\nconjunction with and additional to the logging of the allocation.\nROYALTY PAYMENTS\n13. Royalty will be charged on all logs cut under this licence. Where in\nthe opinion of the supervising forest officer, timber suitable for logs remains\nin any tree felled by the licensee royalty will be charged on such timber.\n14. Log volumes will be based on measurements made in such a manner\nand at such locations as are directed by the district forester. If the licensee\nconsiders that the defect allowances or measurements recorded in respect of\nany identifiable log are incorrect, the log concerned may be set aside for\ninspection by a forest officer, whose decision shall be final.\n15. The royalty rates quoted in the schedule are applicable initially but are\nsubject to variation by the Commission at any time. Generally such variations\nwill be made—\n(a) in the course of a general revision of royalty rates;\n(b) because of changes in the basic data on which the rates have been\ndetermined; or\n(c) because of changes in the location of logging operations.\n16. An account issued for royalty is due for payment immediately it is\nrendered and becomes overdue if not paid by the last day of the month\nfollowing the month of supply. An instalment under a Deferred Royalty\nAgreement is overdue if not paid by the due date specified in the Agreement.\nAn account or instalment not paid within 14 days of the date of becoming\noverdue is liable for penalty interest from the date that it became overdue at\nthe rate of interest for the time being fixed under section 2 of the Penalty\nInterest Rates Act 1983. Royalty interest will be the first charge met by any\npayment received with respect to an outstanding account.\nIf an account remains overdue for more than 60 days, no further logs will\nbe supplied on credit until the outstanding amount has been paid.\n_______________\nSch. 2\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n29\nTHIRD SCHEDULE\nCODE OF PRACTICE\nMEASURING AND ALLOWING FOR DEFECT SOFTWOOD\nSAWLOGS\n(METRIC UNITS)\nThis code is intended to cover—\n(a) tree lengths, trimmed and headed off but not crosscut to log\nlengths;\n(b) logs cut to length for cartage.\nNOTE: In reference to (b) above it is assumed that some of the defects\npresent in tree lengths will be docked out by judicious crosscutting into log\nlengths for cartage.\nMEASURING\n1. Measuring may take place at stump or at landing at the discretion of the\nDistrict Forester.\n2. All measurements shall be taken over bark. (Rennick forest district\nexcepted).\n3. In normal tree length measurement sawlogs shall be measured as\nsuccessive 6⋅3 m lengths commencing at the butt except that top lengths may\nbe any length not exceeding 8⋅4 metres.\nWhere it is the practice of the sawmiller to mill in 1⋅5 m lengths, 6⋅0 m\nlengths shall be measured in lieu of 6⋅3 metres.\n4. An allowance of 0⋅1 m for all recorded lengths shall be given for\ncrosscutting.\n5. Centre diameter over bark of each log or length shall be measured,\nusing steel diameter callipers, at mid length irrespective of whether a length\nallowance for defect has been made or not. (Rennick forest district excepted).\n6. Where there is a whorl of knots or other enlargement at mid length the\ndiameter shall be measured at a point above or below the whorl or\nenlargement where the log is of normal conformation.\n7. Where it is not practicable to use diameter callipers for a particular\nmeasurement the diameter may be measured by tape.\n8. Diameters shall be recorded to the backward whole centimetre.\nSch. 3\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n30\nALLOWING FOR DEFECT\n1. In determining allowances for defects, or supervising the docking out\nof defects, it should be assumed that a wide range of lengths of logs is\nacceptable to the sawmiller irrespective of the lengths that are actually cut.\n\"Wide range\" in this context means 2⋅1 m and up but also includes lengths\nshorter than 2⋅1 m in every case where it is the normal practice of the\nparticular miller to cut such short lengths for any purpose.\n2. Allowances shall not be given for falling or snigging damage except\nwhere in any particular case the District Forester is satisfied that such damage\nwas completely unavoidable.\n3. Allowance for blue stain, fire damage, hail damage, sirex treatment\netc. shall only be made on specified approval from Head Office following\nreport and recommendation by the District Forester via the Divisional\nForester.\n4. Where a fork occurs the section of the tree affected by twin hoart and\nvends in the limbs at their junction with the trunk shall be subject to an\nallowance. The limbs (if merchantable) of the tree above and the bole below\nthe defective section shall be measured as if they were separate trees.\n5. A bend occurs where the distance between the surface of the bark and a\n2⋅1 m straight edge laid along the log exceeds one-fifth of the diameter of the\nlog. The allowance for bend shall be the length of log affected by bend.\n6. Knots exceeding 75 mm in diameter, measured across the shorter axis,\nshall be subject to allowance. The allowance to be given shall be determined\nby multiplying the length of log affected (angular projection of the knot into\nthe log) by the proportion of the cross-section of the log affected and\nexpressing the result as a length allowance to the nearer 0⋅1 metre.\n7. An allowance of the full length affected shall be given where two or\nmore whorls of cone holes occur within any 0⋅9 m length of log.\nFor the purpose of this clause whorl of cone holes means three or more\ncone holes within 0⋅1 m length of log.\n8. Miscellaneous defects subject to allowance are:\n(i) Twisted stem and break resulting from stem. The allowance shall\nbe the length of log visibly affected.\n(ii) Rot, dry, side, fire scar and previous mechanical damage. The\nallowance shall be determined by multiplying the length of log\naffected by the average cross-sectional area of the log affected and\nexpressing the result as a length allowance to the nearer 0⋅1 metre.\n═══════════════\nSch. 3\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n31\nENDNOTES\n1. General Information\nMinister's second reading speech—\nLegislative Assembly: 11 September 1986\nLegislative Council: 28 October 1986\nThe long title for the Bill for this Act was \"A Bill to ratify, validate, approve\nand otherwise give effect to an agreement with Bowater-Scott Limited and\nfor other purposes.\".\nThe Forests (Bowater-Scott Agreement) Act 1986 was assented to on\n6 November 1986 and came into operation on 6 November 1986.\nEndnotes\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n32\n2. Table of Amendments\nThis Version incorporates amendments made to the Forests (Bowater-Scott\nAgreement Act 1986 by Acts and subordinate instruments.\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\nConservation, Forests and Lands Act 1987, No. 41/1987\nAssent Date: 19.5.87\nCommencement Date: S. 103(Sch. 4 item 26.1) on 1.7.87: Government\nGazette 24.6.87 p. 1694\nCurrent State: This information relates only to the provision/s\namending the Forests (Bowater-Scott Agreement)\nAct 1986\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\nEndnotes\n\nVictorian Legislation and Parliamentary DocumentsAct No. 71/1986\nForests (Bowater-Scott Agreement) Act 1986\n33\n3. Explanatory Details\nNo entries at date of publication.\nEndnotes","sortOrder":0}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Based on the information available, the Act appears to have remained consistent with its original intent — to give legislative backing to a specific commercial timber agreement with Bowater-Scott. There is no evidence from the provided text of scope expansion or significant amendment since it was made in 1986."},"complexity_factors":["The legislation itself is narrow and purpose-specific — it does little more than ratify an existing agreement","The actual complexity lies in the underlying agreement (a schedule), which is not reproduced in the text provided","Interpreting rights and obligations requires reading the Act together with the scheduled agreement","Potential interaction with broader forestry, environmental, and contract law adds some complexity","Limited version history information makes it difficult to assess amendments or changes over time"],"plain_english_summary":"This Act gives statutory force to a commercial timber-supply agreement between the Victorian Government and Bowater‑Scott, effectively making that private contract law. It secures Bowater‑Scott’s access to public forest timber and binds government agencies to supply under agreed terms, affecting timber workers, communities and environmental interests and reducing future governments’ flexibility over forest policy."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"This Act replaces the earlier Forests (Bowater‑Scott Agreement) Act 1971 (s.6) and, from commencement, supersedes prior supply agreements and licences (Schedule, cl.3(2)). It converts a negotiated commercial supply arrangement into statutory rights and obligations, fixes a long‑dated supply and pricing regime (Schedule cl.5; cl.12; cl.18–19), and therefore broadens the State’s statutory commitment to supply while incorporating detailed operational, measurement and dispute rules into law."},"complexity_factors":["Detailed, time‑phased minimum supply schedule with species and plantation origins (clause 12) — numerical complexity and long horizon.","Technical product specifications and defect/measurement regime set out across three schedules (Schedules 1–3) requiring specialised measurement and quality assessment.","Two parallel pricing mechanisms: royalty determined by a Royalty Equation System and indexed pulpwood royalty rules with formulaic adjustments (clauses 18–19).","Annual licence fee with multi‑stage review and indexation mechanics (clause 17) adding periodic renegotiation and possible arbitration.","Carry‑forward of shortfalls and retrospective royalty adjustments with interest calculations (clauses 12(2), 15–16) — financial accounting complexity.","Multiple formal dispute routes and arbitration procedures with power to inspect accounts (clauses 26–28) creating procedural complexity.","Discretionary powers retained by the Commission and the Minister to impose conditions, adjust supply and determine charges (clauses 10, 14(2), 22, 30), creating implementation variability.","Interplay with existing Forests Act rights and licences (clauses 7, 10) requiring cross‑statute interpretation and coordination.","Termination, suspension and remedial regimes tied to events beyond control (force majeure, damage, insolvency) with differing notice and remedy windows (clauses 24–29)."],"plain_english_summary":"This Act turns a long-term commercial supply agreement between the State (Treasurer, Minister, Forests Commission) and Bowater‑Scott Limited into law. It specifies guaranteed annual softwood volumes, quality and measurement standards, royalty and licence‑fee rules, payment and carry‑forward mechanics, operational conditions and arbitration, and runs to 30 June 2026. It affects Bowater‑Scott, the Forests Commission (and its contractors) and the Crown by allocating supply rights, payment obligations and decision‑making powers that are enforceable as statutory obligations."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: giving statutory force to the 1986 Bowater-Scott timber supply agreement. The only amendment recorded (1987) was a machinery change updating the title of the responsible departmental officer from 'Chairman of the Forests Commission' to 'Director-General of Conservation, Forests and Lands' following administrative restructuring. The scope has not expanded beyond ratifying and operationalising this specific commercial contract."},"complexity_factors":["Lengthy commercial agreement (34 clauses plus 3 technical schedules) embedded directly in the Act as a Schedule","Multiple interlocking payment mechanisms: base royalties, index-linked adjustments (clauses 18–19), annual licence fees with 5-yearly reviews (clause 17), and complex interest calculations on deficiencies (clause 15)","Nested conditional logic for supply volumes across five distinct time periods (clause 12) with cross-references to 'existing entitlements' of third parties","Detailed technical specifications for log measurement including defined terms like 'CDUB' (centre diameter under bark), 'SEDUB' (small end diameter under bark), and specific defect tolerances (Schedules 1–3)","Force majeure and commercial impracticability provisions (clauses 24, 26–27) with tiered dispute resolution: negotiation periods (15 weeks), arbitration triggers, and different timelines for different causes (7 days vs 30 days)","Assignment provisions (clause 4) creating continuing liability for original company while releasing them under certain conditions","Cross-references to external legislation: Forests Act 1958, Commercial Arbitration Act 1984, Penalty Interest Rates Act 1983, and Australian Bureau of Statistics indices"],"plain_english_summary":"This Victorian law from 1986 gives legal force to a long-term contract between the State of Victoria and Bowater-Scott Limited, a timber company operating a mill at Myrtleford.\n\n**What it does:**\n- **Ratifies a 40-year timber supply deal** (1986–2026) that guarantees Bowater-Scott access to large volumes of softwood from state-owned plantations in the Ovens, Koetong and Benalla regions.\n- **Locks in minimum supply volumes** starting at 190,000 cubic metres per year, rising to 400,000 cubic metres by 2005, with specific quotas for sawlogs, veneer logs and pulpwood.\n- **Sets pricing mechanisms** including royalties adjusted every three years based on wage and materials indices, plus an annual licence fee reviewed every five years.\n- **Includes detailed quality controls** specifying exact dimensions, defect tolerances and measurement methods for logs (complete with technical schedules for veneer logs, sawlogs and defect allowances).\n- **Provides escape clauses** for both parties if plantations are destroyed by fire or disease, or if the business becomes commercially unviable due to circumstances beyond the company's control.\n- **Establishes arbitration procedures** for disputes, and allows termination for serious breaches or insolvency.\n\n**Who it affects:**\n- **Bowater-Scott Limited** (and any company it assigns the agreement to) — the timber processor.\n- **The Forests Commission** (now part of the Department of Environment, Land, Water and Planning) — the state agency managing the plantations.\n- **The Victorian public** — as the agreement governs how public forest resources are sold and ensures the state receives royalties and licence fees.\n\n**Why it matters:**\nThis is a classic example of \"contractualisation\" of public resources — where a private commercial agreement for public assets (state-owned timber) is given the full force of statute law. It binds future governments to supply terms negotiated in 1986, effectively insulating the company from changes in government policy for four decades. The Act also repealed an earlier 1971 agreement, showing how these long-term timber deals get periodically renegotiated and re-legislated to reflect changing commercial conditions."}},"importantCases":[],"_links":{"self":"/api/acts/forests-bowater-scott-agreement-act-1986","history":"/api/acts/forests-bowater-scott-agreement-act-1986/history","analysis":"/api/acts/forests-bowater-scott-agreement-act-1986/analysis","conflicts":"/api/acts/forests-bowater-scott-agreement-act-1986/conflicts","importantCases":"/api/acts/forests-bowater-scott-agreement-act-1986/important-cases","documents":"/api/acts/forests-bowater-scott-agreement-act-1986/documents"}}