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Jacqueline Lynch and Sam Bold

WA's native logging ban blamed for 'devastating' closure of Nannup timber mill

The small West Australian community of Nannup has been left devastated by the closure of the town's timber mill, which the council says could drive "a significant amount" of the working population away from the area.

After almost 50 years in the timber industry, Neil Marlow is now out of work after the state government's ban on native logging led to the closure of the 100-year-old mill.

Mr Marlow, who started working at the mill when he was 14, was among the 45 people who lost their jobs when Parkside Timber closed the doors yesterday.

"I don't think it has really sunk in yet," he said.

"That's all I know, so for me to try and get another job is pretty grim.

"I could probably do a bit of fruit picking or something like that."

He said some of his colleagues were at the end of their careers, but that was not the case for everyone.

"Some of them were at retiring age … but the other younger guys, they're the ones that are going to feel it," he said.

"The younger ones, well, I don't know what they'll do."

The ABC understands a small number of staff will keep working at the mill, which was acquired by Parkside in 2019, to help clean up and decommission the site.

'Devastating' decision

The closure comes less than a year after the Queensland-based company shut its mill in Greenbushes following the WA government's decision to ban native timber logging by 2024.

Forest Industries Federation president Ian Telfer said the impact on timber towns in the South West would be ongoing.

"It's devastating for communities and devastating for Nannup," he said.

"The illogic [sic] around some of the decisions that have been made makes it even more galling that we're losing employees, losing investment, losing community infrastructure and support for a decision that, to be frank, doesn't make sense.

"The people that are impacted are not people in Perth, not politicians — it's going to be local communities that are going to be devastated by these decisions."

'Going to be pretty grim'

The state government has agreed to support workers who have lost their jobs by offering them a one-off payment of $30,000, plus a top-up payment of $1,000 for every year of service, capped at $15,000.

The money is expected to be given to workers by the end of the month. 

But Nannup Shire president Tony Dean said that would not be enough to keep people living and working in Nannup.

"There are no jobs created in Nannup," he said.

"If they want a job, it's fine to be retrained — but that job won't be in Nannup.

"Nannup is based on agriculture and timber and wine and you take one of those main planks out, which is the timber industry, [and] you have a local economy that is going to struggle."

He said the town would miss out on three to five million dollars worth of wages a year and wasn't in a position where other industries, like tourism, could replace timber.

"It's a significant amount of the working population of Nannup, we're not a very big shire and that is a significant blow to the economy of Nannup," he said.

"It's going to be pretty grim for the next couple of years."

'Parkside didn't need to close'

The state government also has millions of dollars set aside to boost jobs in timber-reliant areas of the South West, including a ten million dollar fund to build new industries.

However, WA Forestry Minister Jackie Jarvis said the money wasn't available yet.

"It hasn't opened quite specifically because the timber mills haven't all fully closed down yet," she said

"Parkside didn't need to close now."

"They were guaranteed timber supply right through until the end of 2023 under their existing contracts so Parkside has made the decision to close up their mill early."

"It is a difficult day for Nannup and I absolutely acknowledge that some people may leave the town"

"The decision to end native forest logging from 2024 will protect almost two million hectares of native forest for future generations as we face a drying climate in the South West"

The new industry fund is expected to open in coming months and comes on top of an already-available transition fund to diversify small businesses

Shadow Forestry spokesman Steve Martin said the government needed to realise its decision was already impacting communities and act accordingly.

“That’s extraordinary for the government to expect a private business that needs to make a profit to just plough along as normal until the very last day before they shut down the industry,” he said.

“Why would you invest in a business? Why would you repair equipment if you know at some time in the very near future your industry is gone?” 

“The government needs to stop sitting on its hands, get down there and find employment for these people.”

Community impact for years

WA Australian Workers Union state secretary Brad Gandy agreed the pain would be felt in Nannup for years to come.

"I don't think it's something that's just, 'Oh, this is it, now we move on to the next thing,'" he said.

"I think this will be an issue or a matter of significance in that community down south, that whole area, I reckon, for the next two years."

He said the union would continue to support workers into the future.

"So many unions, industry, and governments just offer so much support up front … and then people just go off and then they move on to the next thing.

"There's still that mental health impact on those environments, so we just watch out for that we're a type of union who tries to make sure people, long-term, are supported."

The ABC understands the nearby Manjimup mill will remain open for the next two years, but will not be able to accommodate any of the displaced workers from Nannup.

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