The financial cost of native forest logging in NSW has almost doubled, as the sector battles to avoid the demise of its interstate counterparts.
Annual hardwood losses leapt from $15 million to $29 million in the year to June 2024 as floods, protests and new protections for koalas hit the bottom line.
Mixed with sluggish sales of softwood plantation timber, used for house frames, the problems left the Forestry Corporation of NSW marking its first loss in three years.
The old growth, hardwood sector is at a critical juncture as losses rack up and state officials eye large swathes of native forest for the proposed Great Koala National Park.
Several state forests around Coffs Harbour are due to be linked to create the park covering up to 176,000 hectares, protecting key populations of the iconic marsupial and 100 other native species.
But industry groups in November put forward two far smaller proposals alongside heavily contested warnings that the full-sized park would cost $1.3 billion.
Forestry Corporation acknowledged the native forest arm of its business was of significant public interest and said it was committed to protecting koala and threatened species habitat.
That included halting operations around dozens of koala hubs in northern NSW that would potentially be included in the new park.
"However, in the context of this annual financial report, it must be acknowledged that these regulatory changes reduced timber production and revenue for the year and increased operational costs," Forestry Corporation chair Stefanie Loader said.
The impact of repeated fines for environmental breaches in prior years as well as a $60 million forest road repair program were also noted.
Renewing calls to focus entirely on plantation wood, environmentalists said the losses showed the public was subsidising the hardwood division.
"(That) is both destructive and wasteful," Nature Conservation Council NSW's Steve Ryan said.
"It’s long past time to end native forest logging in this state."
The Australian Climate and Biodiversity Foundation claimed NSW taxpayers had forked out $29 million to destroy native forests.
"These results confirm what we've long known - native forest logging is an economic and environmental failure that survives only by reaching deep into the pocket of taxpayers," foundation chair Ken Henry said in a statement.
Victoria ended native forest logging in January, as did WA, the home of sought-after karri, jarrah and wandoo woods.
The WA government said the closure reflected the changing climate and community attitudes about an "unsustainable" part of the industry.
NSW Premier Chris Minns on Monday recognised the importance of the wider forestry industry to regional communities and the need to protect native species.
"Governments have tried to get the balance right, we're going to continue to do that," he said.
Home-building, a key driver of timber demand, remains lacklustre across the nation despite government efforts to streamline pathways and a target to build 1.2 million dwellings over five years.
