A coalition of twelve crossbench MPs in New South Wales has urged the state government to cease its logging of native forests, describing the practice as both financially detrimental and ecologically harmful.

This appeal follows the recent announcement that the Forestry Corporation's hardwood division suffered a loss of $14.9 million in the first half of the 2024-25 financial year.

The loss was reported to be $9 million below target, raising concerns about the financial viability of public native forest logging.

In a letter addressed to Treasurer Daniel Mookhey, the MPs criticized public native forest logging as one of the most 'fiscally irrational' and environmentally damaging actions currently undertaken by the state government.

They believe it results in substantial costs to taxpayers, estimated to be in the tens of millions annually, while detracting from opportunities for job creation in sustainable plantation forestry.

Signatories of the letter include all seven members of the Greens party, Animal Justice MP Emma Hurst, and independent MPs Alex Greenwich, Michael Regan, Jacqui Scruby, and Judy Hannan.

MP Alex Greenwich emphasized the importance of developing a respectful transition plan for workers affected by the cessation of native forest logging, highlighting the potential for investment in sustainable industries in the impacted regions.

The reported loss by the NSW Forestry Corporation, which primarily engages in native forest logging in addition to a small number of hardwood plantations, has been attributed to various factors.

These include increased land management expenses related to new tourism assets and upgrades to recreational areas, as mandated by the NSW Environment Protection Authority following a 2019 breach.

The corporation also cited adverse weather conditions, such as significant rain in northern NSW, ongoing protests regarding deforestation practices, and new protective regulations including Koala Hubs.

Additionally, a milder winter in western NSW contributed to decreased sales of firewood.

In response to claims regarding the profitability of native forest logging, Forestry Corporation stated that it generates revenue for public land management services, which are crucial community resources but do not directly produce income.

A spokesperson for Treasurer Mookhey indicated that the government is collaborating with Forestry NSW and the wider sector to finalize a Forestry Industry Action Plan, aiming to align sustainable timber practices with the government's environmental goals.

The letter from the crossbench MPs cited ongoing financial difficulties, noting that the hardwood division has accumulated nearly $90 million in losses since 2020. They have raised concerns about the environmental degradation associated with these operations and pointed to rising legal liabilities faced by Forestry Corporation, which has been embroiled in multiple legal challenges regarding non-compliance with environmental laws.

Justice Rachel Pepper of the Land and Environment Court has remarked on a consistent pattern of environmental infractions by the organization.

The MPs have requested that the upcoming 2025-26 budget reflect the total costs associated with native forest logging, including financial losses, legal liabilities, and ecological repercussions.

They advocate for budget allocations that support a just transition away from native forest logging by 2025 and promote investment in ecosystem restoration and sustainable job creation in regional areas.