Planting activity once picked up again by the Forests Commission Victoria (FCV) in the 1930s with unemployment relief schemes during the Great Depression[1] Commercial financial returns became a more important objective following increased investment with the plantations expansion program.
[2] The war years saw activity again fall away sharply, but afterwards there was a renewed focus on developing native forests in eastern Victoria owing to the conclusion of the 1939 fire salvage and to provide timber for post-war housing construction.
[1] APM Forests (APMF) was formed in 1951 with the primary aim of supplying pulpwood to the Maryvale Mill in the LaTrobe Valley through the establishment of plantations and co-ordination of harvesting and transport.
Planting peaked in 1969 with a record 5,183 ha and by the end of 1982, the Forests Commission Victoria had established 87,000 hectares of softwood plantations, a five-fold increase since 1940.
A number of models were evaluated and, in early 1991, CS First Boston was engaged to assess the sale possibility and identify the elements required.
This was virtually the last Kirner Labor Cabinet meeting prior to the state election and in September 1992 the new incoming Kennett Liberal Government, in accordance with their previously enunciated forest policy, directed that work commence immediately to have a separate Corporation in place by 30 June 1993.
These included: valuation and finance, land and survey, management structures, workforce and industrial relations, legislation, fire protection and many other issues.
Staff were mostly employed on individual contracts although some of the field workforce chose to work under the Australian Workers' Union (AWU) award.
Careful control of costs through industry standard accounting systems and prudent reserves for natural disasters and other contingencies were also implemented.
The land boundaries were legally established and the survey project, which was carried out over 3 years, was the biggest since Federation and was mostly done remotely (for the first time) to produce Certified Plans.
Field operations were streamlined with many elements carried out on contract and mill door delivery of produce gradually increased over time, to 35% of total sales volume, adding to wood supply efficiencies.
[2] The process that was begun in 1990 culminated in the sale of all the forest assets and harvesting rights, but not freehold title to the crown land estate, of the Victorian Plantations Corporation to Hancock Timber Resource Group in 1998.
There were also some areas leased for "once only harvest" and subsequent divestment/return to the Crown e.g.. Delatite Arm, Mt Alexander and parts of old Narbethong plantation.
The VPC still exists in a legal sense and is "owned" by the in the Dept of Treasury and Finance as the holder of the vested land and the licences.
Victoria now has 382,600 hectares of privately owned and managed plantations (which include HVP) making up nearly a quarter of the national total.