Maroc - TIMBERBIZ.COM.AU - A La Une - 14/Jan 23:50

Bendigo and Adelaide Bank slammed for dropping TP Bennett

The Bendigo and Adelaide Bank has been slammed over its decision to withdraw its longstanding support for Tasmanian forestry contractor T P Bennett & Sons and drop them as a customer on “ESG (environmental, social, and governance) grounds”. Source: Timberbiz The Australian Forest Contractors Association has chosen to end its business relationship with the bank because of the decision. “The community banking credentials are why AFCA was pleased to use Bendigo Bank as our financial services provider,” AFCA general manager Tim Lester said. “On the basis of this ESG policy the AFCA Board has chosen to end our business relationship,” Mr Lester said. TP Bennett and sons business manager Tammy Price told The Mercury that in 2022 she started trying to get refinancing from Bendigo Bank for some of the company’s plantation equipment. After a back and forth between the local branch and higher ups, the loan was denied. “Because our income comes from native forestry they said no, we can’t help you,” Mrs Price – a former Bendigo Bank board member – told The Mercury. She invited Bendigo Bank to come to Tasmania and witness the sustainable industry and learn about the rules and regulations loggers have to abide by. “Because our income comes from native forestry they said no, we can’t help you,” Mrs Price said. She invited Bendigo Bank to come to Tasmania and witness the sustainable industry and learn about the rules and regulations loggers have to abide by. A Bendigo Bank spokesman told The Mercury Bendigo and Adelaide Bank does not comment on specific customer matters but assesses each application according to its policies, risk appetite and credit decision process. “From time to time, the Bank has determined not to proceed with lending applications on the grounds that they fall outside our business writing strategy and balance sheet risk appetite. “We know not all our stakeholders will be supportive of all our decisions,” he said, adding that decisions are made on balance and in the best interest of the bank and its broader stakeholder group of “customers, investors, or people and the community”. Tasmania’s Minister for Business, Industry and Resources, Eric Abetz, said it was important that corporate Australia stick to the facts on native forestry. “Tasmania’s forestry sector, with its mixed approach of conservation and active forest management, provides an exceedingly high degree of environmental protection and sustainability,” said Mr Abetz. “We are blessed in Tasmania to have a sustainable, word-class native forestry sector that puts food on the table for thousands of families. “The news that Bendigo and Adelaide Bank is looking to withdraw their support for Tasmania’s sustainable, world-class native forestry industry is disappointing and misguided.” The Tasmanian Forest Products Association said the decision had caused many small forestry businesses to lose access to the quick finance they needed to keep their business afloat. “By its very nature, forestry is an industry that requires large amounts of long-term finance. It takes years to successfully grow, harvest and regrow a forestry site,” TFPA Chief Executive Nick Steel said. “By refusing to finance part of our industry, the bank is handing a slap-in-the-face to those employed and the families that rely on forestry in Tasmania. “This is simply another form of greenwashing by one of Australia’s biggest financial institutions which ironically claims that helping communities thrive is at the heart of what they do.” In January last year leading forestry expert Rob de Fegely resigned from Bendigo Bank over its policy not to support the harvesting of native forest. Mr de Fegely resigned from the board of his local Community Bank due to its parent Bendigo Bank’s policy of not supporting native forest harvesting. Mr de Fegely, a former director of Margules Groome Consulting, chair of Sustainable Timber Tasmania and a non-executive director of Forestry Corporation of NSW, emphasised at the time that these were his personal views and not those of any of the organisations he works for. “Despite numerous exchanges with the chief executive, Marnie Baker, and the head of corporate affairs and ESG, they have not provided any justification for their policy, which is contrary to the United Nations International Panel on Climate Change recommendations for managed forests,” he said at the time. Mr de Fegeley said he had told the chief executive that finger pointing or cancel culture was an inappropriate way to resolve the complex challenges of sustainably managing Australia’s natural forests. Mr Abetz said he had written to Bendigo and Adelaide Bank CEO Richard Fennell, to express his genuine disappointment and frustration at this misguided decision. “Tasmania has a legal, renewable, and sustainable native hardwood industry from which we source timber and fibre, including high-value special species and appearance grade timber,” Mr Abetz said. “Timbers for these uses cannot be sourced from plantation – if we do not produce them here locally, they need to be imported at great cost. “This would see timber being imported from Malaysia, Indonesia, the Solomon Islands and South America – countries that frankly do not compare with Tasmania’s approach. “What could be more sustainable than houses being built and furnished in Tasmania from sustainably grown Tasmanian timber harvested by local businesses? It simply doesn’t pass the pub test that a local bank wouldn’t be prepared to finance this type of activity,” he said. “I’m proud to stand side by side with our forestry sector and will continue to support these businesses under our 2030 Strong Plan for Tasmania’s Future. “Our Liberal Government will not be swayed by the views of mainland extremist groups which have a radical ideological opposition to native forestry.” Mr Steel said the decision to end the availability of finance to Tasmanian native forestry businesses was misguided and seemed to be caused by pressure from radical environmental activists. “This knee-jerk reaction from the bank and its shareholders is based on misinformation and fear drummed up by the usual extreme environmental activists,” Mr Steel said. “The same extreme activists who routinely interrupt our legal and responsible businesses. “As a result, […]