The Queensland government has started the ball rolling on the first public asset to be sold under its $15 billion privatisation plan, despite continuing calls to abandon the sales.
Treasurer Andrew Fraser told parliament on Thursday the formal sale process for Forestry Plantations Queensland (FPQ) had been set in motion with the upturn in economic conditions.
Mr Fraser said the government was not selling the crown plantation land on which the business is located - only the rights to manage, harvest and regrow the plantation timber.
Non-binding bids have been invited by late January, followed by due diligence and binding bids by March and a final contract by June 2010.
Mr Fraser said he expected FPQ would attract "significant market interest" from long-term investors such as superannuation funds.
He said it was not the government's role in 2009 to own and operate a commercial timber business, and the sales would free up money for schools, roads and hospitals.
But the government had entered into a three-year jobs guarantee for award employees through unions, he said.
However, Timber Queensland chief executive Rod McInnes said the jobs guarantee was a burden that would make it harder for the government to sell FPQ and possibly reduce the sale price.
Mr McInnes said it was believed FPQ was worth at least $500 million.
He said he agreed with wage guarantees for FPQ's foot soldiers but believed it was top-heavy and staff numbers could be halved to about 250.
Opposition Leader John-Paul Langbroek said it was "sneaky and secretive" to announce the start of the sale on the last day of parliament for the year.
He also criticised the government for not listening to the advice of a team of economists who this week argued the proposed asset sales were "economically unsound" and "based on spurious claims".
Public sector union spokesman Alex Scott said it was not too late to listen to the advice.
"We hold out some hope that ... the voice of reason will prevail, and that they will protect and preserve the public sector that provides crucial services for all our communities for the future," he said.
Stock-grazing permits and their allocation and operation under the Forestry Act will continue under the sale plan.
Public access to the 210,000ha of forests will also be protected.
FPQ makes about $72 million a year from timber sales, used for making everything from house frames to furniture, with the long-term harvest estimated at two million cubic metres a year.
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