(1) The Company shall, for the purposes of this Agreement —
9 (1) The Company shall, for the purposes of this Agreement —
except in those cases where the Company can demonstrate it is impracticable so to do, use labour available within Western Australia (using all reasonable endeavours to ensure that as many as possible of the Company’s workforce be recruited from the South West region of the said State) or if such labour is not available then, except as aforesaid, use labour otherwise available within Australia;
as far as it is reasonable and economically practicable so to do, use the services of engineers surveyors architects and other professional consultants experts and specialists, project managers, manufacturers, suppliers and contractors resident and available within Western Australia or if such services are not available within Western Australia then, as far as practicable as aforesaid, use the services of such persons otherwise available within Australia;
during design and when preparing specifications, calling for tenders and letting contracts for works materials plant equipment and supplies in connection with the scheduled works (which shall at all times, except where it is impracticable so to do, use or be based upon Australian Standards and Codes) ensure that suitably qualified Western Australian and Australian suppliers manufacturers and contractors are given fair and reasonable opportunity to tender or quote;
give proper consideration and where possible preference to Western Australian suppliers manufacturers and contractors when letting contracts or placing orders for works, materials, plant, equipment and supplies in connection with the scheduled works where price quality delivery and service are equal to or better than that obtainable elsewhere or, subject to the foregoing, give that consideration and where possible preference to other Australian suppliers manufacturers and contractors; and
if notwithstanding the foregoing provisions of this subclause a contract is to be let or an order is to be placed in connection with the scheduled works with other than a Western Australian or Australian supplier, manufacturer or contractor, give proper consideration and where possible preference to tenders arrangements or proposals that include Australian participation.
Except as otherwise agreed by the Minister the Company shall in every contract entered into with a third party for the supply of services labour works materials plant equipment or supplies for the purposes of this Agreement require as a condition thereof that such third party shall undertake the same obligations as are referred to in subclause (1) and shall report to the Company concerning such third party’s implementation of that condition.
The Company shall submit a report to the Minister at quarterly intervals or such longer period as the Minister determines commencing from the date of this Agreement concerning its implementation of the provisions of this Clause together with a copy of any report received by the Company pursuant to subclause (2) during that quarter or longer period as the case may be PROVIDED THAT the Minister may agree that any such reports need not be provided in respect of contracts of such kind or value as the Minister may from time to time determine.
The Company shall keep the Minister informed on a regular basis as determined by the Minister from time to time or otherwise as required by the Minister during the currency of this Agreement of any services (including any elements of the project investigations design and management) and any works materials plant equipment and supplies in connection with the scheduled works that it may be proposing to obtain from or have carried out or permit to be obtained from or carried out outside Australia together with its reasons therefor and shall as and when required by the Minister consult with the Minister with respect thereto.
Supply of timber
10. (1) (a) The State shall ensure that the Executive Director shall supply to the Company over a 20 year period not less than 5,500,000 and up to 6,000,000 cubic metres of log timber in accordance with log specifications, at rates and upon reasonable and commercial terms and conditions to be agreed between the Executive Director and the Company with provision for an extension by the Company of the said term for a further term of 20 years subject to the capacity of the State to supply log timber within the limits of good forest management over such further term and the Executive Director is hereby empowered to enter into such agreement.
If the Company desires an expansion of the capacity of the pine log sawmill above 400,000 cubic metres per annum the State shall investigate its capacity to supply to the Company upon reasonable and commercial terms and conditions further quantities of log timber within the limits of good forest management as it is at that time able to supply from the State softwood forest or, if the State determines that the requisite supplies are not available from that source then such other forest under its control, if any, as may be a practicable and commercial source of supply for the Company having regard for the place or places of its operation.
For the purpose of subclause (1), subsection (2) of section 91 of the CALM Act 1984 shall be deemed to be modified by the deletion of “15 years” and the substitution of the following —
“40 years”.
The State shall ensure that the Executive Director shall not contract to supply from State softwood forest Pinus radiata or Pinus pinaster of sawlog quality suitable for the production of sawn timber by the Company at the pine log sawmill to a third party on terms more favourable on the whole to the third party than those under which the Company is being supplied pursuant to subclause (1) without similar terms being made available to the Company.
Bunnings commitment
11. (1) Bunnings agrees with the State that Bunnings and its relevant related bodies corporate shall contract with the Company on reasonable commercial terms to sell to the Company all sawlog quality timber from the Bunnings softwood plantations at prices equivalent to the prices payable by the Company to the Executive Director under the agreement to be entered into in accordance with Clause 10.
The contract referred to in subclause (1) will also contain terms to the following effect: —
nothing in the contract shall restrict or affect the manner in which Bunnings or its related bodies corporate may manage the Bunnings softwood plantations from time to time. Without limiting the generality of the foregoing, Bunnings or any of its related bodies corporate may at any time utilise any of the trees on the Bunnings softwood plantations for the purposes of producing chip logs or round logs;
if to do so would increase the financial value of the Bunnings softwood plantations, Bunnings or its related bodies coporate may remove trees from the Bunnings softwood plantations;
Bunnings or its related bodies corporate (as the case may be) shall take reasonable steps to preserve their rights under any contracts existing as at the date of this Agreement with third parties in respect of sawlog quality timber which may be supplied to the Company;
Bunnings and its related bodies corporate shall be free to sell any Bunnings softwood plantation from time to time: —
if the trees have previously been removed from it in accordance with paragraph (b) of this subclause; or
if the Purchaser delivers to the Company an agreement in a form which the Company may reasonably require, agreeing to be bound by and to perform and observe all of the obligations of Bunnings or its related bodies corporate as the case may be, to supply sawlog quality timber to the Company.
WESFI commitment
12. (1) WESFI agrees with the State that WESFI and its relevant related bodies corporate shall contract with the Company on reasonable commercial terms to sell to the Company all sawlog quality timber from the WESFI softwood plantations at a price equivalent to the price payable by the Company to CALM in accordance with the agreement to be entered into in accordance with Clause 10.
The contract referred to in subclause (1) will also contain terms to the following effect: —
nothing in the contract shall restrict or affect the manner in which WESFI or its related bodies corporate may manage the WESFI softwood plantations from time to time. Without limiting the generality of the foregoing, WESFI or any of its related bodies corporate may at any time utilise any of the trees on the WESFI softwood plantations for the purposes of producing chip logs or round logs;
if to do so would increase the financial value of the WESFI softwood plantations, WESFI or its related bodies corporate may remove trees from the WESFI softwood plantations;
WESFI or its related bodies corporate (as the case may be) shall take reasonable steps to preserve their rights under any contracts existing as at the date of this Agreement with third parties in respect of sawlog quality timber which may be supplied to the Company;
WESFI and its related bodies corporate shall be free to sell any WESFI softwood plantation from time to time: —
if the trees have previously been removed from it in accordance with paragraph (b) of this subclause; or
if the Purchaser delivers to the Company an agreement in a form which the Company may reasonably require, agreeing to be bound by and to perform and observe all of the obligations of WESFI or its related bodies corporate as the case may be, to supply sawlog quality to the Company.
Roads
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