ACT Forests manages some 26,000 hectares of land in the Australian Capital Territory (ACT), of which 16,200 hectares is plantation. About 10,000 hectares is native forest woodland and grassland which is managed for conservation values. The plantations managed by ACT Forests are an important part of the ACT landscape and economy. They provide substantial public recreational opportunities as well as most of the raw materials for local forest industries.

ACT Forests is a semi autonomous business unit within the Operations Group of the Department of Urban Services. It operates similarly to a Public Trading Enterprise, with its log sales revenue being used to fund the ongoing plantation establishment, tending and maintenance programs. It also receives an annual appropriation from Government for the provision of a range of community service obligations.

A new Business Plan was prepared as part of the Review of ACT Forests that was undertaken in the 2000/01 financial year. The Business Plan establishes the framework for improving the financial and operational performance of ACT Forests over the next 5 years. In recent months a need has been identified to further refine aspects of the Business Plan, particularly the financial and wood flow models. This work will assist, ACT Forests, the ACT Government and the future Board of Advisors to ACT Forests to better plan and monitor key commercial business outcomes.

The following Terms of Reference should be addressed by the consultant.

1. Provide advice on ways in which the current ACT Forests' Business Plan could be improved in order to provide more detailed and relevant information related to the expected financial performance of the business.

2. Review the financial model used in the ACT Forests' Business Plan and prepare more detailed financial assessments and statements related to the key business directions which could be incorporated into the plan.

3. Using FOLPI, or other suitable modelling tools, test forecast forest yield data used to underpin assumptions in ACT Forests' 5 year financial model to ensure total yield, mix by product classes and proposed harvest schedules all match assumed harvesting costs, assumed harvesting capacity and ACT Forests' customer obligations.

4. Identify aspects of ACT Forests' inventory, yield modelling and forest resource planning activities that require enhancement through training or system upgrades.