From what I'm led to believe, some long time members spent some time revamping a trail that was originally built within a permit period and sanctioned at that time. The people involved are renowned trail builders that form a long history of success at doing so and put a lot of the trails that are in the current permit on the site. I don't know the in-between bits that have led to this situation but it sounds like the lack of compromise and acknowledgement of a big and generous effort by these people over the years has generated a really shitty scenario.
To me, it sounds as though this should have been handled by the club without it getting to the point of forestry fining people etc etc. Not only does it make the club look like puppets, it gives more energy to the forestry needing any cent they can get since becoming a corporation. It stinks and it isn't right, the guys involved are the kind f people that should have their faces in frames in the halls of the club building (hypothetically speaking).
In regards to good relationships being thrown out the door: I had a twenty year gig with a land manager that got upended overnight because someone who preached doing things by the book didn't read the book! It's an infuriating situation that only had bad effects and everyone involved suffered. It's becoming more evident that forestry are taking this approach and condemning the people that should be benefiting them. Believe me, this is becoming a problem and trusting that a club that holds a permit is a sure thing is very much not the case.
As for clubs dumping heaps of money into building trails, I have only ever funded trails out of my own pocket and to use the favorite Coffs Harbour saying this week "I'm a 9 to 5 worker" and have not been able to throw thousands of dollars at trails but still manage to produce trails through hard work and planning that many people enjoy en mass. I've seen what some clubs spend their money on and it is a money down the drain done via bad management. No offence to you 99_FGT, just wanted to paint a picture.