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issue 131 | 28.06.10 | Page 1
Brazil rust fear Eucalypts threatened as authorities group to contain outbreak of fungus
By JIM BOWDEN
PRIVATE and government plant pathologists are concerned that an outbreak of deadly ‘guava rust’ in New South Wales – a serious threat to forest eucalypts – has escaped detection by Australia’s $156 million biosecurity system. A national emergency biosecurity group has quarantined a NSW Central Coast nursery after an outbreak of the disease was detected in April. But the rust may be a slumbering killer that could awaken and spread further in warmer months, say experts. Pathologists were alerted when pollen-hunting bees were attracted to rust spores on the
Sherlock B. Holmes .. native bees uncover rust outbreak while collecting pollen.
leaves of West Australian willow myrtle (Agonis flexuosa) at the nursery. Guava rust (Puccina psidii),
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native to Brazil, is the only fungus known to infect eucalypts. This pathogen has a host range of about 3000 tree and shrub species of which Australian eucalypts (eucalyptus and corymbia), bottlebrush (callistemon) and paperbark (melaleuca) are most susceptible. Eucalypt seedlings, cuttings, young trees and coppiced or damaged mature trees are severely susceptible and could be grossly malformed or even killed. Growth rates are diminished and plantation productivity reduced. Confusion surrounding the identity of the rust by Industry and Investment NSW Cont Page 14
This Issue • Industry impatient on illegal logging report • Conference focuses on global wood markets
poised on glass cliff • FPQ assets sold well under true value • Checking a $10m loss for hardwoods • EWPAA maintains JIS accreditation • Greens dash biomass proposals
Gillard
www.timberawards.com.au
issue 131 | 28.06.10 | Page 1
industry news
Gillard poised on Making a glass cliff as an she enters history impact ..
Please join us! 2010 VAFI
Annual Dinner Friday October 15 in Melbourne Watch this space! More details to follow soon
Victorian Association of Forest Industries Level 2, 2 Market Street Melbourne 3000 Tel: +61 3 9611 9000 Fax: +61 3 9611 9011 Email: info@vafi.org.au Web: www.vafi.org.au Page 2 | issue 131 | 28.06.10
AS a Welshman, I suppose I should say llongyfarchiadau iddynt as Julia Gillard steps up as Australia’s first woman prime minister and the first foreignborn PM since Billy Hughes, who led from 1915-23. Ms Gillard, 48, who has been deputy PM since the party’s election victory in 2007, took over the top job last Thursday without a ballot when Kevin Rudd stepped aside from the leadership. Born in Barry, Glamorgan, Wales, the daughter of a coalminer, Ms Gillard is certainly a creature of the left and is steeped in Labor values. When describing growing up and her family environment she says, “instinctively at home, Labor was our team”. At university, Ms Gillard was a student activist and supported a range of left-wing causes. She rose to be head of the radical Australian Union of Students and acted as a senior official in the Socialist Forum. So strong were Ms Gillard’s Labor credentials that in 1996 she was appointed chief-ofstaff to the then opposition leader John Brumby. Evidence of Ms Gillard’s commitment to left-wing causes include her involvement in the feminist inspired Emily’s List and moves to positively discriminate in favour of selecting women for political office. There is no doubt the crashing sounds we now hear are the shattering of glass ceilings by many female politicians in Australia and around the world. As American-born NSW Premier Kristina Keneally put it “This is a historic moment with women holding the positions of prime minister, governor-general, two state premiers (Queensland
across Australia’s forest and forest products industry .. since 1940
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Julian Gillard and Margaret Thatcher .. common goals – standing their ground and bringing us all back from the brink.
and NSW), deputy premier (NSW), governor of NSW and lord mayor of Sydney.” A study published in the British Journal of Management warns that women who manage to burst their way through the glass ceiling and into leadership roles in business or politics may find themselves at the edge of a new problem, the so-called glass cliff, where the chance of failure is high. Gillard, Keneally and Anna Bligh in Queensland are all perched on this cliff as they lead governments suffering lost credibility – for Gillard it’s Cont Page 15
Forget the drama – call Justin Dwyer on (02) 9277 3172 and find out how easy it is for us to do all of it for you.
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events
Global markets conference SAVE big investment by industry Key stakeholders to gather in Melbourne By JIM BOWDEN
AUSTRALIA’S new Prime Minister Julia Gillard is on the invitation list for what is shaping as the greatest assembly of timber industry leaders and stakeholders of the decade. Learning and skills developer ForestWorks has garnered support from industry sectors in all states for its conference – Australia’s Place in the Changing Global Forest Products Market – in Melbourne on September 9. Designed to motivate and educate, the conference program has been developed after close consultation with industry associations, company executives, unions, forest
Michael Hartman .. wide support from industry.
contractors and workers and politicians from both sides of Parliament. The conference will focus on
three key themes: • Emerging forest products markets with the capacity to scan global opportunities, including renewable energy. • Investment – how to stimulate greater growth in the industry with short and long-term visions directed at putting more trees in the soil to combat future wood shortages. • Community interests of the broader stakeholder groups that support forest activity and product innovation, carbon positives, and a serious assessment of global certification schemes. “We see the conference as an educational service to industry,” chief executive of ForestWorks Michael Hartman said. “We are essentially creating an educational platform and we’re prepared to invest more than $100,000 to make it work.” Mr Hartman has invited input from all industry sectors to finetune the conference program with visits to conferences and forums around Australia including the A3P forum, Frame Australia, Australian Forest Contractors Association meetings and talks last week with the Forest Industries Federation (WA) in Perth. “Each of these groups brings with them their own culture, their own way of thinking, and most importantly their own way of providing for sustainably managed forests,” Mr Hartman said. “We are assembling a topflight list of Australian and international speakers and offering a unique conference package to bring industry together.” Industry CEOs and executives who register two delegates Cont Page 16
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THE
DATE! 9 September 2010 Sofitel Melbourne on Collins
“Australia’s Place in the Changing Global Forest Products Market” Presented by ForestWorks, the Industry Skills Council for Australia’s Forest, Wood, Paper & Timber Products Industry, supported by Industry. Industry relevant topics including: • Future opportunities for global forestry markets including renewable energy • Certification & regulation of global markets • Ownership & investment in Australia • Industry led solutions for a sustainable industry The 2010 Forest Industries Liaison Dinner: 9 September Regent Theatre on Collins Street, Melbourne For information contact: cday@forestworks.com.au
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issue 131 | 28.06.10 | Page 3
industry news
Labor and Greens pull switch on wood biomass energy proposals THE Labor Government and the Greens have joined up to defeat a Coalition proposal to increase Australia’s use of wood biomass as a green and renewable energy source. This proposal, through amendments to the Renewable Energy (Electricity) Amendment Bill 2010, would have increased Australia’s use of renewable energy and injected increased viability into the forestry industry supporting thousands of jobs. “This is a bitterly disappointing outcome for Australia’s renewable energy future, for regional timber communities and for forestry workers,” federal Coalition spokesman for forestry Senator Richard Colbeck said. “The proposal was not about increasing the level of logging
Renewable wood waste for electricity and generation .. Australia is being left behind.
in native forests or any other forests for that matter,” he said. “The Coalition’s amendments were about using wood waste
from existing forestry operations to produce renewable energy and reduce Australia’s greenhouse gas emissions by millions of tonnes a year.
“Recently I visited a timber manufacturing plant on the Central Coast of New South Wales. The plant, currently using coal energy for its operations could, given incentives, reduce this fossil fuel energy use by 75% by replacing it with wood waste it currently produces. Not one extra, tree, log, twig or leaf would be cut down over and above current sustainable production to make this fossil fuel reduction. “But this type of initiative is not supported by either the Government or the Greens. “They are more interested in preference deals with each other than in properly consulting with industry and understanding how it can be a positive contributor Cont Page 7
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Page 4 | issue 131 | 28.06.10
AUSTRALIA TimTech Chemicals Pty Ltd 7/12 Discovery Drive, North Lakes, Qld 4509. PO Box 522, North Lakes , Brisbane Qld 4509, Australia. Tel:+61 7 3480 5802 Fax:+61 7 3491 7983 australia@timtech.info
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events
WHAT’S ON?
June 28-July 2: 18th Commonwealth Forestry Conference, Edinburgh, Scotland. www.cfc2010.org
JULY 2010 1: Bio-energy Under the Microscope: Fact or Fiction? Brisbane. Unsure how the burgeoning bio-energy market can deliver a return to your business? Attend this Timber Queensland event to ensure you are positioned to capitalise on the emerging opportunities for the timber industry. www.timberqueensland.com.au/ events 14: Seminar – Fair Competition and the Illegal Logging Trade. Speaker: Juel Briggs, Briggs Veneer. Prosperos Restaurant, 310 Church Street, Parramatta, 6,30pm for 7pm. Hosted by Sydney HooHoo Club 215. Contact: Chris White on 0411 293 646 or Ian Ramsay on 0414 746992. Email: chrisw@moxontimbers.co 14-18: Interforest 2010 Trade Fair for Forestry Technology Munich, Germany. www.interfrost.de 21-22: Wood Energy 2010 reducing energy costs and improving energy efficiencies. Rotorua, NZ. 21-22: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Rotorua, NZ. www. scantechevents.com 26-27: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Melbourne. www. scantechevents.com 26-27: Wood Energy 2010 (World Reducing Energy Costs & Improving Energy Efficiencies) Melbourne.
26-29: Combined workshop. ATTA / FIAPS / ForestWorks combined annual workshop Hobart. Details: www.atta.org.au
SEPTEMBER 2010 3-5: Canberra Timber & Working With Wood Expo, Exhibition Park in Canberra. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 6-12: Landcare Week. www.landcareonline.com 7: WoodSolutions 2010. Program for architects, engineers and specifiers. Dockside, Darling Harbour, Sydney. Register interest at www.woodsolutions2010.com. au 7-9: Wood Manufacturing 2010. Rotorua, NZ. Designed for wood processing operations in the dry mill and stand-alone wood manufacturing companies. View: www.woodmanufacturingevents. com 8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.org
Regent Theatre on Collins Street. For information contact: cday@ forestworks.com.au 13-15: Manufacturing 2010. Melbourne. Designed for wood processing operations in the dry mill and stand-alone wood manufacturing companies. View: www.woodmanufacturingevents. com
The National The National Association of of Forest Association Industries (NAFI) Forest Industries (NAFI) represents is striving for an Australian companies, ecologically sustainable individualssociety and Australian organisations involved achieved through in thedynamic, forestry and forest products internationally industries. competitive forest industries. NAFI works with state and
15: WoodSolutions 2010 program. State Library of Queensland, Brisbane. Register interest at www. woodsolutions2010.com.au 15-16: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design, Melbourne. 20-21: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design Rotorua, NZ. 30-2 October: The Future of Forestry and Forest Science Conference. Celebrating the centenary of forestry education in Australia. Sydney Myer Asia Centre Carrillo Gantner Theatre, Melbourne University. Contact: Event Planners Australia forestry. Email: 2010@eventplanners.com.au
9: Wood Solutions 2010 program. Melbourne Convention and Exhibition Centre. Register interest at www.woodsolutions2010.com. au
OCTOBER 2010
9: Australia’s Place in the Changing Global Forest Products Market. Future opportunities for global forestry markets including renewable energy; certification and regulation of global markets; ownership and investment in Australia; industry-led solutions for a sustainable industry. Presented by ForestWorks, Sofitel Melbourne on Collins. Note: Forest industries liaison dinner in the evening at the
15-17: Melbourne Timber and Working with Wood Expo, Melbourne Showground, Melbourne. Contact: (02) 9974 1393. Fax: (02)9974 3426
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SUSTAINABLE. sustainable. responsible. . RESPONSIBLE
2010
JUNE 2010
10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000.
Email: info@eee.net.au
federal governments to support interestsis of to its NAFI’sthemission members while the same represent theatinterests time improving industry of members by standards and practices, promoting the promoting sustainable environmental forestry management and educating the broader sustainability and community on theof the prosperity economic, environment Australian forest and social benefits of industries. a strong sustainable forest industry. National Association of The National Association Forest Industries Ltd of Forest Industries (Est. 1987) Ltd (EST.1987) PO Box 239, PO Box 239, Deakin ACT 2600 Deakin, ACT 2600 Tel: (02) 6285 3833. Tel: (02) 6285 3833 Fax: (02) 6285 3855 Fax: (02) 6285 3855 Web: www.nafi.com.au www.nafi.com.au Web:
issue 131 | 28.06.10 | Page 5
industry news
Industry impatient as minister delays reply on illegal harvesting WHILE the Australian timber industry anxiously awaits the federal government’s official policy on illegally harvested timber, expected soon, the European Commission and the EU Parliament have reached a political agreement on a new EU law to halt the illegal wood trade. The EU is to ban the sale of illegally harvested timber in 2012 after two years of negotiations. Lawmakers on June 16 reached a deal that will require companies to carry out due diligence to determine whether timber is lawful. Companies that fail to comply could be hit with fines and trading bans. Amid fears that Australian timber importers may be forced in to some kind of self regulation on illegal wood imports, industry is impatient for the Forestry Minister Tony Burke to make an announcement now that the final illegal logging Regulation Impact Statement has been signed off by the Department of Agriculture, Fisheries and Forestry (DAFF). Manufacturing sectors of the industry are also urging that timber products from all countries of origin or manufacture should be assessed under the same legality criteria, with no country of origin or of manufacture receiving special favourable treatment. “It is important that all imports containing timber are treated in a similar way to any illegal logging controls that may be introduced by the government,� says Bronwyn Foord, general manager of the Window and Door Industry Council (WADIC). Ms Foord has approached the minister on the issue with support of allied associations
Page 6 | issue 131 | 28.06.10
Tony Burke .. announcement soon on illegal timber imports.
representing the timber merchant and secondary wood processing sectors. She says if imported finished products, such as furniture, flat-packs and fit-outs, and timber components come into Australia without similar legality controls as those placed on imported timber, it is highly unlikely there will be any impact on reducing imports of illegal wood. The EU law, which applies to raw timber and timber products, is expected to be approved by EU governments in July and will come into force in 2012. At present, it is not against the law to sell timber within the European Union that has been harvested illegally outside of the bloc. UK environment secretary Caroline Spelman has welcomed the new law, insisting that Britain is committed to adopting the legislation. The European Parliament is the directly elected parliamentary institution of the European Union. Together with the Council of the European Union, it forms the bicameral legislative branch of the EU and has been described as one of the most powerful legislatures in the world.
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industry news
Impact on renewable energy investment From Page 4
to increasing renewable energy use in Australia.” Mr Colbeck said the forestry industry estimated wood waste could provide as much as 7% of Australia’s current 2020 renewable energy target. In addition, it could generate an estimated $800 million in direct investment and create 2300 jobs, many of which would be in rural and regional communities. “Unfortunately, in the Senate both Labor and the Greens saw fit to ignore the science and economics of this issue and instead focus on preference deals and votes in trendy city suburbs.” Chief executive of the National Association of Forest Industries Allan Hansard said he was disappointed with the government’s decision to vote down the amendments as they were common sense amendments that would have provided considerable greenhouse benefits, regional investment and jobs. “They also ensured
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environmental and sustainable credibility as only wood covered under the strict management prescriptions of the regional forest agreement process would be eligible,” he said. “Without harvesting an additional tree, the amendments would have allowed the offset of 3 million tonnes of carbon emissions a year, generated 3000 gigawatt hours of renewable energy (about 7% of the RET target) and supported hundreds of millions of dollars of investment with an additional 2300 jobs in rural and regional Australia. “Unfortunately Australia is being left behind other developed nations in the recognition of renewable wood waste for electricity and generation. The European Union, Canada and USA generate a significant amount of electricity and heat from renewable resources; in Europe over two-thirds of this comes from biomass, most of which is wood waste from forestry operations.” Mr Hansard said the industry endorsed the approach in Europe and North America where only wood waste from forest operations in sustainably managed forests was recognised for renewable energy. “The government’s decision will severely limit the ability of
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the forest industry to provide positive climate change outcomes in the bioenergy sector and will have a negative impact on investment in renewable energy technology, innovation and infrastructure in Australia,” Mr Hansard said.
“Again we have seen Senator Brown and the Greens politicise the issue and through the government’s decision contribute to a bad outcome for the environment, the communities reliant on the timber industry and the industry .”
issue 131 | 28.06.10 | Page 7
industry news
EWPAA maintains JIS accreditation after Japan audits THE wood panels industry has maintained its accreditation for export to Japan following an audit by Japanese authorities. Members of International Accreditation Japan and the JIS Mark Scheme completed their re-qualification audit after visits to the Engineered Wood Products Association of Australasia in Brisbane and the Australian Wood Panels AssociationTest Centre test laboratory (ATCA) on the Gold Coast. The audit is carried out every two years on ATCA’s systems of documentation, testing, sampling, mill applications and approvals for JIS (Japanese Industrial Standards) certification. The JIS certification embraces eight mills in Australia, New Zealand, Thailand and Indonesia. ATCA is affiliated with the EWPAA which includes the former Australian Wood Panels Association and the Plywood Association of Australasia. The ATCA laboratory, a NATA
accredited facility, carries out wood panel (particleboard, MDF, plywood and LVL) tests specified in AS/NZS, EN, JIS and CARB. The centre, established in 1998, is modern, well equipped and staffed by four technicians and offers professional and accurate reports. ATCA operates three product certification schemes in accordance with ISO Guide 65 – AWPA JAS-ANZ; JIS Mark Certification; and CARB certification. (ATCA is accredited by the California Air Resources Board). The main scope of the JIS certification scheme is to provide the market with credible proof that a product that bears the certification mark complies with the relevant Japanese standards. The JIS scheme is based on the manufacturing process control in authorised factories backed up with surveillance testing and audits, rather than being based on inspection of the products concerned.
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* Independently tested to the highest standard; guaranteed to comply with Australian standards; certified under JAS-ANZ accredited product certification scheme; guaranteed to be safe and to carry the designated design load; complies with the Building Code of Australia; meets safety and quality requirements accepted by unions; meets all Workplace Health & Safety requirements.
Page 8 | issue 131 | 28.06.10
Initially, Japanese houses were just open rooms with little or no privacy. After people began distinguishing rooms with particular functions, paper-covered sliding doors called shoji or fusuma made way for screens and wooden panels to partition and separate rooms. In spite of this modernisation, Japanese traditions remain. As with most Asian countries, removal of the shoes before entering a house is customary and even in ‘westernised’ homes, a room can be found with a tatami (Japanese mat) covering it.
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special report
Younger regrowth logs .. susceptible to checking.
Checking a $10m loss for value-add hardwood markets CHECKING in Victorian ash and Tasmanian oak timber is costing southeast Australian sawmills close to $10 million a year. And this is a conservative figure according to the scientists behind an FWPA and CSIROfunded study. Checking is not a significant issue for structural products but it will become more important as sawmills look increasingly to higher value products, such as furniture, joinery (staircases, windows and doors) and fixture and fit items (flooring and skirting boards). However, tools that predict checking, and genetic improvement could both reduce the impact in time. Dr Philip Blakemore, project scientist at CSIRO Material Science and Engineering in Melbourne and co-author of the project report, adds that the problem of checking is likely to increase as sawmills process an increasing amount of plantation resource, such as Eucalyptus nitens (commonly known as shining gum), and younger regrowth which appear to be particularly susceptible to checking. “Checking is a significant problem,” Mr Blakemore
concludes. “It will get worse as we move to plantations with E. nitens.” Vince Hurley, general manager of Victorian operations with Gunns Timber Products, estimates that checking affects around 6-7% of appearancegrade product in regrowth Victorian ash. “It can be a significant problem,” he says. “But we have systems to detect it and keep it out of the marketplace and enable different treatments to be evaluated.” As part of the project, Dr Blakemore and co-author Richard Northway, also of CSIRO, undertook a review of the research to date on checking and its causes, and made recommendations for future research. They surveyed 41 sawmills across Tasmania, Victoria and New South Wales. “The research suggests there is not likely to be an economically feasible way of processing to stop checks occurring,” says Dr Blakemore. “Industry’s main priority is for some sort of device for predicting which wood will be susceptible to checks prior to Cont Page 12
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Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3256 1779 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready Tel: +61 7 3841 8075 production@industryenews.com.au
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issue 131 | 28.06.10 | Page 9
analysis
Report shows FPQ assets were sold well under their true value ‘Fire sale outrage to Queensland taxpayers’
A QUEENSLAND MP believes the sale of Forest Plantations Queensland assets for $603 million was anything but a good deal, claiming government reports show the true value was $1.37 billion. Dr Bruce Flegg, shadow minister for education and training, in reviewing the state government’s annual report, says the sale of a 99-year lease on forest plantations to Hancock Timber Resources Group represents a ‘fire sale’ at a ridiculous price that would outrage Queensland taxpayers. State treasurer Andrew Fraser announced on May 18 that Hancock on behalf of institutional investors had won the right to grow and harvest the trees. The Crown plantation land on which the majority of the business sits will remain in government ownership. The sale includes around 35,000 ha of freehold land, which is about 10% of the total estate of 203,000 ha of softwoods and hardwoods. FPQ was the first of many
Bruce Flegg .. state plantations a fire sale at ridiculous price.
asset sales up for auction, including the Port of Brisbane, the Port of Brisbane Motorway, Queensland Motorways and Queensland Rail which Premier Anna Bligh said would reduce the state’s debt levels and restore its AAA credit rating. Referring to FPQ, Dr Flegg said: “The state government has in effect sold $1.37 billion worth of our community owned timber and Crown land assets for a mere $603 million. “If as a taxpayer and a Queenslander that doesn’t
outrage you I don’t know what would.” Dr Flegg, MP Moggill, has produced a background paper on the assets sale program in his newsletter to members: On June 2, 2009, the Queensland Government announced its intention to undertake a significant asset sale program. The infrastructure Investment (Assets Restructuring and Disposal) Act 2009 was then passed by state parliament to facilitate the restructure and disposal of particular businesses, assets and liabilities of government entities. The Act grants extensive power to the minister (in this case the Treasurer) to direct the restructuring, disposal and other processes necessary for the sale program with respect to ‘declared projects’. On May 18 this year, the Queensland Government announced the sale of a 99-year lease in Forestry Plantations Queensland to Hancock Timber Resource Group on behalf of institutional investors.
the
Watchdog
The Crown plantation land on which the majority of the business sits will remain in government ownership. The sale includes around 35,000 ha of freehold land, which is about 10% of the total estate. The 99-year licence for FPQ which manages state-owned timber plantations will be sold for $603 million. Cont Page 11
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Page 10 | issue 131 | 28.06.10
Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)
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analysis
Estimating the ‘fair value’ of plantations From Page 10
Hancock Timber Resource Group manages timberland worth about $US8.5 billion across the US, Brazil, Canada, New Zealand and Australia. FPQ has corporate offices in South Brisbane with regional centres along the eastern seaboard. Exotic pines: Beerburrum Forest Management Area (FMA) at Beerburrum, Passchendaele, near Stanthorpe and Pechey, near Crow’s Nest; Fraser Coast FMA at Toolara, near Gympie; Tuan near Maryborough and Elliott River, near Bundaberg; Capricorn FMA at Byfield, near Yeppoon; and Ingham FMA at Ingham and Atherton. Hoop pine: Mary Valley FMA at Imbil, Brooyar (near Kilkivan); Jimna and Gallangowan; Burnett FMA at Yarraman; and Kalowar, near Monto. Hardwood plantations: Aggregations of plantations around Kingaroy and Wondai, near Gayndah and Mundubbera and smaller areas between Beerburrum and Gympie. FPQ operates plantation nurseries at Beerburrum, Toolara and Ingham, providing seedlings for the majority of the corporation’s planting needs. (See Table 1) Under AASB 141 Agriculture, a biological asset is defined as
Forest plantations .. first on state’s assets auction block.
a ‘living animal or plant’. FPQ assets falling into this category consist mainly of plantation grown timber. The Wollemi pine stock reported in 2007-08 was a saleable biological asset which was propagated for sale as part of a commercial venture. FPQ reports its biological assets at ‘fair value’. Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction (AASB 141). As there is no observable active and liquid market for FPQ’s forest assets, FPQ has, in accordance with the provision of AASB 141, adopted the ‘net present value’ (NPV) methodology as the most appropriate alternative for estimating the ‘fair value ‘of its plantations.
Except for intangible assets, all items of property, plant and equipment with a cost or other value equal to or in excess of $1000 are recognised in the financial statements in the year of acquisition. Items with a lesser value are expensed in the year of acquisition.
FPQ carries out its forestry establishment, management and marketing operations principally on Crown land allocated for forest production purposes. While control of this land is vested with FPQ, FPQ is granted full and exclusive access to state plantation forests under a deed of profit a prendre to carry out its operations in accordance with the Forestry Act 1959. In consideration of the grant of this right, FPQ has paid one dollar. Only land controlled by FPQ has been recognised as an asset in the balance sheet. This land includes specified freehold and Crown land parcels held for operational purposes (see Table 2).
If it’s your timber, make sure it’s in the competition. Ring the architect, builder or owner; pay the fee; organise the photos. The 2010 Australian Timber Design Awards is your chance to have your timber products showcased. If you’ve supplied timber or timber products to an eye-catching house, office block or resort development, make sure your contact knows about the Timber Design Awards. Let us know about the project by email at info@timberawards.com.au
ENTRY FORMS AND INFO AVAILABLE AT
www.timberawards.com.au Entries close 16 July
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issue 131 | 28.06.10 | Page 11
industry news
Forest peace talks in Tasmania search for solutions to conflict THE timber industry and conservation groups have presented a united front heading into historic peace talks. After meeting privately for weeks, the foes broke their silence last week to outline plans for talks about the future of the forest industry, including old-growth forest logging. The reported progress of talks follows Premier David Bartlett abandoning his proposed logging roundtable. The forestry position has been put by the National Association of Forestry Industries, Timber Communities Australia and the Construction, Forestry, Mining and Energy Union (CFMEU). Chief executive Allan Hansard said NAFI would work to ensure the views of all sectors of the forest industry in Tasmania were heard and understood. “The forest industry in Tasmania is a diverse industry, including forest managers, harvesting and transport contractors, large and small wood processors and service industries. It is an industry that is strongly integrated into the local, national and global economies and directly supports many local communities in Tasmania. “It is an industry that is sustainable, produces renewable products, and has a major contribution to make in ensuring Australia moves to a low carbon emissions future.” At this stage it is far too early
Confrontation … hopes for an end to forest conflict in Tasmania.
to predict the outcomes of the discussions, if any, but NAFI will engage in these talks in good faith and will work to ensure the significant role that the forest industry can play in Tasmania’ s economic, social and environmental future is realised. TCA chief executive officer Jim Adams said significant good will had been built during the informal preliminary discussions. He agreed it was too early to predict outcomes, but he said it was appropriate that the affected communities were represented from the outset. ““TCA is optimistic that the talks will lead to an historic resolution to the 30-year-old old forests debate in Tasmania,” he said. The Wilderness Society, Environment Tasmania and the Australian Conservation Foundation said the talks would help deliver a durable
and sustainable resolution to the conflict over forests in Tasmania. All groups agreed on the need for a solution that is acceptable to
and broadens out to involve the whole Tasmanian community, and has the support of both state and federal governments. They collectively met with the Premier Bartlett, and the Tasmanian government has indicated it will provide the support required to allow the organisations involved the time and space needed to explore whether or not agreement is possible. The representatives acknowledge that while there is significant good will, finding a solution to a conflict that has divided Tasmania for decades will not be easy, and will take time.
Checking costing $10m a year From Page 9
sawmilling,” he explains. Checking, that is the appearance of cracks on the surface or within timber, is the result of differential shrinkage during the drying process, which leads to internal stresses and, ultimately, cracks. Several commercially important species of eucalypt also appear to be particularly vulnerable to collapse shrinkage which
occurs in the early stages of the drying process and can lead to severe checking problems. Some processors have claimed that checking is the single biggest issue facing the industry, but other processors appear relatively unaffected. This project is the first which aims to put a figure on the extent and economic cost of checking in commercially important hardwood species in south-eastern Australia.
editorial inquiries tel: +61 3256 1779 CSRIO scientist Dr Phillip Blakemore.
Page 12 | issue 131 | 28.06.10
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events
Wood the solution: leaders in architecture booked for forums
SOME of the world’s leading architects and timber specialists are taking part in a series of oneday forums aimed at building design professionals. The inaugural WoodSolutions 2010 program will tour Sydney, Melbourne and Brisbane during September. This new initiative by Forest and Wood Products Australia offers the country’s architects, design engineers, building designers, builders and developers the chance to attend innovative and inspirational presentations by international and local speakers on the structural and aesthetic use of wood. Guests from the UK, Canada and Australia will deliver presentations on interesting and relevant topics that will give building professionals a fascinating new look at one of the world’s increasingly popular building materials. Today, for environmental, aesthetic and economic reasons, contemporary designs are featuring wood in structures ranging from public buildings to multi-storey residential buildings. Feedback from Australian architects, engineers and building designers indicates the greatest impediment to
Richard Leplastrier .. emphasis on sustainability.
using more wood is the lack of access to relevant information on product usage and technical data. With greater knowledge they will have sufficient confidence to specify more wood products in the design and construction of residential and commercial buildings. This information gap has also been experienced by markets internationally. In the USA, Canada and Europe, the wood products industries have developed initiatives such as seminars and presentations to facilitate the exchange of information and product knowledge, which have helped guide this FWPA initiative. Architect and engineer speakers
If you know someone who earns a living from producing, selling or making timber goods in Australia, bring them along to this seminar
invited to the WoodSolutions 2010 program include acclaimed Melbourne-born architect Richard Leplastrier who was awarded the International Spirit of Nature Wood Architecture Award in 2004 for his outstanding contributions to sustainable design and the Dreyer Foundation Prize of Honour in Denmark last year. Mr Leplastrier is renowned for utilising local materials favouring wood in his projects, preferably recycled timber and veneer, that reflect sustainability. Other speakers invited include Andrew Lawrence, associate at Arup London and the Arup International Timber Specialist, who will discuss projects including Metz Pompidou and the Serpentine Pavilion; and
Michael Green, principal of the major awarding winning practice McFarlane Green Biggar Architecture, Vancouver, “Forums like this have been instrumental in helping promote the use of timber by building design professionals in other countries so we look forward to seeing the same success here,” FWPA managing director Ric Sinclair said. “We’re also especially pleased to have secured such a high calibre of speakers for this inaugural event.” WoodSolutions 2010 will be at the Dockside, Darling Harbour in Sydney on September 7; the Melbourne Convention and Exhibition Centre on September 9 and the State Library of Queensland in Brisbane on September 15.
Last plywood with duty guarantee THE final purchases of Brazilian elliotis pine plywood guaranteed to be duty-free were made in the middle of June as long as these products had already been made and shipping capacity was available. With shipments able to be arranged at short notice, these contractual volumes will
likely arrive in Europe by the middle of July and thus before the duty-free quota on EU softwood plywood imports is filled. By contrast, it cannot be guaranteed that later shipments from the end of June onward will not attract duties, especially with handling and shipping delays lasting several weeks still occurring in Brazilian ports.
Wednesday, July 14, 2010
Fair Competition – and the Illegal Logging Trade Speaker: Juel Briggs, Director, Briggs Veneers Pty Ltd Venue: Prosperos Restaurant, 310 Church Street, Parramatta, Sydney (6.30pm for 7.00pm) Cost: $40 p.p. (members); $44 p.p. (non members) RSVP by Monday, July 12, to Chris White on 0411 293 646 or Ian Ramsay on 0414 746992 or email: chrisw@moxontimbers.com.au Note: Cheques made payable to Sydney Timber Industry Institute Inc will be received on the night. Direct funds transfer prior to the event is also acceptable. Account details available on request. Receipts available on the night.
Juel Briggs will assess the impact that current and proposed regulations or government controls will have on Australian merchants, manufacturers and manufacturing jobs in the timber industry. She is concerned that timber products from all countries of origin or manufacture should be assessed under the same legality criteria, with no country of origin or of manufacture receiving special favourable treatment.
Book early! Seating limited to 80 persons
Organised by Sydney Hoo-Hoo Club 215
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issue 131 | 28.06.10 | Page 13
industry news
Rust not technically feasible to eradicate, warns emergency plant pest committee From Page 1
pathologists has exacerbated the problem; originally diagnosed as myrtle rust (redo rangelii), itself a serious South American fungal disease, it is now believed to be guava rust. “If this had been an animal disease it would have hit the headlines,” a government pathologist told T&F enews. “Plant diseases don’t get the same attention, but guava rust is the plant world’s equivalent of foot and mouth disease in cattle.” He said the disease was a serious threat to susceptible single-clone eucalyptus plantations. “The fact that there is very little known in Australia about this particular organism and that it is difficult to determine the host range, eradication will be a big undertaking, if it’s possible at all.” The Consultative Committee on Emergency Plant Pests – a coordinating body providing technical advice during plant health emergencies – says “the rust is not technically feasible to eradicate”. Guava and myrtle rust are spread by very small spores carried by wind or can be lodged on imported timber and wood packaging, infested plant material such as seeds and nursery stock and on cut flowers. Federal shadow minister for agriculture, food security, forestry and fisheries John Cobb believes the Government is down playing the seriousness of the disease incursion. The government committed $156 million in the 2009-10 Budget for biosecurity measures at airports, sea ports and mail centres to help protect against exotic pests and diseases. This includes $92.2 million through the Department of Agriculture,
Page 14 | issue 131 | 28.06.10
Is it guava or myrtle? Both rusts are tree killers.
Fisheries and Forestry and $63.8 million through the Australian Customs and Border Protection Service. Mr Cobb said as at June 21 – eight weeks after the initial detection of the rust – no approved national management plan was in place. A guava rust contingency response plan was
exacerbated the problem, with the federal government refusing to take the threat seriously. What was originally diagnosed as myrtle rust is now believed to be guava rust,” he said. Mr Cobb said according to the Minister for Agriculture Tony Burke’s own departmental website, guava rust is the only rust known to infect eucalypts and causes serious disease in eucalypt plantations. “Further, the AQIS website states eucalyptus/guava rust can be managed in plantations by producing resistant trees through selection and breeding. This is happening in countries such as Brazil, but the disease would be impossible to manage in natural environments and would have devastating effects on Australian ecosystems where susceptible species occur,” Mr Cobb said. “Climate mapping indicates that guava rust could establish in a large proportion of Australia’s
South American rust attacks underside of leaves.
drafted in 2006 and accepted by government agencies. It was made available online for the nursery and garden industry in 2009, he said. “Confusion surrounding the identity of the rust has
world heritage rainforest. “This incursion of ‘myrtle rust’ may lead to significant damage to myrtaceae in Australia, encompassing a wide range of species in the natural environment and
John Cobb .. government downplaying seriousness of disease.
commercial species such as forest hardwoods (eucalyptus and corymbia), garden plants and cut flowers. Guava rust also has a reported capacity to evolve and extend its host range “Alarmingly, the massive amounts of carbon stored in our forests could be at risk and if the growth rate of our eucalypt forests is decreased because of this disease so too will be the uptake of carbon.” Mr Cobb confirmed molecular work undertaken by Australia’s leading experts on this pathogen could not distinguish myrtle rust from guava rust. A highly specific detection test for guava rust gave a positive result for all ‘myrtle rust’ samples tested, he said. DNA sequences from multiple ‘myrtle rust’ samples were over 99% similar to guava rust. No other rust species is known to have more than 95% similarity to guava rust in this gene region. Further work on the rust incursion is being funded and undertaken by the University of Tasmanian and Forest and Wood Products Australia. “Appallingly, no funding has been made available by more appropriate government sources despite this being a disease incursion of national importance,” Mr Cobb said.
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industry news
PM opens case for a carbon price as climate change returns to the agenda From Page 2
the Rudd legacy of broken promises, botched programs wasting billions of economic stimulus dollars, illegal boat arrivals and mortal combat with the mining industry over the new super profits tax; for Keneally it’s allegations she is a puppet of the party’s right wing as she tries to appeal to voters who think Labor is on the nose; and Bligh is persona non grata with the electorate over the sale of state assets and the nurses’ wages fiasco. The British study discovered that, in contrast to the perception of women being a burden to corporations, many women, like Margaret Thatcher, managed to pull their organisations back from the brink. When Thatcher became education minister in the early 1970s, student radicalism was at its peak and she faced riots and strong criticism. In 1979, when elected to prime minister, Britain was facing rampant unemployment and a recession. Thatcher, along with other women who take on such bad odds, managed to stand her ground. Another two of Australia’s female state premiers, Joan Kirner and Carmen Lawrence, are high-profile examples of women who wound up on the glass cliff. Both were appointed in times of exposed scandal and lost their subsequent elections. Overall, the researchers found that women are recruited to these very unstable leadership positions far more often than men and thus face greater odds of failing. But not all women see the glass cliff as negative. Some women, they say, relish the opportunity to “prove themselves” in an inherently tough job. Some of them felt that their
Carbon guzzlers .. trees the key to climate change.
promotion was quite deliberate and manipulative, that they were moved as a scapegoat who would take the fall. But that wasn’t the whole story. Other women said they felt they were put in these difficult positions because they could cope very well. And still others said they actively sought out the jobs – quite often only the top positions available – because if they succeeded, the rewards were great. Julia Gillard, who was sworn in as Prime Minister by Quentin Bryce, Australia’s first woman Governor-General, joins a world women leaders’ club: Hillary Rodham Clinton, US Secretary
of State, Mari Kiviniemi, Finnish Prime Minister, Angela Merkel, German Chancellor, Sheikh Hasina Wazed, Prime Minister of Bangladesh; Johanna Sigurdardottir, Iceland’s first female PM, Pratibha Devisingh Patil, first woman president of the Republic of India, Mary McAleese, president of Ireland; Jadranka Kosor, Croatia’s first female Prime Minister, Dalia Grybauskaite, president of Lithuania; Laura Chinchilla Miranda, first female president of Costa Rica; and Roza Isakovna Otunbayeva, president of Kyrgyzstan. Emerging from the Labor caucus room in Canberra last
Thursday with new deputy prime minister Wayne Swan by her side, Ms Gillard said she felt honoured. “Can I say Australians one and all, it’s with the greatest, humility, resolve and enthusiasm that I sought the endorsement of my colleagues to be the Labor leader and to be the prime minister for this country,” she said. “I have accepted that endorsement.” In her first speech as PM, she said she believed in climate change; that human beings contributed to climate change. “It is as disappointing to me as it is to millions of Australians that we do not have a price on carbon. “In the future, we will need one. But first we will need to establish a community consensus for action. “If elected as Prime Minister [at elections expected in a few months] I will re-prosecute the case for a carbon price at home and abroad. I will do that as global economic conditions improve and as our economy continues to strengthen.
– Jim Bowden
Big jump in volume of NZ logs to China CHINA’S rapidly-rising demand for New Zealand logs may slow later this year, but government economists think some of the supply may be sought for the second and third-biggest customers – South Korea and India. Russia’s imposition of an export tax on logs has increased Chinese demand for logs from other sources such as New Zealand, to the point where ports New Zealand are having trouble finding room to stockpile logs before they are loaded, according to Ministry of Agriculture and Forestry (MAF) analysts.
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China is currently taking about half of the 2.2 to 2.5 million cub m of logs exported each three months, and its global imports of logs jumped 24% to 11 million cub m in the first four months of 2010, compared with the same period in 2009, the International Tropical Timber Organisation (ITTO) reports. Part of that surge of logs was supplied by New Zealand with sendings reported to be up 75% to 1.8 million cub m, while log imports from Russia fell 6% over the same period to 4.9 million cub m. MAF analysts said the growing importance of log exports
– largely driven by Chinese demand – had been a feature of NZ forestry exports for the past 18 months. The MAF economists said in their situation and outlook to 2014 that international log prices were predicted to rise a little, with help from improving domestic demand for sawlogs. In NZ dollar terms, export prices rose 1.5% in 2009 and were expected to lift a further 5% over the coming year. Shipping rates appeared to be settling at a level 30% to 40% lower than their peak in June 2008.
issue 131 | 28.06.10 | Page 15
forestry
Tasmanian project allows landholders to establish tree plantations at no cost AN innovative project that will establish free plantations on farmland at no cost to the landholder has been launched by Tasmania’s Minister for Energy and Resources Bryan Green. The Trees on Farms in an initiative of Forestry Tasmania in partnership with Private Forests Tasmania, which operates as a joint venture between Forestry Tasmania and landowners. Through the project, Forestry Tasmania establishes tree plantations on farmland at no cost to the landowner, who in return protects the growing trees from livestock and after 15 to 20 years the trees are harvested and the profits shared 70:30 between Forestry Tasmania and the landowner. The project delivers significant benefits to farmers providing landowners with the opportunity to reclaim weed infested land; securing new and diverse revenue streams; providing shelter for stock and crops; increasing the capital value of land; and providing habitat for the threatened swift parrot. Furthermore, planting trees on farms is an ideal way for
Tasmania’s energy and resources minister Bryan Green launches the Trees on Farm project at the Tasmanian Arboretum near Devonport.
farmers to assist offset carbon emissions through the storage of carbon in trees planted on their land. The project is a great opportunity to increase carbon sequestration by encouraging farmers to plant trees on agricultural land and allows them to play a part in the fight against climate change. The launch coincided with
the delivery of 1100 blue gum seedlings to the Tasmanian Arboretum to assist in providing habitat for the threatened swift parrot. The seedlings, which were grown at Forestry Tasmania’s nursery and seed Centre at Perth for the Trees on Farms project, will be planted by volunteers to create foraging habitat at the Tasmanian Arboretum for the swift parrot. The Tasmanian Arboretum generously dedicated three hectares of newly acquired land around the Eugenana state reserve for this purpose. The land is ideal habitat for the swift parrot as it is located behind a recorded swift parrot breeding site, Kelcey Tier and is close to the coast. Meanwhile, Gunns has announced it will stop using 1080 poison in all its Tasmanian forests. The company has used the poison for decades to stop native and feral animals from destroying its young plantation trees. Gunns says it has developed new strategies for protecting its plantations, which do not
involve the lethal poison. The announcement comes after last month’s resignation of long-serving chairman John Gay and months of financial problems for the company. Gunns’ spokesman Ian Blanden says the decision reflects a more community-oriented approach for the company. “There has been community dissatisfaction with the use of 1080 in the past, that’s acknowledged by us and it’s a recognition and taking on board of some of those community views,” he said. The chemical 1080 is said to kill thousands of native animals every year. Environmental groups have welcomed the news. Wilderness Society spokesman Vica Bayley says the decision might signal a change of direction for Gunns. “This is a really significant step forward for Gunns as a company, and it hopefully heralds a new era where they’re listening to community concerns,” Mr Bayley said. The Tasmanian Conservation Trust’s Peter McGlone believes the decision will save native wildlife.
Single certification scheme on agenda From Page 3
will be able to bring another delegate at no cost. “We hope this will encourage industry to bring some of their ‘down-the-line’ staff members who might otherwise not have attended,” Mr Hartman said. Canvassing ideas for a single certification scheme will be a high on the conference agenda. Chairman of the Program for the Endorsement of Forest Certification schemes (PEFC) Bill Street will present his
Page 16 | issue 131 | 28.06.10
views on sustainably managed forests. “How we deal with our growth, in terms of new cultures, new national governing bodies, the rapid increase in global chain of custodies, the issues of climate change, indigenous peoples, and tropical forests will determine in large part how we will be judged 10 years from today,” Mr Street says. “Lately, it seems as if too many of our conversations focus on what divides us, rather than what unites. What divides us is real. As in any confederation,
the pushes and pulls among NGBs and between NGBs and the PEFC secretariat are constant. Ignoring them, denying them, or attempting to hide them will only cause our problems to grow. “We must confront our differences and learn from them, because as different and as divisive as some of the newer challenges that we face may be they still pale in comparison to what unites us.” Mr Street will be joined in the session by representatives of Australian Forestry
Standard (AFS) and the Forest Stewardship Council (FSC). The conference will be held at the Hotel Sofitel on Collins Street, Melbourne, with the conference dinner that evening at the heritage-listed Regent Theatre on Collins Street, first opened in 1929 and listed by the National Trust of Australia. ForestWorks will hold its skill and employment council meeting and educational forum at the conference venue on September 10. *See notice Page 2.
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Chain of Custody Why taking an ad with us I N F O R M AT I O N S E M I N A R
Brisbane • Thursday, August 20, 2009
is the best value for you! 433 On Logan Conference Centre 433 Logan Road, Stone’s Corner LIMITED TO 60 SEATS
This important and timely seminar, organised by TABMA Queensland, will help reduce some of the confusion relating to chain of custody. It will ensure the Queensland timber industry has the information required for compliance with legislation,Key speakers will present information and there will be a question and answer forum. Speakers include: • Colin MacKenzie, manager, timber application and use, Timber Queensland • Simon Dorries, General Manager, Engineered Wood Products Association of Australasia • Kayt Watts, chief executive, Australian Forestry Standard Ltd (AFS) • Michael Spencer, chief executive, Forest Stewardship Council (FSC) Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast and morning tea. Note: Arrival 7:30am. Breakfast 7:45 am. Presentations begin at 8 am. RSVP by Friday, August 14, to: Tabma Queensland, PO Box 532, 500 Brunswick Street, Fortitude Valley 4006 Tel: (07) 3254 3166. Fax: (07) 3254 4599. Mob: 0438 295 136
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An assessment of the standing timber, product range and approximate value was undertaken on the western portion 107 LX 2421 in March last year. In preparation for the assessment, aerial photos were procured, the regional ecosystems overlayed, proposed strip lines considered and their GPS points down loaded to gain a representative sample of various forest types. Data collected includes species, diameter at breast height (cm), potential product and its length, and whether the tree would be harvested, retained or chemically treated. Management units were identified and mapped by assessing the consistency of the forest in relation to species mix and productivity. The strip data was then extrapolated to give a per hectare figure of available volume and extrapolated over the unit area. Professional report indicates value of timber at $307,000 as at February 09, rising to $788,000 in 8-9 years. All inquiries and requests for detailed assessment data and aerial photographs should be directed to: Richard Long – Rent-A-Stand Pty Ltd, PO Box 37 Greenslopes 4120 Brisbane, Qld, Australia Tel: Fax: Mob: Email:
+617 33241288 +617 33970914. 0408 884 979 sales@rent-a-stand.com.au
issue 131 | 28.06.10 | Page 17
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