Issue 141

6499

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issue 141 | 06.09.10 | Page 1

Legal minefield Non-compliant wood products risk exposure to unlawful damage claims

IN one of the harshest ever revelations to Australia’s timber industry, a legal authority has counseled traders that merchandising falsely represented products to consumers exposes them to the risk of claims for damages for personal injury.

Noted barrister Nicholas Ferrett, a specialist in commercial law and trade practices, warns that any business or individual importing or selling wood products that do not meet Australian standards, including those requirements for formaldehyde emissions, risks prosecution under the Trade Practices Act. Mr Ferrett states this is a breach of ‘consumer protection’ provisions and timber importers

and traders could be liable for personal injury damage.

“In my view, it can also raise concerns for the importers and sellers,” Mr Ferrett said.

“My primary concern would be the potential breaches of consumer protection provisions of the Trade Practices Act and corresponding provisions in the state fair trading statutes – legislation that prohibits misleading and deceptive conduct and false and misleading representations about the characteristics of goods.”

The counseling by Mr Ferrett is timely; a new raft of imported products, including plywood panels and flat-pack furniture components, has failed

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issue 141 | 06.09.10 | Page 1

INDUSTRY NEWS

Carbon assurance Making scheme measures an planting standards impact ..

Please join us!

2010 VAFI

Annual Dinner Friday October 15 Crown Entertainment Complex in Melbourne

Watch this space!

More details to follow soon

THE British Forestry Commission is about to test a new quality assurance scheme for tree planting projects designed to sequester carbon.

The market for such projects is increasing but, until now, there have been no standards to measure their claims against, or to ensure that real benefits will accrue.

The new Woodland Carbon Code will encourage a consistent approach to projects and provide clarity and transparency to potential customers and investors about what their contributions should achieve.

The commission developed the code in conjunction with a wide range of interests and it was subject to consultation earlier this year before being finalised.

To comply with the code, projects must be responsibly and sustainably managed to national standards; use standard methods for estimating the carbon that will be sequestered or locked up; be independently verified; and they must meet transparent criteria and standards to ensure that real carbon benefits are made.

Project providers must register

with the Forestry Commission, stating the exact location and long-term objectives of their project. Once approved, projects will then appear in a national online register.

“Increasingly, people and companies are realising the valuable potential that tree planting schemes have to soak up CO2 from the atmosphere,” says Forestry Commission director-general Tim Rollinson.

“There are now many commercial schemes that encourage individuals and businesses to contribute to tree planting to help compensate for their carbon footprint. But before investing in projects people want to know that schemes will actually deliver what they claim.

“The Woodland Carbon Code will provide that reassurance and will encourage more investment in tree planting in the UK.” The six-month pilot phase will test the scheme with around a dozen pilot projects throughout the UK. This experience will help to refine the code and its associated guidance before it is launched early in 2011.

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FSC global leaders for Hobart talks 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 141 | 06.09.10

GLOBAL leaders in the FSC system will address the FSC Asia Pacific National Organisations conference and workshop on certification and development in Hobart on September 22.

Speakers include Timothy Synnott, first executive director, FCS International and Jaime Levy, FSC International board member (Latin America).

Leaders from FSC International in Bonn and FSC organisations in Asia and the Pacific will meet at the conference.

This will be one of the most significant gatherings of FSC leaders to take place in the Asia Pacific region.

An FSC certification workshop for small and private landholders will also be held in Hobart from September 22 to 24.

www.tabma.com.au

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industry news

Increase in imports that fail compliance with standards

Book Now!

From Page 1

to comply with Australian standards after accredited laboratory tests.

Mr Ferrett said where a wood product was sold to a consumer (for example through a hardware store), a court might well hold that there was an implied representation that the product was safe for the sorts of uses a consumer was likely to put the product – small construction jobs, building furniture and the like.

In other words, uses which were likely to leave the product in close proximity to the consumer.

“Where a non-compliant wood product is sold to the consumer the seller may well be taken to have falsely represented that the product is safe for ordinary

9 September 2010 Sofitel Melbourne

Wood products that do not meet Australian standards risk prosecution.

consumer uses when it is not,” Mr Ferrett said.

“This would leave the seller potentially at risk of not only refunding the price of the product but also liability for damages and personal injury.”

Testing by the EWPAA has shown that all products manufactured by EWPAA members in Australia and New Zealand meet the Australian standards in all respects.

In fact, the majority of Australian wood panel manufacturers participate in a product quality assurance certification program that requires independent testing and auditing of manufacturing processes to ensure compliance to the Australian Standards.

Consumers can identify these products by the use of the EWPAA logo for plywood and LVL and the ATCA logo for particleboard and MDF. The risks associated with products that fail Australian standards are underlined by a warning last week from the Australian Competition and Consumers Commission that businesses should be ready to report unsafe products within two days or face the risk of jail or fines of up to $16,500.

From January next year, companies for the first time will be required to notify the ACCC within two days once they become aware a product has, or may have, caused serious injury, illness or death.

The changes are part of far-

“Australia’s Place in the Changing Global Forest Products Market” Forest Industry Development Conference, presented by ForestWorks This major industry development conference will include speakers from global certification bodies, environmental nongovernment organisations, leading global forest products innovators and the Australian industry.

Key themes: Markets: Emerging Forest Products Markets Investment: Growth for the Industry Community: Stakeholder Support for Forestry and Forest Products

Book now!

Contact cday@forestworks.com.au Visit www.forestworks.com.au to download a full Registration Form

Australia’s Place in the Changing Global

Forest Products Market

Cont Page 6

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issue 141 | 06.09.10 | Page 3

industry news

US hardwoods push into flooring markets in Australia, New Zealand

White oak dominates rise in lumber shipments THE US hardwood sector is increasing its push into the Australasian and Pacific regions with direct exports of lumber, veneer and flooring reaching $US4.4 million in the first six months of 2010.

This represents a 43% increase in value over the same period last year.

While exports of US hardwood lumber to the region increased by 39% to $3.4 million, shipments of hardwood veneer and flooring rose by 51% to $891,000 and by 338% to $111,000, respectively In volume terms, shipments of US hardwood lumber to the region rose to 3871 cub m in the January-June period. Of this, 2625 cub m was absorbed

by Australia, a 31% increase on the first half of 2009, and 1246 cub m was accounted for by New Zealand, a 43% increase.

Both Australia and New Zealand are markets for premium value imported hardwood lumber.

In the January-June period of 2010, the unit value of US hardwood lumber shipped reached $972 cub m to Australia and $695 cub m to New Zealand.

Page 4 | issue 141 | 06.09.10

US white oak flooring timbers .. growing market in Australasia.

Shipments were dominated by white oak which has developed in to a popular species for flooring. Although not great in volume terms, there were significant increases in shipments of red oak, maple, walnut and tulipwood during the period.

In the first half of 2010, direct exports of US hardwood veneer to the region went, in the main, to Australia and reached a value of $797,000. This marked a 47% increase on the previous year.

Some US hardwood veneers were also shipped directly to New Zealand last year, with the total value reaching $94,000.

This also marks a significant increase from the previous year. Although difficult to quantify precisely, the majority of American hardwood veneers would have been in white oak.

Although not a value-added product and, therefore, not promoted by the American Hardwood Export Council, it is important to note that shipments of US hardwood logs to the region reached a volume of 1784 cub m during the January to June period of this year, marking a decrease of 24% on the previous year.

As with lumber and veneer, this trade can be almost entirely accounted for by Australia and

New Zealand, with Australia taking 555 cub m and New Zealand 1229 cub m. Also as with lumber, this trade was dominated by white oak.

Meanwhile, leading integrated forest products producer Canfor, located in British Columbia, with facilities spread across Canada and the US, continues to show signs of improvement as the North American forest industry slowly recovers.

The company reported total net income of $US40.4 million for the second quarter of 2010, compared to $32.5 million for the first quarter and $12.1 million for the second quarter of 2009. For the six months ended June 30, 2010, Canfor’s net income was $72.9 million, compared to a loss of $57.8 million for the comparable period in 2009.

A rally in the price of solid wood that started in early 2010 came to an abrupt end mid-way through the second quarter, the result of a combination of higher industry production, slowing inventory replenishment orders and a stalling US housing recovery.

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events

WHAT’S ON? 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 9: Wood Solutions 2010 program.

Melbourne Convention and Exhibition Centre. Register interest at www.woodsolutions2010.com.au 9: First Super Plantation Investors’ Seminar. Sofitel Melbourne on Collins. Day prior to industry development conference – ‘Australia’s Place in the Changing Global Forest Products Market’.

Contact: ForestWorks cday@ forestworks.com.au Visit www. forestworks.com.au to download a full registration form 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 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 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 September-October: Centenary of Forestry Education in Australia. Celebrated with various activities and events reflecting on the past, and preparing for the challenges of the future.

OCTOBER 2010 9: Queensland Timber Industry Awards Dinner. Sofitel Brisbane Central, 249 Turbot Street, Brisbane. Contact: TABMA Queensland. Tel: (07) 3254 3166.

Mob:0438 295 136. www.tabma.com.au 10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000.

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12: ForestWood 2010.

A pan-industry conference jointly hosted by the Forest Owners Association (FOA), Wood Processors Association (WPA), Pine Manufacturers Association (PMA), Forest Industry Contractors Association (FICA) and supported

by Woodco, NZ Farm Forestry Association (NZFFA) and Frame & Truss Manufacturers Association (FTMA). Venue: Museum of New Zealand Te Papa Tongarewa in Wellington.

SUSTAINABLE. sustainable. responsible. .

RESPONSIBLE 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

15-17: Melbourne Timber and Working with Wood Expo, Melbourne Showground, Melbourne. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 19-20: MTC Global Woodmart: Gateway to International Wood Markets. The first ‘one-stop’ selling and buying platform for all suppliers and buyers of wood and wood products. Early bird discount 5%. Organised by the Malaysian Timber Council at the Kuala Lumpur Convention Centre, Malaysia. Contact: Malaysian Timber Council. Tel: +60 3 9281 1999. Fax: +60 3 9289 8999.

Email: council@mtc.com.my Web: www.globalwoodmart.my

2010

SEPTEMBER 2010

29: TABMA annual dinner.

LunaPark, Sydney. Incorporating theAustralian Timber Design Awardspresented by TDA NSW. Dinnersupported by TDA, NSW Forest

Products Association and FWPA. Contact: TABMA on (02) 9277 3172

NOVEMBER 2010

17-19: ForestTECH 2010 Tools & Technologies to Improve Forest Planning & Operations, Rotorua,NZ.

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 141 | 06.09.10 | Page 5

industry news

NZ forest festival team rubs noses with guest nation Plenty happening at Circular Quay COUNTDOWN ‘365% pure’ begins on September 10 at the Tourism NZ Rugby Ball at the overseas passenger terminal on Sydney’s Circular Quay.

The Bay of Plenty in New Zealand is gearing up for a number of major events that will run prior to, during and post Rugby World Cup 2011 and selected members of industry will be among guests who will hear all about it at the Sydney promotion.

A business hosting program will feature ex-All Black captain and Sydney resident David Kirk.

The New Zealand Forestry and Wood Processing Festival is to be held the week prior to the Rugby World Cup in Rotorua. It is expected to be the largest forestry event in the southern hemisphere attracting some 250 global and national exhibitors and providing a range of technical workshops, demonstrations, open days

and competition.

Australia has been offered ’guest nation status’ for the festival and organisers will be in Sydney next week to discuss details and hand over the ‘centerpiece’ of the event created by the Te Puia, the renowned NZ Maori Arts and Crafts Institute in Rotorua.

Cont Page 11

Treading legal minefield From Page 3

reaching reforms to Australian consumer laws and the Trade Practices Act that are being introduced in two tranches.

The first tranch includes the new unfair contracts regime, which began in July, as well as increased enforcement options for the ACCC, including the ability to issue disqualification orders and substantiation and infringement notices.

The recent changes also authorise the ACCC and the Australian Securities and Investments Commission to

Page 6 | issue 141 | 06.09.10

seek penalties of up to $1.1 million against companies and $220,000 against individuals who make false or misleading representations or engage in unconscionable conduct.

The second tranch will come into effect in January and includes a single set of statutory consumer guarantees, new prohibitions on false and misleading representations and changes to allow the federal minister to prescribe safety standards and impose interim or permanent bans on consumer goods and services.

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INDUSTRY NEWS

Review will testify Australia has most credible standards for forest industry All stakeholders involved in two-year consultation KEY stakeholders in Australia’s forest and timber industries will be engaged in a twoyear revision of the Australian Standards for sustainable forest management and the chain of custody process.

Australian Forestry Standard Ltd (AFSL) this week announced the commencement of the five-yearly revision process of the Australian Standards for Sustainable Forest Management (AS 4708) and Chain of Custody of wood and wood products (AS 4707).

“The revision will be a concentrated and collaborative process spanning two years,” AFS chair Geoff Gorrie said.

“The intensive public participation plan for the project will fully engage all stakeholder groups and interested parties within and connected to sustainable forestry and the supply chain of wood and wood products.

“Coupled with rigorous adherence to international processes and guidelines, as well as an emphasis on science and evidence, the review project will ensure that internationally

Geoff Gorrie .. review a concentrated and collaborative process.

recognised Australian standards continue to be regarded as the most credible and robust forest certification tools.”

Responsibility of the reviews and ultimate decision making powers will reside with Standards Reference Committees (SRCs), one for each Australian standard.

SRCs members will consist of representatives who cover scientific, environmental, social, economic and cultural aspects of sustainable forest management and wood production in Australia. Nominations from

Dr Paul Briggs .. chair, SRC for Sustainable Forest Management

representative national organisations, industry bodies and stakeholders to participate on the SRCs are now being distributed and will be advertised in leading trade publications.

“There are many places that need to be filled and AFSL is ensuring that all interested parties are aware of their ability to be involved either on the committee or through public consultation,” Mr Gorrie said.

“Because the revision will ensure a wide coverage of topics and criteria, engagement with stakeholders and interested

parties is a priority.”

Dr Paul Briggs, a leader in Australian forest management for more than 25 years, has been appointed chair of the SRC for Sustainable Forest Management.

His strong technical and scientific background is well suited to the position.

AFSL chief executive Kayt Watts said the revision process involved a public call for comment on both Australian standards.

“It will be interesting to see the types of issues and aspects of the criteria of the standards that will be raised in this process, especially in this ever changing forestry and wood production environment,” Ms Watts said.

“AFSL is committed to the revision process, which enables a fully transparent and inclusive consultation.”

Fitzpatrick Woods Consulting has been appointed to provide an independent management service to the revision project, especially relating to collaborative stakeholder management and standards Cont Page 13

Status and Trends of the Global-Pacific Rim Forest Industry

The Role of Australia and New Zealand Visit the conference web site for full details of the program, speakers, field trip, accommodation and registration.

Wednesday 3 Friday 5 November, 2010 Bayview Eden Hotel Melbourne Australia

Contact: Conference Organiser: PR Conference Consultants – Ms Pamela Richards Tel: + 61 3 5781 0069. Email: enquiry@prcc.com.au

www.prcc.com.au/dana2010

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Monday 8 Tuesday 9 November, 2010 Energy Events Centre Rotorua New Zealand

issue 141 | 06.09.10 | Page 7

FORESTRY

Hybrid agroforestry system promises high yields, returns for Solomons teak Commercial trials under way at Salisbury research centre TWO Queensland foresters are helping with a hybrid agroforestry system in the Solomon Islands that could provide villagers with a continuous stream of food and cash crops – and a valuable export market.

Dr Tim Blumfield, a senior research fellow at the Griffith University’s environmental futures centre, says the project is aimed at reversing the unsustainable logging of native forests in the Solomons.

“The project hopes to give village groups a sustainable living by planting local species,” Dr Blumfield said.

“Introduction of the hybrid agroforestry system is designed Dr Gary Bacon and Dr Lex Thomson (team leader, Facilitating Agricultural Commodity Trade) examine five-year old teak (Tectona grandis) growing in a small wood lot outside Honiara. One of the trees measured had a DBHOB of 35 cm, a growth rate not uncommon in the Solomon Islands.

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Page 8 | issue 141 | 06.09.10

to allow villagers to have a continuous stream of food or cash crops from the same land where high quality timber, such as teak and mahogany is being grown for the export market.”

Dr Blumfield is working with Dr Gary Bacon, adjunct professor at Griffith’s centre for forestry and horticultural research.

The system uses a local tree, Flueggea flexuosa, which is traditionally an important source of durable, round timber for companion planting with teak.

The local tree, which is capable of producing useful timber in a few years, is then progressively harvested, effectively thinning the stand and allowing the teak to attain desirable growth and form and then grow on to

harvestable size in 20 years.

Dr Blumfield is involved in a number of projects, including his role as project coordinator for improving silvicultural and economic outcomes for community timber plantations in the Solomons by interplanting with Flueggea flexuosa and other Pacific agroforestry species as part of an Australian Centre for International Agricultural Research overseas programs.

The project works with the Ministry of Forestry, the School of Natural Resources and the Solomon Islands Association of Rural Training Centres to promote the hybrid agroforestry system through a series of scientific trials, demonstration plots and thinning trials.

Solomon Islands teak is currently being assessed for wood quality at different age classes at the Department of Employment, Economic Development and Innovation’s Salisbury research centre in Brisbane. Trial results are expected soon.

Teak was introduced into the Solomon Islands on an ad hoc basis throughout the colonial era, with stands scattered throughout the archipelago.

There were few if any records kept and the origins of the stands were lost.

One of the scientific officers working for the Ministry of Forestry established a seed orchard using material from the best of these trees. This has formed the basis of the current Solomon Islands provenance, which shows good form with little branching and a very straight habit.

“The growth rate is spectacular,” Dr Blumfield said.

Cont Page 9

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forestry

Dr Gary Bacon (standing left) and Dr Tim Blumfield (seated right) meet with the Permanent Secretary and Commissioner of Forests and staff in Honiara.

Trials show value in using thinned stems for veneers From Page 8

When ACIAR started the project for silvicultural and economic outcomes for community timber plantations in 2008 – by interplanting with Flueggea flexuosa and other Pacific agroforestry species – the quality of the timber was unknown.

Integrated Tree Cropping (ITC), now known as Elders Forestry, had taken over a property at Mount Rae in the eastern Cape York Peninsula which had a small stand of teak planted around 2002. This was the oldest available Australian teak available for comparison with the Solomon Island teak.

ITC provided 15 stems from the six-year-old plantings to the DEEDI testing facility at Salisbury. In turn, the project has sourced 15 stems from each of the 6, 10 and 15-yearold classes of Solomon Islands provenance teak and 15 stems from size classes of Flueggea flexuosa form tests to establish its commercial suitability with regard to characteristic properties.

Timbers deemed suitable will be processed and assessed for commercial applications such

as flooring, furniture making, mouldings and for window/ door making.

The project is also working with companies within the Solomon Islands to examine means of value adding in-country.

“There has been no real market for thinnings but we are testing suitability for producing veneer from thinned stems in conjunction with Eagon Pacific Plantation Ltd and are also working with local carpenters to produce furniture,” Dr Blumfield said.

It is hoped the results from this testing will provide information about age/size when thinned stems have a commercial value.

“Currently, all thinnings are pre-commercial, depriving growers of potential income and deepening the reluctance of growers to thin which has resulted in over-stocked plantings around the country,” Dr Blumfield said.

“Information on the properties of older stems will highlight the commercial value of Solomon Island grown teak that will compare favourably with the teak grown in countries such as Burma and India.”

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issue 141 | 06.09.10 | Page 9

open letter

Say NO to the environmental mafia THE Institute of Foresters of Australia is an organisation with members focused on improving the management of forests in Australia and internationally.

Many of our members have worked alongside or within environmental non-government organisations (ENGOs) to achieve sustainable solutions to forestry issues throughout the world. Some members have also worked under oppressive regimes where the threat of violence and intimidation are the rule, but solutions have still been achieved.

Members of the IFA Tasmanian division were informed recently that the current forest industry/ ENGO discussions in Tasmania have involved tactics that mirror those of the most oppressive regimes.

They were advised by a participant in those discussions that some ENGO members have directly threatened industry representatives and promised to destroy their businesses unless they agree to a total phase out of native forest utilisation and adoption of the ENGO preferred certification process.

These ENGO representatives reject all attempts at compromise. In this day and age, with more individuals recognising that forestry is one of the most self sustaining industries that this country has

BY

PETER VOLK President Institute of Foresters of Australia to offer, is this overbearing nasty approach really necessary or worthwhile? In fact, no less than the International Panel on Climate Change has endorsed sustainable forest management,

including harvesting of timber from native forests, as the most effective way to mitigate climate change.

It is apparent that some ENGO representatives’ idea of negotiation and compromise is equal to those employed by despots high on the euphoria that oversized egos produce.

Essentially, they have been corrupted by power. Their lack of concern and empathy shown for the communities and the thousands of Tasmanians reliant on this fertile industry called forestry is testament to this.

In addition, they choose to ignore the overwhelming evidence in support of sustainable forest management practices in Tasmania in the pursuit of an idealised and unrealistic expectation that cessation of

native forest silviculture will protect those forests.

The IFA supports improving environmental and community benefits associated with active sustainable forest management.

This can only be achieved through open, transparent and honest negotiation and agreement.

It is clear the forest industry/ ENGO discussions are not based on these principles. IFA hopes that despite the outcome of these discussions, there will be a further process that engages the wider community and focuses on balanced, long term, science based outcomes that recognise the contribution of native forests to the environmental, social and economic well being of Australia.

White collar Labor has decimated blue collar forestry: TCA report A REPORT prepared by CPI Strategic commissioned for Timber Communities Australia has highlighted the consequences of decisions made by “Melbourne-centric” state governments that have severely impacted on the timber industry and its dependent communities.

TCA southeast regional coordinator, Trevor Brown said state government decisions over the past 30 years had

significantly reduced timber harvesting in Victoria.

“These decisions have directly and indirectly resulted in the closure of at least 93 mills,” he said.

“With these closures came the loss of around 2500 mill jobs and many more in businesses that rely on the timber industry.

“These mill closures have been caused by decisions made in Melbourne by university educated ministers and

premiers, who are advised by a white-collar bureaucracy that do not understand or want to understand the situation of timber workers.”

According to the report, there have been two major periods of timber industry contractions – in 1986-87 and 2002 – both caused by major reductions in the accessibility of harvestable timber caused by state Labor government decisions.

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Page 10 | issue 141 | 06.09.10

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industry news

Coalition commits $20m to forest contractors fund COALITION spokesman for forestry Senator Richard Colbeck has met with Tasmania’s forestry industry to discuss the significant issues facing forest contractors.

“During the election campaign, the Coalition committed to provide $20 million immediately to forest contractors to begin a restructure within the sector,” Senator Colbeck said.

“We committed to engaging with forest contracting

organisations to determine how best to distribute these funds in a timely fashion. This commitment stands.

“Labor only promised to match the Coalition’s commitment to forest contractors in a last-minute, panicked policy announcement.”

Senator Colbeck said the Coalition was committed to protecting jobs in the forestry industry.

New Zealand forest festival From Page 6

Organisers expect Aussies will fly directly into the newly developed Rotorua International Airport for the festival.

The festival from September 5 to 9 in Rotorua and the Bay of Plenty will include a range of activities, conferences, exhibitions, displays and competitions leading up to Rotorua’s first Rugby World Cup Game on Saturday, September 10.

General manager of the Destination Rotorua Economic Development Unit Grant Kilby says the Rugby World Cup offers enormous opportunities to industries across New Zealand – not just tourism – and the forestry sector also stands to significantly benefit from the high profile international rugby event.

The latest estimations indicate that more than 85,000 visitors will travel to New Zealand during the event from September 5 to 9 next year.

The festival will include Forest Industries 2011 (FI2011), the four yearly forest expo, a wood solutions symposium and the National Wood Sector Conference with international delegates focusing on marketled wood applications.

Grant Kilby .. enormous opportunities.

Other activities include in-forest demonstrations of forestry and harvesting machinery, technical workshops, a high profile networking event, an open day at the Waiariki Polytechnic Forestry Centre of Excellence, as well as a fun festival in Kawerau the weekend before the opening of the festival in Rotorua.

In Sydney next week, Tourism NZ will present a broad range of attractions and activities in the epicentre of tourism and events – the Bay of Plenty promoted as ‘Central Park NZ’.

Timber & Forestry enews will be ‘free loading’ in Sydney to capture all the action. Full report next issue.

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EWPAA

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Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Street, Newstead 4006, Queensland, Australia Tel: 61 7 3250 3700 Fax: 61 7 3252 4769 Email: inbox@ewp.asn.au Web: www.ewp.asn.au

* 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.

issue 141 | 06.09.10 | Page 11

certification

CoC is nothing more than SOP Two merchants find certification an easy task

TWO Queensland timber merchants who have converted to chain of custody certification want to send a clear message to the wood supply trade: the system is simply SOP – standard operating procedure.

“Not now, but soon, merchants will face an increasing demand for certified wood; already we are quoting ahead on commercial contracts that specify chain of custody,” says Peter Watt of Watts Wood and Mouldings Pty Ltd at Salisbury, a Brisbane southside suburb.

Justin Lanyon, managing director of 5 Star Timbers at Stapylton on the Brisbane-Gold Coast corridor, agrees, adding: “It wasn’t that hard at all, to be honest. Certification involved very little extra work for us; the requirements were simply the standard operating procedures of any business.”

Both merchants were certified for AS 4707 chain of custody after auditing by Simon Dorries, general manger of the Engineered Wood Products Association of Australasia.

“There was little disruption to our business; Simon completed the approval in half a day and reckoned it was one of his easiest audits,” Peter Watt said.

“This was because all our systems were in place and we’d done the lead-up work first, which was always my principle aim of achieving certification with a minimum of fuss.

“If you have a basic auditing system and follow the normal accounting procedures, it’s pretty easy to track along the supply chain.”

Watts Wood and Mouldings, a compact five-man operation, stocks a wide selection of hardwoods and softwoods, mostly for the furniture and commercial building trades.

“Most of our hardwoods are

Page 12 | issue 141 | 06.09.10

Yard manager Michael Golden checks a stack of Victorian ash timber tagged as chain of custody certified at Watts Wood and Mouldings in Brisbane.

AFS certified, like spotted gum drawn from a sustainable resource by our suppliers the Parkside Group and Hurfords.

In fact, all of our Australian eucalypts, including Victorian ash and jarrah, are certified.”

‘If you have a basic auditing system and follow the normal accounting procedures, it’s pretty easy to track along the supply chain’ – Peter Watt Mr Watt said South African plantation timbers, backed by forest certification papers, had also earned an Australian CoC brand, because of their alliance with the Program for the Endorsement of Forest Certification (PEFC).

“Although we don’t have a lot of inquiry for certified wood yet, four new clients in recent months placed orders knowing we were taking on chain of custody.”

Mr Watt said his timber stocks were not physically separated

as certified or non-certified wood, but all packs were tagged appropriately. “It’s the way we structure our system in each storage bay.”

Justin Lanyon said it was easy to adapt to a chain of custody system.

“We had everything pretty well set up before the audit. We only needed to change the computer’s descriptions of our timber, so we can now easily determine certified from noncertified packs at the click of a button,” he said.

Mr Lanyon admitted hardwoods, which were sourced from several mills, might not have AFS certification.

“A problem with the smaller milling operators, who do sell good wood – and it’s about as ‘green’ as you can get – is that they just don’t have the time, manpower or resources, and perhaps neither the inclination, to certify their product. They are happy enough to cut board for anyone.

“But although risk assessment shows it is coming from legal sources, we must be careful this doesn’t become the normal practice. There needs to be some kind of branding, but chain of custody is the best way to go.”

Mr Lanyon said an important point about chain of custody was that his timber operation had the policies and procedures in place and could assure exacting customers it had aspired to certification to give them peace of mind.

“We are aware some timber merchants avoid CoC certification ‘because of the extra work’ and because they are buying timber from an already certified supply source, so I can see where they are coming from. As more and more suppliers get certified there is going to be a belief that there is less need for merchants to get certified.

“But we are going to end up with a situation where those at the top of the ‘food chain’ are going to be certified, and they will reap the benefits from government work.

“So I go back to the whole concept of chain of custody and why we adopted it – that is the chain doesn’t get broken and this removes the possibility for entry of any illegal product along the stream.

“Right now, we can give a guarantee that this chain has not been broken – and it can’t be tampered with. I am sure this message will be pushed down to merchants from suppliers at the top of the chain. ”But, honestly, for our operation, there was very little extra work for us in the CoC audit and little cost. It takes only a short time to set up and it pretty well feeds on itself with an occasional re-visit through Cont Page 13

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certification

Unbroken chain removes possibility of llegal wood entering supply stream From Page 12

the audit process. It’s a living, breathing document.”

[Independent third-party certification bodies, such as EWPAA, are quoting auditing fees of about $800 a day with an annual fee of $1000 per certified site].

Set up 2½ years ago, 5 Star Timbers is a relatively new player in the timber retail market supplying landscape, structural, flooring, doors and mouldings along the eastern seaboard to Coffs Harbour and up as far as Mackay in north Queensland.

Owner-directors include Justin Lanyon’s wife Jenny, father Colin, and Wayne Culph.

Kayt Watts .. on-going visits to merchants.

The staff of seven are thankful to be linked into Colin Lanyon’s 45 years in the industry which includes hardwood and softwood sawmill management,

preservation plant management, and timber merchandising.

Chief executive of the Australian Forestry Standard Kayt Watts said both Peter Watt and Justin Lanyon had shown foresight and achievement in obtaining chain of custody certification for their companies.

“They are correct when they say CoC is nothing more than standard operating procedure,” Ms Watts said.

“While CoC may still not be considered by many as standard procedure, these two merchants have shown best business practice by engaging in the process now and demonstrating their corporate and social

commitment to sustainable forest management.”

Ms Watts said her on-going visits to merchants and explanation of the process had made many of them aware that CoC fitted into their normal operations at no greater cost than any other business improvement.

Note: Chain of custody (CoC) is the process of tracking wood and forest products that originate from certified forests and pass through all phases of ownership, transportation, and manufacturing from the defined forest area to the final product and delivery to the end consumer.

Confusion? Another standard for legal wood AUSTRALIAN industry is cautiously monitoring a new ‘legal harvest standard’ that has been released on the heels on the European Parliament vote in favor of a ban on illegally harvested timber and products made from illegal wood.

Together with the US Lacey Act, the EU ban prohibits illegally harvested timber in the world’s largest markets for wood products.

“We developed the Legal Harvest standard to help forest product businesses prepare for sweeping regulations like the EU ban and the expansion of Lacey,” says Dr Robert J. Hrubes, senior vice-president of Scientific Certification Systems, the US-based environmental certification company that developed the new standard.

“By being verified to our standard, companies can demonstrate due care in sourcing legally harvested wood products,” he says.

The new EU ban and the 2008 expansion of the Lacey Act

mean that companies that sell timber and timber products, such as furniture and flooring, will now be required to perform due diligence to ensure that any timber used was logged and procured legally. Fines and confiscation of product are among the strict penalties for those companies out of compliance.

“Legal Harvest verification provides the kind of stringent oversight needed to protect the world’s forests,” says Scott Poynton, director of The Forest Trust, a leading non-

profit organisation that focuses on forest conservation. “We applaud the approval of this standard and look forward to seeing the forest product industry increase its capacity for responsibly harvested wood.”

Scientific Certification

Systems is a global leader in independent certification and verification of environmental stewardship and sustainability.

For more than 25 years, SCS has developed internationally recognised standards and certification programs that ensure the highest level of environmental performance and social accountability for its clients.

SCS is a founding member of the Forest Stewardship Council.

AFS standards review process From Page 12

revision support to the SRCs. The company is a consultancy specialist with expertise in the Australian and regional forestry and forest products industries and in stakeholder identification and management.

Geoff Gorrie emphasised:

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“Revision of the Australian Standards for Forest Management and wood products Chain of Custody will require significant support from industry, government and all stakeholders.

“We will soon be engaging with industry partners and the federal government to discuss

assistance options. Needless to say, the revision process cannot be completed without considerable support.”

For further information contact: Kayt Watts, CEO, AFSL, on (02) 6122 9000 or email StandardsRevision@forestrystandard.org. au

issue 141 | 06.09.10 | Page 13

events

Set to go for Melbourne conference!

KEY speakers have been confirmed for the forest industry development conference in Melbourne next Thursday, September 9.

Global certification schemes will be addressed in a lively early session by William V Street, global president, PEFC, and Corey Brinkema, US president, FSC Greg L’Estrange, chief executive of Gunns, will deliver the opening address of the conference, to be held at Sofitel Melbourne on Collins.

Other key speakers include Vince Erasmus, CEO, Elders Forestry, Greg McCormack, president, National Association

of Forest Industries, Milo Foster, vice-president-Asia, Family Care, Kimberly-Clark Australia, Malcolm Tonkin, manager, stewardship and asset program systems, HVP Plantations, Michael O’Connor, national secretary, forestry and furnishing products division, CFMEU, Jim Adams, CEO, Timber Communities Australia, Rob de Fegely, consultant and former head of Poyry Management Consulting, Bob Gordon, managing director, Forestry Tasmania, Bob Smith, consultant and ForestWorks’ special representative on Climate Change and Michael Hartman, chief executive of

ForestWorks Federal minister for forestry Tony Burke has been invited to deliver the conference opening address and Senator Eric Abetz, leader of the Opposition in the Senate, is a confirmed speaker.

On illegal losing issues, the conference will hear from Kevin Hill, founder of Double Helix Tracking Technologies, which introduced the world’s first commercially proven DNA-based timber verification system.

DoubleHelix has embarked on an international effort to establish a DNA geno-graphic database of high-profile

commercial timber species.

The company has high level government contacts in the US, Europe, Asia and Australia and an extensive global network covering both environmental NGOs and major players in the timber industry.

An industry liaison dinner for conference delegates, speakers and special guests will be held at the Regent Theatre on Collins Street on Thursday evening.

An exclusive industry investors’ seminar on September 8 – The Future for Plantation Forestry Investment in Australia – will put four world leading experts on plantation investment in the same room.

Hoo-Hoo industry bus tour is on again

Club raises thousands of dollars for children’s charities BRISBANE’S timber industry club Hoo-Hoo 218 which has donated more than $49,960 to children’s charities over the past three years has preparations under way for another big fund-raiser next year – the third annual industry bus tour.

The bus tour visited industry operations in southeast Queensland in 2009 and in Northern NSW this year.

“We plan to take the tour further south next year, possibly into Victoria,” said Alan Jones who was elected new club president at the annual general meeting last week.

Outgoing club president Pieter Verlinden said had been proud to lead a service organisation that combined activities to promote industry with social events while at the same time providing financial support for disadvantaged children.

Charities supported this year included the Police Citizen Youth Club, Golden Casket Variety Special Children’s Christmas Party, the Queensland Blue Light Association, Children’s Circus Spectacular, the Royal

Page 14 | issue 141 | 06.09.10

been in the insurance business for 46 years.

He attended the AGM after completing a nine-day 3500 km journey in a 1975 Kingswood sedan as part of the Variety Club’s 21st annual Bush Bash which saw more than 100 vehicles travel from the Gold Coast to Port Douglas in far north Queensland.

The event attracted 420 ‘bashers’ and raised more than $1.2 million for disadvantaged children.

Gathering at Brisbane’s Norman Hotel at Woolloongabba for the annual general meeting of Brisbane Hoo-Hoo Club 218 are club directors, seated from left, Don Towerton, Peter Mort, Alan Jones (new president), and Pieter Verlinden, and standing, from left, Tim Evans, Alf Chapple, John Muller and Jim Bowden.

Children’s Hospital Foundation and the Australian Lung Foundation.

The club also donated $2000 to an industry fund that assisted the Victorian Association of Forest Industries in its appearance on behalf of industry at the Victorian Bushfires Royal Commission.

The club has further pledged $5000 to the Family and Kid’s Care Foundation and $5000 to Phoenix House Australia.

Mr Jones, an insurance broker with mainstream business in the timber industry, becomes the 39th president of Brisbane Hoo-Hoo Club 218. A principal of Austbrokers Premier, he has

Pieter Verlinden, a consultant in the truss and frame industry, takes on the role of Club 218 secretary and continues as second vice-president of J1V jurisdiction of Hoo-Hoo International.

Other club members elected to the committee were Peter Mort (treasurer), Alf Chapple (membership), Jim Bowden (watchdog) and a ‘coalition’ of social/industry event directors – Tim Evans, John Muller and Don Towerton.

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GYMPIE HARDWOODS WORKSHOP

The Malaysian Timber Council (MTC) cordially invites you to the inaugural MTC Global WoodMart (MGW) 2010 which will be held in Kuala Lumpur on 19 - 20 October 2010.

MGW 2010 will be the first “One-Stop Selling and Buying� platform in the South East Asian region for international suppliers and buyers to meet and conduct business.

Why you should visit?

1. The first dedicated business exchange for producers, importers, exporters, manufacturers, distributors and agents of wood products.

2. Business Matching meetings for international buyers with exhibitors from Malaysia and other key supplier countries.

3. An excellent platform for business networking, especially for establishing linkages with timber industry members from fast-growing Asian economies, notably China and India.

INVITATION Please fill up the following details for visitor/ buyer registration: COMPANY DETAILS

Company Name:

Post code:

Country:

DETAILS OF REPRESENTATIVE(S)

Name (please write surname in BLOCK LETTERS) 1.

Designation:

Mobile:

2.

Designation:

Mobile:

+60 3 9282 8999 / 7803 3276

Wood Products and Panels

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issue 141 | 06.09.10 | Page 15

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Page 16 | issue 141 | 06.09.10

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