Issue 142

6451

AFS/01-10-01 www.forestrystandard.org.au

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issue 142 | 13.09.10 | Page 1

Opportunity for industry survival Plantations must be radically reshaped to develop globally competitive markets

This Issue

Forest industry conference report

By JIM BOWDEN

last Thursday, organised by ForestWorks.

“The opportunity is there also to work with NGOs to establish a sustainable framework to move

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us from conflict to resolution,” said Mr L’Estrange, who made it clear his company’s future now lay in the development

• Certification an urban myth or a rural reality?

• Architects inspired by wood solutions • ATIF – first out of blocks • Forest standards remove barrier to investment in NZ

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GREAT opportunities exist for the $23 billion forest and forest products industry to develop policies that go to the core of the sector’s survival and ability to compete in the global market, believes the chief executive of one of Australia’s largest timber groups.

The keynote address by Greg L’Estrange of Gunns Ltd stimulated an audience of more than 250 industry stakeholders, union representatives and conservationists at the Forest Industry Development Conference in Melbourne

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issue 142 | 13.09.10 | Page 1

foreST industry conference

MIS failure cast a Making dark shadow over an forest conference impact ..

Please join us!

2010 VAFI

Annual Dinner Friday October 15 Crown Entertainment Complex in Melbourne

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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 142 | 13.09.10

THE collapse of Willmott Forests Ltd and what was considered one of the most orderly MIS schemes, was upsetting news for delegates at the Melbourne forest industry development conference.

Receiver and manager KordaMentha announced last week that Willmott, which manages more than 56,000 ha of forest in the eastern sea board and the Northern Territory, had failed to address problems caused by declining scheme sales.

Banks, including long-time lender the Commonwealth Bank, are believed to be owed $120 million.

Willmott, which saw its new managed investment scheme sales slump to a lower-thanexpected $19.5 million in the 2010 fiscal year from $66.5 million, entered a trading halt in July.

“It became clear that the MIS forestry had collapsed after the failure of Environinvest, Timbercorp, Great Southern, FEA Group and the Rewards Group,” KordaMentha’s Mark Korda said in a statement.”

Managed investment schemes have been hurt by uncertainty over tax treatment, weakened investor confidence, and falling commodity prices during the global financial crisis.

Willmott Forests, a leader in the forestry managed investment scheme sector, told the market at the end of the August it was working through a comprehensive capital management plan.

It is believed Tasmanian timber group Gunns Ltd might be interested in Willmott’s assets, as well as offshore buyers.

Vince Erasmus, chief executive of Elders Forestry which

manages more than 170,000 ha of plantations across Australia, says MIS comes down to simple cash flow management.

Speaking at the Melbourne conference, he said the problem with MIS was that all funds were paid up front and there was an incredible and desperate desire by schemes to grow their companies.

“Then along came the global crisis and the market dropped by more than half and they were caught with cash flow constraints and went heavily into other pursuits. They went into agriculture and bought vast chunks of land requiring huge capital and quite simply the cash they were generating couldn’t sustain the current economic climate.

“If you ask me what went wrong with MIS .. if you give your three children a packet of sweets each and two of them gobble them up, the clever child will keep some sweets for another day. That’s what really went wrong with MIS.” Mr Erasmus said the huge volumes of standing timber needed to find a way to the market and unfortunately the market was somewhat depressed at the moment.

“There’s a very effective operation in Western Australia which raises $4-5 million dollars every year, has a fabulous estate, certified product and a secure market,” he said.

“Banks are now the big problem for forestry; their confidence has been severely eroded. If you make an appointment with one of the five big banks in Australia and say you are from a forestry company you’ll be lucky to get an appointment.

“They are absolutely negative about the fall-out.”

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FOREST INDUSTRY DEVELOPMENT CONFERENCE – MELBOURNE

Certification an urban myth or a rural reality: Street talk WHAT promised to be a confrontational debate about forest certification between two global leaders of different schemes failed to materialise during an otherwise lively session at the forest industry development conference.

Described as something of a coup, the conference brought together William V. Street jnr, the global president of the PEFC and Corey Brinkeman, US president of FSC. But it seems a long-held desire by many delegates for a single global certification scheme ain’t going to happen any time soon.

The key issue expanded by both leaders about certification was: how does industry best address intervention by those who are neither stakeholders

nor shareholders in the process?

“We are one of the few industries that have to deal with the concepts of the social licence to operate,” Mr Street said.

More conference coverage and photos next issue “We have the fortune, or misfortune, to be engaged in a rural-based extractive economic activity at a particular point of time when the majority of the world resides in urban population. And the political process and democratic

society are dominated by those populations.

“As a result, we have an urban myth that is routinely accepted as truth while rural reality is dismissed as primitive, backward and self-serving.

“And industry has not responded to that very well.

It has tended to accept this as the reality, lament on the adverse consequences it has on us and, for the most part, not engage in it.”

Mr Street believes that domestically, the Australian industry is better situated that many would think.

“You have a complex array of tenure arrangements, most of which appear to be viewed as legitimate by the national political process and across political parties – even the greens,” he said.

He said disagreements surfaced over how the wealth was derived and who should share it and how much of it should be distributed.

“But these disagreements seem manageable within the context of normal political discourse, which means you have the conflict resolution processes and they are moving forward.

“They may be moving forward at glacial speed but they are moving forward and this is something you should not take for granted.”

Mr Street said there were many places around the world that were less fortunate.

“Those who know your national system know it for a number of reasons – you have a proper separation between standards setting, accreditation of auditors and the certification system.

“Australia also places a prominent role on the use of professional foresters and although I agree that science

ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system.

Core services: • Skill Standards • Material Development • Networks • Strategic Skills Planning • Project Management • Data Collection • Research • Industry Advice • Career Advice • Adult Learning Expertise

VICTORIA PO Box 612, North Melbourne 3051 Tel: (03)9321 3500 Email: forestworks@forestworks.com.au NEW SOUTH WALES PO Box 486, Parramatta 2124 Tel: (02)8898 6990 Email: smukherjee@forestworks.com.au TASMANIA PO Box 2146, Launceston 7250 Tel: (03)6331 6077 Email: wfoss@forestworks.com.au BRISBANE PO Box 2014 Fortitude Valley 4006 Tel: (07)3358 5169 Email: bharle@forestworks.com.au

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issue 142 | 13.09.10 | Page 3

FOREST INDUSTRY DEVELOPMENCONFERENCE – MELBOURNE

‘We need to seriously understand where the markets for hardwoods are going and where the opportunities are in the future’ From Page 1

and use of plantation-based products.

Twelve speakers addressed the conference theme – Australia’s Place in the Changing Global Forests Market; they all urged delegates to engage with political leaders, green groups and consumers to achieve just outcomes for the industry.

“How we are able to help the government position timber in a carbon trading environment will be critical,” Mr L’Estrange said.

“We must influence government on trade policies. Australia doesn’t play on a level playing field. We created a level playing field but we have no means of controlling how products are imported into this country.

“Industry will need to work and struggle with political parties to achieve the right outcomes in these areas. This won’t be achieved if the natural forest conflict remains unresolved and dominates the political agenda.

But many delegates agreed the industry could best deliver its message through a single

Page 4 | issue 142 | 13.09.10

Michael Hartman, chief executive, ForestWorks (right) makes a presentation to conference keynote speaker Greg L’Estrange, chief executive, Gunns Ltd.

national body – one voice for all – a concept flagged six weeks ago in an MOU on a merger between the National Association of Forest Industries and the Australian Plantations Products and Paper Industry Council.

The forest industries, Australia’s second largest manufacturing sector, now more than any other time in the last 70 years, demands a new style of unification. After an agonising week of horse-trading with a

handful of independent MPs, Australia has its first minority government in 70 years.

The Greens are ecstatic. They won one seat in the House of Reps and four in the Senate.

Because of an eccentric provision in the constitution, the new senators do not take their seats until July next year.

But then the Greens will have nine senators and the balance of power.

Right now, an industry that directly employs 76,800 people

in forest and wood products, including 13,200 in the forestry and logging sectors and 63,600 in the wood manufacturing sectors, sends a fragmented message to Canberra and its detractors.

Conference delegates agreed state organisations had an important role to play in “minding their own patch” on state issues, but a national body was essential to drive reform, sooner rather than later.

Conference speaker William Street, global president of the PEFC scheme, identified an “optimistic moment” in the current political landscape for Australian industry.

“The fact that you have a Labor-Green coalition could offer benefits,” he said.

“One aspect of the benefit is that you know the legislators in the Green party, you known their positions and you don’t have to guess.

“I think it’s a value if you have more clarified communication; you will know how to engage them, you will know what their positions are.

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events

WHAT’S ON? SEPTEMBER 2010 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.

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.

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 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. 22-24: ForestTECH 2010 Tools & Technologies to Improve Forest Planning & Operations, Albury, NSW.

If you are a woman in the timber industry who is a decision maker, mentor, business owner or passionate about developing a national women in timber network we encourage you to book now to attend the upcoming:

Women’s Leadership in the Timber Industry Seminar 10th November 2010 10.30am to 3.00pm The Alto Room ‐ The Langham One Southgate Avenue, Southbank, Melbourne $132.00 per person (GST Inclusive) The forum is a way of providing a different perspective to issues facing the whole timber industry.

It is a way of providing development and ensuring that good women not only are attracted to our industry but choose our industry as a preferred place to work and build a career.

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 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:

Speakers on the day will include: Karen Hayes , industry visionary Judy Tilling, and Lisa Marty from VAFI who has been appointed to the Department of Primary Industries Women’s network representing women in the timber industry.

Guest Speaker: Karen Hayes

Karen Hayes’ vast general management and strategic consulting experience in Australasia, Canada, the United States and many European countries, primarily in the financial services and information technology industries, has lifted her into the top echelons of Australian business women.

Karen is the Director Corporate Engagement and Human Capital with UXC Limited. UXC is an ASX300 company which provides a market‐leading portfolio of Information, Communication and Technology (ICT) products and services for medium and large entities in the private and public sectors across Australia and New Zealand.

She is a past finalist in the Telstra Business Woman of the Year Awards, has been on the Board for the Breast Cancer Network Australia since its inception in 1998 and was appointed to the Board of the Melbourne Football Club in 2006.

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issue 142 | 13.09.10 | Page 5

FOREST DEVELOPMENT CONFERENCE

‘We need to put far more resources into educating consumers about who we are and what we can offer’ From Page 3

alone rarely wins, it’s difficult to win without any science, so having foresters in your certification scheme provides additional legitimacy.

Mr Street referred to Australia’s second round of standards revision as a process that demonstrated a commitment to continuous improvement.

“Slowly, but surely, there is growing recognition within the certification system that the triple bottom line of social justice, economic viability and ecological soundness needs to be continuously integrated into your standard-setting process.

“We need to put far more resources into educating consumers and customers about who we are and what we have to offer.

Mr Street said the Australian standard was recognised and respected.

“The problem is your brand is not widely known, and it needs to be,” he said. “That is a problem that PEFC shares with you. And it is a problem for all of the 30 or so systems in the PEFC family.

“Our focus in the past has not been on branding, it has been on promoting sustainable forest management.

“Nationally, your system continues to mature and the industry too is growing in terms of chain of custody – and it

has the ability to deliver a large volume of certified material to the international marketplace.

“I believe that in the not-toodistant future we will see certification as mainstream, certainly here and in the European Union.”

Mr Sweet added: “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.

“Lately, it seems as if too many of our conversations focus on what divides us, rather than what unites us. What divides us is real. As in any confederation, the pushes and pulls among NGOs and between NGOs 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.”

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Page 6 | issue 142 | 13.09.10

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FOREST INDUSTRY DEVELOPMENT CONFERENCE – MELBOURNE

Talks could determine fate of native forest logging as early as December From Page 4

“In the US we don’t have that.

We are constantly surprised by people jumping from one side of the aisle to the other, depending on how the political winds are blowing.”

Greg L’Estrange said the industry’s position in the debate over logging of native forests remained unresolved.

He said about 13.6 million ha of forests had been added to the national conservation reserve network since 1990 while the area of public native forest for timber production had declined from 13.4 million ha in 1998 to 9.4 million ha.

Since 1984, hardwood consumption had declined from 1.8 million cub m to 1 million cub m in 1989-90. In the same time frame, the plantation softwood industry had gone from 1.3 million cub m to 4 million cub m.

Production of hardwood woodchips in 2002-2003 peaked at 6.6 million cub m, predominantly for pulpwood from native forests.

Mr L’Estrange said plantation hardwoods were projected to achieve levels of 14 million cub m in the next five years.

“We need to seriously understand where the markets for hardwoods are going and where the opportunities are in the future,” he said.

“We must develop our existing workforce and give them the skills and opportunities to compete internationally.

After all, we have not been a ‘fashionable’ industry nor the first workplace choice.”

Mr L’Estrange said how the industry was able to help the government position timber in a carbon trading environment would be critical.

“Industry will need to work and struggle with government to achieve the right outcomes.

Chief executive of ForestWorks Michael Hartman (second from left) with Gary Blackwood MP Member for Narracan. Senator Richard Coulsen, Opposition forestry spokesman, and Peter Ryan, MLA Gippsland South and Leader of the Nationals in Victoria, at the NAFI 25th celebration conference dinner at Melbourne’s Regent Theatre in Colllins Street.

This will not be achieved if the natural forest conflict remains unresolved.”

He said Australia was well placed to become a global player of relevance in both hardwood and softwood plantations development and processing, “We have a significant plantation estate but it will require a radical reshape and must develop globally competitive operations.”

The Gunns CEO said although the company valued its past involvement in the native forest sector – which allowed it to develop to its present stage – it must change to achieve broader community and investor support for its activities. “Our traditional industry has been natural forest sawmilling and woodchip exports but we will not be part of this sector in the future,” Mr L’Estrange said.

“Our customers, shareholders employees, contractors and other stakeholders have given us a clear message.”

Native forest logging could end as early as December.

The details will depend on the outcome of private talks between industry leaders and level of compensation offered.

The talks are between the

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National Association of Forest Industries, Timber Communities Australia, the Construction Forestry Minining and Energy Union, Environment Tasmania, the Wilderness Society and the Australian Conservation Foundation.

Mr L’Estrange added: “Over the past 20 years the company and its predecessors have established a hardwood plantation estate of quality and we will be focusing on how we can use this to create a more robust business model.

“We believe the greatest value for our shareholders will be in the development of the Bell Bay pulp mill, rather than remaining solely focused on woodchip exports.”

Gunns is credited as a world leader in the tree breeding of Eucalyptus nitens (shining gum) and has increased growth rates by up to 22% since the establishment of the program 30 years ago. The company began establishing plantations in the 1940s and in the early 1970s was pioneering research to develop eucalypt plantations.

Since the 1970s, 88 tree breeding trials containing well over 100,000 trees have been planted, spread throughout Tasmania in a variety of

environments. When the trees reach 6-8 years, performance data is collected in a program to improve traits most economically vital for pulp and paper production, which includes kraft pulp yield and basic density and growth.

Greg L’Estrange took over the reins of Gunns as chief executive on July 1 last year.

He joined the company in 2008 as CEO of the group’s timber division. He has more than 20 years’ experience in the industry working for Boral and as CEO of CSR Timber Products with assets of $1 billion in Australia and New Zealand. He led the turnaround of the business and the sale process that enabled CSR to exit its entire holding.

Chief executive of Elders Forestry Vince Erasmus told the conference Australia was well placed to take advantage of the long-term expansion of wood and fibre markets in the Asia-Pacific region.

The high quality of Australia’s production forest resource and world-competitiveness of supporting infrastructure, such as transport and manufacturing, made Australia’s forest sector an attractive investment opportunity.

“The species we plant for pulpwood – Eucalyptus globulus (blue gum) – is the best species for a modern paper mill to run efficiently on.

“There is enormous investment in pulp mills in China, and in the future India, so our company remains very bullish about the demand for Australian-grown plantation material.”

Elders Forestry is one of the largest hardwood plantation forestry managers, with more than 170,000 ha of plantations under management across Australia.

issue 142 | 13.09.10 | Page 7

PLANTATIONS

Plantation hardwoods to bridge gap in state demand for building timbers

Opportunities for new private investment in forest industry AGRICULTURAL scientists are helping Queensland meet the increasing demands for new housing and timber based products.

Their work could also help the state’s economy to capture the hundreds of millions of dollars currently spent on imported timber and timber products.

John Chapman of the Department of Employment, Economic Development and Innovation (DEEDI) said a range of genetically superior hardwood varieties, some showing significantly faster growth than their competitors, were ready for the hardwood plantation industry to take forward.

“In partnership with CSIRO, the University of the Sunshine Coast and plantation growers, AgriScience Queensland scientists at DEEDI have developed fast growing, disease and pest resistant hardwood varieties with quality wood properties,” he said.

The new varieties include: • Western white gum – suited to low rainfall regions in the subtropics where frost may be an issue. The Coal Seam Gas industry is using water from the gas wells to grow this species in the Surat Basin. Forestry Plantations Queensland Pty Ltd is also using western white gum in its hardwood plantations.

• Red mahogany – fast growing eucalypt that is well suited to Queensland’s wet tropics, with around 3000 ha planted near Innisfail.

• African mahogany – a species with excellent wood quality suited to the tropics with rainfall between 850 mm and 1500 mm per annum.

• Corymbia hybrid – fastgrowing eucalypts with great potential in the subtropics

Page 8 | issue 142 | 13.09.10

Corymbia hybrid at eight years .. fast-growing eucalypts with great potential in the subtropics.

and tropics from the Atherton Tableland down to Grafton in New South Wales.

• Spotted gum – has shown great adaptability across many regions of Queensland, with excellent timber properties.

Currently 22,000 has been planted in sub-tropical eastern Australia between Mackay and Grafton.

“By arming the industry with these elite hardwood varieties, we aim to encourage new private investment in the timber plantation sector and drive sustainable growth in the industry into the next decade,” Mr Chapman said.

Timber Queensland chief executive Rod McInnes said with more than $400 million of the state’s timber and timber products imported each year, expanding hardwood plantations into Queensland was a key component in tackling the deficit and taking the plantation industry forward.

“Queensland is continuing to experience strong population growth and when combined with increasing demand for housing and other timber-based

John Chapman .. enough seed to plant around 50 million trees

products this highlights the need for efficient, fast growing hardwood plantations,” he said.

Mr Chapman said the development of the improved hardwood species through a 12-year tree improvement program demonstrated the state’s commitment to growing the hardwood plantation industry.

“What’s exciting about the tree improvement program is that our researchers have successfully harvested more than 70 kg of improved western white gum

(Eucalyptus argophloia) seed from Dalby seed orchards,” he said.

“That’s enough seed to plant around 50 million trees or 50,000 ha of premium timber producing plantations in western (or inland) regions.

“We also have new varieties of Corymbia hybrid which are showing between 250% to 400% better volume growth at three years of age than the commercial spotted gum (Corymbia citriod or a subspecies variegata) currently planted by the plantation industry.

“This is in addition to the first commercial quantities including 560,000 improved spotted gum seed recently released to industry.”

Spotted gum is the species identified by Agri-Science Queensland researchers as the most widely adapted species for planting in the state.

Rod McInnes said the outcome of the genetic research was good news for the hardwood plantation industry.

Mr Chapman said the release of these hardwood varieties would also contribute to the state’s target of achieving 20,000 ha of hardwood plantations by 2025.

As part of the Toward Q2, Tomorrow’s Queensland vision, the Queensland Government is committed to the development of a diverse Queensland economy.

“Through our forestry research and development innovations, the government is contributing to the long-term sustainability and growth of Queensland’s primary industries,” Mr Chapman said.

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WOOD DESIGN

FWPA managing director Ric Sinclair (left) gets together with Vince Sorrenti, forum MC, Allen Kearns, CSIRO Climate Change Flagship, Michael Green, principal, McFarlane Green Biggar Architects, Vancouver, Canada, Andrew Lawrence, Arup Advanced Technology and Research Group, London, and Owen Griffiths, McIntosh Timber Laminates, Auckland, NZ.

Forums focused on sustainable design in the built environment

Architects inspired by wood solutions

“I FELT really privileged to be in the room. The speakers were inspirational and the topics they covered are so important.”

This was the feedback from Rolph Crystal from Architects of Arcadia, one of the 150 delegates who attended the first of the three WoodSolutions 2010 forums in Sydney last Tuesday.

The second forum was held in Melbourne last Thursday and the third will be in Brisbane this week.

The forums are part of Forest and Wood Products Australia’s specifier marketing program.

“I thought it was a unique and brilliant selection of speakers,” Rolph Crystal said.

“They were all inspiring.

Their wealth of knowledge and expertise was obvious.

You could tell we were being addressed by the very top people in their areas of expertise. The topics they covered were so important

– and I would have loved to have seen more students there. The forum was superbly orchestrated by a facilitator with wit and knowledge of the subject.”

Another delegate, Doug Fletcher, a structural and civil engineer at Aecom said: “I found it really informative. It provided a very good overview of some iconic projects where timber was used as a fundamental component. It was quite inspiring.’’

One of the speakers, Michael Green, a leading Canadian architect with McFarlane Green Biggar Architecture in Vancouver, said architects had the power to make change.

“We often forget that collectively our voice really does shape the way our cities are made and more importantly how our solutions support our economies and our sense of self,” he said.

Cont Page 16

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issue 142 | 13.09.10 | Page 9

INDUSTRY NEWS

China sets up special watchdog on illegal logging trade, timber imports CHINA is looking to establish a special body which will help its wood product companies cope with new environmental protection requirements for combating illegal logging and the trade in illegal timber, according to the International Tropical Timber Organisation’s latest market report.

The China Timber and Wood Products Circulation Association has applied to form a special committee for timber imports.

The initiative came from the timber and wood product importing companies which have been facing more challenges since China became one of the world’s leading timber importers.

CTWPCA has listed a set of major challenges faced by the importers which the new committee will address.

The first is to cope with the new environmental protection requirements for combating illegal timber logging and trade in illegal timber. These international requirements are proliferating and there is a high risk of failing to meet some of them. In this regard, says CTWPCA, an organisation is needed to offer guidance and

A labourer works at a timber processing factory in Shenyang in China’s Liaoning province.

support for traders, and also to monitor changes and law enforcement.

Currently, there are neither adequate statistics nor a system for stock evaluation at the national level that would help prevent over or under stocking in the country.

The third challenge is to address corruption in the timber importing trade, followed by a challenge to set a responsible procurement system for timber imports.

The association would also aim at promoting and developing the Chinese timber importing and trade to international standards.

Chinese wood product importing companies have been facing more challenges since the country became one of the world’s leading timber importers.

The 6th international conference on timber standardisation science and practice and the 9th annual conference for the Wood Technical Committee of International Standardisation Organisation (ISO/TC218) were held in Beijing last month.

They were hosted jointly by the China National Standardisation Committee, State Forestry Administration, Timber Industry Research Institute under the Chinese Academy of Forestry

and the International Centre for Bamboo and Rattan.

At the conference, the latest developments in international timber standardisation science and practice were discussed.

Six workshops were held in the fields of standard terminology, logs, sawn wood and processed wood, test methods, wood products, and discarded wood.

Altogether, three international standards were approved, including those initiated by China on general technical requirements on solid wood flooring.

The ITTO report says the State Forestry Administration of China attaches great importance to forestry standardisation.

Currently, there are 23 national forest standardisation technical committees. In addition, there are national standards, industry standards, local standards and enterprise standards to supplement the forestry standard system which covers 300 national standards for forestry and 800 industry standards for forestry. These standards have been instrumental in the standardisation of forestry production and construction sector in China.

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Page 10 | issue 142 | 13.09.10

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industry news

ATIF – first out of blocks after federal election

Members of the ATIF board at an important post-election meeting.

Back row (from left) Michael Swan, managing director, Swan Le Messurier, Ashley Wright, managing director, Wright Forest Products, Robert Cairns, state manager, Tasman KB, Lou Boffo, purchasing manager, Le Messurier Timber, and Paul Elsmore, managing director, Simmonds Lumber, and seated, Nils Koren, ATIF chairman and managing director, Gunnersens, and Norm Long, ATIF deputy chairman and managing director, Oceania (Aust).

THE Australian Timber Importers Federation was the first timber industry body to meet at a board level following the decision on the composition of the new federal government.

The ATIF board met last Wednesday in Melbourne and discussed, among other matters, the outcome of the federal election in terms of its impact on advancing the further development of illegal logging policy.

The organisation will now move quickly to set up meetings with forestry staff at the Department of Agriculture, Fisheries and Forestry to assist in determining the next steps in the process.

ATIF chairman Nils Koren said a substantial effort had been expended in working with the

government, and with forestry minister Tony Burke in particular, in the final preparation and release of the government’s illegal logging policy in the lead up to and during the election campaign.

“We plan to stay engaged with the returned Labor Government to assist in determining the detail of the legislation and procedural components of the policy,” he said.

“We will be ensuring that the way forward reflects the position agreed with the minister prior to the election and does not adversely impact on the commercial performance of the timber importing and wholesaling sector.”

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issue 142 | 13.09.10 | Page 11

FOREST INDUSTRY DEVELOPMENT CONFERENCE – MELBOURNE

Representing Carter Holt Harvey Woodproducts Australia .. Ian Tyson, sales and marketing manager, Ben Hobson, Lakeside facility manager, and Michael Murphy, business manager.

Michael Littlechild, training package specialist, ForestWorks, Melbourne (left) welcomes Ian Reid and David Drane (manager) of the Australian Forest Contractors Association, Morwell, Vic.

Clive Dossetor, managing director, Karem Woodcraft, Bayswater, Vic, and Ron Caddy, president, TMA Victoria, and chairman of Lamcal Building Supplies, Heidelberg, Vic. Steve Whiteley, district forest manger, Forestry Tasmania, Terry Edwards, chief executive, Forest Industries Association of Tasmania, Hobart, and Bryan Hayes, general manager, Gunns Ltd. Ian McArthur, executive officer, Southern Tablelands Farm Forestry Network, Canberra, Cr Karen Stephens, Glenelg Shire, Portland, Vic, and Dr John Kellas, general manager, Plantation Timbers, Mount Gambier, SA.

Antionette Hewitt, national program manger, ForestWorks, and Sarah Fitzpatrick, principal, Fitzpatrick Wood Consulting.

Ric Sinclair, managing director, Forest and Wood Products Australia, Melbourne, Sarah Gyopar, marketing and communications manger, FWPA, Vince Erasmus, chief executive, Elders Forestry, and Nick Roberts, chief executive, Forests NSW, Sydney.

Page 12 | issue 142 | 13.09.10

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FOREST INDUSTRY DEVELOPMENT CONFERENCE – MELBOURNE

Getting together after the markets and investment session .. Jason Wilson, manager, strategic development, Carter Holt Harvey Woodproducts Australia, Vince Erasmus, chief executive, Elders Forestry, Bob Gordon, managing director, Forestry Tasmania, Dr Bob Smith, ForestWorks’ representative on climate change, Michael Hartman, CEO, ForestWorks, and Rob de Fegely, forest industry consultant and session chairman.

Dr Hans Drielsma, executive general manager, Forestry Tasmania, and Malcolm Tonkin, manager, stewardship and asset programs, HVP Plantations, Wendouree, Vic.

Rod McInnes, chief executive, Timber Queensland, Brisbane, Allan Hansard, chief executive, NAFI, Canberra, Terry Edwards, chief executive, Forest Industry Association of Tasmania, Russ Ainley, chief executive, NSW Forest Products Association, Sydney, and John Pizzey, Porta Mouldings, Melbourne.

A warm conference welcome from .. Karen Hansen, executive assistant, ForestWorks, Carolyn Day, programs coordinator, Fitzpatrick Woods Consulting, and Sally Lockhart, administration manager, ForestWorks.

Cheryl Griffiths, managing director, Blue-Chip Harvest, Albany, WA, Julia Levinson, and Debbie Tickner, licensing standards officer, ForestWorks, Launceston, Tas.

Warwick Ragg, chief executive, Australian Forest Growers, Canberra, Rob de Fegley, consultant (conference overview, markets and investment), and Dr Bob Smith, ForestWorks special representative on climate change.

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Damian Toohey, Keith Ballin, AWU, Bundaberg, Qld, and Bruce Harle, ForestWorks branch manager, Brisbane.

issue 142 | 13.09.10 | Page 13

FOREST INDUSTRY DEVELOPMENT CONFERENCE – MELBOURNE Kerry Jennings, consultant, ForestWorks (sustainability project), Antoinette Hewitt, national program manager, ForestWorks, and Lisa Marty, deputy director, Victorian Association of Forest Industries.

Shaun Ratcliffe, public affairs manager, Victorian Association of Forest Industries, Melbourne, Allan Stewart, cochair, First Super, and Trevor Smith, managing director, ACES Consulting, Brompton, SA.

Kayt Watts, chief executive, Australian Forestry Standard Ltd, Canberra, Simon Dorries, general manager, Engineered Wood Products Association of Australasia, Brisbane, William V. Street jnr, global president, Program for Endorsement of Forest Certification Schemes (PEFC), Oregon, USA, and Peter Roberts, chief executive, Timber Merchants Association (Vic), Melbourne.

Paul Oosting, Wilderness Society, Kevin O’Grady, Pinnacle Consulting, and Lindsay Hesketh, Australian Conservation Foundation.

Addressing the future directions for industry session are Michael O’Connor, national secretary, forestry and furnishing products division, CFMEU, Milo Foster, vicepresident, family care-Southeast Asia, Kimberly-Clark Australia, and Greg McCormack, president, National Association of Forest Industries, and chairman of Midway Pty Ltd.

Andrew Hurford, Hurford Hardwood, Lismore, NSW, shares a coffee break with Sharmily Mukherjee, NSW executive officer, ForestWorks.

Arti Prasad-Naidu, investment analyst, New Zealand Superannuation Fund, Auckland, chats with Malcolm Tonkin, general manager, stewardship and risk, HVP Plantations.

Travis Wacey, policy research officer, forestry and furnishing division, CFMEU, Melbourne, and Ed Vincent, executive officer, Tasmanian Forest Contractors Association, Kings Meadows, Tas.

Page 14 | issue 142 | 13.09.10

Enjoying the NAFI dinner at the Regent Theatre in Collins Street are Grant Collis, ForestWorks and Jane Collis, and Doug Howick, one of the founders of NAFI, and his wife Sigrid.

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foreST industry conference

If you are a woman in the timber industry who is a decision maker, mentor, business owner or passionate about developing a national women in timber network we encourage you to book now to attend the upcoming:

Women’s Leadership in the Timber Industry Seminar 10th November 2010 10.30am to 3.00pm The Alto Room ‐ The Langham

Enjoying pre-dinner cocktails at the Regent Theatre are Greg L’Estrange, chief executive, Gunns Ltd, Jenny Brice, Bryan Hayes, general manager, Gunns Ltd, and Rod McInnes, chief executive, Timber Queensland.

One Southgate Avenue, Southbank, Melbourne $132.00 per person (GST Inclusive) The forum is a way of providing a different perspective to issues facing the whole timber industry.

It is a way of providing development and ensuring that good women not only are attracted to our industry but choose our industry as a preferred place to work and build a career.

Speakers on the day will include: Karen Hayes , industry visionary Judy Tilling, and Lisa Marty from VAFI who has been appointed to the Department of Primary Industries Women’s network representing women in the timber industry.

Guest Speaker: Karen Hayes

Karen Hayes’ vast general management and strategic consulting experience in Australasia, Canada, the United States and many European countries, primarily in the financial services and information technology industries, has lifted her into the top echelons of Australian business women.

Catching up at the NAFI dinner are Russ Ainley, chief executive, NSW Forest Products Association, Lexie Hurford, Hurford Hardwood, Lismore, NSW, and Paul Michael, chairman, Timber Development Association (NSW).

Karen is the Director Corporate Engagement and Human Capital with UXC Limited. UXC is an ASX300 company which provides a market‐leading portfolio of Information, Communication and Technology (ICT) products and services for medium and large entities in the private and public sectors across Australia and New Zealand.

She is a past finalist in the Telstra Business Woman of the Year Awards, has been on the Board for the Breast Cancer Network Australia since its inception in 1998 and was appointed to the Board of the Melbourne Football Club in 2006.

Name:

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Contact Number Office:_______________________ Mobile Phone: ___________________________ Dietary Requirements: _______________________________________________________________

At the NAFI dinner .. Pat Groenhout, general manger, P.F. Olsen Australia, Daan Oranje, partner, Stafford Timberland, and Michael Murphy, business manager, Carter Holt Harvey Woodproducts Australia.

Number of Tickets:

($132.00 per head GST inclusive) ___________________________________

Names of Guests:

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PAYMENT DETAILS – Registration and Payment by Friday the 29th of October 2010 $132.00 PER HEAD (Costs are GST inclusive and covers Morning Tea, all day Tea & Coffee, Lunch with juice and soft drinks) Payment to Timber Merchants Association (either by Cheque or EFT) Cheques should be sent to: TMA, PO Box 97 93, Blackburn Vic 3130 EFT Payments should be paid into: BSB 083‐166

Account Number: 49250 5442

Please debit my Visa / Mastercard for the amount of $___________________________________ Cardholder Name:

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PLEASE FAX REGISTRATION FORM TO (03) 9877 6663

Ian Wykes, Hunter TAFE, Ben Hobson, Carter Holt Hervey Woodproducts Australia, and Ross Connolly, TAFE NSW, Orange.

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(Tickets and a tax invoice will be issued on payment)

issue 142 | 13.09.10 | Page 15

NEW ZEALAND

Consistent forest standards remove barrier to investment by landholders THE New Zealand forest industry has strongly supported the proposed national environmental standard for forestry released by environment minister Dr Nick Smith.

“For the first time, land owners will know before they plant a single tree what harvesting and earthworks standards they have to meet,” says Forest Owners Association president Peter Berg.

“Owners of existing forests will draw comfort from knowing they will be able to actually harvest the forests they may have planted decades ago.

Sure, they will have to meet strict standards for roading and harvesting – but the rules will be consistent wherever they operate, and well attuned to the regional geology, climate and land use capability.

“The FOA supports robust standards based on science, good forest planning and good engineering practice, applied consistently throughout the country. In some regions this means forest owners will have to meet tougher conditions than they do now. But that’s a reasonable price to pay for

Dr Nick Smith .. national environmental standard for forestry.

Peter Berg .. well attuned to regional geology and land use capability.

investor certainty.”

At present, rules vary from region to region and between districts within many regions.

In many cases land owners have to apply to both regional and district councils for costly and time-consuming resource consents for normal forest operations.

“This can be extremely frustrating for farmers who have forests divided by a district council boundary,” says John Dermer, president of the Farm Forestry Association.

“They may have to apply for two harvest consents, with all the attendant legal costs.

He said if the NES became law, farm foresters might not have to pay for a consent at all so long as they met permitted activity standards. Or, if the land is erosion-prone, the consent conditions were likely to be the same on both sides of the boundary.

“This will be a big step forward,” Mr Dermer said.

Mr Berg says getting consents can be hugely costly. He points to the $1 million it cost the owner of a 10,000 ha forest on the Coromandel Peninsula to secure and defend his operating consents and the $100,000-plus a year he shells out for compliance.

“These sorts of costs have become significant barriers to new planting by commercial forest owners. Hopefully Dr Smith’s announcement will lead to the adoption of a national approach for managing forestry that in turn will encourage the new planting needed if New Zealand is to meet its 2020 emission reduction targets.”

FOA environment committee chair Peter Weir notes that point-source discharges of

Forums inspire architects From Page 9

“Nothing expresses our sense of self more than our natural environment which is why wood resonates for so many people and cultures around the world.’’

FWPA managing director Ric Sinclair said the forums were designed to build a stronger dialogue between the industry and its target audience – architects, engineers and building professionals.

The other international speakers included Andrew Lawrence, Arup Advanced Technology &

Page 16 | issue 142 | 13.09.10

Research Group in London; Andy Buchanan, Professor of Timber Design, University of Canterbury, NZ, and research director, Structural Timber Innovation Company; and Owen Griffiths, marketing director, McIntosh Timber Laminates, Auckland, NZ. Australian speakers were Allen Kearns, theme leader, Sustainable Cities and Coasts, CSIRO Climate Adaption Flagship, and renowned Sydney architect Richard Leplastrier * Report, photos on Brisbane forum next issue.

John Dermer .. big step forward.

sediment to waterways from earthworks and quarries within forests remain illegal. He also says the proposed standard will see councils continue to regulate earthworks in terrain that’s susceptible to erosion.

“We have no problems with that. Some very fragile soils are not suitable for commercial forestry and councils have a responsibility to ensure they are managed appropriately.

One of the big positives of the proposed standard is that councils will be flagging this before trees are planted – not after a land owner has made a substantial investment.”

Mr Weir says forestry investors should look long and hard at the afforestation provisions before they buy land, while existing forest owners should focus on the reforestation terms and conditions.

“All land owners should look at the land use classification mapping for their land. On easier country, the NES as proposed makes most operations within a plantation forest a permitted activity, but subject to a suite of defensible terms and conditions. On steeper more erosion-prone country, resource consents for road and landing construction will continue to be required.”

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FOREST INDUSTRY DEVELOPMENT CONFERENCE – MELBOURNE

NAFI founders go centre stage at Melbourne’s Regent Theatre during industry liaison dinner AN industry liaison dinner at the historic Regent Theatre on Collins Street, sponsored by the National Association of Forest Industries, gave conference delegates and special guests time to reflect on why the organisation was founded 25 years ago.

Main areas of growing concern then were the rapidly declining and insecure resource access, a fragmented voice in dealing with governments, a low profile in policy formulation on industry matters and a public profile that did not reflect timber’s significant national and domestic economic impact or its concern with good, longterm forest management and regeneration.

Despite all the changes in the past decade, the leadership

the year.

More than 260 guests enjoyed a lavish dinner in the heritagelisted Regent Theatre’s basement that was the Plaza Ballroom of the original art deco Regent Theatre opened in 1929.

During the evening, Mr McCormack welcomed dinner guests who were among the original founders of NAFI – Doug Howick and Greg L’Estrange.

and representation of the timber industry are as fiercely contested an issue now as they were almost 25 years ago.

Prominent industry leaders have been charged with the

responsibility of “designing” a new single national organisation, and NAFI president Greg McCormack suggested a framework might be in place before the end of

Mr McCormack is pictured left at the dinner with Dr Robert Bain, who joined NAFI in the 80s as executive director, Doug Howick, now secretary of the Timber Preservers Association and a former CSIRO scientist, and Greg L’Estrange, chief executive of Gunns Ltd.

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issue 142 | 13.09.10 | Page 17

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Page 18 | issue 142 | 13.09.10

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