Issue 146

6466

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

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issue 146 | 11.10.10 | Page 1

Plantation sector ripe for shake-up

End of TUMA puts treaters on full alert

It’s time to examine the full range of investment models, says economist

PLANTATION forest investment models in Australia are ripe for a shake-up as falling establishment rates and the financial crisis put the sector at the crossroads, says a leading forestry economist.

“The past two years have seen considerable upheaval on the plantation investment front with the collapse of several forestry managed investment schemes,” says David Thompson, national strategy coordinator of Plantations 2020 and principal of Centre for Agricultural and Regional Economics Pty Ltd.

David Thompson .. forest plantation sector at the crossroads.

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Speaking at the Australian Forest Growers Conference at Mount Gambier, SA, this week, Mr Thompson pointed to the withdrawal of resources from forestry research and extension, more sales of government plantations, increased international investment in plantation assets, and “much back and forth over woodbased carbon and bio-energy”.

Mr Thompson said the major obstacle for investment in forestry was the long-term nature of the investment.

Cont Page 4

issue 146 | 11.10.10 | Page 1

issues

Sitting down with Making the enemy .. who an would believe it? impact ..

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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 146 | 11.10.10

apprentices?

Sitting down with conservationists .. believe it or not.

By JIM BOWDEN

JUST when you thought it was safe to go back into the forest .. the drawn-out talks between the industry, unions and conservationists on the future of Tasmania’s native forests have reached an impasse.

A few weeks ago, all appeared to be progressing well in a spirit of harmony as all sides in the debate worked towards a common ground solution.

“I think many people are still surprised that we are actually sitting down with the industry’s opponents to try and resolve the issue,” Jim Adams, chief executive of Timber Communities Australia said.

“But as we get closer to the wire on this – and the euphoria that everyone is talking together passes – steep hurdles are appearing.

“We know the Tasmanian government is getting impatient and is calling for a wrap-up of the talks. They want an outcome, no matter what it is, and they will no doubt make an arbitrary decision on how we all move forward.

“At best the government is going to get a range of mutually agreed conditions and a number of unresolved issues that need

further negotiation.”

Mr Adams said he believed there had been a lot of misrepresentation about the circumstances in Tasmania.

“The industry has a wide range of issues it must deal with and some restructuring is necessary.

The announcement by Gunns to exit native forest logging, in my opinion, represents one opportunity around which to provide both flexibility and change.

“Irrespective of what Gunns is doing, there is a need for restructure; there is still enough wood left for everyone else as circumstances improve in the short term.”

Also, NAFI sees Gunns’ exit as an opportunity for other small to medium sized players in the industry to grow as some log resources are freed-up.

The Tasmanian debate continues against a background of differing viewpoints among the Greens. Australian Greens leader senator Bob Brown continues to call for an end to all native forest logging, while the leader of the Tasmanian Greens Nick McKim – climate change minister in the LaborCont Page 7

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industry news

Treaters must protect wood’s fine reputation

Demise of TUMA creates vacuum

By JIM BOWDEN

TIMBER treaters in Queensland, where wood is the most susceptible in Australia to fungal and insect attack, are now a “law unto themselves”.

The policing of timber treatment ended on October 1 when TUMA, the Queensland Timber Utilisation and Marketing Act, was revoked, presenting the industry with an awesome responsibility – self governance.

One of the main arguments for the repeal of the Act was that it is was no longer necessary; there are other market mechanisms for the control and sale of untreated and treated timber products such as state

Salisbury Research Centre’s new addition – a specially designed experimental preservation treatment plant .

consumer protection legislation, common law and the Trade Practices Act, supported by various standards.

While this is theoretically true, these mechanisms are often difficult to access, expensive to implement and take

considerable time for action. Of all the states, only New South Wales continues to have a timber marketing act.

TUMA was formed in 1987 out of the Timber Users Protection Act which had been in force since 1949. These acts were the only legislation that stood between consumer protection and poorly treated wood. They represented unbiased policing of an industry by the state government.

Treaters must continue to win and maintain trust among their customers. Industry timber use technicians report there are far too many complaints from consumers about timber failure and improperly treated wood.

TUMA’S demise will be a big issue for discussion at a meeting of timber treaters at Timber Queensland offices in Brisbane this Tuesday.

One of the concerns is that few people know a lot about wood and how it performs. Many expect it to fail. But that’s giving it a disservice – it doesn’t have to fail; it’s a wonderful fit-forpurpose product, if it is treated correctly and to Australian standards.

When timber does fail, it fails very slowly – unlike steel and concrete which fail catastrophically.

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Cont Page 8

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issue 146 | 11.10.10 | Page 3

industry news

Is a sustainable future wood supply now an investment in infrastructure? analytical software tools for assessing the impacts of risk and management decisions on rural business performance.

More recently, he has been involved in financial modelling for non-farm businesses and is developing whole-farm models to explore the feasibility of farm forestry options.

From Page 1

Pulpwood plantations could take 10-12 years and sawlogs in excess of 20 years to realise a return.

To date, only governments, a few MIS projects and some timber processing companies have been willing to bear the risk of investment in long rotation wood projects at a significant scale.

“The market focus on initial tax deductibility and/or near-term cash flow persists despite a range of positive investment characteristics associated with forestry,” Mr Thompson said.

“This includes the countercyclical nature of returns relative to other investments, the capacity to delay harvest until market conditions are favourable while the wood volume continues to increase, and higher returns than many agricultural investments.”

The time is right, he says, to examine the full range of investment scenarios.

“Other countries have used a range of direct incentives such as land grants and low cost loans or free seedlings to boost plantation investment. With the exception of commonwealth loans to the states for softwood

Page 4 | issue 146 | 11.10.10

New code on forest carbon The major obstacle for investment in forestry is the long-term nature of the investment.

plantings, and grants for environmental trees, Australian policy has essentially avoided direct incentives, and has relied on a supportive policy environment with eligible cost tax deductibility to generate private investment.”

Mr Thompson said there were a range of other taxation arrangements and investment structures used overseas which could be explored, but the question should be asked, and particularly in relation to investment in long rotation sawlogs – should a sustainable future Australian wood supply

now be regarded as an investment in infrastructure?

Plantations 2020 is a strategic partnership between the commonwealth, state and territory governments and the plantation timber industry aimed at enhancing regional wealth creation and international competitiveness through a sustainable increase in Australia’s plantation resources.

As principal of Centre for Agricultural and Regional Economics Pty Ltd, David Thompson has been responsible for developing

A NEW scheme is being tested that will help businesses find out the real potential of tree planting projects designed to sequester carbon.

The UK Forestry Commission is set to begin testing a quality assurance scheme, the Woodland Carbon Code, which will provide businesses with transparency about what their contributions to forest carbon projects could achieve.

Forest carbon projects typically involve planting new areas of woodland to help counteract greenhouse gas emissions. As the trees grow, they capture CO2 from the atmosphere and turn the carbon into wood and organic matter, while releasing oxygen back into the atmosphere.

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events

WHAT’S ON? OCTOBER 2010 10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000.

11: NZ Wood Timber Design Awards – Te Papa Wellington.

Visi:: www.nzwood.co.nz 11-12: Joint industry conference - Te Papa – Wellington. WPA / PMA annual general meeting (October 11); Forestwoodn conference (October 12).

Visit:www.forestwood.org.nz 12: ForestWood 2010. A panindustry 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: VAFI annual dinner. Crown Entertainment Complex, Melbourne. Contact: Victorian Association of Forest Industries.

Tel: (03) 9611 9000. Email: info@ vafi.org.au Web: www.vafi.org.au 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 16: Back to Creswick. A day of centenary celbrations, children’s entertainment, campus, nursery, bush tours, major historical exhibition at Department of Forest and Ecosystem Science, (formerly

Victorian School of Forestry), Creswick.

18-19: DERM Koala conservation forestry training sessions DERM depot, Woongool Road and Groth Street, Maryborough. Light lunch provided at all sessions between 12 noon and 1 pm. Email: forestproducts@derm.qld.gov.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 22: Tasmanian Forest Contractors Association annual dinner. Country Club, Launceston.

Opportunity to meet with key industry stakeholders, peers and colleagues attending the forum and cocktail party culminating in the annual dinner. Contact: Chris Rudland. Tel: (03) 6343 3399.

Email: admin@tfca.com.au 29: TABMA annual dinner.

LunaPark, Sydney. Incorporating theAustralian Timber Design Awardspresented by TDA NSW. Dinnersupported by TDA, NSW ForestProducts Association and FWPA. Contact: TABMA on (02) 9277 3172

NOVEMBER 2010 3-6: The Status and Trends of the Gobal-Pacific Rim Forest Indutry.

The Role of Australia and New Zealand. Bayview Eden Hotel, melbourne. Speakers: Dennis

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Neilson, director DANA Ltd, New Zealnd and Jim Stevens, manager, global business development, The Campbell Group, US. Field trip to Midway’s hardwood woodchip export operation owned by SPE management: and Pentarch’s Ilog export fumigation and loading operation. Contact conference organiser pamela Richards. Tel: 61 3 5781 0069. Email: enquiry@prcc. com.au 10: Women’s Leadership in the Timber Industry Seminar. The Alto Room, The Langham, One Southgate Avenue, Southbank, Melbourne. 10.30 am-3 pm. $132 p.p. (gst inclusive). The forum is a way of providing a different perspective to issues facing the whole timber industry – a way of providing development and ensuring that good women not only are attracted to the industry but choose the industry as a preferred place to work and build a career. Speakers include Karen Hayes, industry visionary, Judith Tilling, Tilling Timber, and Lisa Marty, Victorian Association of Forest Industries, who has been appointed to ther Department of Primary Industries Women’s Network, representing women in the timber industry. Karen Hayes has vast general management and strategic consulting experience in Australasia, Canada, the US and Europe, primarily in the financial services and information technology industries. She is director, corporate engagement and human capital with UXC Ltd and past finalist in the Telstra Business Woman of the Year Awards. Contact: Kersten Gentle 0418 226 242 or email: kersten@ ftmaaustralia.com.au

SUSTAINABLE. RESPONSIBLE. The National Association of Forest Industries (NAFI) is striving for an ecologically sustainable Australian society achieved through dynamic, internationally competitive forest industries.

NAFI’s mission is to represent the interests of members by promoting the environmental sustainability and the prosperity of Australian forest industries.

National Association of Forest Industries Ltd (Est. 1987) PO Box 239, Deakin ACT 2600 Tel: (02) 6285 3833.

Fax: (02) 6285 3855 Web: www.nafi.com.au

issue 146 | 11.10.10 | Page 5

events

Are more Oceania timberlands ripe for plucking?

OCEANIA – Australia and New Zealand – was the first TIMO/institutional timberland investment region outside of North America, with the first deal completed in 1992.

Several more have occurred since in both countries, including major transactions involving a 137,600 ha property in New Zealand in late 2009 and a 202,350 ha property in Australia in 2010.

In addition, a number of large transactions are expected in late 2010 and into 2011-2.

In late 2010, USA and European TIMO investments in Oceania far outweigh non-North American-based investments in all other countries combined; by a large margin. In fact, DANA estimates that about twothirds of all existing ‘offshore’ timberland transactions have occurred in Oceania. This ratio may increase over the next six to 12 months.

There are many reasons for the attraction to Oceania.

Governments in both countries have sold down state and national plantation forests, which has presented several opportunities. Both countries have favourable risk metrics, including the most secure land tenure systems anywhere in the world.

Corruption is very low in both countries – in fact New Zealand is rated as the least corrupt country in the world by German-based Transparency International. New Zealand and Australia have different, but complementary log market dynamics.

Both grow exotic pine sawlog plantations, but international TIMO/institutional investors have recently started investing in non-traditional species such as

Page 6 | issue 146 | 11.10.10

By

DENNIS NEILSON Director DANA Ltd New Zealand eucalyptus for Asian woodchip markets, African mahogany and Indian sandalwood.

The recent demise of several companies in Australia which owned more than a 405,000 ha of timberlands has opened up a whole new investment arena.

To assist players better understand not only Oceania timberlands investing, but also where Australia and New Zealand fit into the sectors of global log and woodchip exporting, lumber and pulp and paper, and woody biomass (mostly pellets) and tree carbon, DANA is holding two conferences in November – one in Melbourne and one in Rotorua, NZ. Optional field trips are available. Visit the website www.prcc.com.au/dana2010; or contact pam@prcc.com.au (See notice, Page 13).

Speakers confirmed for the conferences include Peter Butzelaar, vice-president and associate editor, International WOODMARKETS Group, Canada, Tony Price, general Cont Page 9

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issues

Critical first step in debate: each side must acknowledge the other’s goal as legitimate From Page 2

Greens coalition government – has stated he does not support an end to native forest logging.

The native forest stoush in Tasmania can draw a parallel with events in North America.

Nobody believed the forest industry would be sitting across the table from long-time archfoes Greenpeace, the David Suzuki Foundation and Friends of the Earth.

But that’s what Canadian forest industry executive Avrim Lazard has been doing – for two years!

Both sides agreed to find “a quiet place” out of the public eye for this unusual bout of meetings, says Lazar, to avoid the temptation to score points in the media.

The small group, five big players in the forestry industry and five environmental leaders, moved around the country – Vancouver, Toronto and Wakefield, Quebec – keeping to “neutral territory.”

At certain points, Harvard experts in negotiation were called to help move past tense moments and big snags.

Slowly, the impossible began to emerge – a tentative truce between two warring sides. In May, they announced their breakthrough.

Environmentalists agreed to drop their campaigns against forest companies. In exchange, the industry committed to undertaking more sustainable forest practices, to protecting 72 million ha of Canada’s boreal forest and threatened species such as caribou, and to recognising the need to mitigate climate change.

In the forestry negotiations, Lazar, chief executive of the Forest Products Association of Canada, learned there’s a critical first step: each side has to acknowledge the other’s goals as legitimate.

Jim Adams .. restructuring of Tasmania’s native forests industry necessary.

Avrim Lazard .. each side has to acknowledge the other’s goals as legitimate.

“We don’t hold these discussions with one side, forestry, trying to win only for jobs and the other side trying to win for the caribou. Both sides are trying to find a solution that reconciles those objectives,” he said.

“If you deny the other’s imperative, you can’t have a discussion.”

For years the green NGOs attacked forest companies as a major threat to old-growth forests and wildlife and accused them of ignoring issues around climate change. The activists had to embrace the goal of maintaining a healthy forestry industry, with its sawmills and timber cuts.

On their side, the companies had to endorse a business model that would save caribou and other species and take into account climate change.

Forestry firms have always worried about their supply of trees. Their yearly allowable cut depends on tree planting specified in forest management agreements.

“Forest products are by nature sustainable, so those talks started from a place with more prospects,” observes Beatrice Olivastri, chief executive of Friends of the Earth.

She says that dynamic isn’t

there in mining.

Ken Chapman, a public policy consultant in Edmonton, reported in the Edmonton Journal that in the public’s view, neither side is in a good

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position to take the lead in finding a truce.

“Environmental activists are not viewed as credible .. but the public is also sceptical of industry advertising that leaves the impression everything is just fine.”

The missing link is obvious, he says. “We have to look for a role for government.”

Trying to mitigate environmental damage is not a cost of doing business – it has to be part of the business, he added.

Lazar says that when the forestry talks started, neither side was sure where they would end up.

“But everyone believed ‘wouldn’t it be cool if we could do this,’ and over time we began to believe in ourselves.”

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issue 146 | 11.10.10 | Page 7

industry news

Queensland researchers are exploring innovative ways to better preserve timber From Page 3

Wood’s hard-won reputation as a truly sustainable product could quickly decay under any recalcitrant behaviour of a few quick-dip, save-a-dollar operators. Timber treaters must keep a close watch on others in the industry as well as themselves.

Whistleblowers should not be afraid; their future and their business depends on an obedient industry.

Only in this way will they be able to ensure their products and services continue to compete in the vigorous and highly competitive treated timber market.

Although TUMA has been repealed, other requirements continue: when claiming compliance with AS1604 series, brands must be in accordance with the standard; there is a need to meet the specifications of the standard when claiming hazard class compliance; and there are requirements by the Australian Pesticides and Veterinary Medicines Authority (APVMA) for labelling, eg labelling of CCA-treated timber products.

Meanwhile, Queensland researchers are exploring

Agri-Science Queensland scientists Jack Norton (right) and Rob McGavin prepare timber for treatment in the experimental treatment plant in Brisbane.

innovative ways to better preserve timber using specially rebuilt preservation treatment equipment.

Jack Norton, senior AgriScience Queensland scientist at the Department of Employment, Economic Development and Innovation, says a specially designed experimental preservation treatment plant will enhance research capacity in timber sustainability.

“Protecting timber from insect

attack and fungal decay will help to protect Queensland’s forest and plantation products,” he says.

“All trees, irrespective of their species, contain a band of sapwood just under the bark that has little natural resistance to decay, borers or termites. Most sapwood can be impregnated with wood preservative chemicals, which makes it resistant to biological hazards.

“Our experimental treatment plant, which simulates industry’s treatment process, allows us to investigate potential new chemical formulas and processes to help further extend the use of timber where durability and pest resistance is required.”

Mr Norton said the outcome of this research would be very important to the timber industry for adding value and increased profitability.

“Finding new ways to improve the longevity of treated timber will not only boost industry’s energy and cost efficiencies, it will also help to extend our plantation resources and reduce the impact on our environment,” he said.

“The new treatment plant is an important addition to the ongoing search for new and cost-effective wood treatment systems.”

The new timber preservation research is being conducted at the Queensland government’s Salisbury research centre, the biggest and most wellequipped forest product facility dedicated to research and development in Australia.

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Page 8 | issue 146 | 11.10.10

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events

Plantation forests: where to from here?

THE Australian Government’s 2020 vision set the targets to expand Australia’s plantation estate to 3 million ha by 2020, but left open the mechanism to make this happen, says Doug Parsonson of Poyry Management Consulting AsiaPacific Existing plantation owners were unwilling or unable to fund the scale of planting envisioned, he says.

“Retail investors stepped in through afforestation schemes that were tax-effective. The government benefited by progressing the 2020 goals while anticipating increased tax receipts when the resulting plantations were to be harvested,” Mr Parsonson said.

“The retail investors got their immediate deduction by making upfront payments, with an anticipated return from the plantations in 10-plus years’ time.

The schemes were very successful (at selling these investments) with over $5.3 billion invested 1998 to 2008.

This was used to plant more than 700,000 ha of new forests.

However, most were short(er) rotation hardwoods as most investors were not prepared to see out a long(er) rotation pine investment.

“The business of running the schemes was attractive, in part motivated by large commission payments,” Mr Parsonson said.

“Soon there were growing companies competing for suitable land to plant. This contributed to land price appreciation in selected areas.

“Unfortunately, the model proved to be unstable. Cracks started to appear around 20078 with Environinvest going into receivership. The larger collapses of Timbercorp, then Great Southern occurred in 2009-2010, with FEA and Willmotts the latest to head down this path.

So what can we anticipate in terms of ownership changes and wood supply implications?

Mr Parsonson is a keynote speaker at a round of DANA conferences in November (See notice, Page 13).

Jim Stevens, manager of Global Business Development, The Campbell Group, USA, says the increase in institutional investment in timberland since the 1980s and particularly over the past decade has changed the landscape of industrial forest ownership.

His presentation at the conferences will trace the investment pattern of North American and European investors from an early regional one to the current world-wide outlook. It will look at the factors that virtually all institutional investors have in common and compare differences between European and US investors in terms of risk tolerance and views of certification.

Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region.

Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region.

Timber&Forestry e-news hits your target market – every week, every Monday!

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Ripe for investment?

From Page 6

manager, Australian Bluegum Plantations, Paul Robilliard, senior process engineer, Beca AMEC, New Zealand, Peter Thode, fibre supply manager, CHH Woodproducts Australia, Dennis Neilson, director, DANA

Ltd, New Zealand and Jim Stevens, manager of Global Business Development, The Campbell Group, USA. • Dana Ltd is a business and technical consulting services in the Pacific Rim native and plantation forestry and forest products industry.

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Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising.

The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.

issue 146 | 11.10.10 | Page 9

THE FOREST ENVIRONMENT

Forestry training branches out to koala conservation in southeast Qld NEW training initiated by DERM Forest Products is set to enhance the conservation of southeast Queensland’s koala population.

Two training sessions, involving 38 staff members, were conducted by the DERM Koala conservation forestry training group in early December last year at the Redlands IndigiScapes Centre and surrounding koala habitat areas.

The objective was to provide Forest Products field staff with the skills to identify the presence of koalas in stateowned native forest areas of southeast Queensland that are scheduled for selective harvesting.

The field component of the training required staff to test their ability to spot koalas as well as recognise indicators of their presence such as scats and scratch marks on trees.

Training group leader, Forest Products principal policy officer David Ward, said that while the timber harvesting code already featured provisions to protect wildlife, this training focused on the specific requirements of koala conservation.

“Hey, be careful with that feller buncher, fella!”

“The training provided attendees with knowledge of the legislation and policy background to koala conservation,” he said.

“But perhaps more importantly, the training has equipped forestry field staff to better spot koalas in their native habitats and then take measures to ensure they are protected during harvesting operations.”

Forest Products general manager Stephen Walker attended one of the sessions

and said that the training presented an excellent example of bringing resources together from across the department to address important issues.

“Koala conservation is a key Queensland government initiative being led by the department,” Mr Walker said.

‘Observing a mother koala and her joey in their natural environment certainly highlighted to me why this topic can be so emotive and why we need to take all possible care

in undertaking our activities to help ensure the conservation of this species.

“I would like to thank the training group for their professionalism and the time they put in to make this key training initiative a resounding success.”

DERM Forest Products is holding discussions with representatives from the state’s timber industry to extend the koala training to its industry clients and harvesting contractors.

This invitation to attend a training session is extended to contractors who conduct harvesting operations on freehold land.

The three sessions available are Monday, October 18 (session 1: 9 am-12 noon; session 2: 1-4 pm) and Friday, November 19 (session 3: 10.30 am-2.30 pm).

A light lunch will be provided at all sessions between 12 noon and 1 pm. All sessions will be held at the DERM depot and adjacent conservation park on the corner of Woongool Road and Groth Street in Maryborough.

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Page 10 | issue 146 | 11.10.10

Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)

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industry news

Big NZ web trader cracks down on illegal kwila traffic A DECISION by Trade Me, New Zealand’s biggest shopping website with thousands of online auctions and classifieds, to outlaw the sale of illegal timber products has been welcomed by the forest industry.

The website with around 2.5 million active members and 1.5 million listings now requires sellers of new kwila furniture or decking timber to prove they comes from sustainably managed forests.

“This is a positive step towards ensuring all these products are from legal sources,” Forest Owners Association president Peter Berg said.

Most major outdoor furniture and hardware suppliers – including the Warehouse, Bunnings, Carters, Mitre 10 and Placemakers – have signed a charter that also commits them to sourcing wood products from certified, legal and sustainable sources.

“That leaves only a number of smaller retailers who are unwilling to act on this matter and the sooner we bring them into line the better for the remaining areas of kwila,” Mr Berg said.

“Not only does continued trade in illegally harvested timber undermine the rest of the timber business, it also countenances a business that breeds corruption and results in deforestation, the destruction of widlife and violence against indigenous people living in tropical forests.

And it’s the biggest single

EWPs that tick ALL the boxes Engineered wood products manufactured

by EWPAA member companies top the list

Peter Berg .. regulations now needed to finally stop this trade.

contributor to human-induced climate change.

“Regulations are now needed to finally stop this trade.”

Australia’s Labor-led coalition government is continuing to work on comprehensive legislation that will require retailers to prove that all forest products they sell come from legal and sustainable sources.

The draft legislation, which will put Australia in line with the US, the European Union and a growing number of other countries, covers all forest products, not just outdoor furniture and decking. Wooden tool and drawer handles, paper and packaging are all included.

“Closing off the markets for illegally-logged products is our preferred tool to halt this business once and for all,” Mr Berg said.

“It is disappointing that New Zealand, which has such a good story to tell about sustainable forestry at home, has until now been slow to do anything really meaningful. So I complement Trade Me for the leadership they have shown and I hope the policy is picked up enthusiastically by the entire community.”

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issue 146 | 11.10.10 | Page 11

engineered wood

Plywood has the ‘edge’ for this prize-winning student architect

By JIM BOWDEN

BRISBANE architecture student Michelle Duval needed little convincing that engineered wood – plywood in particular – was the best path to achieving flexible and sustainable building design when she entered a University of Queensland ‘affordable house’ competition.

Her father’s profession as a structural engineer, mostly in steel bridge construction, failed to quell Michelle’s passion for lightweight timber design, stirred by helping the family renovate a number of homes as they moved around rural New South Wales.

“I had a longing to work with lightweight material such as plywood, but in a sub-tropical context away from the more dense partition structures we see in Melbourne and Sydney,” Michelle said.

So, she says, the dramatic skies, weather events, and structural forms such as the ‘old Queenslander’, brought her to Queensland to complete her studies, setting her on the path to a Master’s degree in architecture.

Michelle was one of three thirdyear students at the University of Queensland’s school of architecture who topped an assignment to design a highdensity housing area – using engineered wood products – that would double the ‘living density’ on a normal detached site and avoid high-rise buildings.

Simon Dorries, general manager of the Engineered Woods Products Association of Australasia which sponsored the competition, said it was exciting to see architecture students investigating the innovative and novel use of EWPs. The assignment brief for about 100 students – which allowed

Page 12 | issue 146 | 11.10.10

Michelle Duval .. plywood best choice for design flexibility. The third-year architectural student has her sights set on a Master in Architecture.

for two houses on one normal detached housing site and other combinations that increased density – was applied to the bustling multicultural precinct of West End, on the edge of Brisbane’s city centre.

Program director of architectural design at the school Andrew Wilson said students explored the project with the total application of engineered wood products – updating their own interpretations of the all-timber house.

EWPAA general manager Simon Dorries discusses design concepts for an affordable high density housing assignment using engineered wood products with Janelle Watt, a third-year architecture student at the University of Queensland’s school of architecture.

“We first looked at the typology of housing at West End, the traditional ‘Queenslander’, and responded to the high-density challenge using engineered wood design concepts,” Michelle said.

“Engineered wood provides many opportunities to do things with timber that aren’t traditional, yet it allows you to work within the pallet of the vernacular Queensland-style dwelling.

“The ‘edge’ of plywood especially interested me,” she said. “The kind of dense layered effect you get from stripping wood together and exposing that edge.”

Michelle also focused on the curving and bending properties of plywood; its flexibility and easy handling returned her to her architectural mind-set – lightweight timber structures.

“You can achieve some really dramatic effects using lightweight materials such as plywood,” she said. “It’s like living in a lightweight tent – a thin, secure barrier between you and the outside and very different from the dense kind of walls, often in masonry, that you experience in Sydney.”

The concept of the student

project was to show how a typical West End block could be subdivided to increase the density of the precinct. An infill of thick ply/curved LVL type structures could be used as a secondary grid of buildings to create a new back lane of markets, shops, houses, and home offices.

“I thought the ply worked really well with the timber and tin character of West End – same material, different generation,” Michelle said.

“To emphasise that, I revealed the ‘engineeredness’ of the timber – in particular the way it can bend and the fact that it’s a manufactured and layered product – by revealing the edge of the product.”

‘You can achieve some really dramatic effects using lightweight materials such as plywood. It’s like living in a lightweight tent – a thin barrier between you and the outside and very different from the dense kind of walls, often in masonry, that you experience in Sydney’

Michelle was emphatic about wood’s sustainability traits: If I can substitute a steel beam with an engineered wood product I’ll do that. Timber has so much more to offer environmentally in terms of energy-saving, carbon storage and workability.

“I know that when builders start working with plywood and LVL and glulam beams they quickly realise how versatile it is and how easy it is to work with. It allows them to move about much more effectively, and economically, on the building site.”

Michelle hopes to visit a Cont Page 13

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engineered wood

Outside the box: students creating the next generation of engineered wood products From Page 12

plywood manufacturer soon .. “to get a first-hand idea of how they put this wonderful material together.”

Commenting on student entries in the competition, Simon Dorries said some of the projects were really outside the box.

“This is the sort of thinking the industry needs to develop and market the next generation of wood products. And it’s good to see plantation-grown sustainable engineered wood products being chosen over steel and concrete.”

Students we talked to believe engineered wood products are very stable and offer greater structural strength than typical wood building materials.

Michelle’s concept in engineered wood .. that a typical West End block could be subdivided to increase the density of the precinct.

“Wood, and more specifically engineered wood, is a renewable building material; it’s a good choice for the environment, for green building,

Michelle’s architectural drawing shows the kind on infill development that could be made using a standard ‘bendy ply’ unit.

and for long-term life cycle performance,” was an opinion expressed by many of the students.

They all agreed it was important to understand how engineered wood products can be used to meet the emerging standards and requirements for green building.

Brisbane City Council estimates the population of South Brisbane and West End will increase by 312.5% over the next 20 years.

The resident population growth – forecast to skyrocket from 8000 to 33,000 and triggered in part because the Queensland

Government needs to find space for 156,000 new homes in southeast Queensland – is contained in the South Brisbane Riverside Neighbourhood Plan.

The plan will facilitate the urban renewal of obsolete, industrial brownfield sites alongside the Brisbane River and create opportunities for new vibrant, well designed and sustainable accommodation.

Current projections are for about 33,000 residents and 72,000 employees by 2031.

The three top placegetters in the EWPAA competition were Grace Egstorf, Michelle Duval, and Kathleen Duffy.

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 146 | 11.10.10 | Page 13

industry news

HIA report card flags housing downturn Early interest homes built nationally increased by 26% in 2009-10 to 165,209.

However, as the measures wind down, housing starts are forecast to decline by 4% in 2010-11 to a level of 159,393.

“The fact remains we are not building enough homes to match demand, and going forward

our national housing shortage is expected to worsen,” says HIA chief economist Dr Harley Dale.

By calendar year, housing starts are forecast to increase by 24% in 2010 to a level of 171,442, before dropping by 9.5% in 2011 to a level of 155,155.

Just Go t ood W

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AUSTRALIA is staring down the barrel of a housing downturn, according to the most comprehensive report card on Australia’s residential building industry, the Housing Industry Association’s National Outlook.

Federal stimulus measures ensured the number of new

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in LIGNA tour A PRIVATE industry tour open to industry in New Zealand and Australia to the giant LIGNA Hannover wood fair in Germany next year is gaining momentum.

LIGNA – from May 30 to June 3, 2011 – is the world’s biggest, most international platform for the forest and wood industries.

More than 50% of all exhibitors are from outside Germany and at the last LIGNA in 2009, more than 108,000 visitors from 92 countries attended.

LIGNA Hannover is the innovations marketplace for industry, particularly small and medium-sized enterprises.

Displays document the complete production cycle – from the harvesting and processing of timber to the industrial production of woodbased end products and innovative surface treatment technologies.

“Everyone linked to wood should attend at least one LIGNA in their lifetime,” is a common catchphrase.

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The private tour next year will take in wood processing operations in Italy and Germany with visits to tourist spots such as Lake Como in Italy, Germany’s Rhine Valley region, and Innsbruk in Austria.

The 10-day tour will be packaged to include economical ‘addons’ to allow participants to visit the region just prior to the tour or extend their stay with visits to other parts of Europe, if required.

Visit: www.osmose.com.au or phone: 1800 088 809 Osmose® and MicroPro® are registered trademarks of Osmose, Inc. or its subsidiaries. A Better Earth Idea from Osmose sm and Treated Wood Just Got Greener sm are slogan marks of Osmose Inc and its subsidiaries. GREENGUARD® is a registered trademark of GREENGUARD Environmental Institute. MicroPro timber products are produced by independently owned and operated wood preserving facilities.

Page 14 | issue 146 | 11.10.10

Inquiries should be directed to Peter Francis on 61 7 411 583 672 or email francip@optusnet. com.au More details in future issues of Timber&Forestry enews.

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industry news

TABMA Australia insurance program aims to improve credit management TABMA Australia will soon launch a special trade credit insurance program developed and managed in conjunction with specialist trade credit insurance broker IMC Newbury and underwritten by QBE Trade Credit.

The program is being developed specifically for TABMA (Aust) members to protect businesses from bad debts; allow businesses to trade and grow with confidence; improve credit management procedures; and protect profit and shareholder equity, says chief executive Colin Fitzpatrick.

“TABMA Australia recognises there is a growing requirement for members to access protection, particularly in the

current environment of rising interest rates and record business failures,” he said.

“Because of the global financial crisis and the impact on trade credit insurers, many members have found that trade credit insurance has become prohibitive, inaccessible and unaffordable.”

The ‘brain’ of the TABMA trade credit insurance program will be the IMC Policy Management System, which TABMA and IMC Newbury have jointly developed, and which is designed to support insured members’ credit management procedures, improving their cash flow by potential early intervention and identification of problem customers.

New chief inspector supervise NHLA’s global grading rules THE National Hardwood Lumber Association has appointed a chief inspector charged with maintaining the integrity of NHLA grading rules and supervising the association’s field staff of six full-time inspectors.

Dana Spessert will guide the overall strategy of expanding the use of the NHLA grading rules globally and will bring a greater international focus as the rules become the standard around the world for grading hardwood lumber.

Mr Spessert brings more than 25 years of experience in the areas of lumber inspection, management, program development, quality assurance and customer service.

Most recently, Mr Spessert was northern division quality control

“This is achieved by the collection of debtor payment data in a manner never before seen in trade credit insurance,” Mr Fitzpatrick said.

The IMC Policy Management System, together with the specialist skills of IMC Newbury, have been the major reasons for gaining the support of QBE Trade Credit, the largest trade

credit insurer in Australia.

Some of the unique policy benefits being negotiated are a low cost entry level, high indemnity cover and a shared policy excess.

The program, the result of six months of development and negotiations, is expected to be launched on November 1.

WOOD SCIENCE COURSE 2011 The 5 day Gottstein Wood Science course aims to provide an understanding of wood and the origin of the properties which affect its processing and end-use. This will give an insight into the potential for development of new products and to provide an appreciation of environmental issues and international strategic trends in the forest products industries.

Date anD Venue The next Wood Science Course will take place 14-18 February, 2011 in Melbourne, at CSIRO, Clayton, and the University of Melbourne, Parkville.

Who ShoulD attenD Senior and potential managers as well as consultants within the forest industry. The course will be of particular relevance to those who may have recently joined the industry.

Why you ShoulD attenD A fuller understanding at a professional level of wood science and its application to forest products technology is essential if our industry is to achieve its full potential. This course will provide you with the understanding to improve your personal and business performance and to view your operations within national and international contexts.

The course is limited to about 35 participants.

InVIteD SpeakeRS The 2011 course will once again feature guest speakers with wide experience in the industry, and speakers at two dinners.

RegIStRatIon Fee Dana Spessert .. chief inspector for NHLA.

manager for Coastal Lumber Co where he hired and trained technicians at remote locations, instructed lumber inspectors on proper interpretation of NHLA grading rules and established an effective quality control program.

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Full course fee is $2530 (inclusive of GST). For Patrons and Subscribers of the Trust, the course fee is at the reduced rate of $2300.

CouRSe pRogRaMMe The full 2011 Wood Science Course programme can be downloaded from www.gottsteintrust.org/media/WSC 2011.pdf.

FuRtheR InFoRMatIon Contact Course Director, Dr. Silvia Pongracic 0418 764 954 or silvia.pongracic@csiro.au

issue 146 | 11.10.10 | Page 15

AGRI-SCIENCE

Pacific islands cocowood project eyes flooring markets in Australia A PROJECT by Queensland agri-science technicians has identified ways to harvest and process Pacific island coconut stems to produce valuable flooring products for the international market, particularly Australia and Europe.

The project to turn old, nonproductive coconut palms into a sustainable flooring product is helping Pacific nations to create a viable, new industry.

Agri-science senior technician at the Department of Employment, Economic Development and Innovation (DEEDI) Gary Hopewell says the cocowood project will bring profits and new skills to communities.

In the Pacific alone, it is estimated there are 27 million senile, non-productive coconut palms, of which half could produce sawlogs suitable for flooring products

“There are about 360 million non-productive, ‘senile’ palms in the Asia-Pacific region, representing 90% of all coconut plantations worldwide,” Mr Hopewell said.

“The problem is that it’s expensive to clear the land for replanting with new coconuts or food crops such as taro.

“Non-productive palms are also a waste of land resources if left standing and they attract destructive pests and disease if they are felled but not removed.”

The project has established ways to make it economically viable to clear old palms.

Mr Hopewell says as a result of the project, training and incentive schemes have already been proposed.

“Communities will benefit from the sale of coconut palms and there will be more jobs and

Page 16 | issue 146 | 11.10.10

Gary Hopewell .. more jobs and new skills generated by a developing industry.

Understanding the detailed differences between the ‘wood’ properties of coconut and those of normal hardwood timbers.

new skills generated by the developing industry,” he said.

“An analysis of hardwood flooring retail market conditions and the manufacturing environment in Fiji indicates a medium-sized facility capable of processing 2500 stems a year could potentially make a profit of just over $100,000 a year.

“In the Pacific alone, it is estimated there are 27 million senile, non-productive coconut

palms, of which half could produce sawlogs suitable for flooring products.

“A recent stakeholder meeting held in Fiji this year also generated firm commitments for investment for processing facilities, which will follow best practice guidelines established from the project.”

Mr Hopewell says there has already been interest from Australia and European countries in the high-quality,

There are about 360 million non-productive, ‘senile’ palms in the Asia-Pacific region, representing 90% of all coconut plantations worldwide.

hard-wearing cocowood.

“There are also value-adding opportunities for Australian timber processors who could produce pre-finished engineered flooring from feedstock imported from the Pacific Islands.”

Mr Hopewell says the research into cocowood over the past three years had helped to identify the properties of, and other uses for, the coconut palm.

“We now understand the detailed differences between the ‘wood’ properties of coconut and those of normal hardwood timbers, which has allowed us to find the best way to saw, dry, grade and store/ ship cocowood,” he said.

“The nutrient-rich soft tissue in the centre of the palm stem can be used to produce a plant compost to improve infertile soils for agriculture in Pacific regions.”

Researchers on the Australian Centre for International Agricultural Research /DEEDI project are now investigating an exciting prospect for cocowood to produce a timber veneer, after a promising preliminary test at Brisbane’s Salisbury research centre.

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Sawmill Manager Tarmac Sawmilling located in the serene bush setting of Busbys Flat, NSW – within the Northern Rivers region, is part of the Tarmac Group of companies, with locations throughout Australia. Tarmac Sawmilling is a large sawmill with modern equipment and facilities, producing 60,000 m3 of timber per annum, serviced by approximately 30 staff.

Located 48km south of Casino and 80km north of Grafton, this opportunity is ideally suited for someone looking for a work/lifestyle balance.

The Sawmill has a debarking log-line; an AriVislanda Circular green saw line with board edger, docking lines and dry mill.

The successful applicant must have relevant experience and skills including very strong leadership qualities.

Responsibilities include: • Liaise with Forestry and related authorities • Overseeing and monitoring all aspects of operations and staffing at the mill, including OH&S, staff discipline, recruitment and training, compliance with company policies and links with the local community and authorities • Preparing budgets and quarterly forecasts of costs and sales • Ensuring all production processes operate efficiently • Maintain plant, equipment, yard and buildings in a planned and cost-effective manner • Demonstrate effective negotiating and communication skills at a senior level.

An attractive remuneration package will be offered, including re-location and accommodation.

If you believe your skills and experience match this criteria, please forward your resume through to: Tarmac Sawmilling Pty Ltd C/- PO Box 289, Carole Park QLD 4300 Or Email to: andrew@tarmac.com.au

Tarmac Sawmilling Pty Ltd 51 Kinkaid Avenue, Plympton North, SA 5038 Tel: 08 8298 5356

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issue 146 | 11.10.10 | Page 17

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