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issue 154 | 06.12.10 | Page 1
Election win gives industry new heart Baillieu government assures long-term future for Victoria’s native forest sector
By JIM BOWDEN
A COMMITMENT to secure a long-term future for the $6.5 billion native forest sector – and the consignment of the Greens to political oblivion in the state – has given the Victorian forest industry new heart as the Coalition forms government after its election win. Labor in its efforts to protect inner-city seats from the Greens proved costly when it was outfoxed by new Liberal premier Ted Baillieu’s strategy not to preference the Greens. The challenge for Mr Baillieu, 57, will be to help the Coalition make the transition to power after 11 years in opposition. But
Peter Walsh .. support for 20year forest agreements.
the result of the November 27 poll will damage the credibility of the Greens which failed
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? Hobart forum: debate tackles
to gain a single seat in the Victorian Lower House. Mr Baillieu, who will become Victoria’s 46th premier, says there will be no reshuffling of his election-winning team. Farmer Peter Walsh, 56, was sworn in last Friday as Minister for Agriculture, the position he held in the shadow ministry, and he will take responsibility for forestry. “The team we’ve got is the team going forward – stability is what we are interested in,” Mr Baillieu said. In an election promise, Peter Walsh said a Victorian
forest’s future
Cont Page 2
issue 154 | 06.12.10 | Page 1
industry news
‘We will not support further reductions in native timber access’
Review of harvest rotations From Page 1
The Victorian Association of Forest Industries, representing the interests of the Victorian timber Industry
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 154 | 06.12.10
Liberal Nationals Coalition would support 20-year forest agreements to be revised and renewed every five years. “We will restructure the board of VicForests to make sure those in decision-making roles are key industry stakeholders and place the authority under the sole direction of the agriculture ministry,” he said. “This will make the Department of Primary Industries responsible for managing areas of public native forest which have been set aside for wood production.” [Prior to the election, then premier John Brumby announced that a re-elected Labor government would scrap the state-owned logging agency VicForests and replace it with a body that looked at the value of timber, water, carbon and biodiversity, a decision that many in the industry believed would have spelled an end for the timber industry in East Gippsland]. Peter Walsh said a Coalition Government would also review the current harvesting rotations of at least 80 years to investigate rotations of 50 to 55 years for some faster growing stands of timber such as mountain ash. “The Victorian Liberal Nationals Coalition will end Labor’s neglect of the sustainable timber industry, and provide long-term support and security,” he said. Deputy premier in the new government and leader of the Nationals Peter Ryan launched the Coalition forestry policy at the VAFI annual dinner in Melbourne on October 16. “The Coalition values Victoria’s forests and we will ensure
TRUST TABMA Ted Baillieu .. outfoxed Labor on Green preference votes.
if you want .. Placement of apprentices
Staff recruitment Membership services Peter Ryan .. responsible and sustainable forest management.
they are managed in a way that is both responsible and sustainable,” Mr Ryan said. “We will not support any further reductions in access to native timber.” Reflecting on the election result, the chief executive of the Victorian Forest Industries Association Philip Dalidakis said once both major political parties had released their campaign commitments for forestry, it was evident the Coalition had the better policy platform. Cont Page 12
OH&S audits Debtors control and collection
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www.tabma.com.au
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industry news
Work in progress on timber codes reform
28 key standards identified THE rationalisation of building codes and standards covering the timber industry, led by Forest and Wood Products Australia and an industry-representative standards industry group (SRG), has progressed strongly through 2010. FWPA standards and codes manager Neil Evans said 28 key standards had been identified and prioritised for upgrading and one new standard, relating to truss design, is in production. Initiatives currently in hand or well under way include: • Input into issues relating to the use of timber under the changes to the Building
Neil Evans .. solid progress on coordinating standards.
Code of Australia following the royal commission into the 2009 bushfires in Victoria. The amendment to the bushfire
standard has been completed with no major impact on the use of timber. • Two up-dated plywood standards, now with Standards Australia for completion. • The review of two preservative standards, in close consultation with the Timber Preservers Association of Australia. • Finalisation of three stress grading standards by Standards Australia, following a period of public comment which closed in October; The next step will be a series of industry training sessions
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:
• Recognition that the current standard on timber strip flooring installation is out of step with the latest industry practices and clarification on installation methods to reduce enforcement issues. • Plans for a total review of the four-part timber framing code, to align it with the recently amended engineering standard. • A review of issues by a building regulatory consultant that are restricting or limiting the use of timber in commercial buildings. • A much-needed review of which old standards can be revoked or amalgamated with other standards to reduce and streamline the number of standards. The current 154 timber standards are unsustainable and have created time and cost inefficiencies. The next step will be a series of industry training sessions on the important changes to the
• 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
Cont Page 4
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issue 154 | 06.12.10 | Page 3
industry news
Wide engagement by stakeholders From Page 3
framing standard and the timber engineering standard. These will be run by FWPA and Standards
Australia in most capital cities
This
in March or April next year for
introduction of changes to these
designers, engineers, certifiers
two standards by the Building
and builders.
Code of Australia in May.
will
be
prior
to
Scholarship Opportunity The Frederick Richard O’Connell Scholarship was established to promote industrial harmony in Australia and to improve relationships between employers and employees within the Timber industry. Frederick Richard O’Connell (1894-1964)
We are seeking applications from candidates who are either:
y children of employees (who are preferably financial members of their respective unions) of member companies of the Timber Merchants Association; or y children of directors or proprietors of member companies of the Timber Merchants Association. Scholarships will be awarded on the basis of good character, personality, academic achievement and proficiency at sport, and are valued up to $10,000. Applications are open to candidates who will enrol in 2011 or who have already commenced a degree, certificate or diploma course conducted by a Victorian University.
Closing date: 31 December 2010 For more information and an application form: Website
www.eqt.com.au/oconnell.aspx
charities@eqt.com.au
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03 8623 5000
Page 4 | issue 154 | 06.12.10
the
There are also plans for a joint meeting of the Timbers Standards Coordination Group and the SRG in early 2011 to review and share information and strategies. “The key objective with this, and with the SRG’s overall focus, is to ensure a coordinated approach to all future development and amendments to timber standards and to deliver most timely and cost effective standards by streamlining existing processes,” Neil Evans said. He said the SRG would also examine what standards or codes need development to ensure timber is the preferred choice in complying with regulation. “We’re seeing very solid progress towards our objectives and the implementation of the agreed strategy for coordinating standards and codes for the sector,” Mr Evans said. Standards development will ensure timber is the preferred choice in complying with regulation. “What has been particularly satisfying this year is the wide engagement and input we’ve enjoyed from key industry stakeholders. This has been invaluable as the issues of timber standards have proven to be very broad and complex. “Our work with Standards Australia has also been positive.” The strategy paper for the coordination of timber standards and codes for the forest and wood products sector is available at www. fwpa.com.au under corporate publications.
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events
WHAT’S ON? DECEMBER 2010 14-18: Wood Science Course, University of Melbourne and CSIRO, Melbourne. Contact Silvia Pongracic on 0418 764 954 or visit www.gottsteintrust.org
2011 APRIL
8: South Eastern Australia 2011 Farm Forestry and Firewood Expo, Bendigo, Vic. City of Greater Bendigo’s Huntly plantation, north of Bendigo. NORTHERN United Forestry Group (NUFG) - a not-for-profit community group with a focus on growing trees for sawlogs and firewood - will host the expo at the Huntly plantation, north of Bendigo. Some trees (all hardwoods) within the Huntly plantation that need to be thinned will be available for demonstration purposes. Contact: Mal Brown, Northern United Forestry Group. Tel: (03) 54352588. Mob:: 0419 108 817.
MAY May 21-June 5: Forest biomass four-nation industry study tour. New Zealand, Austria, Germany and Finland. Includes LIGNA Hannover Wood Fair, Germany. Email: francip@optusnet.com.au 25: Institute of Foresters of Australia (IFA) and New Zealand Institute of Forestry Conference (ANZIF 2011). Auckland NZ. Theme: ‘Pacific Forestry’. Visit www.anzifconference.co.nz
30-June 3: LIGNA Hannover Wood Fair. 25-June 4: LIGNA industry tour (Germany, Italy, Austria).
SEPTEMBER 5-7: NZ Forest Industries Expo 2011. Venue: Rotorua Energy Events Centre, Rotorua. Forest industry leaders and companies from across the world are booking their tickets to participate in the expo (FI2011) and make the most of the 2011 Rugby World Cup while they’re there. Exhibition sites have already been booked by a number of NZ and Australian companies, and inquiries being received from Canada, China, Vietnam and Austria. The expo will showcase the best that Rotorua, the wider Bay of Plenty region and the rest of New Zealand has to offer when it comes to forestry and wood products. Contact: Dell Bawden. Tel: +64 73627865. Mob: +64 274745485. Email: office@bawden.co.nz Website site: fi2010.co.nz
October 21-November 2: 5th International Woodfibre Resources and Trade Conference: Woodchips and Biomass for Global Markets. Grand Copthorne Waterfront Hotel, Singapore. Presented by DANA Ltd, Pike & Co and Wood Resources International, followed by field trip to Cambodia on November 3, 4 and 5.The field trip is an optional extra to the conference registration fee and
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will be limited to 80 participants. Field trip participants will fly from Singapore to Sihanoukville with an overnight stay. Transfer next day to Siem Reap which will include a visit to world famous UNESCO heritage site Angkor Wat. Return Saturday morning. Who should attend? Plantation and other forest owners, plantation investment fund managers, existing-future biomass producers and users, existingfuture wood pellet producers and users, bankers and investment analysts, woodchip producers, wood fibre trading companies, woodchip end users, federal, state and shire officials dealing with forestry, plantation and wood fibre production, utilisation and exporting sectors, pulp and paper company executives, harvesting contractors, transport contractors, port and shipping companies, CO2-e emitters, timber and carbon forestry players, equipment suppliers, overseas players and observers. Contact: Conference organiser PR Conference Consultants – Pamela Richards, Bob Flynn, Dennis Neilson and Peter Pike. Tel: + 61 3 5781 0069. Email: enquiry@prcc.com.au Speakers and field trip details plus the online registration will be available soon from the conference web site www. woodfibreconference.com
2012 MARCH
29-31: AUSTimber. Mount Gambier, SA. Visit: www. austimber2012.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 154 | 06.12.10 | Page 5
industry news
Forestry Tasmania calls for increased hazard reductions
FORESTRY Tasmania has called for increased hazard reduction burning in Tasmania to minimise the chances of a bushfire crisis like the 2009 Black Saturday fires in Victoria. Forestry Tasmania managing director Bob Gordon told the parliamentary Government Business Enterprises hearings last week that the devastation experienced in the Victorian fires could occur in Tasmania if precautionary measures were not taken. He said the adoption of yearround permits would lessen the risks of burns escaping from private land and allow better management of smoke in populated areas. Mr Gordon noted that the Victorian Bushfires Royal Commission had recommended hazard reduction burning of at least 5% cent of Victoria’s public land. He said it would be hard to meet a similar 5% target in Tasmania. “It would mean that 25,000 ha of state forest would need to be burnt annually,” Mr Gordon said. “However, given that state forest accounts for 20% of Tasmania’s land area, the total area of public land, including national parks, that would need to be burnt annually to achieve this target would be around 60,000 ha.” He said such a target would be extremely difficult to meet given limited resources and stringent requirements for managing smoke. Bob Gordon along with FT chairman Adrian Kloeden, executive general manager Hans Drielsma and stakeholder minister Bryan Green spent three and a half hours at the hearing answering questions
Page 6 | issue 154 | 06.12.10
Bob Gordon ..focusing on longterm opportunities.
by representatives of the government, the Liberals and the Greens across the breadth of Forestry Tasmania activities. Much of the hearing dealt with the new forest statement of principles negotiated by the timber industry and conservation groups and how it might impact on Forestry Tasmania. Better to focus on the long-term opportunities The last financial year was tough for the international timber industry, and FT weathered the storm better than many, posting an underlying operating profit of $1.2 million. However, Mr Gordon pointed out at the hearing that it was better to focus on the longterm opportunities, rather than dwelling on the short-term challenges. “It is time to consider options that have not been considered before.” Despite the financial challenges, Forestry Tasmania is continuing to invest heavily in science. Understandably, some of the research focus is on carbon and the contribution forestry makes to mitigating climate change.
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FOCUS ON GLULAM
Oils ain’t oils and glues ain’t glues
Glulam industry reviews Australian standards By JOHN MULLER
“OILS ain’t oils – and glues ain’t glues! The reference to that old commercial for Castrol holds a lot of truths when applied to the glues that should be used in the glulam industry. Those brave pioneers of glulam took a giant leap in faith when they started using the PRF (phenol resorcinol formaldehyde) family of adhesives in the post-World War 2 era because while the chemistry was no doubt understood, no one could possibly have been confident about the durability and ongevity of the products produced using that technology. But it has been proven. Structures in glulam built with those adhesives in the 1950s and 60s are still standing and are monuments to those pioneering manufacturers. Times change and the development of a new generation of adhesives and new manufacturing technology have required the industry to review the Australian standards which dictate the type of adhesives to be used in structural applications such as glulam. Standards Australia has been working for some years to modernise its standards by moving from prescriptive to performance based standards and with respect to structural adhesives, the standards committee TM004 has tackled this problem head on with the revision of the structural adhesive standard, AS/NZS 4364. Where the standard previously nominated specific adhesive types, the newly released revision sets performance criteria for structural adhesives that can be used in engineered wood products.
The performance criteria are established by way of testing which will be carried out by adhesive manufacturers prior to marketing their structural adhesives. The Glued Laminated Timber Association of Australia (GLTAA) has been working on the TM004 committee for several years in the development of the revision. The association was also instrumental in running a risk management project Cont Page 8
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Development of a new generation of adhesives and new manufacturing technology have required the glulam industry to review the Australian standards for adhesives used in structural applications such as glulam.
issue 154 | 06.12.10 | Page 7
FOCUS ON GLULAM
Structural adhesive standard allows for innovation, maintains quality benchmark From Page 7
(funded by the FWPA) on the implications to the glulam industry with the potential use of modern structural adhesives which could be used under a performance-based standard. The revision needed to provide a range of short-term tests in the standard which would be adequate in proving the durability adhesives for longterm service in the market place. Without going into the specific details, this was a very difficult task and has sparked some very significant discussion within the industry, both from manufacturers of glue and
glulam. The committee process in Standards Australia is now complete with the revision and publication of AS/NZS 4364 – 2010, expected by the end of December this year. What does all this mean for the consumer? Not much at all, because manufacturers of gulam and EWPs, as in the past, are still required to continue to meet their obligations to consumers who are protected by law; the product they buy must be fit for the purpose they purchased it for. A glulam or EWP product, when sold for a specific use, must be of such a standard as to fulfil the consumer’s expectations and
the warrantees provided shall always be the responsibility of the EWP manufacturer. A spokesman for the GLTAA says the use of any adhesive by manufacturers is dependant on the adhesive manufacturers providing satisfactory test results on their products. The revised structural adhesive standard AS/NZS 4364-2010 will allow innovation while continuing to maintain a quality adhesive benchmark. Strict product procedures followed by the glulam and EWPs manufacturers who have third party accreditation and ongoing audits will continue to provide peace of mind to consumers.
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Page 8 | issue 154 | 06.12.10
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Consumers are advised to look for the quality marks and product branding of reputable quality assurance systems. “Consumers are always better placed to deal with manufacturers who have proper quality accreditation systems in place and who understand the adhesives which should be used,” the GLTAA spokesman said. “The quality brands of the GLTAA and the Engineered Wood Products Association of Australasia provide the necessary assurance to consumers that their product is fit for purpose,” he said.
The Tru-Core® Process This will set the benchmark for timber treatment in the future. In simple terms, Kop-Coat has developed a process that can fully penetrate most timber, both sapwood and heartwood, and can also fully penetrate most engineered wood products using water soluble chemical technology that does not require re-drying and does not damage the properties of the wood products. Forget everything that you knew about treating timber – this is new technology. What has traditionally been considered untreatable, can, in every case so far, be easily treated to the standard and beyond. 22 Neon Street, Narangba 4504 Queensland Tel: +61 3204 0444 Fax: 3203 3797 Email: bill@itreat.net.au
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industry news
Price rises in September quarter for structural pine and EWPs.
Price increase for structural pine, engineered wood THE latest URS timber market survey shows price increases for major pine structural products in the September quarter. The extensive survey, completed each quarter, examines timber purchase prices from timber wholesalers and merchants in Victoria, New South Wales and Queensland. Results for the latest report show that over the past three months, prices for softwood structural products generally increased on average by around 1-2.5%. Structural products surveyed included the key MGP10 and MGP12 grades, treated F7 and larger dimension F5+ products. Average price movements were generally driven by price increases reported across all states. Over the 12 months to September, prices for MGP10 and MGP12 products increased by around 4%, with the exception of prices for 70 x 35 mm MGP10, which increased by 9%.
Price movements for board products were mixed. Plywood prices declined, reinforcing a downward price trend since the March quarter 2009. Prices for engineered wood products, laminated veneer lumber (LVL) and wood I-joists all increased. The price increase for I-joist products of 3-4% in the September quarter was large by historical standards. LVL experienced more modest price rises this quarter. Imports of softwood timber products fell in the September quarter, ending a trend of sustained growth in import volumes since March 2009. Despite the Australian dollar entering a historically favourable period for importers, the volume of softwood timber imports fell 6% from 174,000 cub m in the June quarter to 163,000 cub m in the September quarter.
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Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3256 1779 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready production@industryenews.com.au
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issue 154 | 06.12.10 | Page 9
TASMANIA: THE DEBATE
Hobart forum learning curve for a transition to plantations
Implications for industry, communities, environment By JIM BOWDEN
THE forest industry forum in Hobart last week set up to examine the viability of an industry transition to tree plantations in Tasmania was a significant achievement and a “first” for the sector, said Allan Hansard, chief executive of NAFI, which co-hosted the event. Industry, forestry, community and political leaders were among 18 speakers from Tasmania and mainland states, who along with a visiting authority on eucalypts from Spain, contributed to the lively debate. More than 110 delegates gathered at the Wrest Point boardwalk conference centre on December 1 and stayed on to celebrate the 25th anniversary of the formation of the National Association of Forest Industries – an appropriate location as NAFI’s first debate on forest industry issues began in Tasmania. Mr Hansard said the forum agreed any transition to plantations must embrace the implications for industry,
The big question .. what defines a high conservation value forest?
communities, the environment – and the farming sector. “It came through loud and clear – we’ve got to get this right,” he said, speaking to T&F enews on a car phone between Hobart and Launceston. “Transition is not an easy step – it must be done carefully and properly. There are many examples around the world were such forest transitions have implications for all those who rely on the industry.” Mr Hansard said the forestry
profession must be involved: “I know this, I am a forester myself.” He said farmers and private forest growers must also have their say on what is proposed.” “As we work towards the next phase we can harness the good positive energy from the forum to find the right answers.” Mr Hansard said the real question to be answered was the definition of what represented a high conservation value forest. This question came out strongly
at the forum. “The forum asked should there be a thorough scientific process and should there be communication with the total community to determine what is actually done with any future management of the forest, including high conservation value forests. “A comprehensive stakeholder process will give the issue social license. We can’t just rely on NGOs to determine social license, to reach conclusions without community involvement.” Mr Hansard said people should not forget that the regional forest agreements had been a common foundation throughout all the discussions. “The RFAs were a sound framework set up between the commonwealth and states to provide certainties for industry and these will need to be renewed and extended soon,” he said. “RFAs are really the foundation and what we are seeing is that many of the politicians Cont Page 13
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Page 10 | issue 154 | 06.12.10
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industry news
Engineered wood helps rebuild city after major quake CHRISTCHURCH is in the recovery phase after the September 4 7.1 magnitude earthquake caused devastation to New Zealand’s south island city at a cost of $NZ4 billion. Thirteen weeks after the earthquake, Christchurch city is open for business but the landscape is marred by destruction. Many buildings are cordoned off and other properties have been demolished. In the suburbs, homes sit crookedly on their foundations and sewerage pipes have been buckled and destroyed. The city is on a massive rebuilding mission and property damage suggests it might take several years to rebuild. But unfazed by the odds, the authorities have been acting fast. The repair of 50,000 moderately and seriously damaged properties is set to start within weeks with repairs ranging between $10,000 and $100,000 – and solid engineered wood is the preferred material on most sites. While the re-build look and design of Christchurch is still being considered by an architectural ‘think tank’, there is growing support among builders, local government representatives and residents that solid wood needs to be the main building material used to resurrect the city. Lockwood group chief executive Bryce Heard says the evidence is very apparent that solid wood is the superior building material to cope with New Zealand’s shaky ground. Lockwood homes in the Canterbury region withstood the earthquake and sustained no structural damage. A report on the earthquake’s affect on residential houses
Engineered wood .. material of choice for rebuilding Christchurch.
by Professor Andy Buchanan and Michael Newcombe of the University of Canterbury, praised the performance of solid timber houses (Lockwood, Fraemohs and Intalok). The report said residential building stock, consisting predominately of light timber frame construction, performed exceptionally well. The worst damage occurred on liquefied ground and timber floors performed better than concrete floor slabs. Although concrete slabs have been a feature of most houses built in New Zealand over the last 20 years, the performance of timber is likely to see a return to and greater use of wooden piles and floors.
editorial inquiries ph: +61 7 3256 1779
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issue 154 | 06.12.10 | Page 11
industry news
Election result should encourage Labor to get back to basics and leave Greens leader Bob Brown to his own devices From Page 2
“VAFI looks forward to working with the new government to implement its goals for the industry.” Mr Dalidakis thanked the former minister Joe Helper who advocated on the industry’s behalf both publicly and privately to ensure forestry in Victoria had a sustainable future. “The industry would also like to thank Craig Ingram, the departing independent member for Gippsland East. Mr Ingram never backed down from being a friend of the industry,” Mr Dalidakis said. Mr Ingram, Victoria’s only independent MP, lost out to the National’s Tim ‘Bully’ Bull, a former journalist who won with a swing of more than 20%. The Nationals had been determined to win back Gippsland East since Mr Ingram won the blue ribbon seat in 1999. Political commentators said the Victorian poll should encourage Labor to get back to basics and leave Senator Brown to his own devices in what was essentially a protest party. Labor suffered a backlash in eastern and southeastern suburbs at the November 27 poll with a swing of around 6.5% against the government. The Greens were denied electoral success because the two major parties ganged up and swapped preferences between themselves. If the Greens want to move beyond just a ginger group with about 10% of the vote, they will have to forget about preference deals and appeal directly to voters. Also, installment of a coalition government in Victoria, along with Colin Barnett’s West
Page 12 | issue 154 | 06.12.10
Australian Liberal government, will further complicate the prime minister Julia Gillard’s task in securing state support through the Council of Australian Governments for her reforms. Labor is battling on all fronts – the Keneally government in New South Wales is widely expected to face a huge defeat in March next year; Labor lost in Western Australia and scraped back in South Australia; it has minority government in both Tasmania and federally; it has now lost Victoria, Julia Gillard’s home turf; and it faces a wipeout in Queensland where Anna Bligh’s 28% rating is in freefall. Meanwhile, Tasmania’s governing Labor and Greens parties have been whacked in the latest opinion poll, which has revealed a surge in support for the Liberals. The November EMRS poll of voting intentions found support for the ALP has dropped six percentage points since August to 23% cent while support for the Greens has fallen three percentage points to 20%. More and more the Greens are shaping as a spent force. But Nationals senator Ron Boswell warns the Greens are still far too widely perceived as a benign political force. “This should not obscure the reality that the Greens and Bob Brown are at least as dangerous to Australia as One Nation and Pauline Hanson were; in fact, it underscores it. The Greens are the political equivalent of the Trojan horse, and the danger they represent is enhanced mightily by the paralysis of their host party,” Senator Boswell said in an address to the Senate. “The Australian Labor Party is like a rabbit in the spotlight. The Greens have divided Labor
Senator Ron Boswell .. Greens and Bob Brown dangerous.
– they have played with their collective minds. The so-called progressives in the support base of the Labor Party are moving to the left. The bluecollar workers, the bread-andbutter of the old Labor Party, are moving to the right. Labor is bleeding from the right and the left but seems hypnotised by the Greens, who are the extreme Left.” From the middle of next year the Greens will hold the balance of
power in the Australian Senate. “Their success in the Senate and in winning a seat in the House of Representatives has given them momentum. They now threaten to broaden their influence in state elections,” Senator Boswell said. He highlighted what he believes is the worst of the “silly and dangerous” Greens policies: “They want a 40% reduction in greenhouse gas emissions by 2020. We were going to struggle to reduce them by 5% on 2000 figures which is a 25% cut in business as usual. “Short of a crash program to build nuclear power stations there is no route to a 40% reduction in greenhouse gas emissions by 2020. The very big danger is that pressure from the Greens and their fellow travellers could well lead to Australia ending up with an unsustainable, high, unilateral price on carbon via a carbon tax. “The Greens have a policy for a carbon tax as an interim measure ahead of the introduction of a carbon pollution reduction scheme.”
Liberal Cindy McLeish takes Seymour VICTORIAN emergency services commissioner Bruce Esplin has resigned, moving another member of the leadership team condemned for its inaction on Victoria’s Black Saturday bushfires. Mr Esplin said the bushfires that killed 173 people and resulted in a royal commission had not been a factor in his decision to quit. The electorate of Seymour, which contains towns such as Marysville and Kinglake, devastated by the bushfires,
recorded a swing of about 8% against the incumbent Labor member Ben Hardman. Seymour’s new MP is Liberal Cindy McLeish, a human relations consultant and former chief executive of Women’s Golf Victoria. Catapulted into parliament less than a month after she became a candidate, she said the slow recovery of the region after the Black Saturday fires had been a critical issue leading up to the election.
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TASMANIA: THE DEBATE
Determining high conservation value forest: should process be scientific? From Page 10
are bringing this back into the debate.” Speaking at the opening of the forum NAFI vice-president Vince Erasmus reminded delegates the word transition had been used for decades in relation to the shift of reliance from native forest wood supply to alternatives, largely plantations. “It should be remembered that our current point in history is not the first time the issue of transitioning the forest industry from native forests to plantations has been raised. “Back in 1988, the Australian Conservation Foundation released a strategy called ‘The Wood and the Trees’ that focused on transitioning the industry largely out of intensive native forest management with some low intensity forest management still allowed and the main resource supply coming from plantations. “The ACF stated that this would take 15 to 20 years for pulp logs and 30 to 40 years for sawlogs. “At the same time, the industry represented by the Forest and Forest Product Industry Council (FAFPIC) also developed a plan, focusing on plantation development as a way to meet increasing demand for timber.” Mr Erasmus said both plans had significant plantation development strategies with a transitioning of the industry toward a greater reliance on plantation wood. The ACF called for $25 million over 30 years while the FAFPIC plan called for $49 million over 43 years. “Significant sums in those days and worth even more in today’s dollars,” he said. “It is interesting that both strategies were not progressed by governments. In more recent
times we have seen the transition of the Queensland industry under its comprehensive regional assessment process.” Mr Erasmus said important questions needed answers: What is the nature of the transition – is it a full transition out of native forests or a partial transition? Can such a transition be achieved and if so, how and how long will it take? What transition arrangements will be needed to enable industry and the communities which rely on the native forest industry to not only survive but, thrive and grow? He said any transition process had significant ramifications for the rest of the native forest timber industry in Australia. “What works best and what doesn’t, in the Tasmanian and broader Australian context, are important issues for this forum.” Mr Erasmus suggested three possible transition paths: • To exit native forests without developing a domestic alternative – increasing the reliance on imports. • To exit native forests while developing a domestic plantation resource to substitute for the native forest supply. • Or, to maintain access to native forests but with a greater reliance on plantations. A sole reliance on imported timbers held no real benefit for Australia (or the world), he said. It would cost local jobs, increase the trade deficit, and would almost certainly involve the importation of timber from countries with poor environmental standards. “Such an approach benefits no-one.” Mr Erasmus said the plantationonly road needed to be explored today as it would involve significant challenges. This included the technical ability to
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Vince Erasmus .. ‘pros and cons’ need to be thoroughly explored.
commercially grow and process plantation sawlogs, sourcing of land suitable for plantations, social acceptance to increase the plantation resource and the attracting of significant longterm investment. In addition, the plantation-only road would mean that many existing communities that currently relied on sustainably managed native forests would be significantly affected and many might be rendered unviable. “The third option is for Australia to satisfy its wood needs through a combination of sustainable native forest management, and to increase and diversify its plantation base,” Mr Erasmus said. “Although this approach is appealing as it diversifies the supply of forest products, maintains forest communities and provides essential management of these forests against fire, pests and diseases, this option may not have the support of some environmental groups. ”The pros and cons of these options need to be thoroughly explored so that during the next stage of this process, these options are well understood in relation to their impacts on environmental, social and
economic values.” Addressing the forum, former Labor premier and forest industry mediator Paul Lennon said it was time the Tasmanian government took tough decisions to save jobs in the forest industry. He said the Tasmanian economy could head into a recession next year, partly caused by the decimation of the forest industry. “What is needed is leadership and a government prepared to act quickly and decisively.” Mr Lennon’s statements were driven by an announcement by Gunns Ltd that 50 of its forest contractors, who employ about 750 people between them, would be out of work by the end of March, with the imminent closure of two of the company’s three woodchip mills. “We operate in a political environment, we need political leadership,” Mr Lennon said to sustained applause. “You must demand some shortterm action by government to establish some quick markets [for woodchip products] to keep the industry growing or it will break up. “What happened [with the Gunns announcement] must be responded to with urgency by the government. We need a statement that the industry has ongoing support in this state.” Mr Lennon urged the Premier to get on with extending sawlog supply contracts [from public forests] to 2027. “Get on with making that decision and with making decisions about the pulp mill,” he said. Mr Lennon predicted that with the $250 million Brighton bypass about to be completed and federal economic stimulus projects drying up, Tasmania was in for hard times. Cont Page 14
issue 154 | 06.12.10 | Page 13
TASMANIA: THE DEBATE
Plantations-only road throws up significant challenges Pearce, CEO, Forest Industries
From Page 13
“There is a real problem in Tasmania after the stimulus money washes out, and the forest sector is not helping,” he said. “We can’t just continue to have a debate about how small we are going to shrink the forest industry. I want to see a debate about how much we can grow it and make it even stronger. “In coming months, we all must focus on the economic, social and community issues in these [forestry] discussions. “If the economy is not the focus and the environment becomes the focus, I think these talks will collapse very quickly.
Paul Lennon .. Tasmanian government must make tough decisions.
Federation WA, Russ Ainley, CEO, NSW Forest Products Association, Philip Dalidakis, CEO, Victorian Association of Forest Industries, Dr. Manuel C. Touza Vázquez, international expert on Eucalyptus globulus for solid wood products, Dr Douglas
Head,
Australian
Solar Timbers, Dr Paul Adams, Forestry Tasmania, Dr Chris NAFI chief executive Allan Hansard (left) presents a lifetime achievement award to Bob Pearce chief executive, Forest Industries Federation WA, at the NAFI 25th anniversary celebration in Hobart.
“After the events and job losses I think the community expectation that environmental concerns will be paramount will change in the next few weeks.” About 50 forest contractors in Tasmania’s north were told last week they will be out of work within four months. A media report said that at a Launceston meeting, Gunns general operations manager Brian Hayes told its forest harvesting and cartage suppliers that it was closing two of its three Tasmanian woodchip mills. The Hampshire mill, south of Burnie, will shut its gates for the last time on December 23,
while the Gunns’mill near Bell Bay, north of Launceston, will close at the end of March. The Triabunna mill, which employs 49, has been given a 12-month reprieve. Contractors fear the two mill closures will cost 750 jobs, with most forest workers and truck drivers out of work by March next year. Other speakers at the forum included David Bartlett, premier of Tasmania, Will Hodgman, Leader of the Tasmanian Opposition, Senator Richard Colbeck, federal Opposition spokesman on forestry, Rod McInnes, CEO Timber Queensland, Bob
Harwood, CRC Forestry, Shawn Britton, Britton Timbers, Doug Parsonson, Poyry, Jim Adams, CEO,
Timber
Communities
Australia, Bob Gordon, Forestry Tasmania, Tasmanian
Ian
Dickenson,
Farmers
and
Graziers Association, Dr Peter Volker, Institute of Foresters of Australia, and Ken Padgett, Australian Forest Contractors Association. The
forum
was
organised
by the National Association of Forest Industries and the Forest Industries Association of Tasmania – two of the signatories to the Tasmanian statement
of
principles
agreement.
Native forest industry restructure concerns IFA PROFESSIONAL foresters are extremely concerned with the current situation in Australia with respect to plans for restructuring of the native forest industry and consequent management of native forests throughout Australia. The Institute of Foresters of Australia says the current situation has received some momentum due to the Tasmanian statement of principles. “These meetings arose out of a “promise” by the federal forestry minister at a meeting in Hobart (May 2010), which I attended,
Page 14 | issue 154 | 06.12.10
to support a strategy that addressed commercial issues pertaining at the time, largely to do with market downturn related to export woodchips to Japan,” IFA president Peter Volker said. “At that meeting the minister also stated the ongoing commitment of his government to regional forest agreements. Gunns Ltd, the largest consumer of native forest products in Tasmania, decided to make a business decision about this time to exit the native forest sector.
IFA respects the right of Gunns to make a business decision that supports their business strategies and reflects the wishes of their shareholders. However, the decision of one company should not precipitate a complete overhaul of wellestablished inter-governmental agreements and policies such as the RFAs. The Tasmanian statement of principles was promoted as a means to commence serious negotiations about the future of the state’s forest sector and forest management in general. The Intergovernmental Panel
on Climate Change (IPCC) states: “In the long term, a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or energy from the forest, will generate the largest sustained mitigation benefit”. The IFA views this as an endorsement of sustainable forest management in native forests, complimented with a plantation resource to meet specific markets.
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TASMANIA DEBATE
Liberals want socio-economic study on impacts of closing native forests Hodgman puts 13-point plan to Hobart forum THE Tasmanian Liberals have called on the LaborGreen government to urgently commission a full socioeconomic and environmental study into the impacts of closing down native forestry, as outlined in the forestry ‘statement of principles’. This study should be undertaken by a credible independent third party with the capacity to undertake a thorough analysis of all the ramifications of shutting down native forestry, and allow for decisions to be made on science and evidence, rather than on short-term political and commercial imperatives. The need for this study has been underlined by the social and economic impact of Gunns’ decision last week to close some of its woodchip facilities. “While Labor and the Greens have been quick to throw their support behind the statement of principles, they have completely failed to understand the impact on the community and on the economy, which it has been estimated could cost 3500 jobs and destroy regional communities,” Leader of the Tasmanian Opposition Will Hodgman said. “For a premier who claimed he wanted to be ‘evidence based and data driven’, David Bartlett’s reckless push towards obliterating forestry in Tasmania is clearly driven by nothing more than political posturing and self-preservation. “It will be an appalling act of economic vandalism if the premier refuses to make decisions based on evidence and facts. I call on him to state whether or not he will undertake a full cost benefit immediately.” Speaking at the Hobart forestry
Will Hodgman .. policies support resource security.
forum, Mr Hodgman said: “We are very concerned about the direction of this debate, much of which is happening behind closed doors.” He said this was a debate that should be led by facts and data, not emotion; and by science and evidence, not politics. “We understand that there are major challenges confronting the industry, including strong international forces. And we understand that because other factors, such as the imminent departure of Gunns from the native forest sector, there will be inevitable changes,” Mr Hodgman said. “But we do not believe that shutting down a major part of this industry – for the wrong reasons – is the change we need.” Mr Hodgman tabled the Opposition’s 13-point plan for the forest industry at the forum. He said the industry was the second biggest contributor to Tasmania’s gross state product, contributing around $1.6 billion in spending within the state. It
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was the state’s second biggest exporter behind mining, worth $370 million. Conservatively, it directly employed 4500 Tasmanians, with many thousands more supported through the forest industry, especially in regional communities. Mr Hodgman said the 13-point plan for the forest industry would allow for the orderly restructure of the native forest sector following Gunns’ departure. It provided resource security in the sustainable highvalue native forest sector in perpetuity and allowed for significantly improved environmental outcomes – 150,000 ha of forests were able to be reserved, including the protection of ‘iconic’ forests
such as the Styx and the Florentine, and the Weld. “In short, it’s a ‘win-win’ for the Tasmanian community,” Mr Hodgman said. He listed his 13 principles for the forest industry, reviewed in extract here: 1. Jobs and regional communities come first with strong support for improved environmental outcomes. 2. We don’t agree with the government basically outsourcing responsibility for the future of our state-owned resource to an unelected group of big business, big environment and big union 3. A social, economic and environment study should be undertaken. Decisions should be taken on the basis of evidence, data and science – not political opportunity or emotion. Why haven’t there been any scientists in this process? 4. Native forest harvesting can and should continue in perpetuity. It makes no sense to lock up sustainable, renewable native forests to deal with shortterm adjustment or commercial imperatives, and instead cover our production farmland with monoculture plantations. 5. Up to 150,000 ha of high conservation value forests – including old growth forests such as the Styx, Weld Valley and Florentine can be locked up Cont Page 16
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TASMANIA: THE DEBATE
Plan allows for the orderly restructure of the native forest sector after Gunns’ exit From Page 15
with significant environmental outcomes. 6. All discussions must be open and transparent and should involve the Tasmanian community. Too many people have been alienated from these discussions. 7. There must be minimal state public expenditure. The government should not be in the business of buying out forestry industry jobs. An exception may need to be made for forest contractors, who despite the $22 million federal funding, are still struggling from reduced volumes, and will continue to
suffer once Gunns exits. 8. Private forest operations must not be compromised. They contribute between 3040% of Tasmania’s native forest production and are a critical part of our future forest industry. 9. A new 20-year rolling RFA should be negotiated with the federal government to provide the security the industry needs. 10. We continue to support the proposed Bell Bay pulp mill, as we have for many years. 11. Comprehensive and properly funded forest management strategies need to be developed. Recent figures
obtained by the Tasmanian Liberals show that over the past five years cumulatively, less than 1% of the 1.3 million ha of forest reserves managed by the Department of Primary Industries, Parks, Water and Environment, were subject to fuel reduction burns – massively short of the target recommend by the recent Victorian Bushfire Royal Commission of 5% a year. 12. Alternative uses for woodwaste needs to be seriously examined. Sawmilling will only ever be a viable industry while the excess timber from sawmills and the forest floor can be sold for a value. It is important that
we diversify and examine other options for timber waste, such as biomass generation and biofuels. 13. Innovation, research and development must drive our forest Industry. We called for the government to look to establishing a Forestry School of Excellence, and we strongly support the federal government’s continued support of the CRC for Forestry. [Will Hodgman has surged in popularity in the latest Tasmanian poll as voters shun Labor and the Greens].
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