Issue 190

6551

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issue 190 | 12.09.11 | Page 1

Govt cripples forest science

This Issue • Priorities are clear for David Pollard • Stora Enso on track to open new warehouse

Sustainability of $22bn industry under threat as federal government slashes R&D funding

By JIM BOWDEN

Science madness .. government confused about the value of forestry R&D.

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• African mahogany beacon for forestry in Top End • Standards revision priority for AFS • High tea and high time for women’s network • China: 40 million ha under forests this decade

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industry CRCs will be sent out to pasture as research funding for cotton, beef, poultry and water is stopped.

NSW Nationals senator John Williams says funding may be cut for the 42 CRCs across Australia, a shameful neglect of future research and industry development.

The current annual cost to government is $180 million, but it is worth much more to the institutions as it is matched by industry. ”These are successful programs that have proven invaluable Cont Page 2

Treated

AUSTRALIA’S $22 billion forest industry is in danger of losing the science skills to manage forests sustainably as the federal government continues to slash R&D funding, the latest blow a winding up of CRC for Forestry.

Research and education by CRC for Forestry, based at the University of Tasmania, has added more than $1 billion in value to the forest industry. Its bid for a new round of funding has been refused by the Gillard government.

In fact, a wide section of rural

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issue 190 | 12.09.11 | Page 1

ISSUES

Funding cuts to CRCs ‘shameful’

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 190 | 12.09.11

for industry and delivered improved educational and health outcomes throughout Australia for two decades,” Senator Williams said.

“But instead of funding this valuable research, the government comes up with comical polices like the cash for clunkers which has disappeared without trace.”

He said $180 million was a paltry amount in the Budget, but vital for ongoing research

by CRCs. The CRC for Forestry, chaired by former NAFI chief executive Kate Carnell, is a working partnership built on 15 years of successful collaboration among the nation’s leading forest research organisations, companies and government agencies.

Government accused of having ‘no discernible’’ national forestry policy Dr Glen Kile, former CSIRO forest scientist and former executive director of the Forest and Wood Products Research and Development Corporation [now Forest and Wood Products Australia] has accused the government of having ‘’no discernible’’ national forestry policy.

Dr Kile says funding cuts have effectively dismantled Australian forestry research over the past decade. ‘’We are now in a very vulnerable position, where Australia has limited capacity to respond to the new technology and sustainability challenges facing the industry,’’ he said. ‘’We were a world leader in forestry research – and in many aspects we still are – but we are rapidly losing that expertise at a time when the industry needs to plan for transition.’’

Cooperative Research Centres Association chief executive Professor Tony Peacock has also warned Australian science is ‘’experiencing a period of real

Dr Glen Kile .. forestry now in a vulnerable position.

danger’’, after the government’s axing of three multi-million dollar national agricultural research centres – forestry, cotton catchments and beef genetics.

“They will be wound up next year, with hundreds of regional research jobs expected to be lost, including at least 50 in forestry sciences.”

John Williams .. neglect of future research and industry development.

The slash in funding has caught the CRC for Forestry in the middle of a number of projects under way in the Green Triangle plantations.

Chief executive officer Professor Gordon Duff says improvements to second Cont Page 7

Hosted by Hyatt Hotel and Parliament House, Canberra Tuesday 13 September

Forests and Timber – Women’s Forum Industry Briefing – carbon pricing and carbon initiatives

Wednesday 14 September Conference - Productivity & Competitiveness • • •

International competitiveness Investment in productivity Carbon - the game changer for the industry

Industry Liaison Dinner at Parliament House Thursday 15 September

First Super Investors Seminar Skills and Employment Council (SEC) meeting

More information and to register Web: www.forestworks.com.au/conference Tel: 1800 177 001

Registrations Now Open

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INDUSTRY PROFILE

Priorities are clear for David Pollard

Working to build a united industry association

By JIM BOWDEN

DAVID POLLARD has arrived at the helm of the Australian Forest Products Association with a set of clear priorities – to build a robust organisation, achieve industry unity, fight for resource security, encourage plantations investment and adapt to a fastchanging political landscape.

The new chief executive says “we need to do a number of important things, but first we must build the organisation.

It’s the result of bringing two previous organisations together, each with diverse memberships into one new single entity which now has an even greater diversity of members.”

Dr Pollard himself comes to AFPA with a diverse background – in business, policy structure and finance – and he has worked in challenging spaces where quick solutions are required. ’Our internal priorities are really around giving members the best value for money so they see their organisation as an effective one’ He was the first chief executive of VicForests when the stateowned business was launched in 2004 and was inaugural chief executive of the Australian Film Finance Corporation (1988-90).

This was followed by five years as chief executive and Commissioner of State Revenue, and a stint as an assistant commissioner on the Industry Commission. He has also written books on public policy.

As inaugural CEO of AFPA, Dr Pollard has a lot on his plate, but he is quick to identify problems and set his mind to a solution.

In developing a credible plan for AFPA, he says appropriate areas for organisation building must be identified and pursued but with the realisation that

David Pollard .. industry needs unity now more than ever.

these will alter from time to time, especially in the changing political environment.

“There are lots of areas where an industry association could be spending its limited funds.

We’ve got to be smart and make sure that everything is used as efficiently as it can be,” Dr Pollard said.

“So our internal priorities are really around giving members the best value for money so they see their organisation as an effective one.

“We need to make sure we have everybody inside the tent who needs to be inside the tent. We must make sure our staff are servicing the needs of industry appropriately and that members fully engage in the organisation by attending chamber meetings and participating in elections for the board of directors.”

He says a key focus is building unity .. “because the industry needs unity now more than ever given the pressures we are under from all sides.”

He says to be credible in Canberra, AFPA has to represent the entire industry, not favouring one sector or technology over another.

One of the most obvious goals for AFPA, says Dr Pollard, is forging policy around an investment instrument to ensure the future and continued growth

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of the plantation sector.

“Plantation growth has plateaued and has indeed fallen slightly. This is counterintuitive when you realise the population is increasing and the requirement for residential construction is expanding.

“Yet we have a situation where although demand for sawn timber is growing, the industry faces a challenge to meet the demands for building materials expected within the next 10 to 20 years.”

Dr Pollard said softwood plantations in every country in the world were contingent on

some form of support, either from government subsidies or taxation expenditure.

‘One of the most obvious goals for AFPA is forging policy around an investment instrument to ensure the future and continued growth of the plantation sector’ “We need to keep reminding the Australian government that this is a global situation and it’s not going to be any different in this country.

“Governments can’t run away Cont Page 12

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If we can assist you, please contact us on 02 9277 3100.

issue 190 | 12.09.11 | Page 3

INDUSTRY NEWS

Adapt to change in Standards revision key priority for AFS wind, fire and rain Appointment soon of new CEO Cyclone Yasi damaged large areas of commercial plantations this year while the floods in southeast Queensland damaged forestry roading. Both are examples of what climate change could bring in the form of changed weather patterns.

Foresters will need to factor in these types of weather events, as well as variations in rainfall and bushfire frequency, which may arise with future climate change.

Following successful regional workshops held earlier his year, three Climate Change Adaptation Workshops are being hosted by AFPA in late September in a number of forestry regions to promote awareness of future projected climatic trends and how the forest industry can best respond, with a particular emphasis on plantations.

A specific seminar will be held in Cairns in the heart of the timber region affected by Yasi.

Workshops will be held in: HOBART (26 September) TRARALGON (28 September) CAIRNS (30 September).

All workshops from 11am-2 pm include a light lunch.

Topics include: climatic trends and effects on productivity in plantation regions; options for industry adaptation to a changing climate; case studies applying new tools to assess adaptation options; and local issues and factors affecting adaptation.

Speakers include: Mick Stephens, Strategic Policy Manager, Australian Forest Products Association, Dr Libby Pinkard, Senior Research Scientist, CSIRO, Dr Don White, Group Leader, Forest Systems, CSIRO Case studies will describe tools for assessing tree mortality risk and site hazard rating for hardwood and softwood plantations. Speakers on local adaptation issues and responses include: Dr Tim Wardlaw, Forestry Tasmania in Hobart (Tasmanian forest climate issues); Dr Craig Nitschke, University of Melbourne, in Traralgon (Victorian species responses to climate); Jim Burgess, Timber Queensland, in Cairns (Cyclones and timber plantations).

The project is supported by funding from the Australian Government Department of Agriculture, Fisheries and Forestry under its Australia’s Farming Future Initiative.

Register by downloading a registration form at www.ausfpa. com.au and for information, contact AFPA on (02) 6285 3833 or email enquiries@afpa.com.au

Page 4 | issue 190 | 12.09.11

THE appointment of a new chief executive of Australian Forestry Standard Ltd is expected within two weeks.

AFS chairman Geoff Gorrie said the position would be filled by a person at a senior level and capable of charting the company through its next phase.

Current CEO Kayt Watts, who joined AFS in 2008, will not renew her contract with the organisation.

Mr Gorrie said a revision of standards would be a key priority for AFS over the next two years.

“We have absolute confidence in the company which still holds something like 90% of the market in Australia – and its growth is continuing,” he said.

“Advancement in the chain of custody area has been remarkable.”

He said the level of support for AFS by both the industry and government was gratifying.

More than 9 million ha of Australia’s forests are certified to AFS’s own world class forest management standard.

‘The level of support for AFS by both the industry and government is gratifying’ – Geoff Gorrie Kayt Watts, who leaves AFS in October, says her skills will be better used in the business area of the market .. “assisting those businesses that are doing the right thing and helping those who want to do the right thing and get certified.”

AFS is recognised internationally through the Program for the Endorsement of Forest Certification schemes (PEFC), the world’s largest certification network with about 235 million ha of

Geoff Gorrie .. AFS has high level of industry and government support.

forests certified in compliance with world sustainability benchmarks. More than 8000 companies and organisations have achieved PEFC chain of custody certification.

AFS Ltd succeeded the Australian Forestry Standard Steering Committee which initiated and managed the development of the Australian forestry standard from late 1999 to July 2003.

The committee was a partnership of federal, state and territory governments, the National Association of Forest Industries, Plantation Timber Association of Australia, Australian Forest Growers and the Australian Council of Trade Unions.

The company is an accredited standards development organisation; its initial accreditation was awarded by the Standards Accreditation Board of Standard Australia on January 27, 2004.

The scope of the accreditation was “to develop Australian standards for forest management for wood production and Australian standards that support the Australian Forest Certification Scheme”.

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events

WHAT’S ON? SEPTEMBER 13: Women in Forests meeting and carbon pricing and carbon initiatives briefing – Hyatt Hotel , Canberra. Visit: www.forestworks. com.au/conference Tel: 1800 177 001 12: Private Forestry Service Queensland annual general meeting. Venue: Woodworks Museum, 8 Fraser Road, Gympie.

AGM starts at 12 noon. Light lunch provided. Contact: Bronwyn Lloyd, administrator, Private Forestry Service Qld. Tel: 0754 836 535.

Fax: 0754 838 996. Email: pfsq@ bigpond.com www. pfsq.net 14-15: ForestWorks Annual Industry Development Conference: Productivity and Competitiveness. Hyatt Hotel, Canberra. Evening: Industry liaison dinner at Parliament House.

Visit: www.forestworks.com.au/ conference Tel: 1800 177 001.

The conference will provide an in-depth exploration of the many impacts and opportunities facing the industry in 2011 and beyond. The conference has been specifically scheduled to coincide with parliamentary sitting week, providing a great chance for industry players, union representatives, policy makers and MPs to gather, network and share ideas. Tel: (03) 9321 3500. www. forestworks.com.au/conference 20: Industry dinner.Fratelli Restaurant, 103 Crosby Road, Albion, Brisbane (Crosby Park Rugby Club grounds). 6.30 pm for 7.pm. Guest speaker Simon Dorries, general manger, Engineered Wood Products Association of Australasia – The Impact of the Carbon Tax on

Wood Product Manufacturers and Distributors. Supported by Timber Queensland and TABMA Queensland. Organised by Brisbane Hoo-Hoo Club 218.

Evening includes recognition of past presidents of Club 218.

Cost $70 p.p. or $650 table of 10 (includes hors d’oeuvres, two-course dinner, wine and soft drinks). Wives and partners welcome. RSVP: September 12.

Contact: Jim Bowden on 07 3266 1429. Mob: 0401 312 087 or John Muller (07) 5494 2723. Mob 0418 871 94

(UDELAR) and the International Union of Forest Research Organisations (IUFRO). Motivated by the massive development of the forestry sector in several countries in South America.Visit www. iufrouruguay2011.org

july 2012 11-14: AWISA 2012. Sydney Convention and Exhibition Centre.

Contact: Contact Exhibitions Pty Ltd, PO Box 925, Avalon NSW 2107. Tel: 612 9918 3661 Email: info@awisa.com Web: www.awisa.com

October 28: Timber Industry Dinner, incorporating the TABMA awards. Doltone House, Darling Island Wharf, Sydney. Supported supported by TDA NSW, the Furnishing Industry Association of Australia, the NSW Forest Products Association, the Timber Trade Industrial Association, WADIC, the Australian Timber Importers Federation, TABMA Australia, and WoodSolutions. Contacts: Sydney – (02) 9277 3100. Adelaide – 0407 102 244. Perth – 0414 908 465.

Brisbane – (07) 3254 3166. Hobart – 0407 102 244.

31-2 (Nov): 5th International Woodfibre Resources & Trade Conference. Grand Copthorne Waterfront Hotel, Singapore.

Contact Pamela Richards on 61 3 5781 0069. Visit www. woodfibreconference.com

NOVEMBER 8-11: IUFRO Forest Health Joint Meetings. Colonia del Sacramento, Uruguay. Organised by the National Agricultural Research Institute (INIA) in Uruguay, the University of Uruguay

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Diverse speakers kick off conference TASMANIAN senator David Bushby, chair of the Coalition Economics Committee, Deputy Opposition Whip in the Senate and member of the Senate Standing Economics Committee, will speak in the morning session of the industry development conference in Canberra on September 14.

The conference will be opened

by Senator Nick Xenophon, with questions from the floor, followed by the ACF CEO Don Henry.

The morning session also includes a presentation by David Rhodes, CEO of the NZ Forest Owners Association.

Senator Chris Evans, Minister for Tertiary Education, Skills, Jobs and Workplace Relations, will address the industry liaison dinner at Parliament House in the evening, joined by more than 30 of his parliamentary colleagues.

Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association.

The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI).

AFPA was established to cover all aspects of Australia’s forest industry: - Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting.

For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.

issue 190 | 12.09.11 | Page 5

INDUSTRY NEWS

ITEM: BOARD LENGTH: 4489.67 MM WIDTH: 104.42 MM THICKNESS: 52.43 MM WEIGHT: 23.74 KG VOLUME: 0.02 M3 DENSITY: 972 KG/M3 MoE: 10.8 GPA WORST VISUAL DEFECT: THROUGH KNOT 20% KAR GRADE: MSG10

Inspection of new trial sites in Shankou found a fishing net factory in the plantation. The site close to a fishing village will not be harmed by this activity. Australian foresters wonder if this would be classed as multiple use – even if unauthorised!

Picture supplied by Dick Pegg .

China aims to have 40 million ha under forests this decade CHINA aims to increase its forest cover to 40 million has over the next decade as part of a commitment to cut down its intensity of carbon emissions by 40 to 45% per unit of GDP by 2020.

China will continue to accelerate the pace of forestry development in line with its promise to cut down emissions as compared to the 2005 levels, President Hu Jintao told the first APEC forest ministers meeting in Beijing.

It is working to increase the country’s total forest inventory by 1.3 billion cub m from 2005 to 2020,” he said.

“China is ready to make new contributions to green growth and sustainable growth.”

According to a World Bank study, China’s forest cover has grown from nearly 12%

Page 6 | issue 190 | 12.09.11

to more than 18% in the past 20 years, through a concerted reforestation program and a country-wide ban on logging.

Its goal is to increase forest cover to 23% by 2020.

According to the bank, China has undertaken the biggest plantation program in the world availing its biggest funding of $ 1.2 billion since 1985.

China had committed to voluntary emission reductions to cut down its intensity of carbon dioxide emissions per unit of GDP in 2020 by 40-45%, compared with 2005 levels.

China had also said it would increase the share of nonfossil fuels in primary energy consumption to around 15% and have 40 million more hectares of forest by 2020.

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issues

Ignorant on contribution of forests From Page 2

rotation productivity and competition for water were among projects now likely to be abandoned.

“Look, the costs on things like harvest and transport of that resource to mills and to ports – it’s a massive expenditure by the industry and the CRC was making very significant inroads to reducing those costs and improving efficiencies. But we had a long way to go and a lot of work yet to do,” Prof. Duff said.

“We thought we’d done a very good job on making our case for an extended period of funding and from the point of view of where the forestry sector is at the moment, we think the industry is at a crossroads and it’s in need of fresh ideas and innovation and a solid research base to take it forward, so we were very surprised at the outcome.”

Prof. Tony Peacock .. Australian science experiencing period of real danger.

Prof. Gordon Duff .. surprised at the outcome.

facilities focused on improving efficiencies in timber transport

and harvesting.”

Dr Pollard said these were crucial areas for the ongoing efficiency and productivity of the industry. R&D was also important in maximising the positive role the forest industry could play in mitigating climate change.

He said the decision not to support the CRC was equivalent to losing 50 fulltime positions and would affect around 40 research partners, companies and universities, which represented a real threat to forest research capacity.

Coalition forestry spokesman Cont Page 14

‘The funding blow follows on from a number of irrational, negative decisions made

by Labor, including the exclusion of biomass from renewable energy programs and the recent deal that will cut the Tasmanian forest industry in half’ – Richard Colbeck Chief executive of the Australian Forest Products Association David Pollard said the work of the CRC for Forestry was crucial given the current debate around the future makeup of the industry and climate change.

“The forest industry has faced a challenging period as the debate over the future supply of wood from native forests and plantations is carried out,” he said.

“The CRC is focused on areas essential to the future of the industry such as value-adding to plantation resources, tree species genetic improvement and socio-economic studies.

It is one of the only research

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issue 190 | 12.09.11 | Page 7

INDUSTRY NEWS

FWPA

2011 SEMINARS TECHNICAL TOOLS FOR YOU FWPA’s R&D Works seminars are part of an ongoing initiative designed to deliver technical research and solutions. Seminars will be held throughout 2011 in all major forestry regions.

PERTH, THURSDAY 15 SEPTEMBER 2011 TOPIC

PRESENTER

Energy Management Tools (Solid Wood Initiative)

Marco Lausberg

Onboard systems guide (CRC Forestry)

Rick Mitchell

Assessing cants to maximise outturn of structural timber (Solid Wood Initiative)

Marco Lausberg

Decision support for water use efficient plantation management and wood production

Don White

BPOS: optimising Blue Gum plantation profitability (CRC Forestry)

Justine Edwards

Kiln Drying: Efficacy of Shortened Steaming & Dynamic Kiln Control (Solid Wood Initiative)

Marco Lausberg

IPMG: working together to tackle regional plantation issues (CRC Forestry)

Francisco Tovar

Fire Testing Protocols for Timber products

Andrew Dunn

How to guarantee in-service warp stable timber (Solid Wood Initiative)

Marco Lausberg

Managing LAI: How much is enough? (CRC Forestry)

Don White

Plywood box beams

Andrew Dunn

Guide to the specification, installation and use of preservative treated engineered wood products

Peter Law

VENUE: Technology Park Function Centre, 2 Brodie Hall Drive, Bentley REGISTRATION: 8.30 am (coffee on arrival) Start 9.00 am Finish 12.30 pm (followed by a light lunch)

RSVP DETAILS Please register your attendance at http:// fwpardworksseminarsperth.eventbrite.com by 5.00 pm Tuesday, 13 September Page 8 | issue 190 | 12.09.11

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INDUSTRY NEWS

Stora Enso on track to open new warehouse at Derrimut over Melbourne Cup weekend TIMBER importer Stora Enso Australia Pty Ltd has chosen the Melbourne Cup weekend to officially open its new 38,000 sq m warehouse complex in Derrimut, 18 km west of the city.

The warehouse – three times the size of the current distribution centre in Laverton – will bring the company’s timber storage capacity in four states to about 80,000 cub m.

The Derrimut site includes 36,000 sq m under concrete and 15,000 sq m under roof cover.

Stora Enso opened a smaller distribution facility at Gosford, NSW, last year which, according to managing director Matthew Wood, was a way of “dipping our toes in the Sydney market and waiting for the inevitable turnaround in the market”.

A significant warehousing project is under way in the Brisbane suburb of Virginia that will see Stora Enso shift from its cramped Port of Brisbane location. The Virginia complex of 18,000 sq m, including 12,000 sq m under concrete and 6000 sq m under cover, will be officially opened on October 14.

Stora Enso currently holds about 40,000 cub of timber in warehouse storage in Melbourne, Adelaide, Gosford

“They have racking set up for 20 different profiles of weatherboards with only eight to a rack. It seems they are going after a different market.”

Mr Wood noted that at the opening of the Masters store there appeared to be more Bunnings personnel on the floor than buyers from the general public.

Artist’s impression of the new Stora Enso distribution centre in the Melbourne suburb of Derrimut.

and Brisbane.

Mr Wood and national sales director Darrin Wheeler recently dropped into the new Woolies’ Masters hardware store at Braybrook, 9 km west of Melbourne, which is putting pressure on rival Bunnings.

The newest entrant to the hardware market is a joint venture between Woolworths and US home improvement chain Lowe’s. More than 35,000 products in categories including lighting, painting, flooring, kitchens, outdoor furniture, gardening, windows and walls are on offer and the chain hopes to open 150 stores within five years.

Mr Wood said the new store had a long way to go to catch up to Bunnings on the amount

Peeler logs diverted to China FORESTRY Tasmania has begun exporting logs previously destined for the Triabunna woodchip mill. The loading of 23,000 tonnes of “export peeler” logs bound for China started last week.

Forestry Tasmania general manager corporate relations Ken Jeffreys said the shipment would be peeled and processed into engineered timber for use in furniture, floorboards or

structural timber.

“We think it’s the way of the future,” Mr Jeffreys said. “We’d like to look beyond sawlogs and woodchips and take advantage of growing international consumer demand for engineered timber products.”

Although value-added processing will be offshore, FT will not receive a lower price for logs.

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of timber stocked.

“The area for timber is small, nowhere near the size of the area dedicated to wood by Bunnings. The product range is extensive but quantities are small,” he said.

InSurAnce..

It’S All In the SelectIon

Stora Enso, based in Finland, has an annual production capacity of 6.4 million cub m of sawn timber, including 3.2 million cub m of value-added products, 11.8 million tonnes of paper board and 1.3 billion sq m of corrugated packaging.

The group has around 26,000 employees and 85 production units worldwide.

Selecting the right equipment to maximise your production output is similar to selecting the right people to maximise your insurance protection.

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issue 190 | 12.09.11 | Page 9

forest frontiers PROSPECTS of a promising future for African mahogany in northern Australia took a step forward with a major gathering of researchers, practitioners and consultants at a three-day forum in Darwin last month.

The forum focused on research, forest practice and wood processing of African mahogany (Khaya senegalensis) in the Northern Territory.

Forest consultant John Halkett, a forum speaker, said that at a gloomy time for forestry, African mahogany might be a desperately-needed beacon on the hill for industry with the species achieving the remarkable feat of being the one with the greatest area of new land planting in the country this year.

“The fraudulent shambles that masqueraded as a forest ’peace deal’ in Tasmania, the disgraceful carbon tax provisions that exclude carbon offsets from domestic plantations, and the sacking of the bulk of the remaining forest scientists in New South Wales all point to a forest industry under siege like never before,” Mr Halkett said.

“But bucking this trend was the Darwin forum that examined the future prospects for African mahogany.”

With the production of hardwood timber from native forests diminishing and imported hardwoods under pressure to meet demand, plantation-grown mahogany looks like a potential winner Organised by Queensland’s DEEDI and the Northern Territory Department of Resources from August 30 to September 1, the forum of about 40 experts considered the future research needs and prospects for the African mahogany industry that now has trees planted across northern Australia, including about 10,000 ha in the DouglasDaly region of the Northern Territory.

“With the production of hardwood timber from native

Page 10 | issue 190 | 12.09.11

MAHOGANY .. a beacon for forestry in TopEnd Forest scientists inspect African mahogany clonal ‘hedge’ plants at Territory Tree Nursery during the Darwin forum.

forests diminishing and imported hardwoods under pressure to meet demand, plantation-grown mahogany looks like a potential winner in the future supply scenario for medium density, dark coloured, high value hardwood timber,” Mr Halkett said.

While acknowledging the substantial amount of cuttingedge research that has been

undertaken over the past five years, including that achieved by the formation of the Smart Forest Alliance, the Darwin forum was quick to recognise there is significant research and development needed at a time when forest research funding is extremely tight.

Leading tropical forestry scientists and practitioners from government agencies,

Kon Vatskalis, Northern Territory Minister for Primary Industries (left) presents the winner’s award at the African mahogany exhibition to master Northern Territory wood turner Trevor Hinchcliffe.

CSIRO, universities and consulting companies agreed additional research work was needed on tree improvement, plantation practices, timber characteristics, product innovation, small log utilisation and commercial viability that collectively would set the tone for further African mahogany plantation expansion and wood processing development.

The science forum was assisted by financial support from Forest and Wood Products Australia, the NT and Queensland governments and a number of companies involved in plantation establishment and early utilisation of mahogany logs.

The forum also acted as the catalyst for an African mahogany furniture and craft showcase sponsored

by Plantation Management Partners at Darwin’s up-market Territory Colours gallery.

Leading Top End furniture makers, craftsmen and wood turners contributed more than 50 items to the outstanding Cont Page 11

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forest frontiers

35,000 ha of mahogany likely across north Australia within next few years From Page 10

exhibition, celebrating African mahogany as a high-value furniture and craft timber.

Along with forum participants, Northern Territory Primary Industries Minister Kon Vatskalis attended the exhibition and presented the award to the winning work, selected by popular vote to master Top End wood turner Trevor Hinchcliffe.

There are good estimates that sawn, dried timber could fetch as much as $4000 a cubic metre Mr Vatskalis said the Northern Territory was very proud of its expanding African mahogany plantation resource.

“As we can see from this exhibition, it’s a great timber tree,” he said. “I acknowledge the significant collaborative research work carried out that has set the scene for further plantation establishment and associated wood processing.

“Mahogany is a great timber that you can no longer get out of Africa. So here in the territory we look forward to creating a plantation resource that will be the basis on an employmentgenerating timber-based industry.”

Mr Vatskalis said African mahogany provided an environmentally friendly alternative to logging native forests.

Since 2006, plantations 200 km south of Darwin in the Douglas Daly region have expanded to about 10,000 ha.

Industry stakeholders are hopeful this will expand to 35,000 ha across northern Australia in the next few years.

Don Reilly from the Department of Resources says there is money to be made in the industry but it will take some time before it is viable.

Garth Nikles after a presentation recognising his long, distinguished and continuing career in African mahogany research celebrates with forum organisers Don Reilly and Geoff Dickinson and exhibition sponsor Glen Samsa.

Noted African mahogany researchers and forum organisers Don Reilly, Northern Territory Department of Resources, and Geoff Dickinson, Queensland DEEDI.

Stunning African mahogany bedside table crafted by Humpty Doo furniture maker Phil D’Alessandro.

Growing fast .. five-year old African mahogany plantation at Daly River, Northern Territory.

“At the moment, it is just being made into custom furniture, mainly turn-pieces, but it certainly lends itself to bed heads, tabletops, veneers and other specialty applications,” he said.

“And it’s putting no pressure on native forests here or overseas.

“In fact, we are hoping it will reduce pressure on those sorts of logging activities.”

Mr Reilly says the industry was still in its infancy, with the oldest

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plantings only five years old.

“With a rotation of 18 to 20 years, we are only a quarter of the way into the first rotations, so we have still got a lot of room for improvement,” he said.

“There are good estimates that sawn, dried timber could fetch as much as $4000 a cubic metre.”

During the forum wood exhibition, Kon Vatskalis presented a special award to Dr Garth Nikles in recognition

of his long, distinguished and continuing career in leading African mahogany and other species genetics and tree improvement research over more than four decades.

Dr Nikles gained a Bachelor degree in Forestry and a Diploma in Forestry in 1955, supported by a state cadetship.

He was appointed tree breeder in 1958 working with Pinus spp and hybrids and hoop and kauri pines.

He gained a PhD in Forest Cont Page 13

issue 190 | 12.09.11 | Page 11

INDUSTRY PROFILE

There has to be a compete re-think on research and development for industry From Page 3

from tax expenditures in setting policy for plantation maintenance and expansion.

It’s a plain fact that you don’t get plantation silviculture without some form of government support.”

Dr Pollard said AFPA was also concerned about resource security and the future for the native forest sector – and the need for the continuation of regional forest agreements.

“The propensity for state governments to form local relationships with green political interests has put the native forest sector under unnecessary stress in the last 10 to 15 years as states surrender a perfectly sustainable industry in the interests of local politics.

‘Australia needs a robust native forest sector and we will take on the hard fight with our state counterparts in ensuring these forests continue’ “We want to get rationality back into that. Australia needs a robust native forest sector and we will take on the hard fight with our state counterparts in ensuring these forests continue – and continue to contribute.”

AFPA is confronting the issue of a carbon future and its relation to climate change.

“There is extreme conflict at the moment; the government’s policies are not entirely clear and are to some extent self contradictory,” Dr Pollard said.

“For some reason forestry was written out of the entire script on the carbon farming initiative.

There must be rationality in this; we want to see the forest sector treated appropriately as the only carbon positive element in the entire economy and one of the few sustainable industries in this country.

Page 12 | issue 190 | 12.09.11

In need of a cash boost .. forest industry research and development.

“And the carbon tax will impact on all forms of manufacturing in Australia, including the wood processing sector.”

Dr Pollard said in the area of trade and market access, misguided campaigns by environmental NGOs were destroying Australian companies that contributed immensely to the manufacturing industry and their capacity to do this in a sustainable manner as distinct from imported products which often were not sustainable.

“So that is linked with issues around certification and imports of both legal and illegal timber.”

Dr Pollard said one subject that wasn’t getting a lot of press was technical support for the industry.

“There has to be a compete re-think on research and development; the industry needs a boost through an injection of research cash.”

He said the federal winding up of funds for the CRC for Forestry was symptomatic of a broader national forest policy vacuum. ‘’The current national forest policy framework is in desperate need of renewal. The last National Forest Policy Statement [by a federal government] was made in 1992,’’ he said.

AFPA estimates Australia’s

forestry industry has a gross annual turnover of $22 billion and employs around 120,000 people, chiefly in rural and regional areas. Dr Pollard said the forestry industry needed comprehensive national research and development plan to address economic challenges.

“Forest and Wood Products Australia has done a good job in this regard and we will work closer with them.”

He said building codes and standards, largely set at the state level, required constant internal vigilance to make sure a surreptitious green agenda was not woven into the process.

‘We must be conscious of the fact that the Australian political climate is evolving.

All these issues need to be looked at dynamically because they won’t stay static for very long’ “We must be conscious of the fact that the Australian political climate is evolving. All these issues need to be looked at dynamically because they won’t stay static for very long.

Our forest industries won’t be operating in the same political climate in 18 months or two years’ time.”

Dr Pollard appreciated that

the increasing amount of timer imports was not going to change in the short term and was driving the transformation of the industry. Much of the import surge was related to the high value of the Australian dollar.

“Local producers can be assisted through a number of measures – one of them is the government’s stated intention to do something about illegal logging and the import of illegal timber products.

“This is a very positive development and AFPA is fully supportive of the initiative and the use of certification systems and standards to designate sustainably and responsively harvested products.”

Dr Pollard said he was looking forward to working closely with state producer organisations.

“That is something we have always done but we need to be more efficient.”

He said Allan Hansard, who had powered the association over the years and had brought enormous experience to the Canberra office, would continue to work on a number of critical industry policy issues.

Richard Stanton, chief executive of A3P, will be responsible for winding down the company since its activities were merged with AFPA. The AFPA team includes Gavin Matthews (manager, resources chamber), Peter Juniper (processing), Mick Stephens (pulp and paper), two policy managers Grant Johnson and Marion Niederkofler, communications manager, Greg Heraldson, and an office manager and accountant.

Dr Pollard will have his first chance to meet the forest and timber industry community as AFPA chief wen he attends this week’s industry development conference in Canberra.

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INDUSTRY NEWS

New German laws help fight illegal logging in tropics THE German government is aggressively trying to curb illegal felling of trees in tropical countries, and is apparently willing to join hands with a number of countries, including Malaysia, to stop the practice.

Germany has already put in place a so-called Timber Trade Safeguard Law after Federal President Christian Wulff signed a Bill submitted by Agriculture Minister Ilse Aigner against the illegal felling of timber.

“This is the first step towards fighting the worldwide illegal timber felling and the destruction of the tropical forest,” Aigner said.

“The second step will follow with the implementation of the timber trade ordinance in 2013.

The worldwide destruction of forests can be stopped only if a legal and sustained use of the forests in all the countries is economically viable and, in effect, incentives are given for the sustenance of the forests.

“Then one would be able to say with a good conscience that timber products of all kinds can again be used.”

Environmental protection, along with climate change, is very close to Germans who are critical of environmental destruction.

According to German sources, 13 million ha of forests are

destroyed worldwide each year, which is more than the entire size of forests in Germany.

The latest law introduced by Germany regulates national controls on imports of timber from countries that have concluded partnership agreements with the European Union against illegal felling of trees.

So far, such agreements have been negotiated with six tropical countries (Ghana, Republic of Congo, Republic of Cameroon, Central African Republic, Indonesia and Liberia).

With further countries such as Malaysia, the EU Commission is presently holding negotiations to finalise an agreement. Under such agreements, the partner countries will set up a permit and licence system to ensure that only legally felled timber is exported to the European Union.

In return, these countries will receive, if needed, direct assistance in improving their capabilities in areas such as forest management and law enforcement.

The law will arm the Federal German Agency for Agriculture and Food, as the responsible regulating authority, with all the necessary powers to intervene.

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.

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Dedicated to forest work From Page 11

work until retirement in 2000.

Genetics and Tree Breeding under Professor Bruce Zobel at North Carolina State University, graduating in 1966.

He re-entered tree breeding in Queensland and continued this

Dr Nikles continued to work as a post-retirement associate until mid-2011 and is currently a volunteer with Queensland’s DEEDI horticulture and forestry science division.

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.

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issue 190 | 12.09.11 | Page 13

issues

‘Anti-forestry ideology loses capacity to make evidence-based policy decisions’

From Page 7

Senator Richard Colbeck said research and development funding was critical if the forest industry was to adjust to new conditions and continue meeting Australia’s domestic demand for wood products.

“The CRC for Forestry was applying for funding of $23 million to support a five-year continuation of its work and it was seeking to specifically address the forest industry’s challenges,” Senator Colbeck said.

“This CRC has been making a valuable contribution not only with science-based work, like carbon capture, but also with socio-economic studies aimed at helping forest communities transition to ensure sustainable futures.

“It seems the federal government just doesn’t understand the significant contribution made

by Australia’s working forests.

Cut off .. the slash in funding has caught the CRC for Forestry in the middle of a number of uncompleted projects.

You’re walking the plank if you put your trust in imported untested non-certified wood The risk is too great.

• Damage to your business • Possible loss of life • Legal action • Media exposure Not everything is what it seems. Trust only tested and certified products that are guaranteed*. Untested and non-certified structural plywood, wood panels, LVL and formply can cause serious accidents – even deaths – on building sites, resulting in litigation. They can be traced to the source of supply.

The choice is obvious

Engineered Wood Products Association of Australasia Tel: +61 7 3250 3700 Fax: +61 7 3252 4769 Email: inbox@ewp.asn.au Web: www.ewp.asn.au

Page 14 | issue 190 | 12.09.11

* Independently tested to the highest standard; guaranteed to comply with Australian and New Zealand building codes and standards; certified under JAS-ANZ accredited product certification scheme; guaranteed to be safe and to carry the designated design load; meets the safety and quality requirements of trade unions; meets all workplace health and safety standards.

“At a time when even senior Labor union figures are talking of about a manufacturing crisis, this out-of-touch government continue to make anti-industry decisions.

“Our forests not only produce essential wood products for everyday use but they add significant value to local economies, provide employment for tens of thousands of people, and in fact are the lifeblood of some regional areas of Australia “The funding blow follows on from a number of irrational, negative decisions made by Labor, including the exclusion of biomass from renewable energy programs and the recent deal that will cut the Tasmanian forest industry in half.”

The federal decision comes on the heels of the NSW government’s announcement of job cuts at the state’s Department of Primary Industries. And there are fears they are the tip of the iceberg.

Staff at the department’s forest science centre, based in northwest Sydney, were told that 11 of the 31 positions will be abolished. They were told they would have to reapply for their jobs or accept voluntary redundancy.

The centre undertakes research into the ecological sustainability of forests and agriculture.

T&F enews has observed for some time the gradual dilution of forest research, lamenting the halcyon days of government forestry agencies carrying out R&D in the laboratory and in the field on an operational basis.

This was backed up by more basic research by CSIRO and universities.

Now these researchers have disappeared or have been secreted among rows of Bunsen burners in the bowels of universities.

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EVENTS

High tea and ‘high time we got together’ New friendships in industry as women network in Brisbane A HIGH tea in Brisbane for women in industry proved an enjoyable and worthwhile networking event with the promise that it will be repeated.

Fifteen office, technical and sales managers and office and account t administrators gathered at the Sofitel Brisbane Central Hotel to exchange views and ideas about the timber business and munch on ribbon sandwiches, cakes and other delicacies.

“It was a real success. Everyone

connected professionally and socially and new friendships were forged,” said Alicia Oelkers, operations manager at TABMA Queensland, which organised the event.

“And all of us are looking forward to the next meeting and even greater numbers of women attending.”

“It was a high tea and high time these women came together; often they are just voices on a phone to each other.”

Sharing the afternoon were Jenni Day, marketing manager,

Jenni Day, Versace Timbers, and Clarissa Brandt and Telia Pauchet, Timber Queensland.

Jennifer Dowell , Melonie Hilcke and Carolyn Wilson, Parkside Timber.

Versace Timbers; Clarissa Brandt, communication manager, Timber Queensland; Telia Pauchet, administrator, Timber Queensland; Debbie Payne, sales representative and specification, Tilling Timber; Fiona Luckey, engineered products manager and sales manager, Hyne; Susan Jorgensen, HR officer, Thora Wholesale Timbers; Danielle Shave, accounts officer, Thora Wholesale Timbers; Julie Gallagher, senior project officer, Workplace Health and

Safety Queensland; Jennifer Dowell, customer service manager, Parkside Timber; Melonie Hilcke and Carolyn Wilson, sales representatives, Parkside Timber; Corinne Tickle, trainee administrator, TABMA Queensland; Alicia Oelkers, operations manager, TABMA Queensland; Carol Claffey, technical and training manager, Tilling Timber; and Dee Atkinson, office manager Queensland, Tilling Timber.

Susan Jorgensen and Danielle Shave, Thora Wholesale Timbers, and Julie Gallagher, Workplace Health and Safety Queensland.

Corinne Tickle and Alicia Oelkers, TABMA Queensland.

Debbie Payne, Tilling Timber, and Fiona Luckey, Hyne.

Knock, knock. Who’s there? Tuesday at quarter past two!

CLOCKS and watches are getting high-tech with features such as GPS and the Android operating system.

Now there’s the Knock Clock, which only communicates via knocking. It looks like nothing more than a simple block of

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wood and sounds as if there’s a possum or woodpecker inside knocking. If you want to know the time, simply knock twice on the

outside and it responds with a series of knocks corresponding to the current date and time, at least to the quarter hour.

issue 190 | 12.09.11 | Page 15

CERTIFICATION

Forest certification in Australia .. the times they are a-changin’ THREE years ago Australian Forestry Standard was struggling with its brand, a system that was built from the bottom up on the strength and credibility of implementing an Australian standard, which was very much forest-based.

In the past three years this dramatically evolved as the supply chain for wood and wood products engaged in the process to become certified, with more than 90% of Australian forests certified under the standards.

Along with this was a global alliance with the world’s largest certification scheme, the Program for the Endorsement of Forest Certification, and the growing demand from the front end of the market as processors, manufacturers, merchants and retailers committed to improve their statement of responsible forest management sourcing of wood and wood products.

In three years, there has been an increase of 703% in certificates issued for the Australian Standards and market awareness has come from multiple market areas, the major influence being the acceptance of the standards in the Green Building Council’s timber criteria for green star rating.

While the Forest Stewardship Council has spent the last 10 years marketing to the front end of the supply chain and gaining brand awareness, the PEFC member countries, including AFS, were building up the availability of certified raw source and certification of forests.

The times are now changing in the industry where suppliers and consumers are taking the lead. Wood and wood products sourced from sustainable forests are demanded by consumers, companies and governments

Page 16 | issue 190 | 12.09.11

By

KAYT WATTS who have a responsibility to ensure that their procurement is not at the expense of the future of the world’s forests, but positively supports responsible forest management.

The Australian Standard framework, recognised by the International Standardisation Organisation (ISO) framework, provides an open and transparent process for public consultation and involvement in the review and ongoing improvement of the standards to ensure business relevance and capability, environmental responsibility and social awareness.

In three years, there has been an increase of 703% in certificates issued for the Australian Standards and market awareness has come from multiple market areas Organisations are now developing a procurement policy for certified wood and wood products that communicates in a clear, concise and transparent manner that their wood, wood products, and other forest products have been sourced from sustainably managed

forests; that they have been manufactured with due respect for workers’ rights along with about 6000 other Australian standards.

There has been a huge move for global procurement endorsement and recognition of wood and wood products.

After rigorous assessment of PEFC standards, including PEFC national members, and specifically targeting the Australian Standard, there has been acceptance of these standards by Belgian, British (CPET), Danish (TPAC), Finnish, French, German, Japanese, and Swiss timber procurement policies.

WWF and the World Bank - FCAG, a framework for assessing credible forest certification systems and schemes, has recognised and included PEFC in their procurement requirements.

The UK government in partnership with WWF has developed a template for Responsible Purchasing for Forest Products for local councils/authorities that states the requirement for certified products from PEFC and FSC. On a national level, we sadly see the Australia government dragging its feet regarding implementing a procurement policy, while they muddle around with the development of legislation for the verification of legality and have talk fests about how they are going to implement it, while they get hoodwinked into locking up our 100% renewable native forest resources.

As we pass the half way mark in the supply chain with the engagement and acceptance by merchants to take up certification, the ‘green’ antiforest movement is very worried that the Australian Standard

is seen as the best business practice and solution for organisations wanting to make a commitment to responsible sourcing of forests products.

The Australian Standard AS 4707 Chain of Custody traceability offers assurances that the certified wood or fibre in a final product can be traced back to sustainable sources managed with due respect for environmental, economic and social standards.

Organisations are now developing a procurement policy for certified wood and wood products that communicates in a clear, concise and transparent manner that their wood, wood products, and other forest products have been sourced from sustainably managed forests We are now at the front end of the market. Retailers and building developers have the widest source of certified products through the PEFC scheme and the confidence.

They are also sourcing products from Australia that support workers and communities.

The key for the industry now is procurement policies – developing and implementing sourcing of certified sustainable wood and wood products policies. This must start with the government; it must get off the fence, make the commitment to the Australian Standard for sustainable forest management, and lead the change. *Kayt Watts is CEO of Australian Forestry Standard. After three years helping to develop the AFS standard as a leading recognised brand for sustainable forest management, she leaving the organisation in October.

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industry news

Another failure on forest deal

by Julia Gillard THE collapse of the forestry deal in Tasmania is yet another failure for Prime Minister Julia Gillard, Coalition forestry spokesman Richard Colbeck said.

“The Prime Minister personally came to Tasmania and spent three days here pushing through a Greens-inspired deal with Lara Giddings,” Senator Colbeck said.

“The Coalition said all along this is a dud deal. The agreement will not achieve any of its goals and Ms Gillard cannot escape her starring role in orchestrating this failure.

“The Prime Minister made secret capitulations to the Greens in the final days of negotiation and caused industry’s loss of confidence in this process.

“The rejection of the offer by Gunns further demonstrates Ms Gillard has no idea about the forest industry and has simply been driven by the need to appease her Greens masters.

“If Ms Gillard really understood the situation in Tasmania, she would have ensured that suffering forest contractors had fast access to the assistance fund promised as part of the deal.

“Waiting for this fund is having a devastating impact on forest businesses, individuals and families. There are a number of businesses in genuine crisis who desperately need assistance immediately.

“Regardless of the negotiation with Gunns, the Tasmanian and federal governments should get on with assisting contractors right away.

“A comment by the Premier that the fund’s hold up is due to finalisation of eligibility criteria instils no confidence.”

ForestrySA seeks new harvest and transport services in Mount Lofty Ranges and Mid North regions.

ForestrySA is calling for proposals for the supply of harvest and transport services in the Mount Lofty Ranges and Mid North Regions.

Up to 150,000 tonnes per annum is available for harvest and transport: Operation type

MLR

MN

First thinning (T1)

20,000

0

Second thinning (T2)

35,000

10,000

Third thinning (T3)

50,000 (T3 and above)

7,000

Clearfall (CF)

25,000

5,000

Total volume

130,000

22,000

New contracts are due to take effect in early 2012.

To register for the optional briefing and field tour on Wednesday 21 and Thursday 22 September 2011, and for the issue of documentation, please contact Emma Bigham at ForestrySA on +61 (8) 8724 2812.

For all other enquiries please call: Mr Marcel Griffiths, ForestrySA, Manager Business Development, on +61 (8) 8724 2717, or email griffiths.marcel@forestrysa.com.au.

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www.forestrysa.com.au issue 190 | 12.09.11 | Page 17

‘The CARBON TAX and its effect on the timber manufacturing industry’ Special Industry Dinner

Timber Queensland, TABMA Queensland, Brisbane Hoo-Hoo Club 218 (Supporting children’s charities)

September 20, 2011 6.29pm for 6.59pm Fratelli Restaurant, 103 Crosby Road, Albion, Brisbane (Crosby Park Rugby Club)

Speaker: SIMON DORRIES,

General Manager, Engineered Wood Products Association of Australasia

Booking confirmations to: Alicia (07) 3254 3166.

Email: Alicia@tabma.com.au Invoices will be issued for payments Contact Company

$70 p.p. or $650 table of 10 (includes hors d’oeuvres, two-course dinner, wine and softdrinks).

Wives and partners welcome.

RSVP: September 12.

Simon Dorries is General Manager of the Engineered Wood Products Association of Australasia (EWPAA).

The EWPAA is a manufacturers’ association representing plywood, laminated veneer lumber and other glued structural wood product manufacturers with operations in Australia, New Zealand, Fiji and Papua New Guinea. Simon holds a Bachelor of Applied Science and has worked at the EWPAA for more than 20 years. His extensive experience has included product testing and assessment, research and development, development of certification systems for engineered wood products and extensive experience in the development of training programs and product standards.

Email Address Name Name Name Name Phone

Page 18 | issue 190 | 12.09.11

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Classifieds

Institute of Foresters of Australia Scholarships available in 2012 Undergraduate scholarship up to $10,000 – closing date for applications 31 October 2011 National Forestry Masters Program (NFMP) scholarship $2000 x 15 – closing date for applications 1 December 2011.

Eligibility for scholarships will be based on the following criteria: • Enrolment and acceptance into 1st year undergraduate full-time study in 2012 at an institution/ course recognised by the Forestry Scholarship Fund or; • Transfer from other degree into 2nd or 3rd year forestry undergraduate full-time study in 2012 at an institution/course recognised by the Forestry Scholarship Fund or; • Enrolment and acceptance into National Forestry Masters Program (NFMP) for 2012 by no later than 1st December of the year prior to commencement of study.

Value of scholarships An undergraduate scholarship up to the value of $10,000 during the life of the degree may be offered.

A one-off National Forestry Masters Program (NFMP) scholarship to the value of $2000 may be offered.

Further information can be found in the Application Form & Eligibility Guidelines document in website below.

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issue 190 | 12.09.11 | Page 19

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