Issue 192

6551

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issue 192 | 26.09.11 | Page 1

Chilly reception on faulty grades

This Issue • NSW forests not for sale • Carbon tax to hit wood manufacturers

Strength failures put imported structural plywood under scrutiny in Australia, NZ

Grade stamping problems for Chile.

than 40,000 cub m a year and rising – in many cases is failing Australian and NZ standards.

The Australian Competition and Consumer Commission (ACCC) and New Zealand’s Commerce

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• High-set ‘Queenslander’ safer house choice • More forests from a revamped ETS in NZ • Chain of custody .. who needs it?

• Satellite experts to orbit ForestTECH program

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Commission (NZCC) are on the case and one of Chile’s biggest plywood producers has withdrawn product from the market – a direct result of the findings on product strength.

The free trade agreement signed with Australia in 2008 has encouraged Chile to make a greater push on exports to both countries.

“We don’t mind a level playing field with imports, but when these imports, which have taken over 50% of the local plywood market, are sold below production costs here and then

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CLAIMS that the stress grades of structural plywood from Chile have been misrepresented on the open market in New Zealand and Australia are under investigation by trade practices watchdogs in both countries.

Independent laboratory tests on imported T&G flooring plywood branded stress grade F14 show much of it is likely to be F8 for modulus of elasticity, F8 for bending strength and F11 for panel shear strength.

This has confirmed suspicions by local producers that imported pine plywood from South America – now more

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issue 192 | 26.09.11 | Page 1

industry news

Chilean plywood ready for export .. all is not what it seems.

Non-conforming plywood imports ‘tip of the iceberg’ From Page 1

don’t meet our standards for strength and consumer safety, then trade practices action is warranted,” an industry observer said.

In one test, plywood sheets measuring 2400 mm x 1200mm x 15 mm thick and branded as F14 CD A-Bond with an SAI Global certification mark revealed characteristics more likely to be F8.

Australian and New Zealand standards require structural plywood to attain certain stress grades for the strength of the wood’s structure and its bonding among other requirements.

Building authorities in Victoria and Western Australia have warned builders and specifiers about using structural plywood that is not branded in accordance with Australian standards.

Under the deemed-to-satisfy provisions of Volume 1 of the Building Code of Australia (BCA) two timber standards are referenced: AS1720.1:1997 timber structures, design methods and AS1684:2006 Residential-timber framed construction.

Both of these standards reference AS/NZS 2269:2004 Plywood-structural which

Page 2 | issue 192 | 26.09.11

specifies the requirements for the manufacture, grading, finishing and branding of structural plywood as well as other qualities for nominated stress grades.

In Volume 2 of the BCA, these two timber standards are also referenced, along with a direct reference to AS/NZS 2269:2004 in relation to structural plywood used as a cladding and as a water resistant floor substrate.

In Western Australia, the Building Commission believes tthat non-conforming imported structural plywood products entering the Australian market “might just be the tip of the iceberg”.

“The products are misrepresenting the timber grade that they achieve,” the commission’s executive director Peter Gow said in a notice to the building trade.

“While the product may state that it is of a particular grade of structural timber (such as F14), the product when tested against the relevant Australian standards has achieved an overall applicable grade that is significantly less (such as F8).”

To prevent inferior products entering the market, Mr Gow has urged importers and

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

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

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

Cont Page 6

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INDUSTRY NEWS

Everything old is new again

High-set ‘Queenslander’ safer house choice THE release of Government planning guidelines encouraging a return to traditional high-set ‘Queenslander’ style housing over a slab on ground approach will deliver positive safety, economic and environmental outcomes.

The chief executive of Timber Queensland Rod McInnes has congratulated the Queensland Government on the guide, Planning for Stronger, More Resilient Floodplains.

Claims that the cost of timber makes Queenslander style housing more expensive are wrong – Rod McInnes “The Premier has made a smart move: not only is the high and dry housing style safer in flood prone areas, it’s climate friendly meeting the government’s 6-star minimum energy equivalence requirement for new housing,” Mr McInnes said.

“There are plenty of great designs available for a ‘modern Queenslander’ that can be built using modern efficient timber framing systems and environmentally effective termite treatment systems.”

Mr McInnes said that designing and building for disaster must be achieved in an economically smart way.

“Claims that the cost of timber makes Queenslander style housing more expensive are wrong,” he said.

“Ongoing research and development by forward thinking and environmentally conscious designers and timber processors means there are timber flooring and framing systems comparable to the cost of alternative construction materials.”

To assist building professionals interpret the guide and get Queensland’s rebuild right

Modern design – old concept .. return of the old ‘Queenslander’ house style.

Timber Queensland is holding an educational seminar ‘Remaining High and Dry: Reconstructing Queensland to suit our climate’ on November 19.

The government’s landmark state-wide planning guide encourages a resurgence of the old style of housing favoured by pioneers, based on its ability to better handle major floods.

The Australia-first planning guide will affect new commercial, residential, mining and agricultural developments across the state for the next generation. It will suggest to councils that development can continue on floodplains, provided new homes are on stilts.

Guide is set to play a key role in helping the state’s flood inquiry develop recommendations about building codes and practices

“We got it right 100 years ago with the design of the Queenslander,” she said.

“There’s no reason we should be building unsuitable homes in flood-prone areas in 2011 and beyond.”

Master Builders Association (Qld) executive director Graham Cuthbert said the lesson of the 1974 floods had been forgotten as people turned to cheaper low-set homes.

“Suddenly everyone was building-in down below with the rumpus room or another bedroom,” he said.

WHAT DOES TABMA DO FOR MEMBERS? • TABMA, through information, advice and services, provides its members with practical solutions to improve business management, growth and profitability • TABMA members include merchants, retailers, joiners, manufacturers, frame & truss fabricators, importers, suppliers and carpenters • TABMA places trainees or apprentices that are recruited, inducted, trained and monitored by us • TABMA offers debtors control and collection through its wholly owned subsidiary, Building Trade Credit • TABMA offers trade credit insurance through, IMC Newbury, at extremely cost effective rates.

• TABMA recruitment saves you time by advertising, vetting and interviewing for new staff at competitive rates • TABMA offers industrial relations support • TABMA provides industry specific short training courses • TABMA provides OH&S auditing by specialist staff • TABMA offers Chain of Custody consulting and auditing at minimal cost • TABMA offers technical advice • TABMA offers legal advice • TABMA provides members with significant savings on fuel through Caltex and 7-ELEVEN outlets • TABMA offers general insurance advice

The guide is set to play a key role in helping the state’s flood inquiry develop recommendations about building codes and practices.

Premier Anna Bligh said the slab-on-ground approach was found wanting in heavy weather.

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• TABMA offers significant travel benefits • TABMA holds a gala industry annual dinner TABMA has representation in NSW, Queensland, South Australia, Western Australia and Tasmania.

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

issue 192 | 26.09.11 | Page 3

industry news

NSW forests not for sale

$1.5m allocated for research programs “THE NSW Government has no plans to privatise Forests NSW,” the Minister for Primary Industries Katrina Hodgkinson said in a statement to Timber&Forestry enews.

“The fact is, Forests NSW is a public trading enterprise that is required to operate in a commercial manner and on a level playing field with similar businesses, including private companies,” Ms Hodgkinson said.

[Speculation has been rife in the media that reductions in staff numbers within the NSW government’s forestry division could mean the $330 million business is slated for privatisation].

Ms Hodgkinson says Forests NSW believes it is entirely

appropriate to benchmark itself not just against other government-owned forestry entities, but also against other forestry companies.

“The benchmarking exercise, which began under the previous government, shows that Forests NSW’s R&D allocation of 2.6% of total sales revenue is above Australian industry average, and well above typical forestry R&D spends internationally,” Mr Hodgkinson said.

“The benchmarking exercise enables Forests NSW to reassess the areas it is targeting with research and development funds, given its business and stakeholder needs. As a result, Forests NSW has adjusted and realigned the level of funding for some forestry research activities. These changes mean

OUR WORD IS OUR BOND Look for the stamp of exceLLence Page 4 | issue 192 | 26.09.11

Katrina Hodgkinson .. Forests NSW operating on level playing field.

that R&D investment is more directly linked to Forests NSW’s actual business needs and the extension of research results to in-field operations.

A total of $1.5 million from Forests

NSW, with an additional $0.8 million from a variety of external funding bodies, will continue to be spent on forestry research programs within the Department of Primary Industries which will involve about 22 scientific staff.

Additional research funds will be spent with organisations outside of the department and Forests NSW will continue to directly employ 19 ecologists.

Forests NSW is a public trading enterprise within NSW Department of Industry and Investment and sustainably manage more than 2 million ha of native and planted forests. As the largest manager of native and plantation forests in the state, Forests NSW is a major force in the state’s timber industry which contributes nearly $1 billion to the NSW economy each year.

Don’t give traders who cut corners a licence to sell wood that threatens the lives and livelihood of our workers.

Face the facts FACT: All EWPAA structural plywood and Type A bond exterior plywood have an emission class of E0 or E1 certified under a JAS-ANZ accredited system.

FACT: All EWPAA products have a durability guarantee and all EWPAA members carry liability insurance.

FACT: All EWPAA products can gain extra Green Star rating points – one for low formaldehyde emissions (E0 or E1) and one for super E0 in office fit out.

FACT: Not all imported non-certified LVL and plywood

meet these requirements. In fact, laboratory tests show many imported non-certified products are continuously failing Australian standards for emissions and bonding strength and are life threatening.

FACT: Manufacturers, agents and suppliers trading in inferior quality, unlabelled and non-compliant plywood and LVL risk damage to their business, media exposure and high penalties under Australian law.

Don’t risk it.

Specify EWPAA products stamped with the approved certification.

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

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events

WHAT’S ON?

september

27-29: Carbon Farming Week.

Dubbo – Regional theatre and convention cenrs.

October 16-19: SilviLaser 2011, University of Tasmania, Hobart. www. silvilaser2011.com 19: Sydney Hoo Hoo Club 215 dinner meeting. Contact: Chris White 0411 293 646 or email chrisw@moxontimbers.com.au 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.

forestry sector in several countries in South America.Visit www. iufrouruguay2011.org

24-25: Bioenergy Australia 2011 conference and exhibition, Novotel Twin Waters Resort, Sunshine Coast, Queensland. Web: www. bioenergyaustralia.org

DECEMBER 1-2: ForestTECH 2011: Tools& Technologies. Improving forest planning and operations. Albury, NSW. www.foresttechevents.com 5-6: ForestTECH 2011: Tools& Technologies. Improving forest planning and operations. Rotorua, NZ. www.foresttechevents.com

MARCH 2012

Engineered Wood Products Association of Australasia.

Conference, dinner, award presentations. (Date to be advised) www.forestryfinanceevents.com 13-14: Future Forestry Finance: Investment, Growth and Strategic Outlook.

Sydney. www.forestryfinanceevents. com

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

All the presidents men – honoured at Brisbane dinner

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:

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 (UDELAR) and the International Union of Forest Research Organisations (IUFRO). Motivated by the massive development of the

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.

Hoo-Hoo an ideal .. Brisbane Hoo-Hoo Club 218 president Alan Jones (far right) and HHI vicegerent snark Area 4 Ray Lamari (fifth from left) with past club presidents honoured at an industry dinner in Brisbane last week. From left: Jim Bowden (2001-2003), Tim Evans (NE NSW club 1973-74), foundation club member John Crooke (1984-85), Graeme Miles (1993-94), Pieter Verlinden (2008-2010), Alf Chapple (1991-93), Peter Mort (198788), and John Muller (2003-2004). See carbon tax and the timber industry, Pages 14-15

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- 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 192 | 26.09.11 | Page 5

new products

Timbeck broadens information base on western red cedar AFTER largely bedding down its rejuvenated web site, Timbeck Cedar Products, acknowledged market leader in the manufacture of western red cedar products, has further widened its information base with the release of a new series of design guides.

These new publications are intended to look beyond specific product data and focus on more general aspects of timber application and use.

The series is also designed to heighten awareness of optimising species selection and maintenance issues.

Timbeck, based at Burpengary, north of Brisbane, plans to continue adding to its library of design guides and future publications will address topical and problematic subjects familiar to many in the timber industry.

The initial release comprises three subject matters: timber and acoustics; flood design and western red cedar cladding; and external maintenance of timber All Design Guides are readily available in PDF format from www.timbeck.com.au

Effective regulation ‘govt responsibility’ From Page 2

local suppliers to have each batch of structural plywood independently tested by an organisation registered with the National Association of Testing Authorities (NATA) to ensure compliance with the standard.

“The end users of the structural plywood (such as builders and consumers) should insist on receiving the certificates of testing for the relevant batches of structural plywood purchased,” Mr Gow said.

“A copy of such certificates should be forwarded to the certifying building surveyor to ensure compliance with the

Page 6 | issue 192 | 26.09.11

Building Code of Australia.”

The general manager of the Engineered Wood Products Association of Australasia Simon Dorries said it was the responsibility of governments to have effective regulations to prohibit the use of dangerous or illegal materials and he is concerned about the ineffectiveness of current policing.

The EWPAA is the only organisation providing NATA testing and is supplying NATA reporting on every production shift of its members in New Zealand, Australia, Fiji and Papua New Guinea.

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new zealand focus

More forests from a revamped ETS

Growers pressure NZ government on changes NEW Zealand forest owners say if the government adopts the changes to the ETS recommended by its review panel, more forests are likely to be planted.

New Zealand needs more forests in order to meet its targets for reducing greenhouse gas emissions.

“New Zealand has based its ETS laws on the wording of the Kyoto protocol and this has created anomalies that discourage forest owners and farmers from planting,” says Forest Owners president Peter Berg.

“The ETS review panel says New Zealand needs to take a hard-headed look at the wisdom of continuing to do this, especially since it is highly unlikely that the protocol will exist in its present form beyond 2012.”

It recommends that forest owners should be allowed to replant existing forests in a new location following harvest – something that incurs huge financial penalties at present.

It also asks the government to look at self-insurance and averaging schemes which have the potential to eliminate the open-ended risks now associated with carbon forestry, without incurring any costs for the taxpayer.

“Forest owners have been arguing for these changes since ETS legislation was first drawnup under the former Labour-led government. We also correctly predicted that rates of new planting would be modest without them,” Mr Berg said.

He has welcomed climate change minister Nick Smith’s largely positive response to the panel’s recommendations.

But he is concerned that the minister has distanced himself from the panel’s strong call for agriculture to come into the ETS as planned in 2015.

The panel says agriculture

FOA chief executive David Rhodes (right) confers with Senator Chris Evans, Minister for Skills, Jobs and Workplace Relations, at the Canberra industry conference.

Picture by Mark Graham-ForestWorks.

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has abatement opportunities including forestry, nitrification inhibitors, and ‘good practice’ farm management techniques that increase productivity. All of these options are available now and others will be available in the future as a result of the efforts going into research today, says the report.

Mr Berg says the wider environmental and economic benefits of controlling emissions should not be lost sight of just because there may be a modest Cont Page 11

issue 192 | 26.09.11 | Page 7

NATIONAL WORKFORCE DEVELOPMENT FUND Train your staff in a range of qualifications, from Certificate II to Vocational Graduate Diploma and help to develop your workforce now and into the future.

Opportunities are now available for subsidised training places through the new National Workforce Development Fund.

This initiative is part of the Commonwealth Government’s commitment to building Australia’s future workforce. It has been specifically designed to support training and workforce development in areas of current and future skills needs. Large enterprises will receive 34 per cent of the cost of training, medium enterprises 50 per cent and small enterprises 67 per cent.

ForestWorks ISC is committed to helping your organisation engage with training and workforce development and can assist with guiding you through the process.

ForestWorks ISC can provide: • advice on how you can take advantage of subsidised training places, including eligibility • assistance in developing an application that is compliant with the program guidelines • assist with compiling materials to support your application • assistance with identifying a suitable RTO if required

If you would like to engage in training and workforce development through the National Workforce Development Fund, please contact us

FREECALL 1800 177 001

Melbourne 6990Tel :: Brisbane 5169 Page 8 | issue 192 | 26.09.11 (03) 9321 3500 :: Sydney (02) 8898 Advertising: +61 7 3266(07) 14293358 Email: cancon@bigpond.net.au Launceston (03) 6334 3544 :: Adelaide 1800 177 001

What is the National Workforce Development Fund?

The Australian Government announced it will subsidise training over four years to support training and workforce development in areas of current and future skills need. The program will be administered as a partnership between ForestWorks ISC and the Australian Government.

Who can apply?

Organisations eligible to participate in the program include: • • •

Enterprises Professional Associations, industry bodies and other lead agents representing a consortia or enterprises Employment Service Providers

Who is eligible to receive training?

Under the initiative, training will be provided to existing workers and new workers. Eligible individuals must be either: Existing workers: •

Refers to an individual who in the previous week worked for one hour or more for more than nominal financial remuneration, whether or not on a casual basis or as a self employed person

New workers: • • • •

a person who is aged 17 years or over and: registered with an Employment Services Provider; or an income support recipient who is not currently required to meet activity test or participation requirements; or a participant in the Community Development Employment Projects scheme; or

•

a participant in the Australian Apprenticeship Access Program; or

•

not currently working and seeking or intending to seek paid employment or self employment after completing the qualification; or currently working but seeking to change employment

• •

was in one of the above categories before they entered into their Australian Apprenticeships arrangement (for commencements on or after 1 April 2008)

What training will be funded?

For new workers qualifications include Certificate II, III, IV, Diploma, Advanced Diploma, Vocational Graduate Certificate and Vocational Graduate Diploma.

For existing workers qualifications include Certificate III, IV, Diploma, Advanced Diploma, Vocational Graduate Certificate and Vocational Graduate Diploma.

Funding arrangements The Government will fund a proportion of the qualification cost not exceeding the proportion specified in this table: Size of Participating Organisation’s Workforce (Full Time Equivalent)

Australian Government Contribution (%)

Participating Organisation Contribution (%)

1-99 (small) 100-199 (medium) 200 + (large)

67 50 34

33 50 66

Key dates Applications open Applications close Successful applications announced All training must commence by All training must be completed by

10 August 2011 30 September 2011 December 2011 31 March 2012 31 December 2014

How to apply?

National Office 559A Queensberry Street (PO Box 612) North Melbourne VIC 3051 FREECALL 1800 177 001 Melbourne (03) 9321 3500 Sydney (02) 8898 6990 Brisbane (07) 3358 5169 Launceston (03) 6334 3544 Adelaide 1800 177 001 forestworks@forestworks.com.au www.forestworks.com.au

Organisations wishing to participate in this initiative need to contact ForestWorks ISC and supply their ABN and we will assist you through the application process.

ForestWorks’ activities are assisted by funding provided by the Commonwealth Government through the Department of Education, Employment and Workplace Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au Relations.

issue 192 | 26.09.11 | Page 9

INTERVIEW

Sending out clear messages on Australia’s certification process KAYT WATTS, outgoing chief executive of Australian Forest Standard, reflects on her three years with the organisation in this interview with Timber&Forestry enews.

Ms Watts will not be renewing her contract with AFS which expires on October 11.

Richard Stanton, outgoing chief executive of A3P, has been appointed national secretary of Australian Forestry Standard Ltd, effective from October 11.

T&F enews: What was your mission three years ago when you accepted the role of CEO of Australian Forestry Standard Ltd? KW: To develop brand awareness in Australia for AFS and PEFC, to develop clear and concise messaging regarding Australian standards and to encourage commitment to certification along the supply

InSurAnce..

It’S All In the SelectIon

chain. Also, to develop the commercial income stream from logo licensing to ensure financial viability for the organisation.

T&F enews: Do you think you achieved this?

KW: Yes. T&F enews: You sound a little bit over confident on that.

KW: Mmmm. I’ve frequently been made aware of my over

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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Insuring it all stacks up.

Page 10 | issue 192 | 26.09.11

KAYT WATTS .. united front on forest certification.

confidence. Thank you for pointing it out .. again. AFS and PEFC are, now, very much a part of the supply chain, even so far as to say a preferred certification process for chain of custody. This is, I believe, a direct result of communicating new clear and concise business-related messages and providing support to those looking to take the step and become certified.

Growth of AFS certification over the past three years has been 703%, with more than 95% taking up the logo licence subscription.

The revenue from the subscriptions has ‘nearly’ replaced the external funding previously provided to the organisation, which they relied on heavily to manage the standards and promote certification.

T&F enews: Greatest disappointment [in your role as CEO of AFSL]?

KW: None really. The past three years have been very positive, with some challenges bigger than others, and more than a few sleepless nights. But I am confident the organisation is in a sound and healthy position to continue. Possibly a little disappointed that I will not be directly involved in the

standards revision. I see these processes as a positive vehicle to fully engage with the broader industry.

T&F enews: Greatest achievement [in your role as CEO of AFSL]?

KW: There were many little/ subtle wins but I suppose the recognition by the Green Building Council of Australia in their Green Star Rating timber criteria was a major turning point for AFS/PEFC and the industry. This also triggered the recognition on a global level by GBC Italy and GBC Singapore.

Others will soon follow.

T&F enews: What’s next for you?

KW: This is an industry that, once touched by the passion, is very hard to walk away from. I am sure you will see me around.

It is very much a “watch this space”.

T&F enews: What do you believe is next for AFSL, as it relates to certification and sustainable forest management?

KW: It is pleasing to see over the past three years the industry working towards a cohesive, united front regarding its communications and messaging. It still has a long way to go, but a proactive engagement between industry associations and representatives is resulting in a positive and strong communications alliance.

AFSL has a big part to play in this, by providing a central source of credible and reliable information, independent assessments and clear messaging about Australian standards, sustainable forest management in Australia and certification in the supply chain that can be referred to and utilised by the industry and its customers.

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new zealand focus

Buying hot air units offsets the liabilities From Page 7

cost to the industries involved.

“Tree planting, incentivised by the ETS, will also help reverse the ongoing decline in New Zealand’s water quality and help boost the environmental credentials that New Zealand farmers use to market their products.”

A key technical issue highlighted by the review panel is the ability of NZ emitters to offset their liabilities by buying ‘hot air units’ from overseas. These certified emission reduction units (CERs), which are generated by industrial emitters when they destroy greenhouse gases, lack integrity.

FOA chief executive David Rhodes says the European ETS limits the use of CERs. Australia is also proposing restrictions on them. Furthermore, the European Commission has declared that CERs from industrial gas projects will no longer be acceptable for use in the EU ETS after April 2013.

Speaking at the ForestWorks industry conference in Canberra, Mr Rhodes said that if New Zealand did not take similar action, its ETS would likely become the prime destination for tens of millions of these otherwise homeless units.

“They have the potential to make the NZ ETS meaningless,” he said.

“Already we have seen CERs trade down from around $NZ24 a tonne just over three months ago, to lows of around $13 a tonne now.

“Combined with the government’s two-for-one concession to industry for the surrender of emission units, this means the cost of compliance for local emitters has been as low as $NZ$6.50 a tonne. Foresters are not interested in participating at this level, bearing in mind that

their carbon price liabilities at harvest are open-ended.”

Mr Rhodes says the release of the NZ ETS review is very timely given that legislation for an emission reduction scheme has been before the Australian parliament. The stated intent of ministers on both sides of the Tasman is to align the two schemes and this is reflected in close co-operation between the officials involved.

In his meetings in Canberra, he found industry and political leaders were very interested to find out how the NZ ETS works and the changes that are needed. ’An Australian floor price on carbon that will be priced above international levels and a move to a fixed cap on emissions will create headaches for officials on this side of the Tasman’ “Both schemes subsidise emission-intensive trade exposed industries. But the Australians don’t have the New Zealand two for one subsidy that the review panel believes should be extended beyond the present 2012 cut-off,” Mr Rhodes said.

“Having an Australian floor price on carbon that will be priced above international levels and a move to a fixed cap on emissions, are other differences that will create headaches for officials on this side of the Tasman.

“Clearly a lot of adjustment will be needed to harmonise the two schemes by the ideal date of 2015, while bearing in mind that our dialogue is not just with the Aussies; California is also planning to implement an ETS by 2013 and both Korea and Japan have ETS schemes under consideration by their governments.”

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issue 192 | 26.09.11 | Page 11

OVERSEAS TRADE

China hungry for wood

Growing timber deficit impacts on domestic prices; imports to go beyond 34 million cub

CHINA’S log imports rose to 34.35 million cub m in 2010, doubling from the 17 million cub m imported in 2001 – and this rate of growth is continuing.

The International Tropical Timber Organisation estimates China’s overall timber deficit could grow to over 180 million cub m (roundwood equivalent) by 2015. However, with the international supply of commodity wood products falling and with rising domestic demand there will be a strong upward pressure on timber prices in the Chinese market.

The demand for log raw materials in China is massive and growing and much of this demand can only be satisfied through imports. The gap between domestic timber supply and demand will continue to grow Members of ITTO, based in Yokahama, Japan, represent about 80% of the world’s tropical forests and 90% of the global tropical timber trade.

The China National Forest Products Industry Association says manufacturers of traditional furniture are finding it difficult to secure supplies of timbers such as sandalwood and ebony. These species are the main raw materials for traditional style furniture. The declining availability of these timbers will affect production of high-end classical furniture in China.

During the 4th Annual International Conference on Sustainable Forest and Market Development in Shanghai recently it was revealed that China will launch the first national forest certification

Page 12 | issue 192 | 26.09.11

standard for sustainable forest management in 2013.

Zhang Yanhong, deputy director of the Department of Development Planning and Capital Management of the State Forest Service said in an effort to eliminate illegal logging it was necessary to adopt an effective forest certification standard.

It was reported that the SFA is working to develop China’s forest certification standard based on those of the FSC and Rainforest Alliance. When implemented, the system could be used to trace the entire supply chain, tracking timber and timber products from forest to mills, to manufacturers and traders and to end-users.

According to the statistics from

Manzhouli Customs, in the first half of 2011, log imports were 3.812 million cub m valued at $US530 million, up 12% in volume and 40% in value from the same period in 2010. The average price for imported logs rose 11% to $US$138.4 cub m.

Most of the eucalypt clones used today in China came from the Australia-China Dongmen Project which operated from 1981 to 1989.

Queensland forester Dick Pegg, who was consulting for Guangxi Stora Enso Forestry Co, is pictured with Professor Wang Huoran of the Chinese Academy of Forestry in Beijing. The tree is a natural E. grandis-E. urophylla hybrid. It is from an E. grandis seed lot from a seed orchard at Aracruz in Brazil that was planted in an E. grandis family trial at Dongmen, Guangxi province. The tree is 18 years old.

Note the girdle near the base to promote basal coppice for cloning and testing in clone trials.

- Picture compliments of Dick Pegg.

Log imports through Manzhouli Port in the first half of 2011 were all from Russia and the average price for imported logs in June reached record highs, climbing 14% to $US148.9 cub m. These logs are imported mainly by private enterprises.

The demand for log raw materials in China is massive and growing and much of this demand can only be satisfied through imports.

The gap between domestic timber supply and demand will continue to grow Observers suggest that more efficient logging practices and improved distribution could reduce the timber deficit.

Other suggestions to secure the necessary raw materials include providing incentives to enterprises to invest in overseas forest production thus diversifying the source of imports. In addition, there is a need to raise the level of processing efficiency so as to maximise recovery.

Timber imports have been the leading business at Zhangjiagang since 1982 and imports through the port have grown rapidly in recent years.

In the first seven months of this year, log imports through the port totalled 1.6 million cub m, valued at $US360 million.

The imported logs came from 36 countries, mainly from Cameroon, D. R. Congo, Congo Brazzaville, C.A.R, Gabon, Malaysia, Myanmar, Papua New Guinea, Solomon Islands, Surinam, Guyana, some European countries and North America. Tropical log imports through the port rose 44% this year.

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issues

Satellite experts to orbit program of speakers at ForestTECH series REMOTE sensing, inventory management and data capture will be the principal focus of this year’s ForestTECH 2011 Australasian series in early December.

In addition to companies sharing their experiences on how they’ve been able to integrate these new tools into their systems and operational planning, the Forest Industry Engineering Association has added another specialist to the already world-class line-up.

At the turn of the century foresters declared that “satellite imagery and related technology are among the top 10 advances in forestry in the last 100 years”.

Dragos Bratasanu, who is currently employed by Poyry in their Auckland office as a remote sensing consultant, has been added to the ForestTECH 2011 program and will be presenting in both Australia and New Zealand.

He has been working as research scientist for the Romanian Space Agency ROSA for the last three years developing state-of-the-art technologies for satellite image analysis. His work has focused on extracting and using data from high and very high-resolution optical imagery such as WorldView-2, Quickbird, Ikonos, RapidEye

Dragos Bratasanu .. satellite image analysis.

Gail Kelly .. resource mapping.

Pete Watt .. opportunities for forest manager.

and GeoEye-1.

In ForestTECH 2011, Mr Bratasanu will give local companies an insight into the current and near-future development of space technologies relevant to the forestry industry. He will discuss how the satellites planned for imminent launch will support remote sensing and forest management and operations moving forward and outline progress on satellite image analysis and the production of practical tools for use in forestry/land management decision support.

In addition to details on these new technologies, results from recent trials by forestry companies with a new generation of satellite imagery,

only available since late 2010, will be outlined.

Gail Kelly, satellite and aerial products leader with AAM and Pete Watt, head of resource mapping with Indufor Asia Pacific Ltd, will be discussing opportunities open to forestry managers.

Early indications are that some of this new satellite imagery may be suitable for routine forestry applications such as quarterly harvest area measure ups, storm damage assessment, disease mapping and forest establishment assessments which to date have been carried out using aerial photography taken from small aircraft.

This new imagery can be ordered over the internet and is available in almost real-time.

RapidEye, for example, is a constellation of five satellites capable of downloading more than 4 million km² of high resolution, multi-spectral imagery every day.

The unique combination of large area coverage, high spatial resolution and the possibility of daily revisit to an area may provide superior management information solutions for the forestry industry.

Details on the ForestTECH 2011 series running in both Australia (December 1-2) and New Zealand (December 6-7), including programs, can be downloaded from the event website, www.foresttechevents. com

Managing sapstain: new resources for industry THE Victorian Association of Forest Industries has developed a set of brochures on sapstain for forest managers, processors and their customers.

Sapstain – also known as bluestain – is a fungal stain caused by the presence of pigmented fungal hyphae in wood. It is found in the forest, forest landings, log storage facilities at sawmills and in the

drying yards and kilns.

The brochures will assist industry to manage the rise of sapstain and to address it where it occurs.

They also provide information for processors, manufacturers, merchants, wholesalers and retailers about the presence of sapstain.

The project has been managed

by VAFI and the brochure content was drafted by Dr Joely Taylor, a

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professional science writer and editor. She is a member of the International Research Group on Wood Protection and has won international awards based on her sapstain research.

Dr Joely Taylor .. sapstain research

issue 192 | 26.09.11 | Page 13

INDUSTRY dinner

Carbon tax could force timber trade to move overseas for wood supplies

By JIM BOWDEN

A WOOD scientist told a timber industry meeting in Brisbane last week Australian manufacturers must fight the federal government’s carbon tax or face the prospects of “going under” as cheap imported products, free of a carbon tax, seek to buy out the market.

Speaking at a dinner meeting organised by Brisbane HooHoo Club 218 and supported

by Timber Queensland and TABMA Queensland, Simon Dorries, general manager of the Engineered Wood Products Association of Australasia, said a carbon tax would cost jobs in the industry, damage competitiveness and hurt the standard of living of all Australians.

Mr Dorries presented sobering facts to an audience of more than 50 timber merchants, sawmillers, industry consultants, transporters, insurance brokers and executives of producer bodies, spearheaded by an example that wood panel manufacturers alone would face a carbon tax liability of more than $14 million.

[The federal government has introduced its carbon tax and accompanying legislation into Parliament. In an agreement with the Greens, the carbon tax is likely to be fast-tracked between the upper and lower houses, with a vote to be put to the House of Representatives by mid-October, and to the Senate by mid-November.

The government’s overall objective is to have a carbon tax of $23 a tonne in place by July 1 next year fixed until July 1, 2015, when it would move to an emissions trading scheme]. ‘’Any emissions reduction scheme – or price on carbon – should not give any

Page 14 | issue 192 | 26.09.11

Guest speaker Simon Dorries, general manager, EWPAA (centre) meets up with Grahame Henderson and Robin Fairhall of Corbek Timber Preservation, Arundel, Gold Coast, at the industry dinner at Fratelli Restaurant, Albion.

At the carbon tax dinner .. Bill and Robyn Beveridge of Beveridge Timbers, Jindalee, Brisbane, Don Towerton, Thora Wholesale Timbers, Coopers Plains, and Tim Evans, Coast to Coast Pacific, Caboolture.

country an unfair competitive advantage over Australia, either in the domestic or global marketplace,’’ Mr Dorries said.

“The financial cost imposed on Australian families and business to prop up a minority government has been estimated at $20 billion or $761,035 an hour for a three-year term.”

Mr Dorries presented some simple facts: Australia is responsible for 1.2% of global carbon dioxide emissions. A price on carbon is intended to reduce Australia’s emissions

by 5%. Global emissions are increasing at a rate of about 3% a year, mostly driven by China and India.

He presented simple maths that proved all efforts to reduce carbon emissions in Australia would be wiped out in seven days: * 1.2% (Australia’s share of global emissions) x 0.05 (reduction target of 15% = 0.06% (amount that global emissions will reduce from Australia’s price on carbon). * 0.06% (reduction in global

emissions from Australia) / 3% (yearly CO2 increase) = 2% (Australia’s effort will offset 2% of the global yearly increase). * 365 days x 2% (Australia offset total global emissions) = 7 days.

So, 100% of Australia’s carbon abatement would be wiped out in a week of global growth.

Mr Dorries listed a range of costs to industry sectors from a carbon tax: for a large particleboard mill – $1.01 million; a medium-sized mill – $1.12 million; a multi-site mill – $3.09 million.

Costs for a small MDF site would be $1.31 million and for a large site $2.08 million.

A large plywood mill (100,000 cub m) using driers fuelled by 75% wood waste and 25% gas would have to find $637,000, while a softwood sawmill (100,000 cub m dried) and fuelled by 75% wood waste and 25% gas would be penalised around $300,000.

Mr Dorries said competing industries would be able to apply for free permits under the government’s emissionsintensive trade-exposed (EITE) assistance scheme – steel (95%); aluminium (95%); and concrete (66%).

“However, free permits will not be extended to sawn softwood or hardwoods, LVL, plywood and glulam under the scheme,” Mr Dorries said.

“That’s zero recognition of the carbon positive benefits of timber.

“Also, [carbon tax-free] imported products will enjoy an additional 2-3% price advantage on the Australian market, coupled with the favourable exchange rates.”

Mr Dorries said the only viable outcome was a further move to overseas carbon tax free Cont Page 15

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industry dinner

Alicia Oelkers, operations manager, TABMA Queensland, catches up with Graeme Miles H.F Palmer & Sons Transport, Kallangur, Brisbane (left) and Keith Maitland, Queensland manager, Tasman KB Pty Ltd.

Jim and Ann Moore of A2P Timber, St Lucia, Brisbane, with Steven Koch of Arch Wood Protection (Aust) Pty Ltd, Narangba.

John Crooke, of Queensland Sawmills and a foundation member of Brisbane HooHoo Club 218 (centre) enjoys the industry dinner at Fratelli Restaurant with Darren Bartsch of Peachester Timbers, and Tony Towerton of Thora Wholesale Timbers.

David Beveridge, Beveridge Timbers, Jindalee, ‘captures’ Alicia Oelkers of TABMA Queensland, and Karen Johnston of Arrow Energy.

John Muller, Wood Addiction, Balmoral Ridge, Qld, Diane Rado, Underwoood, Lorraine Muller, and Pieter Verlinden, Gailes, Qld.

Brisbane Hoo-Hoo Club 218 president Alan Jones of Ausbrokers Premier (left) welcomes Karen McNeil and Rev. Tass Augustakis (far right) of Family and Kids Care Foundation, Kingston, along with Alf Chapple, Forsyth and Romano and his wife Beverley.

Clamp down on $2.8bn carbon trade scam From Page 14

suppliers.

Known as carbon leakage, choices were made to obtain supply from countries without a price on carbon, usually countries with “dirty industries and poor regulation”.

The net outcome was greater carbon emissions.

Mr Dorries referred to another

scary scenario – a $2.8 billion carbon trading scam by fraudulent manufacturers in China.

“The European commission is to clamp down on the scam involving the deliberate production of greenhouse gases which the manufacturers are then paid to destroy,” he said.

Climate change commissioner

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Connie Hedegaard says the use of these carbon permits, from industrial gas projects in China, could be banned because of their “total lack of environmental integrity”.

Billions of euros worth of the controversial permits were used between 2008 and 2009 in the Eurpean Union’s emissions trading scheme, in which companies must exchange

pollution permits for emissions produced.

Mr Dorries said it was “a good cause” to reduce emissions but there were the smart ways and dumb ways of doing it, and bringing in a carbon tax for Australia was a dumb way.

“Manufacturing does not necessarily need protection but it does need encouragement.”

issue 192 | 26.09.11 | Page 15

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.

MELBOURNE, THURSDAY 6 OCTOBER 2011 TOPIC

PRESENTER

A review of potential impact of VOC emissions on the future market share for engineered wood products

James Hague

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

Marco Lausberg

MODIS for forest health surveillance (CRC Forestry)

Darius Culvenor

Assessment of future trends in size and design preference for domestic and light commercial decking applications

Andrew Dunn

Concept proof: new generation, hi-performance wood products coated or encapsulated in zero-waste powder coating

Voytek Gutowski

Energy management tools (Solid Wood Initiative)

Marco Lausberg

BPOS: optimising Blue Gum plantation profitability (CRC Forestry)

Justine Edwards

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

Marco Lausberg

Timber beams instead of steel beams in housing construction

Andrew Dunn

NIR for wood quality (CRC Forestry)

Geoff Downes

Kiln drying: efficacy of shortened steaming & dynamic kiln control (Solid Wood Initiative)

Marco Lausberg

Community engagement handbook (CRC Forestry)

Melanie Dare

VENUE: Hotel Grand Chancellor, 131 Lonsdale Street, Melbourne 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:// fwpardworksseminarsmelbourne.eventbrite.com by 5.00 pm Monday, 3 October Page 16 | issue 192 | 26.09.11

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ISSUES

Chain of custody .. who needs it and is the certification legitimate?

THE question “who needs chain of custody certification to legitimately buy and sell certified products?” is often put to me by various players in the wood products supply chain.

Uncertainties lead to misuse of CoC certificates – sometimes deliberately and, in some cases, inadvertently.

I have recently been involved in a case involving a company which imports merbau products from Indonesia and sells them to customers in Australia as “certified” when the company itself does not have CoC certification.

The matter is still being investigated by the certification body which certified the exporter in Indonesia, and depending on the outcome of the investigations, this matter may be reported to FSC Australia for appropriate action.

In Australia, misuse of CoC certification, whether deliberate or inadvertent, is resulting in some certified companies voluntarily giving up their certification before they expire, because of continual loss of market share The CoC standards for both the Forest Stewardship Council (FSC) and the Program for the Endorsement of Certification systems (PEFC), the two most recognised and used forest and wood products certification systems in the world today, state clearly that, as a minimum, a CoC certificate is required when a change in the ownership of wood products occurs along the supply chain.

[As the Australian certification system (AFS) has a mutual recognition arrangement with the PEFC, any reference to

the PEFC in the articles also applies to the AFS].

A CoC certificate is also required if the purchaser of certified wood products wishes to: • Sell the products as “certified” to another buyer or end user through sales and delivery documents i.e. if the seller of the wood products wants to make a claim that the product being offered for sale is certified.

• Apply an FSC or PEFC label on the product they are selling.

• Process or transform certified products (e.g. manufacturing, repackaging, relabelling, and adding other forest-based components to the product).

If an organisation does not perform any of these activities, they are exempt from chain of custody certification. Others exempt from CoC certification include: • Retailers who sell to endusers i.e. the public.

• Individual or organisational end-users of certified products.

• Organisations providing services to certified organisations without taking

A chain of custody certificate is required when a change in the ownership of wood products occurs along the supply chain.

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By

Dr Kwame Asumadu legal ownership of the certified products, including agents and auction houses arranging the trade of certified products between buyer and seller; logistics companies transporting or temporarily storing certified products; and contractors operating under an outsourcing agreement with a certified organisation.

In Australia, misuse of CoC certification, whether deliberate or inadvertent, is resulting in some certified companies voluntarily giving up their certification before they expire, because of continual loss of market share.

Many companies incur the cost to obtain CoC certification as a marketing tool, to gain market advantage over non-certified competitors. They lose faith in the certification system when they see that some uncertified companies are able to get around the system and effectively compete against them in the market.

So what is the most common form of misuse of CoC certificates in the market?

It involves non-certified companies using either the CoC certificate or the invoice and/or delivery document of

the supplier (which has the supplier’s CoC number) to transfer certified products to third parties.

Many buyers, who may not understand how CoC certification works may see an invoice with a CoC number and/or FSC, PEFC or AFS logo, or an FSC, PEFC or an AFS certificate, and believe that they are legitimately buying certified wood products with the accompanying transfer of the CoC claim.

Unless the seller has a valid CoC certification themselves, such a transaction is invalid as it does not involve the transfer of chain of custody to the buyer.

Many companies incur the cost to obtain chain of custody certification as a marketing tool to gain market advantage over noncertified competitors To ensure that you are buying certified products with legitimate transfer of a certification claim, buyers can follow the following steps: • Before you place an order for certified products, your purchasing staff must always ask the supplier if they are certified to supply the product you are asking for. This is important because CoC certification also requires certified companies to make public the list of products they are certified to buy and sell.

Simply because a company has a valid CoC certification does not mean that the product they are offering you or you are asking for is included in the scope of their certification. All certified companies must have a publicly available list of the Cont Page 18

issue 192 | 26.09.11 | Page 17

issues

Many companies incur cost to gain CoC certification as marketing tool From Page 17

certified products which are included in the scope of their certificate (i.e. certified product schedule); • If the supplier claims it is certified to supply the product you are asking for, ask them to send you (either by fax or e-mail) a copy of their certificate (not a copy of their invoice or delivery document), as well as a copy of their certified product schedule. The information you must look for on the certificate are: the name of the company; the CoC number; the name of the certification body; and the validity period (expiry date) of the certificate.

All CoC certificates are issued for an initial period of five years.

• You must then go the website of the supplier’s certification system (FSC, PEFC or AFS) and search for the details of the supplier using its name and CoC number. The aim is to verify that the company is indeed certified, and that their certification has not been suspended or cancelled; • If your checks indicate the supplier can legitimately supply you with the certified product you are looking for, keep a copy of the certificate on file for future reference.

• When you place your order, timber traders must describe

certified material (for PEFC orders).

PEFC Percentage certified materials must also have the percentage of certified content indicated.

Simply because a company has a valid CoC certification does not mean that the product they are offering you or you are asking for is included in the scope of their certification Timber traders must describe clearly the product they are asking for – FSC, ASF or PEFC certified hardwood, softwood or plywood.

clearly the product they are asking for – FSC, ASF or PEFC certified hardwood, softwood or plywood, and then give specifications (size, thickness, grade, quantities etc.)

Warehouse staff must always check orders against the supplier’s invoice and / or delivery document to ensure the products unloaded meet the requirements of the order When your order arrives, you must follow the steps to ensure you are receiving the certified products you have ordered.

• Warehouse staff must always check an order against the supplier’s invoice and/or delivery document to ensure the products being unloaded

meet the requirements of the order.

As a minimum, the supplier’s invoice or delivery document must have the following information: name and address of the supplier; date when the document was issued; your company’s details (name and address); description of the product; quantity of the products sold; the supplier’s FSC, PEFC or AFS CoC number or FSC Controlled Wood code (if applicable); as well as the correct FSC, PEFC and AFS claim type for each product; and clear indication of the FSC, PEFC or AFS product type i.e. FSC Pure, FSC Mixed Percentage (including the % certified content), FSC Mixed Credit, FSC Controlled Wood (for FSC orders) and PEFC

If there are any discrepancies between the information in your purchase order and the supplier’s invoice and/or delivery document, you have a choice to either quarantine the goods until the differences can be resolved, or you can accept the product but you cannot sell it as certified.

Part 2 next issue: Certified companies cannot sell certified products to uncertified customers, unless the certified product is offered as normal stock without any certification claim. * Dr Kwame Asumadu is director of Asumadu Pty Ltd, a consulting company which helps companies with CoC certification – preparing procedures based on preferred standards; training staff; and auditing.

Review aims to settle forest protection dispute THE Tasmanian Government has announced the make up of the group which will identify areas to be protected under the forestry peace deal.

The Premier Lara Giddings told Parliament the six-member group would be led by Professor Jonathan West and would start work immediately.

It will assess 572,000 has of

Page 18 | issue 192 | 26.09.11

native forest under a process agreed to by all peace deal signatories.

Ms Giddings said signatories had also ticked off on the appointments.

Two independent schedulers have also started investigating if logging in the 430,000 ha of native forest marked for assessment can go ahead

elsewhere.

This work is already under way and advice is expected to be provided to both governments by October 10. This advice will be shared with the signatories and the independent verification group to inform decisions on where harvesting can be rescheduled.

Environment groups and stateowned Forestry Tasmania are

clashing because the company insists it needs to keep logging within these forests to meet contractual obligations.

Signatories to the forest peace deal have promised to accept the umpire’s decision on forest protection. The verification group must report to Government by the end of the year.

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