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issue 198 | 07.11.11 | Page 1
This Issue
Industry cops a backhander Eric Abetz asserts many in the sector have not complained loudly and publicly enough
FIRST praising the “goodness of wood”, Tasmanian senator Eric Abetz gave the timber industry a sharp prod with a pointed stick at a dinner gathering of more than 90 industry and science leaders in Canberra last month.
Guest speaker at the dinner, which coincided with a round of annual general meetings of national organisations, the Leader of the Opposition in the Senate said: “Wood is good. We all know it’s a natural product; it’s renewable, it’s recyclable and
Just Go t ood W
r sm
A Better Earth Idea from Osmose
sm ®
Cont Page 3
ne ree
®
it’s biodegradable. Man has harvested wood for his needs from the time of making spears and learning how rubbing two pieces of wood together can create fire. “Human development, ingenuity
• Mining boom robs timber industry of workers • Quick passage of illegal logging Bill expected • Gordon Davis to chair VicForests • China joins PEFC • Greenpeace claims on rainforest fibre false
G
MicroPro
Treated
By JIM BOWDEN
• Hyne appoints three joint CEOs • Spotlight falls on award winners at TABMA dinner
MicroPro
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Copper Quat
A p N A pro o lu v w Co m e nt ini d F ac um or t*
MicroPro is GREENGUARD® Children and Schools Certified Greenguard® Children and Schools Certification indicates that a product has undergone rigorous testing and has met stringent standards for VOC emissions. In the USA, products certified to this criteria are suitable for use in schools, offices, and other sensitive environments.
Visit: www.osmose.com.au or phone: 1800 088 809 Osmose® and MicroPro® are registered trademarks of Osmose, Inc. or its subsidiaries. A Better Earth Idea from Osmose sm and Treated Wood Just Got Greener sm are slogan marks of Osmose Inc and its subsidiaries. MicroPro timber products are produced by independently owned and operated wood preserving facilities. GREENGUARD® is a registered trademark of GREENGUARD Environmental Institute. * See MicroPro fastener and hardware information sheet. © 2011 Osmose, Inc.
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issue 198 | 07.11.11 | Page 1
industry news
Acceptance .. certification soon for China’s forest and wood industry.
China joins PEFC
Dominant player in global forest products market PEFC International has unanimously approved the application of the China Forest Certification Council (CFCC) to join the world’s largest forest certification system. “The Chinese commitment to sustainable forest management and forest certification is welcomed,” PEFC secretarygeneral Ben Gunneberg said. “China has the fastest growing forest area globally and is a dominant player in the global forest products market with a growing domestic timber demand and a competitive export-oriented industry. “With the Chinese forest sector embracing forest certification, this is a major step forward towards mainstreaming sustainable forest management.” China has the highest afforestation rate of any country or region in the world, increasing its forest cover from 12% 20 years ago to more than 20% by 2010. With more than 200 million ha of forest, China is continuing to implement policy measures to increase the quality and quantity of its forests. The total output of the sector is expected to reach $US0.36 trillion by 2012 and employs close to 60
Page 2 | issue 198 | 07.11.11
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
Ben Gunnenberg .. major step forward towards mainstreaming sustainable forest management.
• Data Collection • Research
million people. “Joining PEFC is an important milestone towards international recognition of the Chinese forest certification system,” says Wang Wei, deputy director-general of the Centre of Science and Technology Development, the State Forestry Administration (SFA) of China. “PEFC offers us an important forum to share experiences and knowledge, and may eventually assist us in accessing markets for wood products originating from certified forests.” More than 3.4 million ha of forests in China are expected to become certified to CFCC this year.
• Career Advice
• Industry Advice • Adult Learning Expertise
VICTORIA PO Box 612, North Melbourne 3051 Tel: (03)9321 3500 Email: forestworks@forestworks.com.au NEW SOUTH WALES PO Box 486, Parramatta 2124 Tel: (02)8898 6990 Email: smukherjee@forestworks.com.au TASMANIA PO Box 2146, Launceston 7250 Tel: (03)6331 6077 Email: wfoss@forestworks.com.au BRISBANE PO Box 2014 Fortitude Valley 4006 Tel: (07)3358 5169 Email: bharle@forestworks.com.au
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INDUSTRY NEWS
Future generations will rightly judge those responsible harshly: senator From Page 1
and innovation together with wood and its uses have been part of this human journey since time began. “So why is it, towards the end of the 20th century, wood was no longer seen as good? Its harvesting and use was, and still is, seen by some as positively evil.” Senator Abetz said Australian forestry had a wonderful story to tell, especially the technique that had given it a native forest industry widely respected and world renowned for its management practices. “Yet we have allowed its reputation to be trashed and future generations will rightly judge those responsible very harshly. And some of those responsibilities are, regrettably, within the timber industry itself.” Senator Abetz, a former forestry minister in the Howard government, said it was great to be back among members of the forest sector. “And it’s great there is now a unified body for industry,” he said, referring to the formation of the Australian Forest Products Association. “Why didn’t you do it wen I was minister? Well done, and good on you.” The senator delivered his “sting in the tail” during dinner, joking that following his speech he hoped he would be able to taste the main course. “However, if not, I do thank you for the entrée!” He said he was pleased the dinner had passed the bread roll stage for flying missiles, adding that hopefully shoe throwing was reserved for prime ministers and presidents. “Tonight I want to encourage you to promote and be proud of your industry, one of the very
when the person given the forest portfolio [Tony Burke] among a host of other responsibilities Cont Page 4
few genuinely environmentally sustainable sectors of our economy,” Senator Abetz continued. “You have excellent champions like the Coalition forestry spokesman Senator Richard Colbeck, who excelled in the latest senate estimates, and former forestry minister Senator Ian Macdonald. And I recognise Dr David Pollard and other CEOs and industry leaders and acknowledge the work undertaken by Allan Hansard [former CEO of NAFI].” ‘How was the sector and some of the players sucked into the destructive vortex of the statement of principles discussions in Tasmania?’ Returning to his concerns about the industry, Senator Abetz said: “I must say, if the hat fits wear it.” He added: I am very passionate about the forest sector and very disappointed as to where it is at the moment. “Allow me to ask the question: when Labor won in 2007 and the separate ministry for forestry was abolished, who actually complained really loudly and publicly? “And who complained publicly
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Welcoming guest speaker Senator Abetz, the Leader of the Opposition in the Senate, to the industry dinner in Canberra, are, from left, Ron Adams of Wespine and chairman, Forest and Wood Products Australia, Vince Erasmus, Elders Forestry and Australian Forest Products Association director and nonexecutive director FWPA, and Mark Grey, non-executive director of FWPA.
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 • 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 198 | 07.11.11 | Page 3
INDUSTRY NEWS
‘The bizarre thing was that the players who had orchestrated it all kept an official distance and pretended they knew nothing’ From Page 3
was a previous campaigner for the Wilderness Society?” Drawing a comparison, Senator Abetz said: “You can just imagine on the other side of the equation if the minister for environment was a former manager of an aluminium smelter who oversaw the demise of the environment department. “On top of that we have the demise – and we’ll keep fighting for it – of the Cooperative Research Centre for Forestry.” Returning to more recent events, the senator said: “How was the sector and some of the players sucked into the destructive vortex of the statement of principles discussions in
InSurAnce.. It’S All In the SelectIon
Key players in the round of industry annual general meetings in Canberra last month .. Ric Sinclair, managing director, Forest and Wood Products Australia, Professor Gordon Duff, chief executive, CRC for Forestry, and Dr David Pollard, chief executive, Australian Forest Products Association.
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Page 4 | issue 198 | 07.11.11
Tasmania? “Indeed many of them weren’t so much as sucked in but voluntarily went to it like a moth to a candle. “Witnessing this from the sidelines was one of the most frustrating things I have experienced in a long, long time. Strongly supports the need to retain RFAs which were based and developed on scientific assessment “Warnings were ignored, wilfully ignored, and people were chewed up and spat out by their opponents in a manner that was, unfortunately, very predictable. “Those of us that know what happened in the Salamanca process all those years ago have simply seen a repeat of that strategy time and time and time again. And people like me have to stop and wonder how often does history have to repeat itself before we actually understand what is going to happen next?
[In the ongoing conflict between the conservation movement and the forest industry, the Tasmanian government in 1989 negotiated the Salamanca Agreement with conservation groups and the forest industry to work towards a resolution of their differences. This agreement ultimately broke down after a year of talks when the combined environmental groups walked out.] “When we opened the (latest Tasmanian) negotiations with a land concession you wonder whose side certain people were on,” Mr Abetz said. “The most basic rule of negotiation and public relations was ignored. “It seems to me, as an outsider to those negotiations, that some seemed to like to be on the stage with a stage-like tolerance and they didn’t really know what their role was. “It was nearly as though being there was all that mattered. “The bizarre thing was that the players that had orchestrated it all kept an official distance and pretended they knew nothing. And no prizes for guessing which company I am talking about.” Senator Abetz also mentioned the Coalition’s support for research and development and criticised the government’s recent axing of support for the CRC for Forestry. He said he strongly supported the need to retain regional forest agreements which were based and developed on scientific assessment. During two days in Canberra, October 28-29, annual general meetings were held by the Australian Forest Products Association, the Cooperative Research Centre for Forestry and the Forest and Wood Cont Page 5
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events
WHAT’S ON?
november
4: Victorian Association of Forest Industries annual dinner. Crown Complex, Southbank, Melbourne. Guest speaker: Peter Walsh MLA, Victorian Minister for Agriculture and Food Security and Minister for Water. Visit www.vafi.org.au/ad or for bookings call Jillian Roscoe on (03) 9611 9002. 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 forestry sector in several countries in South America.Visit www. iufrouruguay2011.org 16: FSC Australian annual awards dinner. Langham Hotel, Melbourne. Celebrating the 5th
anniversary of the incorporation of Responsible Forest Management Australia (FSC Australia) and its exciting achievements. Contact FSC Australia on (03) 9329 9984 or email nreynolds@fscaustralia.org 24-25: Bioenergy Australia 2011 conference and exhibition, Novotel Twin Waters Resort, Sunshine Coast, Queensland. Web: www. bioenergyaustralia.org 25: TABMA Queensland annual general meeting.
DECEMBER 1-2: ForestTECH 2011: Tools& Technologies. Improving forest planning and operations. Albury, NSW. www.foresttechevents.com
MARCH 2012 Engineered Wood Products Association of Australasia. Conference, dinner, award presentations. (Date to be advised)
13-14: Future Forestry Finance: Investment, Growth and Strategic Outlook. Sydney. www. forestryfinanceevents.com 21: ForestWood 2012. Museum of New Zealand Te Papa Tongarewa in Wellington. A pan-industry conference jointly hosted by the Forest Owners Association, Wood Processors Association, Pine Manufacturers Association, Forest Industry Contractors Association. Supported by Woodco, NZ Farm Forestry Association and Frame & Truss Manufacturers Association. This is the second time that the four organisations have held a joint conference which builds on the successes of previous individual and combined industry events/conferences which have attracted world class speakers and presenters. Fantastic opportunity for organisations and individuals, with a keen interest in forestry, to engage with decision makers and professional specialists from the forestry industry. Visit www.forestwood.org.nz
AFPA meeting focused on policies From Page 4
Products Australia. Managing director of Elders Forestry and AFPA board member Vince Erasmus emceed the dinner evening. He acknowledged the contributions to industry of John McNamara, formerly managing director of Hyne and an outgoing AFPA director following his retirement from industry; Jim Snelson, also an outgoing AFPA director who continues to contribute to
industry as FWPA board member; and Jon Ryder as an outgoing AFPA director who will contribute to industry from an Australasian perspective as he moves into a new role in New Zealand. Mr Erasmus also welcomed Dr David Pollard, the inaugural chief executive of AFPA, and acknowledged Allan Hansard for his former chief executive roles at NAFI and AFPA, and Richard Stanton (formerly of A3P) who has commenced as national
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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:
secretary of the Australian Forestry Standard Ltd. AFPA also held a series of policy development meetings with members by way of the three organisational chambers of resources, processing and pulp and paper. These meetings were a good opportunity to discuss key issues affecting the various industry sectors as well as the overall strategic direction of the national association.
- 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 198 | 07.11.11 | Page 5
INDUSTRY NEWS
Three appointed to manage Hyne CEOs will report to board BASING its new management model on one of the world’s biggest softwood producing companies, Hyne has appointed three joint chief executives to guide the iconic Maryboroughbased timber group into the future. They are Peter Hyne, general manager, sales and marketing, Jon Kleinschmidt, general manager, development and technical services, and Chris Robertson, general manager, manufacturing and production. Chris Hyne, who was appointed an executive director at Hyne’s board meeting at the end of October, said although the management arrangement had been considered unusual by
some in the industry, it was not untried. “In fact, the biggest privatelyowned softwood business in the world, Fritz Egger in Austria, operates in a similar way,” Mr Hyne said. The three joint CEOs will report directly to the Hyne board. Mr Hyne said in his capacity as an executive director, he would play a monitoring and coordination role with the new Hyne management. “The board agreed these three guys are doing such great work in their respective roles, it would not be right to pull any one of them from the work they are undertaking in such a capable fashion.”
Gordon Davis to chair VicForests
RESPECTED business leader Gordon Davis who was appointed managing director of the Australian Wheat Board in the wake of the Royal Commission’s investigation into kickbacks during the UN oil-for-food program has been appointed chairman of VicForests.
Federal Minister for Agriculture and Food Security Peter Walsh announced the appointment of four new directors to the board of VicForests. The appointments increase the level of practical expertise on the board, with three of the four new directors experienced in forestry-related industries. Mr Walsh said Gordon Davis had an outstanding track
Page 6 | issue 198 | 07.11.11
Gordon Davis
record in senior management at companies including Orica Mining Services and at AWB Ltd. Mr Davis was employed as a forester with the Forestry Cont Page 16
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EVENTS
Spotlight falls on award winners at TABMA’s industry dinner in Sydney
MORE than 300 timber traders and representatives of industry associations gathered at Doltone House on Darling Island wharf in Sydney – the first green six-star rated building in New South Wales – for the TABMA Australia dinner and awards presentation. The event on October 28 was supported by the Timber Development Association (NSW), the Furnishing Industry Association of Australia, the NSW Forest Products Association, the Timber Trade Industrial Association, the Window and Door Industry Council, the Australian Timber Importers Federation, and Wood Solutions. “This united industry support contributed to the success of the event,” TABMA Australia chief executive Colin Fitzpatrick told T&F enews. “I knew we were on a winner when we sold out to a capacity crowd within 10 days of posting invitations in early September.” The TABMA awards were the high point of the dinner that featured former cricketer Ian Chappell who captained Australia between 1971 and
1975. Presentations began with the best frame and truss operation award going to third generation family timber merchant Footersville Structural Timber Solutions, started in 1956 by Lawrence Footer who sold Western Australian hardwoods and flooring from a small yard at St Marys. Graeme Footer joined the business in 1965, and current managing director Mark Footer
Cont Page 9
Picture at top:TABMA Australia CEO Colin Fitzpatrick (second from left) with award winners Paul Shadbolt of ITI NSW Pty Ltd, Mark Willey, Gunnersen, Jarrod Bissell, apprentice with GDK Australia, Daniel David, Tilling Timber, Warwick Drysdale, Programmed Timber Supplies, Ryan George, apprentice with JMB Constructions, Peter Huchison, TABMA president, Jared Mariano, trainee with Riverstone Frames and Truss, Bronwyn Foord, Fewings Joinery, Haytham Moshi, Australian Timber Supplies Pty Ltd, Benjamin Jeffrey, apprentice with Gibson Shopfitters, Graeme Footer, Footersville, SA, Andrew Bone, Bone Timber, SA, and David Wills, Home Hardware, Mittagong.
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issue 198 | 07.11.11 | Page 7
events Maria Mariano congratulates her son Hared on his award for Trainee of the Year while Jaden and Nicholas Fry of Riverstone Frames and Truss look on. President of TABMA Australia Peter Huhison (left) congratulates award winners from South Australia Graeme Footer of Footserville, and Andrew Bone of Bone Timber. Nils Koren, managing director, Gunnersen Pty Ltd (left) gets together with the Sydney branch team Bianca Naylor, business manager (inventory and purchasing), Dean Ungaro, operations manager, Andrew Nazur, business manager (credit), Mark Willey, general manager, and Daniel Smith, business manager (reseller/ind). The Sydney branch won the TABMA award for Wholesaler of the Year. Andrew Bone of Bone Timber and Graeme Footer of Footersville Structural Timber Solutions.
David Jones, TABMA field officer (left) and Colin Fitzpatrick, chief executive (right), with apprentices Benjamin Jeffrey, Jarrod Bissell and Ryan George. Award winner Warwick Drysdale of Programmed Timber Supplies.
Steve Cunningham, TABMA national training manger, David Jones, TABMA field officer, apprentices, Benjamin Jeffrey, Jarrod Bissell and Ryan George, Jared Mariano, trainee, and Nikki Hart and Jim Batch of ABL Apprenticeship Centre.
Page 8 | issue 198 | 07.11.11
Supplier of the Year .. ITI (NSW) Pty Ltd, represented at the TABMA dinner by, from left, Paul and Michael Shadbolt, Marcus Fahy, Justin Newman, Jeremy Belotti, James Bailie.
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events
25 members of one family help with award win From Page 7
followed in 1990. In 1967 operations moved to Brompton and eventually grew to more than 2.4 ha over three streets. Proposals for a north-south freeway saw the NSW government acquire the Brompton site during the 1970s and Footersville purchased its present 4.29 ha site at Regency Park in 1985. In 2008, a satellite branch was opened in Port Augusta to service the mid-north and Spencer Gulf regions of South Australia. A pre-fabricated roof truss line was introduced in 1990 and the pre-fabricated product range has been extended to include floor truss and wall frame lines. The Most Improved Timber Yard Award went to Australian Timber Supplies Pty Ltd, a family business that has been involved in the building industry in Australia for more than half a century. From origins in executive home building to heritage joinery, civil engineering and complex stair design and building, ATS still has two generations of family members in the business. Situated on 10 ha at Box Hill in Sydney, ATS has invested heavily in high-tech machinery and human power. The site includes milling, kiln drying, laminating, joinery and warehousing facilities. A timber merchant that has been supplying timber products for carpenters, builders and DIY enthusiasts for 91 years won for Best Traditional Timber Yard. Bone Timber Industries at Edwardstown, 6 km southwest of Adelaide, is today owned by 25 family members. The
company was named best fourth generation or older company in the 2010 Family Business Association of SA awards in May. One of Australia’s largest timber distributors was awarded Supplier of the Year at the Sydney presentation. ITI (NSW) Pty Ltd at St Marys has branches extending from Townsville to Adelaide. Most Innovative Member Programmed Timber Supplies provides users of bulk timber and timber components but not directly to the public or builders. Customers include wall frame and roof truss fabricators, furniture manufacturers and importers, independent and chain building material outlets and wholesale timber distributors. Other award winners included: Best Building Materials Centre: Home Hardware, Mittagong. Wholesaler of the Year: Gunnersen Pty Ltd. Sales Representative of the Year: Daniel David, Tilling Timber Pty Ltd. WoodSolutions Award for Most Innovative Member: Programmed Timber Supplies. ABL Award for Host Employer of the Year: Fewings Joinery Pty Ltd, Mascot. Trainee of the Year: Jared Mariano. 1st Year Apprentice of the Year: Ryan George, JMB Constructions. 2nd Year Apprentice of the Year: Jarrod Bissell, GDK Australia. 3rd Year Apprentice of the Year: Benjamin Jeffrey, Gibson Shopfitters.
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Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3266 1429 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3266 1429 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready production@industryenews.com.au
Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising. The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.
issue 198 | 07.11.11 | Page 9
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. WAngArAttA, WeDnesDAY 9 noVeMBer 2011 topic
presenter
Assessment of future trends in size and design preference for domestic and light commercial decking applications (TDA NSW)
Andrew Dunn
Onboard systems guide (CRC Forestry)
Martin strandgard
Assessing cants to maximise outturn of structural timber (Solid Wood Initiative)
Marco Lausberg
Predicting and managing the impacts of commercial plantations on catchment water balances (University of Melbourne)
paul Feikema
A review of potential impact of VOC emissions on the future market share for engineered wood products (Australian Forest Research Company)
James Hague
FastTRUCK – a model to optimise forest transport scheduling (CRC Forestry)
Mauricio Acuna
How to guarantee in-service warp stable timber (Solid Wood Initiative)
Marco Lausberg
Timber beams instead of Steel Beams in Housing Construction (TDA NSW)
Andrew Dunn
Technical feasibility study – log tracking with RFID tags (Solid Wood Initiative)
Marco Lausberg
Machine evaluation toolbox (CRC Forestry)
Martin strandgard
Performance of headrig operators in sawmills (Solid Wood Initiative)
Marco Lausberg
ALPACA – Australian Logging Productivity and Cost Appraisal (CRC Forestry)
Mauricio Acuna
Venue: Memorial Hall A, Wangaratta performing Arts centre, 33-37 Ford street, Wangaratta 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:// fwpardworksseminarswangaratta.eventbrite.com by 5.00 Monday, 7 November
Page 10 | issue 198 | 07.11.11
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TIMBER TREATMENT
TPAA on sound footing for year ahead Membership up, education program under way THE structure of the Timber Preservers Association of Australia was sound and membership had increased, re-elected president David Waterhouse said. The TPAA annual general meeting in Melbourne on October 26 followed an allday combined meeting of the TPAA council and technical committee. Mr Waterhouse of Waterhouse Treated Timber, a sawmilling and timber merchant operation at Woori Yallock in the Yarra Valley, said the past year had been one of challenges and achievements. “Driven by a broad business agenda, the combined meetings of council and the technical committee proved to be a successful innovation and a resultant subcommittee
developed a useful set of treatment process guidelines which are now being assessed by merchants, distributors and their representative associations,” Mr Waterhouse said. The necessity for the guidelines follows the removal of government supervision of the industry in Queensland with the withdrawal of the Timber Users Marketing Act (TUMA). Mr Waterhouse said with financial assistance from stakeholders and in collaboration with Forest and Wood Products Association, TPAA was able to achieve timely amendments to and the publication of the AS 1604 suite of standards. “The technological input of the TPAA technical committee and the association’s delegates
on the standards committee has been of great value,” Mr Waterhouse said. “Membership has increased during the year and with the cessation of the former LOSP Treaters Group, we are currently seeking ways in which to best represent that subsector of our industry.” Technical committee chairman Dr Harry Greaves said there was the possibility of working through amendments of standards outside the expensive mechanisms of Standards Australia. “Also, education of specifers and users of timber treatment programs is on the agenda and there has been some early discussion with FWPA to perhaps lock into its market David Waterhouse .. membership increase for TPAA.
Cont Page 14
Conference focuses on forests in the Pacific
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issue 198 | 07.11.11 | Page 11
INDUSTRY NEWS
Mining boom lures workers from sawmills in western Queensland
When housing improves there will be struggle for wood By JIM BOWDEN
THE mining boom is luring workers away from sawmills in western Queensland resulting in closures and drastic cuts in production shifts. Workers are leaving the mills to work at mining sites where simply driving a truck will return double the wages earned in the timber industry. Mining is racing ahead of the rest of the economy, soaking up skilled workers and other factors of production, leaving the non-mining industries in a state of semi-permanent weakness. NK Collins Industries, a family concern at Toowoomba and the largest cypress sawmiller
Men and machines are gulping up huge profits from coal, iron ore and gas, leaving the timber industry with fewer workers.
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Page 12 | issue 198 | 07.11.11
and processor in Australia, has been forced to close its new mill at Tambo in western Queensland. The company, which has invested more than $3 million over 18 months in an expansion program, has been operating for more than 40 years and employed 210 staff. The company has already shut down mills at Augathella and Mungallala, east of Charleville, because of labour shortages. General manager Sean Gribble said then Tambo mill was operating at full capacity and employed 14 people, but competition from the mining sector had meant it could not find enough staff. “It’s nothing to do with timber supply or harvesting contractors, it’s purely just labour,” he said. Mr Gribble said calls for state and federal support had fallen on deaf ears and the visa process for overseas workers was not helping. “Again it is just such a battle – the red tape and bureaucracy
that you have to go through,” he said. “We’ve been talking to state and federal governments but I’ve lost count of the number of months that we’ve been trying to find out whether they can assist us, particularly with overseas workers. “That is the only area we see that we are going to fill the void and it is just falling on deaf ears.” Timber Queensland says there may need to be rationalisation of small timber mills in rural areas if the native timber sector is to survive. Chief executive Rod McInnes says rural mills are losing workers to the mining sector and that will have significant flow-on effects. “The only easy answer for us is to rationalise mills into fewer, bigger mills, which has its own social and economic impact in the towns where the smaller mills operate,” Mr McInnes said. ‘The only easy answer is to rationalise mills into fewer, bigger mills, which has its own social and economic impact in the towns where the smaller mills operate’ – Rod McInnes The wood supply issue at this stage is not affected by these closures; the housing market is quiet and there’s plenty of timber. The concern is about getting timber into mills and getting it processed. “But once the market turns around, which we hope will happen next year, and demand goes up we’ll be scratching Cont Page 13
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INDUSTRY NEWS
Spin off: mining companies funding housing and buildings for workers not benefiting from the minerals boom. Internal research by the Labor Party shows 68% of voters believe average Australians are not benefiting. Just 21% of 1000 people polled by UMR Research believe Australians are benefiting from the boom. The poll found 64% of Labor voters, 67% of coalition voters and 72% of Greens voters agreed average people were not gaining from the boom. So too did 73% of Queensland voters and 67% of voters in Western Australian, the two largest mining states.
From Page 12
around looking for wood again, which just adds to the problem,” Mr McInnes said. Corporate giants like Xstrata, Halliburton, Origin, Santos and BG are setting up to exploit the wealth of 35,000 sq km of coal in the Surat Basin that will be the base for mines, power stations and gas. Towns such as Chinchilla, Wandoan and Dalby are now in the middle of a housing boom that developers say is not just a once-in-a-lifetime but a once-ever opportunity that will see the population of the three towns double within the next five years. ‘You can blame the LNG all you want to and everyone is looking at them as the bad guys, but they are bringing investment and jobs and industry here’ – Stacey Gernetzky Wild estimates of investment topping $100 billion are thrown about by locals, and wages for the lucky ones will easily exceed $100,000 in towns where unemployment is already below 2%.
Company director Don Collins .. saw millers losing 50 workers to better paid jobs in mining.
In the central Queensland coastal town of Gladstone, many are blaming the producers of liquefied natural gas for luring thousands of workers into the city. But on the positive side, these companies are funding housing and building accommodation for construction workers. Chief executive of the Gladstone Council Stuart Randle describes the housing issue as “diabolical”. “You can blame the LNG all you want to and everyone is looking at them as the bad guys, but they are bringing investment and jobs and industry here,”
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adds Stacey Gernetzky of community outreach group Hopelink. “The government is really dragging its heels.” The Urban Land Development Authority has taken control of a 26 ha site to develop housing in Gladstone. Another agreement between three local builders and the authority will deliver 297 new homes to the suburb of Clinton and the Devine Group has started a $1.4 billion housing project. Meanwhile, as the federal government prepares to introduce legislation for its mining tax, a poll shows most people believe Australians are
Code changes on native forests THE Victorian government is proposing changes to Timber Production Code of Practice that could result in increased logging in native forests. The changes give the final say on logging in protected areas to the secretary of the Department of Sustainability and Environment. 的t’s about allowing us to use that 10% of public native forest estate that we have available for timber production,” arliamentary secretary for forestry Gary Blackwood said.
Fulghum Industries, FIRST in wood chippers AN INDUSTRY LEADER FOR 51 YEARS From the 36” utility chipper to a 144” pulp mill wood yard and chip mill machines. Other specialised individual equipment items include the radial log cranes, drum debarkers, Rosser head debarkers, vibrating conveyors, rotary and drum screens, X rotor hogs and hammer hogs. Contact details: +64 9 832 7930 or +1 478 252 5223 Email: mark.johnston@fulghum.co.nz
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issue 198 | 07.11.11 | Page 13
industry news
Quick passage of illegal logging Bill expected in last sitting of parliament A QUICK passage through parliament of Australia’s Illegal Logging Bill is expected this month, subject to continued support for the legislation by the Opposition. The Bill is likely to be introduced into parliament before the last sittings on December 2. The Illegal Logging Prohibition Act 2011 was transferred from the Australian Ministry for Agriculture, Fisheries and Forestry to a Senate Standing Committee on Rural Affairs and Transport. The elements of the Bill will apply from the date the legislation comings into effect. It will take another two years for the other offenses and obligations to enter into force. Hardwood traders in the UK have questioned whether they could be sent to prison under new EU legislation if some illegal timber found its way into their supply chain It is not clear yet what timber products will be covered by the illegal logging policy, but DAFF has noted that three product categories will be included – solid timber and wood products; processed timber and wood products; and complex wood products. DAFF appears to favour the US Lacey Act approach of applying the prohibition to all products but phasing in the declaration requirement for certain products groups. The Act creates an authority for federal officers to monitor compliance with the Act and legal logging requirements; investigate offenses against the Act (including searching premises etc.); and penalties, which will vary depending on the offence committed: • For importing timber that is made from, or includes, illegally
Page 14 | issue 198 | 07.11.11
Penalties .. importers of illegal timber will face harsh penalties under the Illegal Logging Bill, likely to be introduced to parliament in late November.
logged timber, the penalty will be five years’ imprisonment and/or 300 penalty units for an individual ($33,000) and 1500 penalty units for businesses ($165,000). • For importing or processing timber without approval from minister or a timber Industry certifier, the penalty will be a fine of 100 penalty units (corresponding to about $1200). • There are provisions present in the Bill which could allow for forfeiture of goods. Meanwhile, in the UK, hardwood traders have questioned whether they could be sent to prison under new EU legislation if some illegal timber found its way into their supply chain. A lively meeting in London last week saw concerned traders question the Department for Environment, Food and Rural Affairs forestry team about the upcoming EU Timber Regulation (EUTR) which criminalises the import of illegal timber and wood products. DEFRA is the UK government department responsible for policy and regulations on the environment, food and rural
affairs The 50 members at the meeting expressed concern as to who the ETR’s prohibition – the company first placing the product on the market – would apply to, while others wanted to know who would enforce it and whether there would be costs involved. DEFRA officers admitted there could be some grey areas in
defining who was first placing product on the market, in which case the onus was on importers to do their due diligence to cover themselves. Either the Environment Agency or Animal Health and Veterinary Laboratories Agency were most likely to be the enforcement agency, athough local authorities are being considered. Inspectors will have the power to enter premises on spec. Likely penalties for placing illegal timber on the market include fines, product seizures and suspension of the company’s right to trade, though these have yet to be finalised by the UK government. The meeting revealed that Indonesia was in a pole position to be the first country to finalise a voluntary partnership agreement on licensing its timber exports as legal and begin exports to the EU. Although it isn’t the first country to sign a VPA, Indonesia had made good progress to put itself in the lead.
TPAA on a sound footing From Page 11
development program.” Councillors and office-bearers elected at then AGM were: President, David Spence (Waterhouse Treated Pine); vice-president, Ron Eddy (TimTech Australia); treasurer, Pat Shelton (Shelton Timber Treatment). Other councillors: Elias Akle, Osmose (Australia), Philip Burke, Australian United Timbers, Dr Harry Greaves, Harry Greaves Consulting, Peter Herde, Portland Pine Products, Angelo Hrastov, Lonza, Garrie James, Outdoor Timber Wholesale, Wayne Lewis, Koppers Wood Products, and
David Marlay, Hyne.
Doug Howick of Forest Products Advisory Services Pty Ltd was re-appointed national secretary. TPAA technical committee: Chairman, Dr Harry Greaves, HG Consulting. Members: Dr Peter Cobham, CD Technology Enterprises, Dr Laurie Cookson, L J Cookson Consulting, Dr Stephen Crimp, Osmose (New Zealand), Richard Forrester, State Forests NSW, Greg Jensen, Lonza, David Marlay, Hyne, Jack Norton, AgriScience Queensland, and Rick White, TimTech Chemicals.
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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. tuMut, FriDAy 11 noVeMBer 2011 topic
presenter
FastTRUCK – a model to optimise forest transport scheduling (CRC Forestry)
Mauricio Acuna
How to guarantee in-service warp stable timber (Solid Wood Initiative)
Marco Lausberg
Near infrared for wood quality (CRC Forestry)
Geoff Downes
Review of potential impact of VOC emissions on future market share for engineer wood products; and, Near Infrared to assess resin performance (Australian Forest Research Company)
James Hague
Technical feasibility study - log tracking with RFID tags (Solid Wood Initiative)
Marco Lausberg
Adaptation options for Australia's plantation estate under climate change scenarios (CSIRO) Jody Bruce Onboard systems guide (CRC Forestry)
Martin strandgard
Performance of headrig operators in sawmills (Solid Wood Initiative)
Marco Lausberg
ALPACA – Australian logging productivity and cost appraisal (CRC Forestry)
Mauricio Acuna
Biological control of the Monterey pine aphid (PIRSA)
charlma phillips
Best practise guidelines: drying, gluing and finger jointing, priming and painting, timber machining and saw doctoring (Solid Wood Initiative)
Marco Lausberg
Machine evaluation toolbox (CRC Forestry)
Martin strandgard
Venue: tumut Bowling and recreation club, 24 –30 richmond street, tumut 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://fwpardworksseminarstumut.eventbrite.com by Monday 7 November Advertising: Tel +61 7 3266 14292011. Email: cancon@bigpond.net.au
issue 198 | 07.11.11 | Page 15
INDUSTRY NEWS
Greenpeace claims on rainforest fibre false, forensic tests confirm CLAIMS by Greenpeace International that two Asia Pulp & Paper products were ‘proven’ to contain ‘Indonesian rainforest fibre’ have no scientific basis, it has been confirmed. Greenpeace employed a USbased paper testing company, Integrated Paper Services (IPS), to conduct fibre tests on APP toy packaging in North America and tissue products in New Zealand. The company Greenpeace asked to carry out the tests has admitted claims claim cannot be justified The Amsterdam-based NGO then launched a global campaign against toy companies, such as Mattel, Hasbro, Lego and others to stop doing business with APP on the basis of the following claim: “Forensic testing shows that packaging used by leading toy brands regularly contains Indonesian rainforest fibre”. It has been confirmed this statement has no basis in
scientific fact. CEO of Integrated Paper Services Bruce Shafer says IPS is only able to determine the types of fibres present in such samples. “We have not, and are unable to identify country of origin of the samples. This type of assertion would need to be based on data outside of our findings. Therefore we are unable to comment on the credibility of the statements Greenpeace has made regarding country of origin.” Mr Shafer added that “some elements of mixed tropical hardwood” (vessels, not fibres) were found in the samples and that IPS stood by that finding. But IPS did not conduct any tests to determine whether the samples were actually fibres from recycled material. In a statement issued on June 8, APP Indonesia made it clear that 95% of its packaging materials came from recycled paper; the remaining 5% was sourced from PEFC certified
VicForests directors appointed From Page 6
Commission in Tasmania for 10 years and has been the recipient of both the Commonwealth Forestry Prize and the Victorian Sawmillers Association Award. Australian Foundation Investment Company board member Catherine Walter also joins the VicForests board. Mrs Walter has been on the audit committee of many boards in the past, including National Australia Bank, Orica, James Hardie and WorkCover. Mr Davis and Mrs Walter have already commenced in their roles, with two other new directors, Alison Posa and Graeme Stoney, to begin on
Page 16 | issue 198 | 07.11.11
November 19. Between 1995 and 2000, Mrs Posa worked in finance and risk management roles for Fletcher Challenge Paper, which has pulp and paper operations in Australia, New Zealand, Asia and South America.” Mr Stoney joins the VicForests board having served as the State Member for Central Highlands for 14 years, including four years as the shadow spokesperson for forestry. Between 2007 and 2009, Mr Stoney was also general manager of FFORNE Hardwood Cooperative which comprised 70 landowners growing 1700 ha of native trees in northeast and central Victoria for high quality sawlog production.
Bruce Shafer .. unable to identify country of origin.
forests around the world. “Greenpeace based its entire global campaign against APP on a single premise: it had commissioned tests which proved that APP products
contained Indonesian rainforest fibre,” APP managing director Aida Greenbury said. “The company Greenpeace asked to carry out the tests has admitted this claim cannot be justified. “If there were any MTH materials in the packaging, it is highly likely (95%) that they came from recycled material. Or that they came from a sustainably managed forest in another part of the world, for example South America.” Mixed tropical hardwood fibres can come from sustainablymanaged forests in several tropical regions. Both PEFC and FSC-certified products can contain traces of MTH, as recent tests in Australia have confirmed.
Minister’s ignorance not bliss for Tasmanian forest industry FEDERAL Forestry Minister Joe Ludwig had shown again how disconnected he was from his portfolio and that he must urgently get across serious issues related to Tasmanian timber supply contracts and the independent assessment process, Coalition forestry spokesman Senator Richard Colbeck said The minister failed to give any relevant information when questioned about the issues – related to the Tasmanian forestry intergovernmental agreement (IGA) – by Senator Colbeck in the Senate. “My questions to Minister Ludwig focused on the activities of the independent verification group that is reviewing timber supply contracts and coupes within the 430,000 ha claimed high conservation area,” Senator Colbeck said. “It has come to our attention that at least 25 coups will be
required for harvest inside the claimed 430,000 ha designated to be put into immediate reserve under the terms of the IGA “I directly asked Minister Ludwig whether the government would be complying with clauses 26 and 27 of the IGA and paying compensation to sawmills instead of honouring the supply clauses in the sawmills’ contracts. “I also asked Minister Ludwig to confirm that the independent verification group would not be completing its work until at least February next year requiring access to even more coups. “It is pretty incredulous Minister Ludwig couldn’t provide any insight about these latest issues, and doesn’t know whether the government will be complying with the IGA or breaching it, but it does seem to be par for the course with this minister who seems to default to a hands-off approach.”
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