Issue 223

6757

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

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issue 223 | 28.05.12 | Page 1

Australian jobs out the window

This Issue • Australia claims world’s tallest CLT building • Tough times, but Forestry Tasmania solvent

Dodgy Asian products erode market for honest Australian manufacturers

doors were 15-20 mm ‘out of plumb’ horizontally and vertically when they arrived in Australia and cell windows also did not fit when frames were inserted at the $350 million Ararat prison project.

By JIM BOWDEN AUSTRALIA has become a window of opportunity for Chinese manufacturers, or any Asian supplier – an opportunity to flood the market with cheap, nasty, noncompliant building materials like the hundreds of doors and windows that failed on a government prison project in southwest Victoria a few weeks ago.

The folly of importing building components has again been Problems for windows industry.

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The Chinese-manufactured prison

Treated

The botched order arrived from China cut to the wrong sizes causing one of the state’s largest construction companies to collapse.

St Hilliers Construction, run by Tim Casey – the son-in-law of racing legend Bart Cummings – has appointed administrators after running out of cash, threatening hundreds of jobs and 12 public housing projects in New South Wales.

• Industry braces for carbon tax • US carbon market an opportunity • FSC gives FPQ dual certification • FIAT to re-join forest negotiations • Final approval on SA forests sale • Half century of Hoo-Hoo in Australia

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issue 223 | 28.05.12 | Page 1

INDUSTRY FOCUS

Industry braces for carbon tax, winds down production Call for tax relief on housing

By JIM BOWDEN

WOOD processors are winding back production, reducing shifts and in some cases mothballing machinery as they brace themselves for the carbon tax which begins on July 1.

Manufacturers interviewed say the industry has never been in such a parlous position.

A Victorian producer of particleboard and wood panel products didn’t beat about the bush: “The carbon tax will cost us $1 million, and that’s in energy needs not emissions.”

The Gillard government’s carbon price of $23 a tonne begins on July 1 and rises at 2.5% a year.

Increases in the cost of living will result from the nation’s top 500 polluters passing on their costs of having to pay for the carbon dioxide they emit.

Wood manufacturers we talked to say they have no alternative but to restructure their businesses in the next financial year; many of them will shutdown sections of the production line that use ‘excessive electricity’ and in some cases consider weekly closure of the whole plant while

Page 2 | issue 223 | 28.05.12

stocks remain high and sales are low.

Manufacturers say there are underlying issues apart from the carbon tax. Banks are more hesitant to lend money to business or home buyers in a no-confidence economy and ever-increasing imports of timber from economy-torn Europe enjoying the benefits of the high Australian dollar are adding to the industry’s woes.

A Victorian producer told T&F enews that more than 1800 cub m of Baltic pine framing material was crossing into the state every day at a time when many of the state’s processors had moved to a three-day week to survive.

“In his Budget address, Treasurer Wane Swan said unemployment was falling, and would be down to 4.5% by mid-2012. But he has not taken into account the fact that many of these employees are now working a three-day week and this doesn’t show up in the stats,” he said.

Meanwhile, as the housing industry warns that the dream

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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: edown@forestworks.com.au

BRISBANE

PO Box 2014 Fortitude Valley 4006 Tel: (07) 3358 5169 Email: bharle@forestworks.com.au

SOUTH AUSTRALIA

Unit 2/191 Melbourne Street, North Adelaide 5006 Tel: (08) 8219 9028 Email: michelle@forestworks.com.au

Cont Page 12

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INDUSTRY NEWS

Fraudulent: certification of imports not worth the paper it is written on From Page 1

of politics, but our concerns have fallen on deaf ears in Canberra.”

exposed and Victoria looks set to pay a heavy price. Local manufacturing jobs have been sacrificed, building workers have been tipped out of work and at some stage the state will have to find the money to get the project going again.

Speaking with Tracey Gramlick, executive director of the Australian Window Association, the Victorian CFMEU state secretary Bill Oliver confirmed the issue was significant.

He quoted the growing number of overseas window suppliers approaching building sites directly and offering products at prices much lower than offered by local manufacturers who bear the costs of testing to standards and conforming to BCA requirements.

‘We’re continually pushing the boundaries, talking to both sides of politics, but our concerns have fallen on deaf ears in Canberra’ – Tracey Gramlick “These building standards are crucial to the integrity of Australia’s building stock,” Ms Gramlick sad.

“Under the AWA’s recent campaign and ongoing fight against non

She said the AWA audited 600 window factories every year to ensure products met Australian standards – “and they pay for the privilege.”

Tracey Gramlick .. standards crucial to the integrity of Australia’s building stock.

Simon Dorries .. responsibility of governments to enforce regulations.

compliance, poor testing and fraudulent SAI Global certificates we have seen a measurable improvement in the Western Australian market.

business.

“Our campaign now moves to Victoria as we work with building and surveyor association partners to expose and address the growing number of buildings and sites being identified to us.”

Ms Gramlick said fully completed and containerised window frames from China, Vietnam and Indonesia were crippling the market for Australian manufacturers; the imports were chewing up more than 30% of the domestic market and up to 50% of the commercial

“It’s a sickening trade,” she said.

“This stuff is coming in under fraudulent certification and our own forensic work has produced a solid base of evidence on this.

“The paperwork claims the windows frames are ‘certified to a national system’ and as such seem to magically escape proper screening by authorities and turn up on building sites.

“And what’s scary is that some builders don’t seem to worry about this aspect. There’s no policing and no penalties for purchasing and installing non-compliant material.

“We’re continually pushing the boundaries, talking to both sides

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“So here we have Aussie companies forking out good money so their products meet the best standards and are fit for purpose, while a dodgy factory somewhere in China can bring in its rubbish without conforming to Australian standards, pocket the payments and then see this stuff fail – no questions asked.

“And while this is going on, many of our members are shutting shop and Australian jobs are going out the window!”

Ms Gramlick said she was now spending 50% of her time on the issue. “It’s going to need a big shift to turn this around.”

She said AWA’s international members were audited both in the factories and warehouses and their products were tested to compliant standards in Australia – the same process that applied to Australian members.

AWA members verify window design performance using a NATAaccredited testing laboratory.

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issue 223 | 28.05.12 | Page 3

INDUSTRY NEWS

World’s tallest cross-laminated building to rise over 10 storeys

Engineered mass timber project by Lend Lease A PROJECT to build the world’s tallest wood building using cross-laminated timber was launched in Melbourne last Friday.

Aspiring to be the first 5 Star Green Star As Built residential building in the country, Forté in Victoria Harbour will rise more than 10 storeys, offering 23 boutique residential apartments and four townhouses.

The building, designed and built by international property and infrastructure group Lend Lease, will use construction methods and material proven successful in Europe for more than a decade.

By using CLT, Forté, will reduce

Artist’s impression of the Forté cross-laminated building to rise 10 storeys in Melbourne..

2012

Conference & Exhibition Melbourne 18-19 June

The major national event for engineered timber and building pre-fabrication International speakers program visit website for details www.frameaustralia.com Page 4 | issue 223 | 28.05.12

CO 2 equivalent emissions by more than 1400 tonnes when compared to concrete and steel – the equivalent of taking 345 cars off the road.

CLT is an engineered mass timber product and very different to a traditional woodframe construction.

Mass timber-dense solid panels of wood engineered for strength through laminations of different layers provides significant benefits and has the equivalent structural integrity to concrete.

CLT on a weight-to-strength basis meets, and in some cases exceeds, the performance of reinforced concrete, resulting in a very stable and durable structural outcome.

Designed and produced in a factory environment means it will also be built 30% faster than its material counterparts, while being cleaner and more efficient.

Chief executive for Lend Lease’s Australian business Mark Menhinnitt said CLT was the most significant form of innovation in construction

technology that Australia had seen in many years.

“CLT will transform the construction industry by introducing a more efficient and environmentally-friendly construction process that has never been undertaken in Australia before,” Mr Menhinnitt said.

“In 2001, we introduced the innovation of chilled beam technology to the Australian market which has now become the industry norm. CLT is another example of how Lend Lease is leading the way with innovations that will create value for consumers in the industry.

“With an increasing number of people moving to urban areas, this innovation is timely given the urgency to create liveable, sustainable cities that are climate positive. The adoption of green technologies, materials and construction processes such as CLT means we are closer to achieving this.”

Mr Menhinnitt said Forté was a showpiece for natural and new, where modern architecture met a natural building material.

“It will offer a different way of living through reduced energy costs due to better thermal performance, an abundance of natural light, ventilation, sweeping views and a healthier living environment,” he said.

“Building with CLT is becoming increasingly popular overseas with other residential building developments such as Bridport House and Stadthaus Murray Grove, both in London, built successfully with CLT. “It proves that the appetite is there for this kind of living.”

Following on from Forté due

Cont Page 7

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events

MAY

WHAT’S ON?

30: Chain of custody certification workshop.

Flagstaff Gardens, Melbourne, following FSC Australia annual general meeting. The workshop is open to anyone interested, presenting itself as a great opportunity for those looking to become FSC certified to workshop requirements of FSC certification. It will also be a valuable refresher for FSC certified organisations looking to train their staff, and attendance will satisfy FSC-audit requirements for staff training. The event will be held free for members, and at a small cost for non-members.

Seats are limited. Tel: (03) 9329 9984. Email: info@fscaustralia.org Website: www.fscaustralia.org 31: National wood products forum and workshop on the future of certification in Australia Dockside, Darling Harbour.

The forum will explorestrategies to increase theawareness and uptake of certificationand identify impedimentsto its adoption.

Presentedby Planet Ark’s Make It Wood campaign. Bookings: certificationforum.eventbrite. com.au Visit MakeItWood. org/CertificationForum

JUNE 18-19: Frame Australia 2012 conference and exhibition – Park Hyatt, Melbourne.

Major national event for engineeredtimber and building pre-fabrication. The expanded program will include a focus on building and construction with increased dialogueand information exchangeon residential and commercialbuilding trends, andawareness of new BIM digital model technology. Delegate

registration available online.

Visit www.frameaustralia.com (save $100 with early bird registrationbefore May 21).

JULY 20: National Carpenters Day. Tel: (03) 9597 0948. Fax: (03) 9597 0958. Email: info@ carpentersday.com.au

AUGUST 13-15: Australian Window Association’s annual conference and exhibition.

Fenestration Australia 2012 at The Esplanade Hotel, Largest gathering of local and international organisations associated with the window industry, bringing together more than 300 delegates from right across the value chain.

Inquiries to conference secretariat on (08) 9381 9281 or email fenestration2012reg@iceaustralia. com 22-23: Carbon Forestry2012.

Auckland NZ. Forestry is New Zealand’s largest potential carbon sink and, as the ETS continues to grow in importance to NZ businesses,so does its investment future. A raft of new legislation,a dramatic drop-off in carbon trading and pricing during 2011, thsome international emissions units and uncertainty around the future alignment of New Zealand and Australia’s trading schemes has changed the landscape significantly. It’s led to uncertainty in the marketplace about the immediate future and opportunities that exist in carbon forestry.

Visit www.carbonforestryevents. com

OCTOBER 10-11 (Rotorua) and 16-17 (Melbourne).

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Improving international cost competitiveness through smart science, research and technology.

New Zealand and Australian forest products companies face increasing competition from low cost producers, and from lower cost, better performing non-wood products. Low costs and high fibre recovery,achieved through process innovation, are prerequisites to competing in today’s global forest product markets. This Australasian technology event will provide local forest products, wood processing and manufacturing companies with a unique opportunity. Visit www. woodinnovationsevents.com

NOVEMBER 3: Queensland Timber Industry Awards Night – Victoria Park Function Centre, Brisbane.

28-29: ForestTech 2012 – Improving Wood Transport and Logistics.

Melbourne and Rotorua

December 4-5. Focus on improving transport and logistics in the forestry sector.

It will build on the excellent program designed by the Forest Industry Engineering Association along with forestry companies and logistics specialists. The program will target key decision makers from forestry and wood products companies. It will provide long overdue and practical updates on innovations, strategies and technologies that are being used by forest products companies to improve planning, logistics and operations within the wood supply chain.

Visit www.foresttechevents.com

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

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

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

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

issue 223 | 28.05.12 | Page 5

ISSUES

June 30 deadline for resolution on guaranteed supply volumes

FIAT gives forest negotiations ‘one last chance’ THE Forest Industries Association of Tasnania has re-joined negotiations on the industry’s future, giving the forest peace negotiations ``one last chance’’ after peak environment groups distanced themselves from anti-logging campaigns.

FIAT walked away from the talks in February vowing not to return unless fringe green groups ceased a marketbased campaign targeting international customers of the state’s wood products.

[Members of environmental groups not involved in the talks visited customers of Malaysian timber company Ta Ann in Asia to argue products from high conservation value forests are being marketed as ecofriendly].

Chief executive Terry Edwards said that he had been in talks with ``mainstream’’ environment groups to find a way to get the talks back on track for a couple of weeks.

That ended on May 18 with a statement from The Wilderness Society, Environment Tasmania and the Australian Conservation

Page 6 | issue 223 | 28.05.12

Terry Edwards .. more important to be in the process.

Foundation urging buyers of Tasmania’s forest industry products not to abandon the industry while negotiations continue.

Mr Edwards admitted the decision to return to the talks was a back-down from original demands that market campaigns stop. ``We’ve taken the view that it is more important to be in the process and to give the process a go rather than stand on our digs and insist down to the letter of our original demand,’’ Mr Edwards said.

In response, Huon Valley Environment Centre and Markets for Change which have been behind the successful market campaigns agreed to tone down their activism for two weeks. ``There needs to be a swift negotiation period and there needs to be a time now where we will be looking at these negotiations to deliver on what has been promised to the community of Tasmanian which includes forest protection .. and a move out of the industrial logging of native forests,’’ HVEC spokeswoman Jenny Weber said.

Negotiations are entering a desperate stage and timeline with agreements needed to be reached for the $276 million intergovernmental agreement to become a reality The state government wants the groups involved in the negotiations to reach an agreement about guaranteed

wood supply volumes in which forests can be permanently protected before a June 30 deadline to introduce legislation to enact the deal into Parliament.

Negotiations are entering a desperate stage and timeline with agreements needed to be reached for the $276 million intergovernmental agreement to become a reality.

The talks are considered the best opportunity yet to end the state’s 30-year forest wars and FIAT’s absence was threatening the chances of a deal being struck.

Mr Edwards has discussed the challenging timeline with Deputy Premier Bryan Green, but was informed there was not much chance of an extension.

He said that he shared Professor Jonathan West’s view that it was unlikely a deal could be reached in time but it was worth a try.

If there is an escalation in antilogging campaigns, FIAT will reconsider its position at the negotiating table.

• Forestry Tasmania solvent, P. 15

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INDUSTRY NEWS

Lend Lease aims to develop 50pc of its apartment pipeline using CLT scale, material stability and construction efficiency.

From Page 4

for completion in October this year, Lend Lease is aiming to develop 30-50% of its apartment pipeline using CLT and sees application elsewhere across the group.

“Lend Lease has a proud history of landmark innovations in sustainable construction and this project demonstrates how we are, once again, leading the way,” said Mr Menhinnitt.

Sustainability and a lowered environmental footprint have been the key drivers behind the wide use of engineered timber, referred to as cross-laminated timber (CLT), in Europe for more than a decade. A building material that has been around for centuries, timber enables the permanent capture of carbon so buildings become essentially ‘carbon sinks’.

Using innovative technology, timber panels undergo a process whereby they are stacked at right angles and bonded together over their entire surface and then hydraulically pressed. This process delivers a viable alternative to concrete and steel that can withstand the same pressure as prefabricated concrete.

Designed and produced in a factory environment means it is also faster to build, cost effective, cleaner and has a higher quality finish.

CLT is a mass timber product and it is important to note there is a major differentiation between mass timber and light wood frame. Mass timber is defined as solid panels of wood engineered for strength through laminations of different layers. Very large very dense solid panels with significant benefits over light wood frame techniques in terms of fire, acoustic performance, structural performance,

On a weight-to-strength ratio, engineered wood products match and in some cases exceed the performance of reinforced concrete.

CLT .. a strong and viable alternative to cement and steel that can withstand the same pressure as prefabricated concrete.

www.tanalised.com

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issue 223 | 28.05.12 | Page 7

e

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Subscriber publications include: MONTHLY Pulp & Paper Edge BI-MONTHLY CarbonEdge BI-ANNUAL Forest & Wood Strategic Review ANNUAL Pulp & Paper Strategic Review Special Reports

www.industryedge.com.au Page 8 | issue 223 | 28.05.12

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GOTTSTEIN REPORT

US carbon market an opportunity for Australian traders THE time is right for Australian managers and investors to start taking a closer look at carbon trading opportunities in the US, particularly around the emerging Californian market, says Dr James Bulinski of CO2 Australia.

Travelling on a Gottstein Fellowship in the US, Dr Bulinski found the US carbon market to be very dynamic.

“Rather than having a national scheme implemented, individual US states or groups of states have been setting up their own trading schemes to reduce greenhouse emissions, some of which have now been running for a number of years,” he said.

While a federal scheme has so far failed to pass through the US political system, much of the background work in developing a national carbon trading system has occurred and California is now introducing a wide ranging state-based program that is set to become one of the world’s largest carbon markets.

“The value of US carbon markets is significant, with California’s program alone expected to exceed $US4 billion between 2015 and 2020,” Dr Bulinski said.

“Avoided deforestation, improved forest management and reforestation projects are all potentially eligible under various US programs.

International carbon offsets will likely be limited to projects in developing countries.

“Unfortunately, this means Australian-based projects are not likely to be eligible under mandatory-compliance schemes, but it does not preclude Australian managers undertaking projects in developing countries and in the

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!

James Bulinksi .. value of US carbon markets is significant.

US itself.

“Australian operators also have the option of trading verified carbon credits into the voluntary market place”, he added.

Dr Bulinski said a key consideration in any carbon forest project was the sale price that could be realised for verified carbon abatement and the demand for that abatement.

“At this stage, this remains something of an unknown for the Californian market place, while prices and demand in the voluntary market place is often too low to make carbon forest projects viable at any real scale,” he said.

Using the Gottstein Fellowship to fund travel across the US, Dr Bulinksi interviewed more than 28 organisations to gain a better understanding of the carbon investment landscape.

A wholly owned subsidiary of publicly listed CO2 Group Ltd, CO2 Australia is a market leader in the establishment and management of major commercial reforestation projects. It is largest provider of dedicated carbon sink plantings and manages more than 22,000 ha of plantings across New South Wales, Victoria and Western Australia.

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

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

issue 223 | 28.05.12 | Page 9

INDUSTRY NEWS

Tick on FSC standard gives FPQ dual certification in Queensland

Forest management process recognised one of few plantation owners to achieve certification to both the FSC standard (FSC-C107541) and the Australian Forestry Standard (AS 4708 – 2007).

The certification recognises FPQ’s quality forest management processes and provides customers and stakeholders with independent third party verification that FPQ products are sourced from well-managed plantations.

FPQ chief executive Brian Farmer said the FSC certification demonstrated that the company was focused on sustainable

FORESTRY Plantations Queensland Pty Ltd has been certified to the Forest Stewardship Council standard by Scientific Certification Systems, one of the world’s leading FSC certifiers.

The FSC certification encompasses 211,332 ha of plantation production land and 130,917 ha of custodial land comprising native forest buffer areas and infrastructure including, roads and forest offices.

Queensland’s largest plantation timber company, FPQ is now

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Brian Farmer .. recognition of evolution of process.

forest management of its plantations.

“FPQ is a value-driven plantation forest grower and forest products distributor focused on providing commercial returns for our investors while recognising the value of sound forest stewardship and safety management values,” Mr Farmer said.

“The certification is not the result of recent changes or new practices but the recognition of evolution of process which over 80 years has produced some of the best plantations in Australia.”

Mr Farmer said FPQ was committed to maintaining its high management standards.

“FPQ’s long-term plan sets the benchmark for all areas of business operation including commercial returns and forest stewardship,” he said.

“Managing plantations is not just about growing and selling quality plantation timbers; it includes managing visitors to the plantations, respecting our heritage, working with a broad range of partners, communities and neighbours as well as protecting the environment.”

Products included in the certification are logs and chips from slash pine, Caribbean pine and their hybrids, the plantation grown indigenous rainforest softwood Araucaria cunninghamii (hoop pine) and a range of native hardwood plantation species.

Forestry Plantations Queensland was purchased in 2010 by Hancock Queensland Plantations, a company managed by Hancock Timber Resource Group, on behalf of institutional investors. Major asset comprises a 99-year licence from Queensland government to manage, harvest and re-grow plantation timber on state-owned lands.

FPQ has a capacity to supply more than two million tonnes of plantation wood to sawmillers and board and panel producers in Australia and overseas. FPQ is now one of few plantation owners to achieve certification to both the FSC standard and the Australian Forestry Standard AS 4708 – 2007.

Meanwhile, Scientific Certification Systems has established a new subsidiary in Jakarta in response to growing demand for certification and verification services from the Indonesian forest products industry. The subsidiary, PT Scientific Certification Systems Indonesia, offers FSC forest management and chain of custody certification in Indonesia.

SCS is also the first certification body in the US to be accredited by the International Sustainability and Carbon Certification (ISCC).

ISCC certification qualifies biofuels sold into the European Union for recognition under the Renewable Energy Directive.

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INDUSTRY NEWS

Responsibility of governments to prohibit the use of dangerous and illegal materials From Page 3 to the wind and ‘water penetration’ requirements of AS2047.

“Members guarantee their windows for a period of seven years (subject to correct installation and product maintenance).

Widows and frames from China?

Sorry no guarantees, but very cheap.

End users of the structural plywood should insist on receiving the certificates of testing for the relevant batches of structural plywood purchased Meanwhile, the Engineered Wood Products Association of Australasia continues to snare imported non-compliant products that are threatening the safety of workers.

Only a few weeks ago, formwork

the National Association of Testing Authorities (NATA) to ensure compliance with the standard.

on a Melbourne site, imported from Asia, failed all pressure tests for plywood bond quality under scrutiny at the EWPAA laboratories.

“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. A copy of such certificates should be forwarded to the certifying building surveyor to ensure compliance with building codes in New Zealand and Australia,” Mr Dorries said.

“The durability of the product is not what the manufacturer is claiming, so if gluelines fail it has serious implications for structural reliability and the lives of Australian workers,” EWPAA general manager Simon Dorries said.

“It is the responsibility of governments to have effective regulations to prohibit the use of dangerous or illegal materials and the industry is concerned about the ineffectiveness of current policing.”

This imported material had a 100% failure rate which again highlights the industry’s constant monitoring of standards compliance.

Mr Dorries said the use of the noncompliant formwork again reflected a common attitude: “if it’s cheap and looks the same, we’ll use it”.

Structural plywood .. independently tested in Australia.

He said to prevent inferior products entering the market, importers and local suppliers were urged to have each batch of structural plywood independently tested by an organisation registered with

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You can rely on EWPAA certified products – other certifications are just not the same

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issue 223 | 28.05.12 | Page 11

industry focus

The ‘Australian house’ is now a mixture of imported timbers From Page 2

of owning a house will recede further out of the reach of first-home buyers due to the introduction of the new carbon tax, the dream of such a house being built with Australian products is also vanishing.

Despite views to the contrary, the building industry still has access to large supplies of Australian durable native timbers including cypress and there is an abundant supply of plantation timber. But the new ‘Australian’ house today is a mixture of structural timbers from countries such as Russia, Sweden, the Czech Republic , Estonia, USA, and South America, flat-pack furniture, wood panels, doors and windows from China and prefabricated housing components from Japan.

Behold, the ‘League of Nations House’.

Third generation Queensland cypress sawmiller Don Collins said Australian builders previously used a lot of cypress in housing construction.

“But now we’ve got $5 million worth of cypress stacked in our yard and at our sawmills and we’re contemplating selling it as firewood,” he said.

As imports climb, Australian producers are incensed that none of these countries has a carbon tax Mr Collins said 15 years ago houses in his home town of Toowoomba were built with 100% cypress. Now, 95% of the timber in a home is imported or plantation pine, much of it coming from Canada, South America and New Zealand He said he thought the life span of some homes, constructed with inferior timber might be as short as 20 years and that

Page 12 | issue 223 | 28.05.12

Plentiful .. big volumes of native and plantation timbers available to builders.

screw retention in roofs could be a problem with some light timbers.

“The expectation was that an Australian house should still be there in 100 years,” he said.

Mr Collins said Australian timber producers were also facing the challenge of pre-fabricated homes from China which were coming into Australia in kit form for about $6000 to $7000 per dwelling.

Added to that was the threat of timber products from India which he said had numerous timber mills that were using Canadian product, and were paying their workers $6 a day for a 10-hour day, six days a week.

Timber Queensland hopes to counter some of the negativity among builders about homegrown building timbers at a seminar on floors, decks and cladding in Brisbane this week with more than 300 specifiers and trades people expected to attend.

The seminar will focus on sourcing local material and the resource available, the volumes of Queensland hardwood and cypress available and forest management and certification.

Meanwhile, as imports climb,

Shane Goodwin .. act now to avoid the housing industry going into recession.

Australian producers are incensed that none of these countries has a carbon tax.

China is already the largest carbon dioxide emitter and its output will rise 70% by 2020.

In 2010, China produced 11 times more steel than US – the second biggest CO2 emitter after China which also has no national carbon tax policy.

China manufacturers 80% of the world’s solar panels but doesn’t use them. It installs less than 5% and builds a new coal-fired power station every week. In one year, China turns on more new coal powered electricity than Australia’s total output.

The Housing Industry Association says the cost of a house on an average house and land package will go up by about $5000-6000 when factoring in the new carbon tax.

Jobs would be lost, particularly in the manufacturing sectors of the industry, as well as in the construction workforce, which included overseas workers on 457 visas.

[The Allen Consulting Group has released a carbon price mechanism report that estimates that the carbon tax will add around $3821 to its model two-storey detached brick veneer 200 sq m house].

“I think the longer-term impact on the industry is the fact that you can’t then attract those people back into the market place, so you lose that workforce permanently and hence it further increases the cost of housing.

‘The dream of owning a house will recede further out of the reach of firsthome buyers due to the introduction of the new carbon tax’ – Housing Industry Association At its annual national policy congress last week, the Housing Industry Association issued a blunt warning that federal, state and local governments must act now to head off the looming recession in the residential building industry.

“The Australian housing industry is facing its worst conditions in decades,” HIA managing director Shane Goodwin said.

“New home building has collapsed and jobs are being shed right across the country.”

“If the current conditions continue, housing starts will Cont Page 13

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SPECIAL REPORT

Housing needs tax relief and an injection of funds and investment

tax relief and an injection of investment and funding into the new housing sector. Such an injection will provide a profound economic dividend to the broader economy.”

From Page 12

fall below 130,000 for the year.

To put this in perspective, that’s about 30,000 dwellings below what is needed just to meet underlying demand for homes.”

The housing industry directly generates more than $70 billion each year, and the multiplier effects across the rest of the economy support Australian jobs and the economic health of the nation Mr Goodwin said governments must collectively arrest the looming crisis by increasing expenditure on infrastructure that supported new housing,

The housing industry directly generates more than $70 billion each year, and the multiplier effects across the rest of the economy support Australian jobs and the economic health of the nation.

Spruce pine .. filling up warehouses along the eastern seaboard.

providing financial incentives to stimulate new housing construction and reduced red tape.

“As well, the housing industry is bearing a disproportionate amount of the nation’s taxation

burden, with for example, over 40% of the price of a new house and land package being taxes and charges,” he said,.

“What the Australian economy needs now is a revitalisation of the housing industry through

“The time to act is now if we are to avert the housing industry going into recession and dragging the rest of the economy with it,” Mr Goodwin said.

Breakfast seminar digests legal aspect of carbon tax THE carbon tax will increase the cost of many goods and services including electricity and many building materials.

Businesses will need to factor these additional costs into building jobs that will run past or start after July 1 this year.

The tax will come under close and critical review at a breakfast seminar in Sydney on June 14, organised by TABMA Australia.

Chief executive Colin Fitzpatrick says carbon pricing is almost certain to be part of the regulatory landscape for the foreseeable future.

“Construction is one of the industries that will be most affected by carbon pricing, by the direct imposition of the tax on some players, by downstream price increases for everyone else, and with an increased compliance burden for many,” he said.

Key speaker will be Roland Burt,

principal of M+K Lawyers, a commercial litigator and ‘backend’ construction lawyer with more than 20 years’ experience in all facets of litigation and alternative dispute resolution.

He has developed a special interest in carbon pricing, growing from his desire to understand the full impact it will have on Australian industry.

Mr Burt will approach the subject from the perspective of industry and will focus on how carbon pricing works; the day-to-day impact of a carbon price on the construction industry; strategies for avoiding the margin squeeze; and price gouging.

The seminar at Parramatta Leagues, 13-15 O’Connell Street, Parramatta, starts at 7 am. Cost is $40 (+gst) p.p. and inquiries should be directed to TABMA on (02) 9277 3100.

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issue 223 | 28.05.12 | Page 13

industry news

Rain gives kick-start to large-scale carbon forest project in wheat belt PLANTING of more than 10,000 ha of mallee eucalypt trees is now under way as part of one of the largest carbon forestry projects in Australia.

Carbon Conscious Ltd, a leading developer of carbon forestry projects, says thanks to timely rain, carbon forestry planting is now in progress across the Australian wheat belt.

Carbon Conscious says it has received a substantial increase in new client inquiries from organisations now facing major carbon liabilities under the Clean Energy Act 2011, as well as from New Zealand companies with liabilities under the NZ Emissions Trading Scheme.

In January, Carbon Conscious

released a profit guidance to the market of $3.5 million net profit after tax and the company’s chief executive officer Peter Balsarini says it remains “on track” to achieve this result.

“Carbon Conscious has received a client payment of about $5 million for planting commencement and will receive a further $5 million on completion of planting,” Mr Balsarni said.

“Rainfall in key planting areas has expedited site preparation and more than 10 million seedlings provided by seven local nurseries are scheduled for delivery over the next 8 to 10 weeks.”

In addition to the revenue received at the time of planting,

THE South East Forestry Industry Roundtable has given its final approval for the conditions for the forward sale of state timber forests in South Australia.

A roundtable sub-committee has spent the last few weeks examining the draft conditions and consulting with Treasury and crown law solicitors.

This follows the government trimming the list of potential

buyers for the historic sale that will transfer thousands of hectares of publicly-owned softwood plantations to the private sector.

The committee handed down its report last week which the roundtable considered before giving its approval.

“What we’ve been discussing is just the final details to ensure there is clarity about any new

Carbon Conscious .. substantial revenue stream for 15 years.

Mr Balsarini said upon completion of this season’s

planting, Carbon Conscious would have secured a substantial revenue stream for 15 years.

“At the completion of the 2012 planting program, Carbon Conscious will have about 19,000 ha of plantings under management across Australia and New Zealand,” Mr Balsarini said.

“Ongoing contract revenue associated with existing projects will exceed $43 million over the next 15 years. ““As more countries develop carbon pricing mechanisms, such as South Korea’s new capand-trade emissions trading scheme, there is increasing appetite for global carbon offset investments.”

Final approval on SA forests sale purchaser’s responsibilities and obligations,” committee chairman Trevor Smith said.

“There has been no conflict or no difference of opinion between the parties and what we have now is the final draft as agreed to by all the parties that accurately reflects the conditions of sale that have been agreed to between the Treasurer and the roundtable,” he said.

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Mr Smith says he is satisfied the conditions protect the industry and the local community.

“All of those matters that were deemed to be important and were required to be incorporated into the then pending contract have clearly been achieved and we believe that this sets a very strong foundation for the future viability for this industry,” he told the ABC.

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Page 14 | issue 223 | 28.05.12

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ISSUES

Tough times, but Forestry Tas solvent

Lack of export facilities most pressing issue USUALLY, Forestry Tasmania barely rates a mention in the annual Tasmanian Budget, but this year was different.

The Premier and Treasurer Lara Giddings set aside $35 million next financial year and a further $75 million over the forward estimates to cover contingencies that might arise from the Intergovernmental Agreement and the Strategic Review of Forestry Tasmania.

Unfortunately, this prudent approach by State Treasury has been seized upon by the Tasmanian Greens to falsely claim that FT has been trading insolvent.

Despite the tough times we and others are currently enduring, FT is solvent and continues to meet its obligations as they fall due. In fact, cash flows for the next 12 months are fine and it is unlikely that FT in its current form will need to draw down any of the funds set aside by Treasury.

The positive to come from this unfortunate debate is that both major political parties understand that if the forest industry is to rebuild, a strong robust Forestry Tasmania is essential.

To be frank, the most pressing issue facing Forestry Tasmania is not its financial position but the lack of export facilities in the south and the northwest. The Triabunna mill has been closed now for more than 12 months, and despite promises by the owners to find an operator, there is no likelihood of it reopening.

As everyone in the forest industry knows, it is important to sell every product harvested from a coupe – the high-value sawlogs for sawmillers, the rotary peeled veneer grade logs, the export quality veneer logs and the pulpwood. And from a sawmiller’s perspective, they need to be able to sell not only the sawn timbers, but

the residues that come from processing sawn timber.

It’s the same as a butcher who needs to be able to sell the various cuts of meat from a beast. If they can’t, then their viability is affected. The prime cuts are obviously worth more than the mince.

In the forest industry, the high grade logs are the most valuable products, followed by peeler logs, even though most of the material harvested is pulpwood.

That’s why export woodchip facilities are so important.

Without them, the forest and timber industry chokes. Without a woodchip export facility in the south, family-owned sawmills and processors are at risk, and at stake are the jobs of 2000 workers in the processing, harvesting and transport sectors.

The Tasmanian Government is aware the issue is now reaching a critical point.

Forestry Tasmania has been a strong and consistent supporter of efforts to achieve a resolution to the forestry dispute, and for ‘The positive to come from this unfortunate debate is that both major political parties understand that if the forest industry is to rebuild, a strong robust Forestry Tasmania is essential’ – Bob Gordon this reason we welcome the decision by the Forest Industries Association of Tasmania to rejoin negotiations.

FIAT did so after receiving commitments from environmental groups to call a halt to market attacks and illegal protests. It’s impossible to predict whether the negotiations will be successful, but we can all be assured that everyone on the industry side is using their best endeavours to achieve a resolution.

Under-pinning the negotiations are the studies commissioned

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governments.

Forestry Tasmania

By

was

Without a woodchip export facility in the south, family-owned sawmills and processors are at risk, and at stake are the jobs of 2000 workers in the processing, harvesting and transport sectors

BOB GORDON Managing Director Forestry Tasmania

by Professor Jonathon West through the independent verification group appointed by the federal and state

requested to review the scientific work undertaken by the IVG, and the results of that review by our scientists have now been forwarded to the two governments. This review is valuable because it provides an independent analysis of work that up until this point has not seriously been questioned.

MP ejected after taunt on forests TASMANIA’S Shadow Treasurer was ejected from parliament last week after he accused the Deputy Premier of driving the state’s forest workers to suicide.

The accusation was thrown across the chamber after the Deputy Premier Bryan Green sidestepped a question about whether he stands by a peace deal review of Tasmanian forests, which Forestry Tasmania claims is flawed.

Liberal MP Peter Gutwein shouted at Bryan Green: “Mate, you’re driving forest workers to suicide.”

Mr Gutwein continued his attack on his way out of the chamber.

“He knows what he’s doing,” he said.

The state government was under pressure in parliament to respond to Forestry Tasmania’s assessment of a forestry review commissioned for the peace deal negotiations.

Environmental and industry groups are using the 2000-

page scientific document to help decide the boundaries of new forest reserves under an agreement to end most native forest logging. Forestry Tasmania says the report should not be used to develop policy, saying key information is missing or incomplete and many sections may be influenced by personal bias and errors.

Mr Gutwein challenged Mr Green to state whether he agreed with Forestry Tasmania’s report.

The Independent Verification Group released its report into the conservation value of 572,000 ha of native forests two months ago. It is being used in the forest peace talks to finalise new forest reserves.

The document is made up of a number of sub-reports, which Forestry Tasmania says do not meet the terms of reference and have not been subject to peer review. FT says that means the findings are untested and may contain errors.

issue 223 | 28.05.12 | Page 15

HOO-HOO CELEBRATION

Half a century of Hoo-Hoo in Australia

Celebration dinner marks Adelaide’s milestone THEY were all there .. the ‘founding fathers’ of Hoo-Hoo in Australia .. Norton Ladkin, Lindsay LeMessurier, Ken Patterson, Des Gill, Carl Lindh, Max O’Reilly and others from Adelaide Club 212, the oldest Hoo-Hoo club outside of the North American continent.

The occasion was a lunch hosted by Adelaide Club 212 during the 11th All-Australia Timber Congress at the Adelaide Festival Centre in October 1981.

The club was celebrating its 19th year since its formation in April 1962.

Along with fellow Brisbane HooHoo Club 218 members David Armstrong and Don Towerton, I enjoyed the long lunch shared by 200 Australian and international guests as we all raised glasses of the best South Australian wine to toast those pioneers.

Adelaide Club has celebrated its 50th anniversary and Mount Gambier Club 214 reaches the same milestone in December Now, 31 years later, Adelaide Club has celebrated its 50th anniversary, a reminder that Mount Gambier Club 214 reaches the same milestone in December this year, and the Sydney, Melbourne and Brisbane clubs celebrate their half century in 2013.

Adelaide Club was formed at a meeting at the Aurora Hotel, Hindmarsh Square, Adelaide on April 16, 1962 – 70 years after the formation of the Hoo- Hoo movement in Gurdon, Arkansas, USA. The first club executives were selected from the South Australian timber industry – Bruce Mackie, president; Norton Ladkin, vice-president; Colin McArthur, secretary; and Ken Paterson, treasurer. Directors were Lindsay Le Messurier, George Carr, Brian Gun, Don

Page 16 | issue 223 | 28.05.12

Max O’Reilly, then Hoo-Hoo Jurisdiction IV president (left), makes a presentation for service to some of the ‘founding fathers’ of Hoo-Hoo in Australia during the 90th Hoo-Hoo International Convention in Melbourne in September 1982 – the first held outside North America since the inception of the organisation in 1892 .. Norton Ladkin, Lindsay LeMessurier, Ken Patterson and Carl Lindh.

Getting together at a special Hoo-Hoo lunch hosted by Adelaide Hoo-Hoo Club 212 during the All-Australia Timber Congress in 1981 are Ron Roach, club president, Max O’Reilly, Jurisdiction IV president and John Young, chairman of John P. Young and Associates, a speaker at the congress.

Displaying Hoo-Hoo items at the 90th Hoo-Hoo International Convention held in Melbourne in September 1982 are Melbourne Club 217 members Warren Smith, Graeme Watson, Barry Kelly, Ron Caddy and Ron Williams. Club 217 celebrates the 50th year of its formation on June 12 next year. Sydney Club 215 goes earlier with its half century celebrations in March next year, followed by Brisbane Club 218 on September 10, 2013.

Ryan and Bill Rees.

At a meeting of these five clubs held during the 5th All-Australia Timber Congress members decided to apply to Hoo-Hoo International for a jurisdiction of the order to be allocated to the South Pacific region.

Information on the Hoo-Hoo JIV web site tells us: “We were then increasing our overall membership numbers at a good rate. This was discussed with Al Gardner and Don King and as a result application was made to HHI. “Des Gill was travelling to Canada, the UK and Europe in 1970 and agreed to visit Boston where Hoo-Hoo International was holding its annual convention.

“While overseas Des met Don King and Al Gardner of Vancouver Hoo-Hoo Club and with Don travelled to Boston.

“Des presented an application to the HHI board, subject to specific conditions, including that membership cost on the board for a minimum of five years be no greater than $US1.99 a year.

The HHI board accepted the proposals and the first office was in Adelaide with Norton Ladkin (73372) as first president, Des Gill (74879) secretary and Ian Marks treasurer”.

Congratulations Adelaide and Mount Gambier and Health, Happiness and Long Life. – JIM BOWDEN.

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Expressions of Interest issue 223 | 28.05.12 | Page 17

Classifieds

editorial inquiries tel:

Page 18 | issue 223 | 28.05.12

+61 3266 1429

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Nominations Excellence :: Recognition :: Celebration The Queensland Timber Industry Awards are an important means of highlighting excellence in our industry and rewarding organisations who are leading the way in terms of service, innovation and commitment to improving both their business and the industry as a whole. The gala evening when these awards are presented is the only event of its kind; it provides a platform to celebrate our industry, our state and recognise our top performers.

This evening is set for Saturday 3 November 2012 at Victoria Park Function Centre, Brisbane.

To maintain the credibility of these awards and therefore the prestige and honour they represent for finalists and winners, the judging criteria for 2012 have been adjusted to reflect recent ideals and trends as well as give greater weight to operational areas of importance. The criteria for each category is available to view on the website, www.tabma.com.au - Queensland - Information Sheets - 2012 QTI Awards Criteria.

Award Categories 2012 

Best Specialist Timber Merchant



Best Frame & Truss Operation (Metro)



Best Building Materials Centre (Metro)



Best Frame & Truss Operation (Regional)



Best Building Materials Centre (Regional)



Best Timber Manufacturing Operation



Best Timber Wholesale Operation



Best Sawmilling Operation



Best Specialist Service Operation



Trainee of the Year



Best Training Culture



Apprentice of the Year



Best Wholesale Sales Representative



Recognising Women In Forest & Timber

If you wish to nominate please visit www.tabma.com.au - Queensland - News and Events - 2012 QLD Timber Industry Awards Nomination Form and complete an entry for each nomination. All nominations will be kept confidential and only be seen by TABMA Queensland management and judges. Nominations close 15 June 2012.

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issue 223 | 28.05.12 | Page 19

Knowledge Tree Series

Introduc tion to Green Star® and FSC Project Certific ation Are you in the construction, timber supply, development or contracting industry? Do you want to understand FSC and how to gain competitive advantage? Have you been asked to work on a Green Star® job and supply FSC Certified Products? Then come along to our free information breakfast specifically targeted to you to help you grow your FSC Knowledge Tree.

Topics GBCA CPD points for - What is FSC & why is it important? attendance apply - Green Star® and the timber credit - Steps involved in Chain of Custody Certification - FSC Chain of Custody for Project Certification Speakers: Natalie Reynolds - Acting CEO FSC Australia Nick Capobianco – Senior Lead Auditor, Scientific Certification Systems Joshua Bruce – Sustainability Manager, ISIS When:

June 19th , 8–9.30am (Speakers will be available for Q&A, informal discussions and networking until 10.30am) RSVP must be in by 8th June to assure a place

Where:

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RSVP is essential for catering purposes at http://www.trybooking.com/BISB. This event is fully supported by TABMA and therefore is presented at no cost.

Donations to support future Knowledge Tree Series are encouraged and are tax deductible.

Presented with the generous support of TABMA

Page 20 | issue 223 | 28.05.12

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