Issue 221 Timber

6751

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

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issue 221 | 14.05.12 | Page 1

NSW forests gets down to business

This Issue •H igh cost of chain of custody debunked • FSC Australia appoints first full-time CEO

Commercial entity to focus on core activity with greater financial vigour

Long-term commercial approach .. plantation radiata at Buccleuch state forest in the NSW Hume region.

udget missed B opportunity for building sector • Global investor acquires Osmose • ATIF kicking goals for importers • China ‘black hole’ for global timber supply • Wonder of wood attracts 4000 to Maleny Expo

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A Better Earth Idea from Osmose

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Cont Page 12

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community,” Ms Hodgkinson said.

“As a state-owned corporation under the direction of a skilled commercial board, Forests NSW will be able to focus sharply on its core business of growing and harvesting timber to meet the community’s needs for hardwood and softwood products while still providing recreational opportunities.”

New South Wales has almost 540 state forests covering around 2.2 million ha.

Forests NSW obligations under wood supply agreements will continue to be guaranteed by the Crown.

G

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By JIM BOWDEN INDUSTRY observers say the new state-owned corporation status for Forests NSW will give the organisation greater operation independence and far more financial vigour.

Primary Industries Minister Katrina Hodgkinson said Forests NSW would remain largely the same, but the governance structures would change to improve the commercial performance.

“The decision to corporatise reflects the government’s recognition that there is much room for improving the financial performance of Forests NSW and delivering better returns to the

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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 221 | 14.05.12 | Page 1

INDUSTRY NEWS

Natalie Reynolds first full-time CEO for FSC Australia

By JIM BOWDEN

FUELLING demand for Forest Stewardship Council certification and ensuring this is complemented by a flow-through of a good supply of FSC certified products and input are among priorities for newly-elected and first full-time FSC Australia chief executive Natalie Reynolds.

Ms Reynolds has been acting CEO for 11 months since the departure of Michael Spencer who is now co-chair at Alliance for Water Stewardship and secretary at Water Stewardship Australia Ltd. Mr Spencer continues as honorary secretary of FSC Australia, based in Melbourne.

Ms Reynolds was appointed by the board following an exhaustive selection process which attracted 80 domestic and international candidates, involved two selection stages and included the engagement of an external human resources agency.

“Natalie comes to us with a diverse background. A lawyer, she has worked in policy, training and legal environments, amassing a huge variety of skills which will be invaluable to FCS,” deputy chair Jim Adams said.

Mr Adams said FSC Australia would be appointing a policy and standards manager in the near future.

Natalie Reynolds said she would continue to help develop an FSC Australia national

Page 2 | issue 221 | 14.05.12

forestry standard and work to maintain the financial stability and governance of the organisation.

One of her first ‘outings’ as FSC Australia CEO will be at a gathering of forest industry stakeholders, business leaders and environmental groups at a national wood products forum and workshop in Sydney on May 31.

The forum at Dockside, Darling Harbour, will “look beyond systems” to promote the future of certification in Australia. The first of its kind, the forum, titled Certification: Growing Demand – Increasing Confidence, will explore strategies to increase the awareness and uptake of certification and identify impediments to its adoption.

Presented by Planet Ark’s Make It Wood campaign, the program is designed to be of value to the whole supply chain, including producers and importers, manufacturers and converters, wholesalers and retailers, private and government sustainability and purchasing and NGOs. FSC operates the second largest international forest certification system with almost 200 million ha certified worldwide.

About 970,000 ha of FSC forests in Australia now includes 342,687 ha certified on March 14 for Forestry Plantations Queensland.

• FSC debunks assumptions on certification costs, Page 13.

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

Learning Skills Research Advice Innovation

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

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INDUSTRY NEWS

Budget a missed opportunity to revive home building sector

Government fails to address chronic housing shortage THE federal Budget has missed the opportunity to reinvigorate new home building activity and alleviate housing affordability pressures – a disappointment after the Reserve Bank’s May 1 decision to cut interest rates and boost consumer confidence.

The building industry says that while the Budget provides a handful of useful measures ‘The Budget was an opportunity to introduce measures to progress housing supply-side reforms with the states and territories, reduce the excessive tax burden on new housing, and expand and extend existing measures aimed at boosting housing supply’ – Andrew Harvey more broadly, it contains nothing to address the ongoing weakness in residential building, nor anything to help the nation’s chronic housing shortage and poor levels of housing affordability.

“At a time when new home

Peter Anderson .. disappointment at shelving of company tax cut.

Graham Cuthbert .. deafening silence on support for building sector.

building is in decline in virtually every state and territory, the Budget has failed to deliver any new measure to reinvigorate the home building sector, despite the sector’s health being absolutely crucial to a healthy domestic economy,” the Housing Industry Association’s senior economist Andrew Harvey said.

“Despite this tight budget, it is sensible that the government has retained its existing commitments to the Housing Affordability Fund and the National Rental Assistance Scheme, and has also contin-

ued to invest in training and skills, which are essential ingredients to the delivery of affordable new housing.

“However, the Budget was an opportunity to introduce measures to progress housing supply-side reforms with the states and territories, reduce the excessive tax burden on new housing, and expand and extend existing measures aimed at boosting housing supply.”

The federal government has been working with the states and territories on housing supply and affordability reform, through the Council of Austra-

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lian Governments, for two and a half years. After such a protracted period it is reasonable to have expected the Budget to include sensible measures to boost housing supply, for example arrangements to help the states and territories remove residential stamp duties on new housing.

“Without dedicated housing policy measures and housing supply-side reforms the residential building sector will continue to act as a drag on the macro-economy and the nation’s growing housing shortage will continue to place undue pressure on the household budgets of home buyers and renters,” Mr Harvey said.

Master Builders executive director in Queensland Graham Cuthbert said the building and construction industry was only at the beginning of a very slowly emerging recovery and was in desperate need of measures that would encourage building activity.

“Our industry is currently operating at 40% below normal levels, with commencement levels currently expected to reach beCont Page 10

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issue 221 | 14.05.12 | Page 3

INDUSTRY NEWS

Treatment rule win for importers ATIF achieves solid progress on all fronts

TIMBER importers have welcomed the extension to 90 days of the previous ‘21-day rule’ for treatment of products prior to shipping from Canada and Chile and for some other species of timber.

The decision by the Australian Quarantine Inspection Service follows positive negotiations between AQIS and the Australian Timber Importers Federation and a review of conditions related to the import of timber and timber moulding category products.

It also follows the recent decision by the Customs and Border Protection Service to terminate its investigation into allegations of dumping of structural softwood products.

ATIF will have further discussions with AQIS and Biosecu-

Solid progress .. liberalisation of timber import conditions, improved involvement with port authorities and a continuing effort on illegal logging policy demonstrate success on a number of fronts of direct benefit to timber importers.

rity Australia with the aim of continuing to streamline timber import conditions.

Concerns expressed by timber importers about present container congestion and related operational and cost issues

John Halkett ... steady expansion in ATIF membership.

have been raised with Melbourne and Freemantle port corporations. Recent action on this front has included a Melbourne meeting between senior port executives, timber importing companies and freight forwarders.

This meeting resulted in agreement to ensure timber importers have a better understanding in the future both about the plans for port expansion and short to medium-term efforts to improve cargo handling efficiency.

The chief executive of the Fremantle Port Corporation has invited ATIF to become a member of the Port Operations Task Force.

With timber product imports increasingly recognised for their contribution to building and construction goals and related

Page 4 | issue 221 | 14.05.12

employment in these industries, ATIF has made solid progress on a number of fronts of direct benefit to timber importing and wholesaling companies.

A continuing focus has been on the federal government’s illegal logging legislation. ATIF has lead the preparation of a submission to the parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade on behalf of timber industry supply chain associations, that in addition to ATIF include the Timber and Building Materials Association (Aust) Ltd, the Timber Merchants Association, the Timber Veneer Association of Australia and the Windows and Doors Industry Council.

This will be the third parliamentary inquiry into the proposed illegal logging bill.

ATIF’s technical manager John Halkett says he is pleased with the results of recent activity and with the steady expansion in ATIF membership.

“Over the past year or so this has included Queensland’s main independent importing and wholesaling companies,” he said.

“Also, in the last couple of weeks Australia’s leading independent manufacturer and importer of decorative architectural finishes has become a member. This company, with a network of about a dozen branches, provides a range of sophisticated products to the architectural, building design, domestic and commercial cabinet making, shop-fitting and related industries. We are delighted that such a company sees merit in ATIF membership.”

Mr Halkett says that in addition to illegal logging policy and legislation, ATIF will be looking to progress a number of other matters directed at improving the business performance of timber importing and wholesaling companies.

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events

WHAT’S ON? MAY 22: Knowledge Tree Series – Introduction to Green Star and FSC project certification. Hurleys Arkaba Hotel, 150 Glen Osmond Road, Fullerton, SA. Speakers: Natalie Reynolds, CEO, FSC Australia; Nick Capobianco, senior lead auditor, Scientific Certification Systems; Joshua Bruce, sustainability manager, ISIS. RSVP is essential for catering purposes at ww.trybooking.com/BIRY 31: National wood products forum and workshop on the future of certification in Australia Dockside, Darling Harbour. The forum will explore strategies to increase the awareness and uptake of certification and identify impediments to its adoption. Presented by 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 engineered timber and building pre-fabrication. The expanded program will include a focus on building and construction with increased dialogue and information exchange on residential and commercial building trends, and awareness of new BIM digital

model technology. Delegate registration available online.

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

JULY 20: National Carpenters Day. Tel: (03) 9597 0948. Fax: (03) 9597 0958. Email: info@carpentersday.com.au AUGUST 22-23: Carbon Forestry 2012. 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, the banning of some 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). 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

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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: - 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 221 | 14.05.12 | Page 5

INDUSTRY NEWS

Global investor acquires Osmose in products, services growth plan Oak Tree will work with existing management team US-based global investment manager Oak Tree Capital has taken over Osmose Holdings Ltd in a deal that will form a management partnership for growth of the giant wood preservatives supplier.

Osmose, which announced its acquisition by investment funds managed by Oak Tree, will continue to serve in the same capacity along with Osmose’s existing management team.

“Oaktree can provide substantial additional resources and is committed to investing in Osmose to help us expand our product and service offerings and to better meet and exceed our customers’ expectations,” president and CEO of Osmose James Spengler said.

Financial terms were not announced by Oaktree, which has $77.9 billion in assets under management.

Managing director of Oak Tree’s GFI Energy Group Ian Schapiro said the group was delighted to have the opportunity to invest in Osmose and to provide the company with additional

Page 6 | issue 221 | 14.05.12

resources and capabilities to expand its products and services and invest in additional research and development.

Osmose Holdings, based in Buffalo, New York, is a 78-yearold private company that started with patented wood preservation chemistry and evolved into a dominant provider of scores of innovative technologies and services that benefit the timber treatment, utilities and railroad industries in the US and around the world.

‘The group is delighted to have the opportunity to invest in Osmose and to provide additional resources and capabilities to expand products and services and invest in new research and development’ – Ian Schapiro of Oak Tree

The Oak Tree funds investing in Osmose include Oak Tree Power Opportunities Fund and Oak Tree Principal Fund. The power opportunities fund fo-

cuses exclusively on providing capital to leading businesses in the energy and utilities industry, while the principal fund brings resources and experience investing in a variety of industrial services and product markets including rail services, building products, and specialty chemicals.

Headquartered in Los Angeles, Oaktree has more than 650 employees and offices in 13 cities worldwide.

The Oak Tree-Osmose deal follows the acquisition in October last year of Arch Chemicals Inc by the Lonza Group, the world’s biggest manufacturer

of drug ingredients, based in Switzerland.

Lonza paid about $US1.2 billion for the takeover, creating a global leader in the bacteria and fungi killing business.

Arch Chemicals’ products are used for disinfecting swimming pools, protecting wood from fungus, preventing the growth of moulds and mildew in paints and dandruff treatment.

The deal with Norwalk, Connecticut-based Arch Chemicals made Lonza the leader in a $10 billion market which is exhibiting growth of as much as 6% a year.

Acquisition of Arch, which has a strong presence in fast-growing emerging markets such as Brazil, China, South Africa and India in addition to developed nations, gave Lonza’s microbial control business a greatly expanded global footprint.

Chairman of Lonza Rolf Soiron said the Arch integration was on track to achieve financial targets. Microbial control would be a key driver of the earnings before interest and taxes increase expected in 2012.

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INDUSTRY NEWS

Bob Brown’s back-flip exposes Tasmania forest talks as a sham

FORMER Australian Greens leader Senator Bob Brown has voted against his own opinion on forest regeneration.

Coalition forestry spokesman Richard Colbeck said Senator Brown had joined other Australian Greens senators to reject a motion which mirrored his very own opinions as printed in The Hobart Mercury on April 22.

The motion from Senator Colbeck asked that the Senate recognise that logged Tasmanian forests have the potential to recover quickly and that rich biodiversity can exist in areas once logged.

“My motion was based very closely on the words of Bob Brown, as printed in a Tasmanian newspaper last month,” Senator Colbeck said.

“After decades of disagreeing with his views about forestry, I was delighted to read Senator Brown’s acknowledgement that harvested areas of forest had the potential to recover quickly and provide rich biodiversity.

“Senator Brown spoke the truth in his newspaper comments – harvested forests do have great potential to recover quickly and they can continue to be home to biologically diverse flora and fauna. Such recovery is testament to the excellent management work carried out by Tasmania’s forest workers.

“Professional foresters also tell us that native forest management provides the values that environmentalist claim to aspire to.

“In addition, both the Intergovernmental Panel on Climate Change and the UN’s Food and Agriculture Organisation recognise that sustainable management of forests, including a mix of conservation and timber harvest, is optimal for carbon reduction.”

Senator Colbeck said he was as disappointed as ever in Senator Brown for backing away

Bob Brown .. backing away from words on the potential of harvested forests.

Richard Colbeck .. impossible to negotiate with green groups.

from his very own words, under pressure from his Senate colleagues.

“This back-flip is at odds with the recent tributes to Senator Brown as man of conviction who is not afraid to disagree with those around him,” Senator Colbeck said.

Meanwhile, Senator Colbeck says green groups protesting in Hobart recently had again proven they were impossible to negotiate with, and that the Tasmanian Intergovernmental

Cont Page 19

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issue 221 | 14.05.12 | Page 7

dge

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www.industryedge.com.au Page 8 | issue 221 | 14.05.12

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OPINION

Logging Bill nest for scrub bird in attack on forests

The Environment Protection Authority in New South Wales is under fire from conservationists over alleged illegal logging west of Macksville.

The North East Forest Alliance says the government was warned about habitat destruction in the Styx River state forest two months ago. It says a 300 m protection zone should be left around the habitat of the Rufous scrub bird, a threatened species.

NEFA spokesman Dalian Pugh said that did not happen and the logging had been badly managed.

“Forests NSW have ignored their own records, and they have denied suitable habitat existed,” he told the ABC. “So they’re denying that the bird exists in the area, even though they found it.

“We don’t believe the EPA has done any assessment of the habitat that’s already been destroyed.

Mr Pugh said sensitive habitat has already been burnt and logged.

“It just makes a mockery of the threatened species legislation we’ve got in NSW and the ministers responsible,” he said.

“They’re the ones allowing it.”

Clearly, the green NGOs are shaping up to take the various state forest departments

Rufous.. a bird in the hand worth two in the forest for activists.

the

Watchdog Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region.

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to court and they will have the federal illegal logging Bill tucked under their arm, once it becomes law.

The activists will always be able to find some little threatened creature to shut down entire forests. This was exactly what Dylan Pugh did in New South Wales in the 1990s under the Environmental Planning and Assessment Act. A retired state forester and industry observer says the Greens are now set to finish off the NSW native timber industry.

“These court actions will spread to the other states and Tasmanian producers won’t know what hit them,” he says.

“Wait until the court cases wind up into full gear – give it a few years. Then, it’s good-bye native timber industry (what’s left of it) throughout Australia.

There will be nothing our politicians can do because it will all be in the courts, and not under any parliamentary process.

“Parliament will not be able to repeal the law and ‘keep face’ because they would have all voted on it – Liberal, Labor and Nationals.

“They (and the timber industry) are all being duped by the Greens and ‘political correctness’.

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 timberandforestnews@bigpond.com ADVERTISING Tel: +61 7 3266 1429 timberandforestnews@bigpond.com PRODUCTION MANAGER Kerri Michael kerri@mycustompublishing.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.

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issue 221 | 14.05.12 | Page 9

INDUSTRY NEWS

‘Industry has faced some tough times over the last few years and, if we are to move forward, urgent action is needed’

From Page 3

tween 26,000 and 28,000 this financial year, compared to preGFC levels which saw commencements sitting between 36,000 and 40,000 a year,” Mr Cuthbert said.

“The latest building approvals figures from the Australian Bureau of Statistics tell us the building industry has just commenced a slow recovery, but given the low base we are coming from, we had high hopes for stimulus measures in the Budget announcement,” Mr Cuthbert said.

“We’d anticipated the announcement of measures that would coincide with the recent

InSurAnce..

It’S All In the SelectIon

cut to interest rates and help to boost business and consumer confidence, such as a decision to increase and re-focus the First Home Buyers Grant to new homes only.

“Instead, there has been a deafening silence and a lack of any real measures that will provide support for our industry.

“Disappointingly, there were no announcements about offsetting the price of the carbon tax specifically on new housing stock and the decision to forego company tax relief, which will severely impact the bottom line for many building and construction businesses.

“We believe these decisions,

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Stimulus needed ..the building and construction industry is at the beginning of a very slowly emerging recovery.

along with the absence of stimulus measures, will drive consumers further away, impact negatively on housing activity, and contribute to the growing gap between new and existing housing prices.

‘Budget has reflected a deep sense of frustration’ – Australian Chamber of Commerce “Our industry has faced some tough times over the last few years and, if we are to move forward, urgent government action is required.”

The business sector has restated its disappointment that the federal government decided to shelve a company tax cut in the Budget.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said the feedback he had been getting since the Budget was released had reflected a deep sense of frustration.

“All the good work the government has tried to do in delivering a surplus in a year’s time is set aside by the fact that the government is seen by the business community to have severely let it down by failing to continue with its promise to reduce the company tax rate from 30% to 29%,” he said.

Leader of the Nationals Warren Truss says the Budget, “with its feeble and contrived $1.5 billion surplus”, failed to inspire or encourage struggling communities and families in regional Australia.

“Bringing spending forward and pushing expenditure into the out years doesn’t give you more money .. businesses balancing their books know it and families budgeting household needs are painfully aware of that reality,” Mr Truss said.

“Australians won’t fall for the Treasurer’s three-card trick.

This budget does nothing to restore the flat lining confidence of businesses or households, and gives cold comfort to families this winter as they brace for the world’s biggest carbon tax.

Powerful watchdog put down THE federal government will abolish the all-powerful Australian Building and Construction Commission and reduce by millions of dollars provisions for its replacement.

The new-look Building Industry Inspectorate within the industrial tribunal Fair Work Australia will receives $124.8 million over the next four years in the federal Budget – $30.7 million in

its first year of operation compared with the $36.1 million the ABCC got in its last year of operation.

The ABCC was created by the Howard government after the Cole Royal Commission into the building and construction Industry reported in 2003 that it had found examples of ‘’lawlessness’’.

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INDUSTRY NEWS

Budget signals tough haul for trucks TRUCKING businesses – a large component of the forest and timber industries – could face tough times in 2012-13, with the federal Budget forecasting that household consumption and dwelling investment will remain subdued.

The chairman of the Australian Trucking Association David Simon said the trucking industry was under continued pressure from customers to cut costs. In addition, many were facing deteriorating payment terms, with customers not paying their bills for 60 days or more.

“The government’s decision to allow companies to carry back up to $1 million worth of losses and get a refund of the tax they paid in earlier years will benefit incorporated trucking businesses facing temporary losses,” Mr Simon said.

“But all trucking operators will be hit by the decision by transport ministers to increase

OUR WORD IS OUR BOND

Hard road .. all trucking operators will be hit by the decision by transport ministers to increase the fuel tax.

the fuel tax on the industry by 10.4%, or 2.4c a litre and dramatically increase some registration charges.

“The Budget papers show this decision will cost trucking operators an additional $698 million over four years for the fuel tax increase alone.”

Australia’s transport ministers will meet on May 18 to reconsider or defer this tax increase given the Budget forecasts and

the tight or negative margins across the industry.

Mr Simon said the ATA welcomed the Budget announcement that the government would spend an extra $140 million on truck rest areas and other productivity measures over the seven years from 2012-13 to 2018-19.

He said the announcement would help reduce the shortfall in the number of truck rest ar-

eas on the road system.

Leader of the Nationals Warren Truss said the Budget had delivered the lowest road funding in a decade. It contained zero new spending on roads or rail in 2012-13.

“Overall expenditure on roads plummets from $6.2 billion in 2011-12 to $2.6 billion in 201213, with at least $2.3 billion brought forward or deferred from 2012-13,” he said.

Mr Truss said the Budget, with its feeble and contrived $1.5 billion surplus, failed to inspire or encourage struggling communities and families in regional Australia.

“Bringing spending forward and pushing expenditure into the out years doesn’t give you more money. Businesses balancing their books know it and families budgeting household needs are painfully aware of that reality.”

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issue 221 | 14.05.12 | Page 11

INDUSTRY NEWS

All plantations and native forests will be included in the new entity State will guarantee wood supply agreements

From Page 1

The organisation this year will plant 10 million trees across the state to ensure an ongoing timber supply for its customers and a strong long-term future for regional communities.

Nick Roberts, a former managing director for Weyerhaeuser’s Australian plantation forestry, sawmilling and timber distribution businesses who was appointed chief executive of Forests NSW in May 2007, will guide the operations of the new commercial entity.

Mr Roberts is the best man for the job and has the ability to steer the organisation from one position to the other.

Forestry consultant and former State Forests executive general manger Peter Crowe welcomed the organisational change and says the corporation of NSW Forests is long overdue; it will now have the flexibility to operate more independently with a lot more financial vigour and more freedom to perform in a commercial way.

Industry watchers say bringing the state’s forests into the commercial arena will destroy the influence of the unions and take the public service “out of the game”.

The way the organisation is structured it was virtually impossible to sell it, they say.

“MPs for years have been trying to offload it and they have always made a complete botch of it.”

The transition period for the new entity will be a very complex unwinding process and will take some time.

Executive director of the NSW Forest Products Association Russ Ainley said the whole of Forests NSW, including softwood and hardwood plantations and native forests, would

Page 12 | issue 221 | 14.05.12

Katrina Hodgkinson .. room to improve the financial performance of Forests NSW.

be included in the new entity.

“The new organisation will be similar to other government corporations such as Sydney Water,” he said.

Mr Ainley said a new “commercially focused” board would be appointed to provide a skilled commercial focus on growing and harvesting timber to meet the community needs for hardwood and softwood products.

“All wood supply agreements will be transferred to the new corporation and continue to be underwritten by the NSW government.”

Katrina Hodgkinson is also expected to announce a government review of the north coast resource and wood supply agreements up to, and beyond, 2023. The review will include the IFOA regulations. Those reviews will include the outcomes of the Forest Industry Taskforce.

“Predictably, the unions are protesting this change suggesting that it is the first step to privatisation,” Mr Ainley said.

“A commercial focus will be welcomed and is expected to involve significant changes in the way that the organisation will operate.

“We will have to wait and see how that develops.”

Nick Roberts .. an ability to steer the organisation from one position to the other.

John Halkett, a member of the NSW Forest Industries Taskforce, welcomed the announcement as a step in the right direction for plantation and forest-based industries in the state.

‘Bringing the state’s forests into the commercial arena will destroy the influence of the unions and take the public service out of the game’ “The decision to make it a state-owned corporation will give Forests NSW a greater degree of autonomy as a standalone trading entity. This will allow it to make much more rational commercial decisions that are currently impossible from within a mega-department with complex lines of reporting and decision-making,” Mr Halkett said.

“This will allow it to make much more rational commercial decisions that are currently impossible from within a megadepartment with complex lines of reporting and decision-making.”

He said the decision would also send a positive signal to plantation and forest-based industries that the government

is taking a much more rational, long-term commercial approach to its forestry business.

“This will engender more confidence in the industry that is presently doing it tough because of the ‘soft’ housing marketing, its ability to maintain its competitiveness and some recent adverse policy decisions by the federal government,” Mr Halkett said.

“It will also send a strong message to regional businesses and communities that make their livelihoods from plantations and forests that the government is making a firm commitment to the sensible management of its forestry assets and demonstrating a clear resolve to recognise and support their business interests and timber processing activity.”

Katrina Hodgkinson said her department would handle all policy matters related to forestry and together with the Environment Protection Agency and Office of Environment and Heritage would provide an effective regulatory framework for the forestry industry.

“There will be no reduction in the regulatory oversight of Forests NSW and the government will ensure that the state’s commitments under the Regional Forest Agreements are met and that the expected environmental benefits are realised,” she said.

The NSW Environment Minister Robyn Parker said the EPA would not waiver from its obligation to ensure compliance was maintained.

“The EPA will continue to maintain an active compliance program in NSW state forests,” Ms Parker said, emphasising that the proposed structural changes would involve consultation with relevant stakeholders.

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TIMBER CERTIFICATION

Exponents of chain of custody debunk theories on high cost Certification commercial decision to win markets

marks. The benefits are access to markets, relevance to customers and risk mitigation.”

Mr Capobianco said companies already had systems of traceability for invoicing and record keeping so the move to CoC certification was not difficult.

“Companies do have to implement some additional procedures, but they are not enormous,” he said.

By JIM BOWDEN

AUDITORS and exponents of chain of custody certification in Australia have debunked some theories circulating industry that the cost of the process is excessively high and requires renovation of warehouses.

“There is a lot of ill-informed nonsense being spread about the system,” according to Colin Fitzpatrick, chief executive of TABMA. He said the vast majority of TABMA supplier members were now CoC certified and certification inquiries from merchants were rapidly increasing across Australia.

‘There is no single process – every company is different, and that’s the flexibility of the standard – Nick Capobianco

“TABMA is not for or against CoC certification; all we do is provide a nation-wide consultancy and auditing service at minimal cost to members and non-members who require cer-

Colin Fitzpatrick .. chain of custody inquiries for certification are rapidly increasing.

Nick Capobianco .. more and more customers want to verify the origin of the wood.

tification,” he said.

Chief executive of FSC Australia Natalie Reynolds said it was getting ridiculous how the cost of certification was being inflated.

“We hear opinions that chain of custody can cost anywhere up to $10,000 for an individual company and that warehouses have had to be extended to accommodate the system, which is nonsense,” she said.

“We hope this doesn’t send the wrong messages to industry, because without chain of cus-

tody there is the likelihood that many will miss out on market opportunities.”

Experienced auditor Nick Capobianco of Scientific Certification Systems agrees there are misconceptions about chain of custody – that it is a costly exercise.

“Generally, the vast majority of our audits cost less than $5000,” he said.

“For companies that are engaging in CoC, it’s about traceability, principally, and about labeling and the correct use of trade

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‘We hope this doesn’t send the wrong messages to industry, because without chain of custody there is the likelihood that many will miss out on market opportunities’ – Natalie Reynolds

“We find that most companies that engage in CoC tend to focus on the low-hanging fruit – the products they can buy and sell that are already certified. Some of them are able to transfer all of their wood to certified products and some only a Cont Page 14

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issue 221 | 14.05.12 | Page 13

TIMBER CERTIFICATION

More customers want to verify the origin of wood to mitigate risk of illegal trading From Page 13

proportion of it before progressively expanding their range of certified material.

“In some cases, if they only have access to a certain forest that may not be certified, then it’s pretty hard, but if they have access to a supply chain where some product is certified and some is not then it’s a longerterm proposition to make some changes.”

Mr Capobianco said some in the industry believed that if they were going to go down the CoC path and have everything certified they would need two systems for segregation which required duplication of inventories.

“I have completed many audits and haven’t come across this,” he said.

“Most companies have basic systems in place that might need some tweaking and they will need to train staff to ensure products aren’t mixed and to keep records that verify the origin of the wood.

“They often start with products that are already certified so it’s not an overburdening approach that companies

A commercial decision .. consumers want to verify the origin of their wood supplies.

can take.”

Mr Capobianco says it comes down to a commercial decision because more and more their customers want to verify the origin of the wood and differentiate product on either environmental or social grounds or they are seeking to mitigate risk against the illegal logging Bill.

He said segregation of product in the warehouse could be done by physical separation or by labeling and marking.

“There is no single process –

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every company is different, and that’s the flexibility of the standard.

“Companies that have many product items, typically timber merchants and multiple suppliers, have some additional challenges; they may have four suppliers of one item and some will be certified and others not.

“In this case, additional segregation might be necessary, but invariably these companies tend to make a conscious decision and choose one type of wood over another, or buy certified product on customer demand.

“But this doesn’t translate into investing enormous amount of money.

“Seeking to have CoC and verifying that the forest of origin meets the criteria of controlled wood may require field auditing of that forest.

“If the forest is potentially of high conservation value, then that certainly will increase costs for chain of custody certification.”

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11-14 July 2012 SYDNEY EXHIBITION CENTRE DARLING HARBOUR SYDNEY

AWISA SOLID WOOD

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Register at www.awisa.com

ORGANISED BY THE AUSTRALIAN WOODWORKING INDUSTRY SUPPLIERS ASSOCIATION LIMITED. T: 02 9918 3661 E: info@awisa.com

Page 14 | issue 221 | 14.05.12

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TIMBER SPORTS

Wayne rips through competitors Timber worker wins national chainsaw title

By MILES NOLLER

TIMBER industry worker Wayne Donovan is Australia’s chainsaw racing champion, following the national titles at Kingaroy in Queensland’s South Burnett region.

Two new chainsaws were on offer as prizes, and Mr Donovan won both.

Chainsaw racing includes three basic disciplines – speed racing, disc stacking and the more prestigious post-rip events, for which greater prize-money, and the chainsaws, were on offer.

Post ripping involves cutting fence posts from an ironbark billet (or alternative hardwood), 2.1 m long, using a chainsaw to cut the posts, wedges to split the posts from the core of the log, and a bar to finally separate the posts and core.

Mr Donovan won the post-rip competition for saws under 100 cc, and the open postrip championship, earning a combined $900 and the two chainsaws valued at more than $3000.

He was competing against entrants from New South Wales and Queensland at the champi-

Wayne Donovan of Pechey, Crows Nest, with the two chainsaws he won at the Australian Chainsaw Racing Championships at Kingaroy.

They were prizes in the under 100 cc, and over 100 cc post-rip events. His is sporting medallions won in other events and he also won cash and three championship jackets.

onships, held during the Kingaroy Show on May 5 and 6.

More than 50 competitors, men and women, from Singleton in the Hunter Valley to Gladstone in central Queensland competed in the titles.

Mr Donovan and his wife Teresa are from the Crows Nest

district north of Toowoomba, and each has been a successful competitor in chainsaw racing and other timber sports for a decade.

At the weekend titles, Teresa was also in the money, winning the women’s speed event for under 100 cc-modified

chainsaw. Teresa and Wayne shared second place prizemoney of $200 in the ‘jack and ‘jill’ post-rip event over 100 cc, and Wayne teamed with Ashley Yaxley, also of Crows Nest, to share $300 for winning the teams over 100 cc post-rip event.

Another Crows Nest timber worker Wayne Stark won the veterans over 100 cc modified chainsaw speed event.

In the speed races, the competitor has to make three cuts through a horizontally-mounted billet, while disc stacking involves cutting as many discs from a vertically mounted billet in 90 seconds. The discs must remain on top of the block. The winner at the championships was John Porter of Tiaro, near Maryborough, who cut 21 discs from the 12-in. block.

The timber for the speed races and disc stacking was swamp mahogany from the Miriam Vale district south of Gladstone, while the ironbark for the post rip races was obtained west of Kingaroy Most of the fence posts produced at the championships were sold prior to the event.

Makita blue the new buzz in forests

THE timber industry has become accustomed to using orange-coloured chainsaws – Stihl from Germany and Husqvarna from Sweden.

But if the Makita organisation’s plans are fulfilled, blue-coloured saws will be seen more frequently in our forests.

Makita Australia was a major sponsor at the 2012 Australian Chainsaw Racing Titles held at Kingaroy in southeast Queensland on May 5 and 6.

The company presented a chainsaw to the winner of one of the most prestigious events, it provided sample bags to

The Makita men at the Australian chainsaw racing titles .. Mark Pietrala, Colin Edwards, Robert Pooles, and Alan Lee, with the range of Makita saws from the small top-handle model for arboriculture, to the biggest, the 90 cc machine for the forest industry.

each of the 50 or so competitors, and also made available

one of its saws for trimming blocks after each of the speed

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racing events.

Colin Edwards, one of the four Makita representatives at the event, said Makita took over the German Sachs Dolmar chainsaw business in 1991.

The colour of the saws was eventually changed from orange to Makita blue, but they continue to be manufactured in the Dolmar factory in Hamburg, Germany.

Dolmar in 1927 became the world’s first petrol powered chain saw.

Makita’s other outdoor power

Cont Page 17

issue 221 | 14.05.12 | Page 15

TIMBER SPORTS

Wayne Stark of Crows Nest after his win in the veterans’ over 100 cc modified speed event.

Makita Queensland representative Mark Pietrala presents Wayne Donovan of Crows Nest with the chainsaw prize for winning the national under 100 cc post-rip championship.

Expanding sales in Australia From Page 16

machines (line trimmers, hedge trimmers, blowers, mowers and generators) are made in Japan in the Robin small engine factory.

Mr Edwards said: “Makita does race its saws, but when it does, it uses factory standard machines, unlike many in the racing business whose saws might look standard on the outside, but many are ‘hotted up’ on the inside.”

NSW field representative for

Makita Alan Lee said the company was the number one power tool supplier in Australia; it was interested in expanding sales in chainsaws and the Makita promotion at the national titles was part of this strategy.

Mr Lee said Makita had a significant price advantage over some brands.

“We have retail outlets across the country and are servicing dealers all over Australia,” he said.

Central Queensland girls won the honours in the women’s over 100 cc modified speed race at the national titles. Winner was Janine Kelly (left) of Turkey Beach near Miriam Vale, second place went to Melinda Newitt (centre) of Tannum Sands, and third was Corena Werth also of Tannum Sands.

Disc stacking champion John Porter (left) of Tiaro, near Maryborough, with second placegetter Wally Krause (centre) of Eidsvold, and in third place Russell Curtis of Monto.

The unlimited under 100 cc modified speed race was won by Will Hutchins (left) of Proston, with Gavin Newitt (sitting) of Turkey Beach near Miriam Vale second, and in third place Wally Krause of Eidsvold.

Page 16 | issue 221 | 14.05.12

Foreman in the NSW state forests at Dungog, Bill Rumbel, and his wife Jan, who won the ‘jack and jill’ over 100 cc post-rip event. Jan is a nurse at Gloucester hospital and says she has seen a number of chainsaw injuries over the years, but most injuries were to “weekend warriors” and very few to professional chainsaw operators.

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EVENTS

Wonder of wood attracts 4000 to Maleny’s amazing timber display

By JIM BOWDEN

THE smell, the buzz, the wonder of wood attracted more than 4000 people to the Maleny Wood Expo atop Queensland’s Sunshine Coast hinterland over the weekend May 5 and 6.

Brilliant weather and the colours of autumn helped create two days of clean, country family fun at the event hosted

by Barung Landcare and celebrating the region’s finest woodwork through displays of craftsmanship, mobile mills and woodworking tool demonstrations.

From the sophisticated to the sublime, from the radically rustic to the amorphously abstract, woodworkers delighted and amazed with their breadth of vision working with wood.

The Barung nursery propagates local native plants for revegetation and environmental rehabilitation projects and supports private forestry by supplying good quality tree stock for boutique and larger plantations. A contracting service assists local landholders to achieve environmental restoration works on private land.

Any surplus generated by the Maleny Wood Expo goes towards keeping Barung open and staffed for the Blackall Range community.

The Sunshine Coast hinterland is home to a wealth of instrument makers; all are members of the Australian Association of Musical Instrument Makers who build and repair a wide variety of traditional, folk and modern instruments. They aim to encourage the use of high class musical instruments using mostly Australian timbers and materials.

Traditionally, exotic and valuable timber species were used to build musical instruments and in the past musical instrument makers sought out wood

Admiring John Muller’s hall table and mirror crafted from Budgeroo (Tom Russell’s mahogany) are Max Barrenger of the Blackall Range Wood Crafters Guild and Rita and John Cruickshank of Glass House Mountains.

from old-growth forests around the world, in order to produce the best quality music.

Although musical instrument manufacturing is not the driving force behind vanishing critical forest habitat, instrument makers are leading the way in sustainability.

Many of the group’s members have achieved worldwide recognition in their speciality, with their instruments and services in demand around the globe.

They are involved daily in the

Wood craftsman Chris Twidle shows off one of his many stringed instruments.

construction, maintenance, restoration, conservation, research and development of an extensive variety of traditional, folk, modern and experimental musical instruments.

We found Chris Twidle, secretary of the association, surrounded by his wooden musical instruments including a violin created from sustainably-harvested native bird’s eye maple and Tasmanian King Billy pine He display included bows made from saffronheart, an Australian native timber, and snakewood, a sustainably-harvested timber he purchased in England.

Chris said: “Not all instruments in the past were made from old-growth forests. There is a story that the selection of sycamore/maple with the fiddleback ripple, so common on quality string instruments, came about because Stradivarius, who lived in Cremona not too far from Venice, had access to plenty of such timber. This was because it was rejected by the makers of oars for the galleys, as it was not as strong as the

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plain, unfigured wood.”

Pride of his display was a stringed instrument crafted from sycamore grown in forests near his birthplace in Lincolnshire, a county in east England, and used for the back, ribs, and neck of the instrument. It also featured north Italian spruce for the base and top, grown in the same forest where Antonio Stradivarius collected wood for his legendary violins.

Chris reckoned he’d be very happy indeed if his violins commanded anywhere near the same value as a Stradivarius – a 1697 Molitor Stradivarius, once rumored to have belonged to Napoleon Bonaparte, sold for $US3,600,000 in 2010 at the Tarisio auctions, then a new world record.

Another fascinating exhibit was a hall table and mirror crafted from Budgeroo (Lysicarpus angustifolius) by John Muller, a well-known Queensland timber industry figure who lives at Balmoral Ridge, not far from Maleny.

Also known as Tom Russell’s mountain mahogany, the wood is considered one of Australia’s most beautifully grained timbers. Its fine and highly figured grain contains a lot of fiddle back and bird’s eye and it takes polish extremely well.

Commercial timber merchants can no longer obtain stocks of Budgeroo; remaining stands are mostly in protected areas of state forests.

Very few wood artists have used or know about the beauty of this timber. Due to its scarcity, it can no longer be found in premiere wood shows such as the ones held at Maleny and in Brisbane. This unique timber is therefore a collector’s item and an investment for the future .. like all good wood.

issue 221 | 14.05.12 | Page 17

EVENTS

Wood is good .. anyway you look at it

With her son reflected in this brush box mirror, Jane Rushton of Buderim enjoys the woodwork displays at the Maleny Expo. The mirror was created by Jeff Cash of Beenleigh.

Demonstrating fine hand tools for woodworkers at the Maleny Expo are David Eckert, Adelaide, and Robert Howard, Brisbane, both representing Lie-Nielsen Toolworks Australia, based at Welland, SA.

Gary Bochow and son Samuel of Beenatree Milling display red cedar slabs cut from private forest on their Conondale block.

Providing the oompa-pa at the Maleny Wood Expo are US-born Ratnader on the rubatuba and Francoise, a French accordion player.

Green incremental approach to strangling and shutting down the forest industry will continue From Page 7

Agreement (IGA) negotiations were a sham.

“Even as negotiations are under way on a durability clause for the agreement, protesters again prove the inherent weakness of this process,” Senator Colbeck said.

“If the state and federal governments believe that an enduring peace can be achieved for Tas-

Page 18 | issue 221 | 14.05.12

mania’s forests from this sham process then more fool them.

Green groups are not interested in a deal.

“The reality is that the green incremental approach to financially strangling and shutting down the forest industry will continue.

“The protest activity against Ta Ann Tasmania shows that clearly.

“Despite the ‘peace talks’, we

have again seen a legitimate forestry business – one which is using legitimately sourced, independently certified timber to create jobs and revenue for Tasmania – targeted by environment groups hell-bent on wiping out the industry entirely.”

Senator Colbeck said Premier Lara Giddings had promised the forest industry that she would honour timber supply contracts.

“She cannot renege on this,” the senator said.

“The reports coming from the IGA process show that locking up any further forest would mean that those contracts cannot be met.

“Peak environmental groups know this. They claim they cannot control other protesters but the ongoing market disruptions and protest activities certainly appear part of a coordinated campaign.”

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New website examines agendas for forest certification schemes

Highlighting tradeoffs, successes and failures THE Washington Policy Centre, a public policy research organisation, has launched a new forestry certification focused website designed to regularly examine the science – or lack thereof – behind various certification schemes.

The website, Forest Certification Audit, www.forestcertificationaudit.org, is designed to highlight tradeoffs, successes and failures of various certification systems.

It takes aim at the values and assumptions that lie behind certifications and their applications and inconsistencies; the role of environmental groups in coercing businesses to adopt certification schemes; and the tradeoffs of the systems as they are applied, a press release said.

The release said a number of certifications exist, but competition between them often reflects values promoted by

the sponsors of those systems, sometimes resulting in trade restriction.

“The application of certification guidelines for the US and internationally are sometimes inconsistent, with uneven quality of auditing, a problem for labels that strive for consistent standards,” says Todd Myers, environmental director for the Washington Policy Centre.

The website will also examine how some certification systems

and their original purposes – often as an economic incentive – have strayed to become trade restrictive.

The release said the FCA would sort “sustainable science from the political pressure”.

Mr Myers said that some schemes emphasised political pressure or aimed to persuade dominant companies in supply chains to supply only products approved by their certification scheme, alienating smaller players in markets.

He is author of ‘Eco-Fads: How the Rise of Trendy Environmentalism is Harming the Environment’. Other contributors will include Malcolm Dick, a former Alaska state forester, and Holly Fretwell, a forestry specialist for the Property and Environment Research Centre and adjunct instructor at Montana State University.

– Furniture Today

Todd Myers .. certification guidelines are sometimes inconsistent.

Indonesia forests convert to palm oil plantations much faster than thought INDONESIA’S tropical forest is being converted to oil palm plantations even faster than was thought, giving rise of the possibility that only 4% of forest outside of protected areas will be intact, according to a study by 10 scientists for the US National Academy of Sciences.

The report, completed in March, says that two-thirds of all Indonesian forest outside

of protected areas has been leased to oil palm companies, and that by 2020 a third will be in plantations.

Scientists from Yale University, Stanford University, the Carnegie Institution for Science at Cranfield University, the University of Virginia, Indiana University and the Santa Fe Institute participated in the study.

Although Indonesian President Susilo Bambang Yudhoyono

last September pledged to uphold sustainable forest practices, in Jakarta last week a coalition of green groups led

by Greenpeace said the moratorium the government had proposed was weak and ineffective.

Although the president in a speech to a forest protection association said in November that the government had set up programs to enhance agri-

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cultural productivity as well as ensure an adequate stock of staple food, including rice, as well as launching a tree-planting campaign aimed at planting at least 1 billion new trees annually, the government’s plans are largely viewed as a flop.

A Greenpeace spokesman said the ban put in place to protect the forest by the government excludes large tracts of the country’s peatland forests.

issue 221 | 14.05.12 | Page 19

INTERNATIONAL FOCUS

In just 15 years, China has become ‘black hole’ for global timber supply

Imports ultimately exported as furniture or plywood IN just 15 years, China has become a ‘black hole’ for global timber supplies. Today, more than half of the timber shipped anywhere in the world is destined for China, according to respected research professor and tropical forests expert Dr William Laurance.

He says china consumes the lion’s share from many AsiaPacific nations, such as Papua New Guinea and Indonesia, and from many tropical countries in Africa. The boreal forests of Siberia are also a major source.

In all, China is importing 40–45 million cu m of timber annually – the equivalent of 12–15 million big canopy trees.

“There is nothing wrong with importing timber – China has every right to grow economically,” Dr Laurance says.

“However, in its fervour to secure timber supplies, China is increasingly seen as a predator of the world’s forests.

“It is copping three big criticisms. First, the country and its wood product corporations are remarkably aggressive in pursuing timber, while generally being little concerned about sustainability. In particular, China has promoted ambitious new road projects to open up remote regions in the Amazon, Congo Basin and Asia–Pacific to exploitation.

“Such frontier roads often unleash a Pandora’s Box of activities – including illegal colonisation, hunting, mining and land speculation – that are highly damaging. China is also a huge consumer of wood pulp, which is helping to drive large-scale deforestation in places like Sumatra

Source questionable .. China almost exclusively seeks raw logs.

and Borneo.

“Second, China almost exclusively seeks raw logs. Raw logs are the least economically beneficial way for developing nations to exploit their timber resources, as they provide only limited royalties, employment and other benefits. As a result, most of the profits from logging go to foreign timber cutters, shippers and wood-products manufacturers.”

Dr Laurance said 1 cub m of the valuable timber merbau (Intsia bijuga), for instance, yielded only about $11 to locals in Indonesian Papua, but another $US240 when processed by wood products manufacturers in China.

“Finally, China has done little to combat the scourge of illegal logging in developing nations. A 2011 report by Interpol and the World Bank concludes that, among 15 of the biggest timber-producing countries in the tropics, two-thirds had half or more of their timber harvested illegally. Globally, economic losses and tax evasion from illegal logging cost about

Dr William Laurance .. China has done little to combat illegal logging

$15 billion annually – a serious economic burden for developing nations.”

About one-third of Chinese timber imports were ultimately exported, as furniture, plywood, flooring, disposable chopsticks and other wood products, Dr Laurance said.

European countries, the USA, Japan and Australia were the biggest importers, with consumers unaware of the illicit origin of many Chinese wood products.

Stories about illegal logging rarely penetrated the Chinese news media.

“Outside China, the situation is different,” Dr Laurance said “Awareness of the rapacious nature of Chinese timber interests is growing, with critical reports by green groups such as the Environmental Investigation Agency, WWF, Greenpeace and the World Resources Institute garnering attention internationally. Add to this, growing criticisms from the World Bank, Interpol and Chatham House, and what began as murmurs of concern have become a loud clamour for change.”

Dr Laurance said this was a dangerous situation for Chinese businesses and exporters. Influential environmental groups were mulling over consumer campaigns that could had a big impact on Chinese wood and paper exports.

“Adding teeth to consumer actions are tougher laws and initiatives in industrial nations.

Both the US and the EU now have laws or regulations that hold corporations that import illicit timber products responsible for their actions.

“There’s hope here, too. In February I briefed the Australian Senate on the Illegal Logging Prohibition Bill 2011. If passed, this law would make it much harder to import illegal products into Australia.

“But the situation won’t change until consumers demand it. The bottom line – check the labels of wood and paper products.

If it reads, ‘Made in China’, be wary of the dragon and think twice before buying.

COPYRIGHT NOTICE Items provided in this section of Timber & Forestry E news are drawn from a number of sources. The source of the item is quoted, either by publication or organizations in line with the practice of fair reporting.

Page 20 | issue 221 | 14.05.12

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Knowledge Tree Series

Int roduction to Green Sta r® and FSC Project Ce rtification 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 - What is FSC & why is it important?

GBCA CPD points for - Green Star® and the timber credit attendance apply - 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:

May 22nd, 8–9.30am (Speakers will be available for Q&A, informal discussions and networking until 10.30am) RSVP must be in by 11th May to assure a place

Where:

Hurleys Arkaba Hotel 150 Glen Osmond Road Fullerton, 5063, SA For a map of the location visit http://www.arkabahotel.com.au/contact Parking is available nearby

RSVP:

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

Donations to support future Knowledge Tree Series are encouraged

Presented with the generous support of TABMA

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issue 221 | 14.05.12 | Page 21

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• Improvements include 2 Bedroom cottage, 3 bay garage, machinery shed, timber cattle yards with vet crush & plunge dip.

• • • • •

Area 936 hectares (2,312 acres) 5 Freehold Titles.

Approx 24 km south of Gin Gin. Approx 8 km Burnett River frontage.

Plantation area – 224 hectares – 2005 planting.

Balance area divided between cattle grazing (438 ha) and open native forest (unfenced 274 ha).

Comments: “Coolalbin & Electra” are well managed Softwood Plantations with good growth vigour ensuring sustainable timber reserves for the future. www.eldersre.com.au

ID

4091445

Expressions of Interest: Close at 5pm Friday 15 June 2012 Details: Information Memorandum available from the Marketing Agents.

Baden Lowrie 0427 172 158 Elders Bundaberg 07 4152 6599 John Burke 0428 457 976 Elders Brisbane 07 3840 5503

Page 22 | issue 221 | 14.05.12

Expressions of Interest

Advertising: Tel +61 7 3266 1429 Email: timberandforestenews@bigpond.com

Annual Timber Industry Charity Golf Day Now in its 26th year the Queensland Timber Industry Charity Golf Day is set for

Friday 25th May, 2012 with proceeds going to the Brisbane Hoo-Hoo Club 218 children’s charities, including Variety Club of Queensland

THE DETAILS: Competition is a 4 ball Ambrose, 4 players per team. Prizes awarded to teams for 1st & 2nd places as well as straight drive and NTP. There is a maximum of 36 teams able to play so get in quickly.

COST: $750 per team of 4, banner on a hole on the day and inclusion in all promotional advertising for the day including Timber & Forest E-News, TABMA QLD & HooHoo Club. $450 per team of 4, includes lunch. $120 per individual, includes lunch.

RSVP: Friday 11 May, 2012

VENUE: North Lakes Golf Club Bridgeport Drive, North Lakes

AGENDA FOR THE DAY: 6:30am Arrive & register at North Lakes Golf Course.

A breakfast baguette buffet will be served.

8:30am Shotgun start.

12:30pm Return to clubhouse for a hot lunch with guest speaker, Les Riley - CEO Variety QLD, followed by prize presentation.

PLEASE COMPLETE BELOW BELOW & RETURN TO TIM EVANS EMAIL: T-EVANS@BIGPOND.NET.AU EVANS@BIGPOND.NET.AU OR PHONE 0417 0417 726 741 COMPANY NAME

PLAYER 1

EMAIL

PLAYER 2

PHONE ADDRESS

FAX

A Joint Industry Association Event

PLAYER 3

PLAYER 4

Advertising: Tel +61 7 3266 1429 Email: timberandforestenews@bigpond.com

issue 221 | 14.05.12 | Page 23

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.

Introducing the first Bronze Sponsor’s…

Sponsorship packages are still available.

Page 24 | issue 221 | 14.05.12

Advertising: Tel +61 7 3266 1429 Email: timberandforestenews@bigpond.com

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