Issue 231 Timber & Forestry E news

6786

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

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issue 231 | 23.07.12 | Page 1

‘Not yet’: industry retort on levy idea

FWPA investment forum sends business case to a national poll

RESISTANCE to any ‘immediate significant increase’ in levies by industry to fund ongoing operations of its services body Forest and Wood Products Australia reflects the stress within the sector over poor trading conditions.

More than 45 industry representatives at an FWPA investment review forum in Melbourne last week could not agree on FWPA levy base proposals which will now be submitted for national consultation through an industry levy poll.

Forum delegates represented 30% of FWPA’s total membership (99) and 55% of its total voting rights.

Some industry leaders said

FWPA .. market acceptance of forest and wood products.

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This Issue

•S tate opens forest reserves for timber production • HQP happy to supply more plantation wood

they could not entertain a levy increase until the market improved; others suggested an incremental increase in levies based on gradual improvements in the market such as increased housing starts.

The current program had utilised cash reserves at about $2 million a year which cannot continue without a change of FWPA’s levy base.

“We’re all doing it extremely tough and it seems it will stay tough for at least another six to 12 months,” was a repetitive comment at the forum.

The industry is suffering under the weight of increased timber

Cont Page 3

•H oo-Hoo is alive and well – just ask Val Fennell •C ompetitive edge drives NZ design awards •C hina wants global acceptance of CFCC •N Z forest companies may exit ETS •C hina demand pushes value of NZ exports to $4.4m •D emand for EWPS grows in US recovery

issue 231 | 23.07.12 | Page 1

INDUSTRY NEWS

State opens forest reserves for added timber production Labor’s proposals rescinded

By JIM BOWDEN

OPENING native state forests – quarantined as reserves under long-term conservation agreements – is a major plank in the LNP government’s new timber industry plan for Queensland.

The plan was endorsed as a priority issue at the LNP policy forum in Brisbane last week.

The Beattie government in 2002 excluded logging from more than 1 million ha of state forests in the western hardwood region which supplied 14 local sawmills and 12 associated contractors.

The government purchased all but four of these sawmills and those remaining were granted 20-year supply agreements with a view to transitioning this supply to plantations hardwood.

Forestry Minister John McVeigh has accused the former Beattie and Bligh governments of failing to maintain these vast reserves and said forests were now riddled with pests and weeds and posed bushfire threats.

National Parks Minister Steve Dickson promised “pristine and long-protected” national parks would continue to be safeguarded.

Mr Dickson said about 875,000 ha of state forest and former

‘It saddens me, because the decision has come five years too bloody late, but it gives new strength to science over politics’ – Peter Crooke Page 2 | issue 231 | 23.07.12

John McVeigh .. forests now riddled with pests and weeds.

cattle stations recently gazetted as national parks were likely to be the first to be rescinded.

“What we are doing is an absolute scientific review of all the land we’ve got,” he said.

“If it’s pristine land that should be in national parks, I’m going to keep it because you don’t take away what needs to be preserved for ever more.”

Mr Dickson said much of the land that would be released had previously been logged, mined or grazed.

John McVeigh said about 200,000 ha of native state forests could potentially be reopened to logging. He said the government would first look to renew state forest agreements, due to expire within two years, with western and southern cypress sawmillers.

Tracts of land considered “low conservation value” within the western hardwoods region and areas protected under the 1999 South East Queensland Forestry Agreement would then be targeted.

The decision has been met with mixed emotions by timber producers who were forced to close their family sawmills – some operating for more than

Cont Page 6

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

Ron Adams

Ric Sinclair

Douglas Head

Nils Koren

Linda Sewell

Business case: FWPA has the structure and systems to deliver

From Page 1

imports, cost structures that are unsustainable at the high Australian dollar rate, and a softer housing demand and high-cost housing supply, which together mean that Australia is under-building by a significant amount.

Chairman Ron Adams said FWPA was coming to the end of its first five-year plan and must develop a business case for funding priorities for the next five years.

An FWPA summit in Melbourne in February this year, attend by about 60 industry representatives, agreed to progress new ideas for the company and to explore all options for expansion. FWPA managing director Ric Sinclair confirmed that the company had been using cash reserves over the last four years to launch and sustain a range of initiatives.

Cash reserves would reach the target level at June 30 and therefore without additional revenue streams, the current level of expenditure could not continue, he told the February forum.

Additionally, Mr Sinclair emphasised that the company could secure additional matched government funds of about $8 million under the current arrangements if industry was prepared to invest

in the company.

There was clear support for the continued role of FWPA and it was acknowledged that the FWPA was performing well with high levels of governance and credibility.

The meeting also endorsed continuation of current levies with the suggestion of, at minimum, an annual CPI increase.

Ron Adams reminded attendees at last week’s forum in Melbourne that FWPA was their organisation funded by their levies with federal government matched funding for R and D and other eligible activities but not marketing and promotion.

Directors were elected by the shareholders and FWPA was similar to 15 other rural research and development corporations such as Dairy Australia, Horticulture Australia and Meat and Livestock Australia.

Mr Adams stressed that the FWPA board strongly endorsed the business case and was confident that FWPA has the structure and systems to deliver it.

One of the key tasks of the workshop was to determine

the appropriate level and timing of investment for industry collaborative activities and what was an appropriate split between programs and how benefit allocations should be shared across the industry.

In a comparison with other rural industries, Ric Sinclair said FWPA levies were generally less than 0.2% of end product selling price while in other rural industries these were higher ranging from 0.49% to over 1% with some as high as 10%.

Mr Adams recognised the manufacturing sector was facing tough times and there was a profitability crisis in the forest sector.

He said growers were looking for increased sales per hectare; efficiency in logistics reduced risk over rotation; and favourable outcomes in a carbon constrained economy.

Processors and exporters would like increased fibre volume; improved processing cost; and optimum fibre-market alignment Mr Adams said collaborative and pre-competitive programs funded and initiated by FWPA would help achieve the desired future.

‘Collaborative and pre-competitive programs funded and initiated by FWPA will help achieve the desired future’ – Ron Adams

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Some at the forum commented that while the industry was in a tough period at the moment this would change; the FWPA and Planet Ark relationship was gaining traction and it would be difficult to effectively turn it on and off without losing the gains.

Forum participants divided into three workshop groups for growers, processors, including engineered wood products, and importers.

HVP Plantations chief executive Linda Sewell, reporting on the growers discussions, said there was support for a levy increase to maintain existing programs with a need to assess what increases were required to achieve different aspects of the proposed business case Speaking on behalf of processors (including EWPAA), Douglas Head said the FWPA was transparent and had done well with not a lot.

“Growing the market is what interested the group,” he said.

“Processors tend to be more interested in internal R and D in tough times so would prefer to hold levy expenditure on these programs until the market picks up.”

To gain an indication of thinking about the business case proposal, two votes suggested decreasing the levies; two voted to hold at the status quo but increase with CPI; one

Cont Page 4

issue 231 | 23.07.12 | Page 3

INDUSTRY NEWS

Rank the projects to the dollars required: opinions at FWPA forum

From Page 3

voted to go forward with the business case proposal but in a staged fashion and three voted to go forward now as proposed.

There appeared to be a feeling from the small or family-owned companies to increase the levies with larger corporates opposed to any increase.

Representing importers, Australian Timber Importers Federation president Nils Koren reported interested in whole of market growth and the need to keep investing.

One suggestion was to rank the projects to the dollars required and another attendee suggested that a ‘do- nothing’ option would take revenue away from FWPA and therefore research and development would be gutted.

Some processors said they would be happy to put all their R&D money into marketing and promotion.

Ric Sinclair reminded the forum of the vision and mission of FWP – to ensure that forest and wood products were the preferred, sustainable material that met Australian market needs and that this was achieved through FWPA investing strategically in R&D, knowledge transfer, education

of value chain involvement including importers; government matching funds; industry ownership; strong corporate governance; and investment in focused national programs.

Wait and see .. wood processors prefer to hold levy expenditure until the market picks up.

and generic promotion to gain community support and market acceptance for forest and wood products.

Research achievements included: • The solid wood initiative identified $19 per cub m of potential savings • A 24 percentage point increase in consumers’ understanding of wood products and carbon and an 18 percentage point increase in consumers rating wood as ‘environmentally friendly’.

• 367,000 visits to the WoodSolutions website since June 2011.

• The first wood highrise building being built in Melbourne by Lend Lease.

Advantages claimed for the FWPA model included whole

There was a feeling from small or family owned companies to increase the levies with larger corporates opposed to any increase

FWPA’s transition from the Forest and Wood Products Development Corporation (established in 1994) resulted from an industry ballot in April 2006 to expand the industry services that the FWPRDC could undertake but was precluded from because of its governing legislation.

FWPA, as an industry service body, differentiates from other forest industry bodies by its mandate of investment in R and D and generic promotion of wood products. It is precluded from undertaking agri-political activity.

Investment of industry levies into forest and wood products research and development will continue to be matched by the federal government but this contract does not include other industry services such as wood promotion.

Inquiry urges probe into forestry sale process

A PARLIAMENTARY inquiry has recommended the auditorgeneral investigate the sale process of forestry rotations in southeast South Australia.

The inquiry’s final report was tabled in Parliament last week, with all non-government members of the committee saying the sale should not proceed.

Treasurer Jack Snelling has repeatedly said there is no way the sale will be stopped.

Page 4 | issue 231 | 23.07.12

However, the inquiry’s chairman and Family First MLC Robert Brokenshire still thinks the government should consider at least some of its recommendations.

“I’m asking the Treasurer not to hurt South Australia’s asset base because of mismanagement by the government and flogging off our forests when we could do better to keep them in ownership,” he told ABC News.

“I’m asking the Treasurer also

Jack Snellling .. no way the sale will be stopped.

to have a very close look and a genuine look at this report and to reconsider.

“Certainly if they don’t do that [stop the sale], then I would ask them to have a close look at a lot of the other recommendations because they are sensible recommendations.

“There are checks and balances with the recommendations and certainly it wants to see transparency in this whole decision of the government.”

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WHAT’S ON?

JULY

15-19: World Conference on Timber Engineering. SkyCity Convention Centre, Auckland, NZ. Delegates from 34 countries, including Australia, Japan, China, Canada and Sweden.

20: AFTA business and industry seminar series.

Melbourne Exhibition Centre.

Bookings essential and tickets at flooringandfinishes.com.au 23-25: Australian Timber Trainers Association annual workshop. Albany, WA. Visit www.atta.org.au

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

31: Australian Timber Importers Federation board meeting.

Morning meeting in Qantas meeting rooms, Adelaide Airport, followed by lunch and the 2012 AGM. South Australian ATIF members and guests have been invited to lunch with the board before the AGM. Lou Boffo of Le Messurier Timber is the local coordinator for inquiries on (08) 8447 0400). AGM inquiries to John Halkett (02) 9356

AUGUST-NOVEMBER

FWPA R&DWorks seminar series: Churchill, Vic, August 8; Melbourne August 9; Coffs Harbour, NSW, September 4; Maryborough, Qld, September 6; Brisbane September 7; Albury, NSW, October 4; Oberon, NSW, October 31; Sydney November 1; Hobart November 29.

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

3-4: Joint ISCs and Skills Australia conference: The Future of Work In 2011, Australia’s 11 industry skills councils and Skills Australia held their inaugural joint conference.

Join MC Kerry O’Brien, Q&A panel moderator Tony Jones and a range of industry identities to explore the future of work, and its implications for building

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EVENTS

Australia’s human capital. Sydney Convention and Exhibition Centre, Darling Drive, Darling Harbour, NSW.

30-31: Industry Development Conference hosted by ForestWorks in Canbrerra.

Following overwhelmingly positive feedback regarding the opportunities for high-level political engagement afforded by holding the dinner at Parliament House, ForestWorks has moved quickly to secure one of the few remaining available dates during sitting weeks. Speakers, topics and themes will be available soon.

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 nonwood 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

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:

NOVEMBER

- Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting.

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

Melbourne and Rotorua

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

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

issue 231 | 23.07.12 | Page 5

INDUSTRY NEWS

Off-shore owners of plantations undermining support for industry

From Page 2

70 years – in the “green grab” for forest estates which began in 2002.

“It saddens me, because the decision has come five years too bloody late for us, but it gives new strength to science over politics,” said Peter Crooke, a third generation member of a family that has worked in sawmilling for 67 years.

“I agree that if there is a legitimate case for high conservation forests then it should be kept in a national park. But I can tell you there was a mighty lot of good productive forest locked up that wasn’t high conservation at all.”

Mr Crooke said he agreed with Rod McInnes [Timber Queensland chief executive] that the industry “doesn’t clear floor forests and selectively harvests about two logs an acre once every couple of years”.

“At our Allies Creek mill near Mundubbera we were only completing the first cut of our allocated forest estate after 67 years of sawmilling. Now if that isn’t low-impact logging I don’t know what is.

Page 6 | issue 231 | 23.07.12

Steve Dickson .. an absolute scientific review.

Rod McInnes .. working plan for the next six months.

“Now it’s all gone, been buried or sold off. I don’t even know what it’s like out there now.”

Rod McInnes said a working group comprising government policy officers in the Department of Agriculture, Fisheries and forestry industry representatives had begun developing a vision for the plan and scoping a work program for the next six months.

However, Mr McInnes said renewed government support for the state’s timber industry was being undermined by the off-shore owners of the state’s plantations, sold by the Bligh Government in 2010.

“Hancock Plantations Queensland (formerly Forestry

Plantations Queensland) seems little interested in assisting local millers meet stiff competition from imported timber and is busy setting up export channels to China and elsewhere while

‘The Bligh government did not ensure the terms of the sale of plantation assets required the new owners to support the local industry as a priority’ – Rod McInnes

local mills are shutting or cutting back to a unsustainable production levels,” Mr McInnes said.

He said it would be a terrible shame if the timber plan ended up being about how to replace most of Queensland’s $2 billion timber industry and the 20,000 jobs it supports with imported timber because the Bligh government did not ensure the terms of the sale of the publicly owned plantation asset required the new owners to support the local industry as a priority.

“Industry was shut out of the sale process despite many attempts to engage and even offered to sign confidentiality agreements to preserve the integrity of the negotiations,” Mr McInnes said.

“Clearly the Bligh government couldn’t do the $660 million deal [about 50% of the value of forests sold to FPQ] fast enough without considering the future of the local timber industry,” said Rod McInnes.

“And where did that $660 million go? We’ve seen none of it.”

Mr McInnes said renewed

Cont Page 7

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INDUSTRY NEWS

HQP happy to supply more plantation wood

By JIM BOWDEN

THE chief executive of Queensland’s biggest plantation timber grower says if local processors want to take more wood “we’re happy to negotiate and have discussions with them.

Brian Farmer said exporting logs was not the preferred option of HQPlantations.

“But from time to time the domestic market cannot absorb all we are capable of producing, so we need to find alternative avenues for the sale of our products,” he said.

HQPlantations is the new name for Forestry Plantations Queensland which was

purchased in 2010 from the Bligh Labor government for $603 million by Hancock Queensland Plantations, a company managed by USbased Hancock Timber Resource Group.

“We see it as important that the domestic processing industry develops and that it is capable of utilising the wood and recognising the value of that wood for us as a grower,” Mr Farmer said.

“We know the timber industry is in tough economic times – right across Australia. We are no strangers to this and like everyone else we are doing it tough, too.”

Brian Farmer .. happy to negotiate on plantation wood supply.

Mr Farmer said the Queensland government’s plan to open state native forest reserves for timber production was a good idea.

“We expect to be talking with the state’s forest policy group in terms of developing this access and participating in it.

Other policy settings must be appropriate and in place to deal with this such as forest practice codes and certification.

“HQPlantations is quite happy to work these through with the government.”

Mr Farmer said the company’s name change marked a lot of things – some symbolic in linking with the Hancock brand and the ‘Q’ linking with Queensland.

“The new name could stand for any number of things, but

Cont Page 11

Timber supply issues

From Page 6

access to native forests under the timber plan would address the timber supply issues. “But we won’t see the volumes from these areas that we would expect if we lost plantation volumes.”

Regarding the cypress industry, Mr McInnes said there was a promised commitment from the government to supply 25-year supply contracts to all existing millers at their existing levels of allocation and that contracts would be in place by Christmas.

“But we haven’t started to discuss price, yet,” he said.

Speaking at the LNP conference last week, Nationals leader Warren Truss said Queensland was fed up with Labor’s mismanagement and that now it was time to spread the sentiment nationally.

He closed the three-day conference in Brisbane assuring delegates the federal coalition was “strong” like the LNP. ‘‘We are united, we’re positive, we’re energised and we’re determined,’’ he said.

He said it was obvious Labor was on the nose but urged all members not to take this dissatisfaction for granted.

www.tanalised.com

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issue 231 | 23.07.12 | Page 7

INDUSTRY NEWS

Governments must lift tax burden on new housing: HIA Building activity at risk of returning to GFC levels

FURTHER interest rate cuts and action by federal and state government to boost confidence and lift a substantial portion of the tax burden from new homes are desperately needed to boost a flagging housing industry.

In its winter national outlook, the Housing Industry Association confirms deteriorating conditions for the industry in the first half of 2012.

Following an 11.2% fall in housing starts (dwelling commencements) in 2011, HIA is forecasting an 11.5% decline in starts in 2012, to a level of just 133,420.

This forecast reflects a marked deterioration in most leading indicators combined with a fall in quarterly housing starts in March 2012 to levels significantly below those during the GFC. “HIA has noted for a considerable time the risk that new housing again revisits levels experienced as a result of the GFC,” HIA chief economist Dr Harley Dale.

“That situation now appears unavoidable, to the detriment of thousands of businesses and households, not to mention the overall domestic economy.

“We are experiencing a combination of softer housing demand and high-cost housing supply, which together mean that the nation is under-building by a significant amount.

Australia is under-building by a significant amount.

“Put simply, Australian consumers are nervous about the global and domestic economies, and meanwhile around $200,000 of the price of a new home is due to taxation.

It’s an unsustainable situation.”

Dr Dale said to improve conditions facing new home

‘That situation now appears unavoidable, to the detriment of thousands of businesses and households, not to mention the overall domestic economy’ – Dr Harley Dale

Rod McInnes .. working plan for the next six months.

building not only required further interest rate cuts, but also federal and state government action to boost confidence and lift a substantial portion of the tax burden from new housing.

On a financial year basis,

housing starts are expected to bottom at a level of 135,280 in 2011112 before posting a modest recovery to 141,870 starts in 2012113 and 148,060 starts in 2013-14.

At face-value, this outlook reflects expectations of two consecutive years of recessionary conditions in the new home building sector, followed by a recovery to a level still many thousands of starts below the decade-average.

This view incorporates revisions from previous forecasts of 137,820 starts in 2011-12, with a recovery to 151,200 starts in 2013-14.

Meanwhile, the renovations sector has also showed signs of weakness in recent quarters, notwithstanding that total renovation investment hit a new record in 2010-11.

HIA expects that renovation investment fell by 1.5% to $29.5 billion in 2011-12, but is forecasting growth of 1.3% to $29.9 billion in 2012-13.

“Three consecutive quarters of decline in renovations investment, at an accelerating pace, through to March this year is concerning,” Dr Dale said.

“However, we are confident this situation will turnaround which is good news for the housing industry.”

Elders completes forest assets sale in two states

ELDERS says its proposed sale of forestry assets announced back in April has now been completed.

It says the sale of most

Page 8 | issue 231 | 23.07.12

pulpwood forestry assets in the southeast region of South Australia and southwest of Western Australia is valued at about $60 million.

Elders managing director Malcolm Jackman said the sale was significant for the company.

“We have now completed the

sale of over 33,000 ha of the 50,000 ha of freehold land held at the start of the [divestment] program,” he said.

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INDUSTRY NEWS

Assessing the damage .. forest officers inspect cyclone-damaged pine plantations in north Queensland.

New guide helping timber plantations weather the storm

SEVERE tropical cyclones Larry, Ului and Yasi had devastating effects on the timber plantations and plantation trial plots in tropical Queensland regions.

With climate change projections indicating an increasing frequency of severe cyclones in this region, Timber Queensland has released a best practice guide for timber plantations in tropical cyclonic areas.

Chief executive Rod McInnes said the guide would assist plantation growers make appropriate species selection and implement risk management practices.

“This guide also provides guidance on plantation design, location in the landscape, silviculture regimes and rotation length,” Mr McInnes said.

“Growers need to get these elements right if they want to

weather the next storm and ensure the region’s growing and processing sector prospers.”

The guide is available online at www.timberqueensland.com. au / Growing / Plantationsin-Cyclonic-Areas.

Other resources available include tools to track the history of cyclones crossing the Australian coastline, a case study reviewing the impacts of Cyclone Yasi and a review of the science and knowledge used to produce the guide.

The guide was prepared for Timber Queensland by Select Carbon and included project partners, the Department of Agriculture Fisheries and Forestry and the James Cook University cyclone testing station.

The project was funded via the Queensland Government’s rural resilience package.

GUNNS Ltd is to sell its Portland, Vic, woodchip export plant for $61.8 million to Australian Bluegum Plantations.

Gunns said the transaction agreement provided a tolling arrangement for future access to the plant for the sale of forest products from the ‘green triangle’ in Victoria and South Australia that were under Gunns’ management.

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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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

Gunns Ltd to sell Portland woodchip plant for $61.8m

Australian Bluegum is owned

by US company Global Forest Partners.

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issue 231 | 23.07.12 | Page 9

INDUSTRY NEWS

Forest companies may exit ETS if NZ government commits to Kyoto

Growers want government’s position clarified

FORESTRY companies in New Zealand say there will be a mass exit from the emissions trading scheme if the Key government commits to the second phase of the Kyoto Protocol.

Dunedin company City Forests says the government should abandon the Kyoto Protocol, rather than commit to revised rules it fears could lumber forestry companies with “massive” additional costs.

Chief executive Grant Dodson told the Otago Daily Times changes to the Kyoto Protocol agreed last year, and due to come into force next year, included the removal of the “fast forest fix” rule.

InSurAnce..

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GRANT DODSON

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Page 10 | issue 231 | 23.07.12

DAVID RHODES

TIM GROSER

but only for carbon stored since 2008. Companies were also required to pay when those trees were harvested, but also only for credits claimed since 2008.

City Forests in 2010 sold 150,000 carbon credits accumulated in 2008 and 2009 for $3 million to an unnamed New Zealand company. It said at the time it expected to be in a position to sell more credits during the 10-year period to 2010.

Without the rule, officially called the ‘afforestation-reforestation debit credit’ rule, forestry companies would be obliged to pay for all carbon stored in trees when harvesting them, meaning additional costs.

The government was yet to decide whether to commit to the new rules but, if the decision was to sign up, companies would be left with

“massive liability” that could threaten the viability of the emissions trading scheme, Mr Dodson said.

The bill for City Forests, a Dunedin City Council-owned company, would reach “tens of millions” of dollars, and “across the sector you’re talking hundreds of millions of dollars,” Mr Dodson said.

“If that came to pass, we’d be stuffed, really. We’d have no choice but to pull out of the emissions trading scheme.”

One alternative would be for the government to shoulder the extra costs and “get the taxpayer to wear it,” he said.

However, a better option would be for New Zealand to instead refuse to sign the next iteration of Kyoto, and rely on its own initiatives to tackle carbon emissions.

“The objective of Kyoto is to do something about carbon.

Kyoto got everyone started .. but the important thing is that we’re doing something about carbon.

“New Zealand can continue to do what it does without having to sign up to rules that don’t necessarily suit the New Zealand environment and

Companies could be left with a massive liability that could threaten the viability of the emissions trading scheme

Cont Page 12

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ENGINEERED WOOD

Panel, EWP demand grows in US recovery

THE US slow-but-steady improvement in the housing market is expected to boost demand for engineered wood products throughout 2012, according to estimates by APA-The Engineered Wood Association.

US housing starts are forecast to increase 15% in 2012 to 700,000 units. As a result, and for the first time in several years, all of the major end-use markets for wood products are expected to move in concert and increase this year.

In addition to growth in housing, demand is expected to grow in repair and remodelling, nonresidential building construction and industrial uses, as well as exports to Asia, Mexico and the Caribbean.

“There is a little more life to engineered wood demand this year,” says Craig Adair, APA’s market research director.

“Last year we were just treading water. This year we’re

expecting demand to pick up from 4% to 11%, depending on the product.”

Although the Great Recession in the US ended in mid2009, the recovery has been uneven and only now is the US economy showing signs of sustainable growth.

Mr Adair noted that single-family housing is still plagued with several obstacles, including banks that are reluctant to lend and more foreclosures on the way. Single-family construction is expected to improve in 2012, but it should have a more meaningful recovery in 2013.

“It may not be a lack of consumer demand that’s holding housing back; it’s more likely a financial system that currently doesn’t freely accommodate residential mortgages, and it could take years to repair and reorganise the system,” Mr Adair said.

Demand and production of North American structural

we want people to understand that our focus is on plantations, so there’s a whole bunch of positive tags you could put on it.”

In terms of the export of hoop pine logs by HQPlantations, industry observers have noted the planting to harvest cycle of the species (Araucaria cunninghamii) is presently about 50 years and the plantation program has been in the second rotation stage since the mid 1980s.

Tree stems are pruned to a certain height during the first decade of growth to maximise the amount of high quality clear wood in the butt logs. But there are fears good hoop pine won’t be available in the long term.

“I don’t believe it will be around for the next generation,”

Use Aussie and Kiwi wood and keep jobs at homethe spirit!

That’s

Working together for ....

Cont Page 12

Focus in on plantations

From Page 7

Get fair dinkum!

said one processor. “Current thinking is that hoop pine takes too long to mature and the market wants only the A grade butt logs, not the rest of the tree.”

Blue stain was another question; domestic sawmills have designed their machinery to cut a hoop pine log into sawn timber, dried and dressed, ready for sale within 10 days of harvest to prevent the spread of the fungus while quick removal of the bark will prevent beetle attack.

The blue stain in export logs poses little damage to its structural ability but if overseas buyers are looking for a clean, white pine then that’s a problem.

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JOBS security on both sides of the Tasman Wood from 100% LEGAL forests Consistent QUALITY LOWEST emissions Structurally SAFE GUARANTEED to Australasian Standards LOYALTY to true-blue forest products Get fair dinkum!

Don’t export jobs just for the sake of cheap imports

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

Web: www.ewp.asn.au

issue 231 | 23.07.12 | Page 11

INDUSTRY NEWS

Good outlook for glulam

From Page 11

Brisbane Timber Industry Getting into Timber In the action ..Bris Hoo-Hoo Club 218 has entered dustry H bane oo Holden Kingswoo -Hoo Club 218’ the 2012 Variety Club of s ’77 d Queensl and Varie is ready for the 2012 ty Dalby on Queensland Bush Bash to raise e the Dar Club Bush Bash ling Dow fro North Q ueenslan ns to Mac m d. kay in funds for disadvantaged children and has purchased a veteran Bush Bash performer – a 1977 Holden Kingswood.

The Variety Bush Bash in the club’s major children’s charity event this year.

Please support it and show how the forest and forest products industry can enrich the lives of underprivileged children.

Your sponsorship will attract wide media coverage and is tax deductible.

SPONSORSHIP OPTIONS $3000 Gold Sponsorship: Four company logos or badges – two on the bonnet of the car and two on the boot or roof rack and inclusion in all the club’s editorial and advertising programs. $2000 Silver Sponsorship: The Governor of Queensland Pen elope Wensley ‘flag the start of Brisban Two company logos or s’ e Timber Industry Hoo-Hoo Club’s Variety Bush Bas h project for children badges on the side of the car World Forestry Day celebra ’s charities during tions in Brisbane. on are committee Looking members Alan Jon and sponsorship recognition Don es (club presiden Towerton and Tim t), Evans. in the club’s media programs. $1000 Bronze Sponsorship: One company logo or badge on the side of the car and sponsorship recognition in the club’s media programs.

All other contributing sponsorships will be recognised.

We sincerely thanks the following sponsors do date: Silver sponsors Kennedy’s Classic Aged Timbers John Crooke (Queensland Sawmills) Bronze sponsors HQPlantations, Thora Wholesale Timbers, Alan Jones, Trade Builders Contributing sponsors Contributing sponsors: Bill Philip; CGU Insurance, Brisbane; Colin Wilson; Bank of Queensland, Ashgrove, Brisbane; Austbrokers Premier Insurance, Brisbane; Brisbane HooHoo Timber Industry Club 218 Inc; Tim Evans (Coast to Coast Pacific); Timber&Forestry enews; RACQ Caloundra; John Paul (BOQ Ashgrove); Contract Electrics Pty Ltd; Eden & Son Body Works; Wilson Timbers (Nigel Shaw); Advanced Timber Systems (Ian Watkins); Pacific Premium Funding Pty Ltd; BoQ Ashgrove and Sunnybank; Chancellors Chartered Accountants; Anderssen Lawyers.

For more information and to discuss sponsorship options – and a chance to join the Bush Bash team on the road – contact one of the committee members: Alan Jones 0419 754 681 Don Towerton 0428 745 455 Tim Evans 0417 726 741 Jim Bowden 0401 312 087

Page 12 | issue 231 | 23.07.12

panels and engineered wood products are expected to increase 7% in 2012 as all enduse markets demand more volume. Overall, structural panel production is forecast at 28.0 billion sq ft in 2012.

The outlook for glulam timber is better in 2012 than in 2011 because both residential and non-residential construction are forecast to increase.

North American production is forecast at 213 million bd ft this year a 5% increase from 2011.

I-joist market share is forecast to increase modestly in 2012 to 53% of raised floors. As the housing market improves, I-joist market share is expected to grow steadily. The forecast for 2012 is an 11% increase to 509 million linear ft.

In the structural composite lumber family, laminated veneer lumber production is expected to follow the demand for beams and headers, rim boards and I-joist flanges. Production is forecast to increase 4% in 2012 to 43.4 million cu. ft.

‘Very legitimate to argue the rules have changed’

From Page 10

culture.”

City Forests owns 16,000 ha of forested land, including 4000 ha planted after 1989 and therefore covered by the fast forest fix rule.

New Zealand Forest Owners Association chief executive David Rhodes said the issue was a concern for some members, who were calling “quite strongly” for clarification of the government’s position.

It was possible the government could decide not to sign the next round of Kyoto commitments, while remaining part of the United Nations’ overarching – but less prescriptive – Framework Convention, he said.

New Zealand could then still commit to other Kyoto rules, while opting not to recognise the removal of the fast forest fix rule.

Alternatively, the government could decide the Kyoto rules had changed in unexpected

ways, and adjust New Zealand’s emissions targets accordingly, protecting both the government and the domestic forestry sector.

That would risk accusations the government was backpedalling on its commitments, but Mr Rhodes believed it would be “very legitimate to argue the rules have changed”.

Climate Change Minister Tim Groser in a statement said New Zealand had unsuccessfully argued for the rule’s continued inclusion.

The government was considering whether to make its future carbon mitigation commitment through the Kyoto Protocol or the Framework Convention, he said.

In the meantime, the rule remained in New Zealand’s ETS despite recent amendments, and there was “no expectation” foresters would withdraw from the ETS “in anticipation of a rule change,” Mr Groser said. editorial inquiries

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INDUSTRY NEWS

Hoo-Hoo is alive and well .. just ask Val Fennell

Bringing industry people together in tough times

A COMMENT that the Hoo-Hoo timber organisation had a key role to play in bringing industry people together in tough times, shining a friendly light into the darkness of downturn was applauded at a Brisbane club meeting last week.

“It’s hard times right now for all of us but Hoo-Hoo gatherings such as this can help us to break out of the isolation that often accompanies these difficulties,” Val Fennell, the Australian president of the JIV chapter of Hoo-Hoo International, said.

“Re-building confidence and sharing challenges and problems can only happen collectively and I am sure the ideals of Hoo-Hoo can achieve this.”

Val said as new JlV president she would concentrate on maintaining membership and promoting friendships and fraternalism through the club circuit and within the timber industry.

“It’s hard to grow membership – in any club or organisation – in the current economic climate, but grow we will,” Val said.

Val and her husband Graham (Slim) Fennell enjoyed an ‘Italian night’ at Brisbane’s Spizzico Restaurant at Kangaroo Point, hosted by Brisbane Hoo-Hoo Timber Industry Club 218.

They had arrived from Townsville where the couple presided over a ‘revival’

‘Re-building confidence and sharing challenges and problems can only happen collectively and I am sure the ideals of Hoo-Hoo can achieve this’ – Val Fennell

meeting of North Queensland Club 265. Re-instated into JIV, the club rallied 11 members who will bring prospective new members to a ‘contact’ (initiation) in a few weeks, jointly organised with Far North Queensland Club 261, based in Cairns.

Eating Italian in Brisbane .. Ray Lamari of Cairns, vicegerent HooHoo Snark Area 4, Alan Jones, president, Brisbane Hoo-Hoo Timber Industry Club 218, Val Fennell, JIV president from Mount Gambier Club 214 and husband Graham, and Pieter Verlinden of Brisbane Club, senior JIV vice-president.

Val hopes revivers of the club will attend the next JlV convention in Mount Gambier from April 11 to 14 next year with the theme “The Cat Will Convene in 2013’.

After her flight home from Brisbane, Val will prepare for a visit to Ballarat Hoo-Hoo Club 256 in Victoria on August 25.

Val and Graham operate G&R Logging at Mount Gambier, SA, which they established with Val’s brother Ronnie Milsson 21 years ago. The forest contracting business is now managed by Val’s son Barry and daughter Wendy and works in forests owned by Forestry SA, Global Forest and South West Fibre, a blue gum processing and export company based in Portland, Vic.

Enjoying Hoo-Hoo friendship in Brisbane are Beverley and Alf Chapple of Brisbane Club 218, and Leila and Norm Forbes of Bribie Island.

The family’s forest contract work extends to the Green Triangle region.

At the Brisbane meeting, club president Alan Jones outlined the club’s children’s charity project this year – the Bush Bash drive from Dalby to Mackay raising funds through the Variety Club of Queensland.

Alan said the club had so far raised more than $11,000 for the event and he thanked sponsors who had supported the cause in difficult times.

Welcoming the JIV president are Brisbane Hoo-Hoo Club 218 members Graeme Miles, Tim Evans and Don Towerton.

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He said HQPlantations (bronze sponsor), Asian Pacific Timber Marketing and Tim Tech Chemicals were the latest to supporter the charity project (see notice, Page 12).

issue 231 | 23.07.12 | Page 13

INDUSTRY NEWS

Chinese demand pushes value of NZ forestry exports to $4.4m

STRONG Chinese demand for logs has seen the value of New Zealand’s forestry exports reach $4.4 billion for the year ending March 31 – up $800 million on the previous year.

Statistics released by the Ministry of Agriculture and Forestry show log exports continued to be dominated by sales to China. This was reflected in annual log exports from Port Chalmers, which were up more than 200% to almost 700,000 cub m during the past financial year.

Exports to China had been driven by its strong economic growth and a reduction in availability of logs from Russia, China’s traditional supplier, MAF’s sector infrastructure acting manager Andrew Doube said.

However, the strong international demand had also resulted in higher domestic prices, putting pressure on New Zealand wood processors who are also facing less demand from reduced construction activity both domestically and in the US due to the global economic recession.

Mr Doube said some mills had closed or down-scaled since the December 2010 quarter, and some others still operating were questioning their future viability in the industry.

China imported 1.7 million cub m of New Zealand logs in the March quarter, up 44.5% on the same time the previous

time the previous year.

Overall,

the

export

of

3.1

million cub m of logs in the quarter accounted for half the estimated harvest.

“This is the first time that has happened in the 25 years the

statistics had been collected,” Mr Doube said.

Forestry had been “in the

doldrums” for most of the last decade but, during the past

18 months, a combination of carbon sales and higher log

prices had really lifted the industry, City Forests chief executive Grant Dodson said.

City

Forests

reached

its

sustainable harvest level this

year and was exporting about 14,000 cub m of logs a month from Port Otago. It exported

almost exclusively to South Log exports to China driving up domestic prices in New Zealand.

year. About 695,000 cub m of logs was exported across Port Otago’s wharves for the year ending June 30, according to chief executive Geoff Plunket.

Mr Doube said India was also emerging as a significant

destination, with its demand now approaching that of Korea – New Zealand’s secondlargest log export market. The volume exported to India in the March quarter was 0.4 million cub m, up 157% on the same

Exports to China have been driven by its strong economic growth and a reduction in availability of logs from Russia

Korea, as it had done for many years.

The February 22 earthquake in Christchurch has had no

immediate effect on total sawn timber

production

figures

through the first quarter of the year.

A building boom in the city in

2012-13 would “soak up a lot of timber” which would be

good for domestic mills, Mr Dodson said.

Developing markets for NZ’s specialty timbers

The NZ Farm Forestry Association has set up a national industry body representing the interests of local specialty timber producers and those with an interest in specialty timbers.

Page 14 | issue 231 | 23.07.12

The new web resource, www. nzffa.org.nz/specialty-timbermarket, includes extensive information about a range of local timber species, a photographic showcase of each timber in use and an online

marketplace for products and services around local specialty timbers.

As well as information on the various New Zealand standards that apply to timber construction with ‘alternative’

timbers, Farm Forestry Timbers has set up its own grading rules which all members must

comply with when supplying timber

through

marketplace.

the

web-

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INDUSTRY NEWS

China calls for global acceptance of products certified by CFCC scheme

Application for PEFC endorsement expected in 2012-13 CHINA has become the world’s number one paper manufacturing nation, yet in the past few years the absence of a recognised forest certification scheme in the country has posed severe challenges to the trade of its forestry products overseas.

However, this situation is set to change.

The China Forest Certification Council (CFCC) has been established and adheres to the highest standards of sustainable forest management. It and has called on other countries to adopt CFCC-certified products in their national procurement policies.

The CFCC standard was a key focus of a certification workshop last month in Shenzhen, hosted by the Chinese Academy of Forestry and supported by PEFC China.

Delegates of government authorities and research institutes were joined by top sourcing and sustainability professionals from more than 100 enterprises from over 10 industries, including pulp and paper producers, wood and paper product manufacturers, printers and consumer enterprises.

“Attendees enthusiastically discussed the current status of forest certification domestically and abroad, as well as China’s latest policies on paper and forestry product sourcing,” said senior sustainability consultant Kayt Watts, managing director of Ingenue Consultancy, an Australian speaker at the workshop.

Dr Lu Wenming of the Academy of Forestry says the CFCC is being progressively and systematically promoted within China’s forestry industry.

“Taking full consideration of

The Chinese connection .. Kayt Watts with Ben Yu, director of the PEFC China Initiative, presents at the certification workshop in Shenzhen, hosted by the Chinese Academy of Forestry and supported by PEFC China.

China’s domestic conditions, the CFCC scheme is set to facilitate forest certification practices in China, and shall ultimately drive the sustainable development of the Chinese and international forestry industry.”

As the world’s largest forest certification system, PEFC serves as a lineage between CFCC and the global market.

CFCC joined PEFC as a member in 2011, which was an important milestone for China’s forest certification system towards gaining international recognition, while its next step of applying for PEFC endorsement is expected later

‘China’s new sourcing policies will effectively prompt more enterprises to re-evaluate their commercial practices’ – Kayt Watts

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in 2012 or early 2013.

“Currently, forests certified by globally recognised certification schemes amount to less than 10% of the world production forest areas,” Kayt Watts said.

“As one of the largest forest areas in the world, China’s endorsement by PEFC will generate a substantial increase in the total mass of certified forest regions on a global scale.”

Echoing the long-term observation of the international forest certification industry, Ms Watts remarked that the government’s new sourcing policies would effectively prompt more enterprises to re-evaluate their commercial practices.

“At present, many countries are calling for a recognised sustainable forest and chain of custody certification for government agenda; some of them have already introduced legality requirements for wood and paper products.

“In this realm, Australia is introducing a legislation

that renders proof of legality mandatory.”

Dr Lu Wenming said the Chinese government was in the process of establishing a series of related regulatory schemes, comprising policies for government procurement activities and financial subsidies, to encourage more enterprises to recognise CFCC certification, and so doing providing collective support for China to develop its forestry industry responsibly.

Figures from the Zhonglin Tianhe (Beijing) Forest Certification Centre show eight forestry enterprises and two forestry product processing companies that have been granted CFCC certification, which includes APP-China.

“As an enterprise representing the pulp and paper industry, APP will continue to firmly uphold our commitment to responsible development,” Sophy Huang, PR director of APP-China said.

“This includes obtaining raw materials from legal sources locally and overseas, and proactively supporting certification of pulp and paper products, thereby furthering the sustainable development of forests in China and on a global scale.”

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issue 231 | 23.07.12 | Page 15

WOOD INNOVATION

Competitive edge driver behind surge in NZ design award entries

Judges praise advances in engineered wood

“NEW Zealand’s timber design awards achieved a massive jump in entries this year, reflecting the desire of professionals to differentiate themselves and their practices from the rest,” was an enthusiastic comment by NZ Wood chief executive Jane Arnott.

“Winning a NZ Wood timber design award provides a competitive edge that is compelling in a marketplace that values expertise,” Ms Arnott said.

“The awards cater to such expertise, and they help draw a line in the sand between mediocrity and brilliance. In these tough economic times, what better way to do this than to put your work forward to be judged alongside your peers,” Ms Arnott said.

The awards this year have attracted 93 entries across the nine categories – more than three times the number in 2011 and a record in the more than 30-year history of the awards. Of these, 38 have been selected for second stage judging on September 7 which requires the entrant to provide greater detail.

“Not every architect, architectural designer or engineer has the ability or

their client’s wishes – we commend them and will promote the winners strongly once they are announced in October.

Maurice Williamson .. announcing winners of NZ timber design awards.

Jane Arnott .. awards help draw a line in the sand between mediocrity and brilliance.

inclination to create practical, safe, cost effective yet dramatic homes and commercial premises in wood,” Ms Arnott said.

“Wood as a construction material offers a level of versatility and texture that can be inherently challenging to today’s designers.

Understanding the beneficial properties of wood, including its resilience in earthquakes, its acoustics, structural strength and sustainability, can be the domain of a new breed of professionals. 16 story “Deciding to use indigenous timber to create dramatic and warmly special and often carved impacts is another unique consideration that only

comes with wood.

“Highly skilled practitioners relish using wood because it can develop their own professional skills and meet

‘Deciding to use indigenous timber to create dramatic and warmly special and often carved impacts is another unique consideration that only comes with wood’ – Jane Arnott

The judging panel comprises Pip Cheshire (Cheshire Architects), Duncan Joiner (chief architect, Department of Building and Housing) and Ross Davison (Law Sue Davison, civil and structural engineers).

Mr Davison noted advances in engineered timber for large commercial and multi-storey buildings were evident in the engineering excellence and Canterbury rebuild categories, with some world-leading examples.

All winners will be announced by the New Zealand Minister of Building and Construction Maurice Williamson at an awards ceremony on October 9 at MOTAT Aviation Hall in Auckland.

The awards are sponsored

by Resene, and category sponsors include Mainzeal Living, Hunterbond / Nelson Pine, Opus, Southern Pine Products, decortech, BNZ, Lindsay & Dixon, Lane Neave and Scion.

Forest tours feature of national conference in Gympie

THE Australian Forest Growers national conference will be held in Gympie in the Wide BayBurnett region of Queensland from October 14 to 17.

Private Forestry Service Queensland says it is thrilled to be involved in planning a unique and exciting conference program.

An ‘icebreaker’ function will be held at the Gympie Woodworks Museum and Interpretive Centre on

Page 16 | issue 231 | 23.07.12

Sunday, October 17, featuring a live demonstration of a steam sawmill and woodworking tools.

PFSQ is also organising six separate field trips including an inspection of hoop pine and slash pine plantations (establishment, management, harvesting and processing) and spotted gum and ironbark forest management, harvesting, treatment, fire management

and milling.

The field visit will also look at wet sclerophyll (blackbutt) native forest management and spacing trials with a tour of a green mill that has been harvesting the same blackbutt forest for three generations.

The tour also includes visits to hardwood plantations through the ages and Gympie messmate mixed plantations

in the Mary Valley and agro forestry operations with four stages of Gympie messmate plantation, rainforest plantation and revegetation, native forest management and cattle grazing.

The National Tree Farmer of the Year will be announced at the conference.

Contact Caitlin Williams on (07) 5483 65235.

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Stress-free plants grow faster when carbon dioxide is higher

CO2 most important nutrient for all life: Dr Patrick Moore A NEW study claiming the earth would have warmed faster in the last two decades had there not been an unexplained rise in the amount of carbon dioxide absorbed on land has been challenged by Greenpeace co-founder and ecologist Dr Patrick Moore.

Scientists say they have discovered an “abrupt increase” since 1988 in the uptake of carbon dioxide (CO2) by the land biosphere, which comprises all of the planet’s plant and animal ecosystems.

The study explains how much CO2 is absorbed by plants and animals, with some of the CO2 then being passed from plants into the land.

Dr Moore pulled no punches in commenting on the new study: “These people are either completely naive about the relationship between CO2 and plants or they are making this up as a way of deflecting attention from the lack of warming for the past 15 years.”

Dr Moore is the author of the book, ‘Confessions of a Greenpeace Dropout: The Making of a Sensible Environmentalist’, in which he exposes the green movement and explains why he left the organisation.

“Plants grow much faster when CO2 is higher; the optimum concentration is between 1500-2000 ppm so there is a long way to go before plants are happy,” Dr Moore said.

“CO2 levels in the atmosphere have continued to rise despite plants absorbing more CO2. So what is the ‘scientists’ point? It is to obfuscate, confuse, and

through most of the history of life on earth.

“There is no ‘abrupt’ increase in CO2 absorption, it is gradual as CO2 levels rise and plants become less stressed by low CO2 levels. At 150 ppm CO2, all plants would die, resulting in virtual end of life on earth.

“Thank goodness we came along and reversed the 150 million-year trend of reduced CO2 levels in the global atmosphere. Long live the humans.”

Dr Moore we should be growing more trees and using more wood; the less wood we use, the more steel and concrete we use.

Australia is under-building by a significant amount.

otherwise muddy the waters with disinformation.

Dr Moore continued: “We should challenge them to admit that CO2 is the most important nutrient for all life on earth and to admit that it is proven in laboratory and field experiments that plants would grow much faster if CO2 levels were 4-5 times higher in the atmosphere than they are today.

‘Thank goodness we came along and reversed the 150 million year trend of reduced CO2 levels in the global atmosphere.

Long live the humans’

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He explained that a greater demand for wood products leads to more forested land, noting that 80% of the timber produced in the US comes from private property.

Dr Patrick Moore .. greater demand for wood products leads to more forested land.

He predicted that if “those land owners had no market for wood, they would clear the forest away and grow something else they could make money from instead.

“This is why greenhouse growers pipe the exhaust from their gas and wood heaters back into the greenhouse to increase CO2 levels 3-5 times the level in the atmosphere, resulting in 50-100% increase in growth of their crops. And they should recognise that CO2 is lower today than it has been

– Marc Depot.

“When you go into a lumber yard, you are given the impression that by buying wood you are causing the forest to be lost, when in fact what you are doing is sending a signal into the market to plant more trees.”

Morano,

Climate

issue 231 | 23.07.12 | Page 17

INTERNATIONAL FOCUS

Hancock buys US timberland portfolio

FOREST Capital Partners, a timberland investment management organisation based in Portland, Oregon, US, has sold its 760,800 ha acre portfolio to Hancock Timber Resource Group and Molpus Woodlands Group.

Boston-based Hancock – the world’s largest TIMO – has

bought a total of 546,325 ha in Louisiana, Oregon, Idaho and Washington state. The remaining 216,102 ha in Minnesota, Idaho and Louisiana have been bought by Molpus, another major TIMO, based in Jackson, Mississippi.

The terms of the transaction were not disclosed, but Forest

Capital’s total investments were estimated at $US1.9 billion in July 2011. The company said most of its employees would be taken on by the acquiring companies. However, a small number of senior staff would remain with Forest Capital to manage its oil and gas assets on 101,170 ha in Louisiana and “to

develop other opportunities”, said co-president Scott Jones.

All Forest Capital’s timberland is third-party certified as being sustainably managed and both Hancock and Molpus have said they will maintain the certification.

EU forestry ‘must not interfere with sovereign rights’

IT is crucial the EU’s new extended forestry regulations do not interfere with the right for countries to decide how they deal with their timber, an industry organisation has warned.

The Finnish Forest Industries Federation (FFIF) argues that

it is crucial to safeguard these rights across the region, noting that forestry is a major part of many economies across the Baltic and Scandinavian regions.

Furthermore, it is important the new strategy extends its focus to work with the full gamut of

issues involved in the industry.

“The new forest strategy must support the implementation of the EU’s bio-economy strategy and improve the competitiveness of the entire forest-based sector,” the FFIF said.

It is expected that the new

strategy will be put in place by the European Commission in 2013.

The organisation recently revealed that Latvia and Estonia are high on the chart of countries using the most renewable energy, with 32.6% and 24.3% respectively.

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 18 | issue 231 | 23.07.12

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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.

Introducing the Sponsor’s...

Sponsorship packages are still available.

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issue 231 | 23.07.12 | Page 19

Classifieds GOTTSTEIN TRUST APPLICATIONS FOR 2013 AWARDS The Joseph William Gottstein Memorial Trust invites applications from interested persons for Gottstein Fellowships and Gottstein Industry Awards GOTTSTEIN FELLOWSHIPS Fellowships are awarded to people from or associated with the Australian Forest Industries to further their experience, education or training either within or outside Australia. Project proposals on any relevant topic are welcome. Candidates will be selected on the value of the project and on their ability to complete and disseminate the information acquired.

GOTTSTEIN INDUSTRY AWARDS These awards are available to assist workers tin the Australian forest industries to improve heir industry knowledge and work skills. Applications focussing on small group study tours will be favourably viewed, although any relevant projecttopic may be proposed. Candidates will be selected on the value of the project.

INTERVIEWS

• More than 6700 deliveries and 15,000 viewers each week

Applications for each category will be considered by the Trustees and promising applicants will be selected for interview in October 2102.

FURTHER INFORMATION Further details may be obtained from the Trust’s website at www.gottsteintrust.org or from the Secretary. Application forms are available on the website.

CLOSING DATE FOR APPLICATIONS The closing date for applications is 7th September 2012. Applications should be forwarded to: Dr. Silvia Pongracic Secretary, J.W. Gottstein Memorial Trust Fund Private Bag 10, Clayton South MDC, VIC 3169 Telephone: 0418 764 954 Email: secretary@gottsteintrust.org

Page 20 | issue 231 | 23.07.12

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Timber & Forestry e news is published

by Custom Publishing Group.

Timber & Forestry e news is a full colour e magazine emailed every Monday to Decision Makers within the Australian and New Zealand Timber and Forestry sectors.

Advertising is booked with a minimum 4 week booking with discounts for 12, 24 and 48 week bookings.

RATES

12 week- 7.5% Discount 24 week- 10% Discount 48 week- 15% Discount Classified ads can be booked in a per issue basis.

All advertisements link to customer websites or email address with an option for rich text (flash).

BENEFITS:

DIRECT PENETRATION via email.

WEEKLY opposed to monthly alternatives.

NEWS that is up to date that will ensure readership.

COST EFFECTIVE advertising rates.

S

Display Ads

Display Ads Minimum 4 issue booking

Rate per Issue + GST $380 $210 $210 $165 $138 $83 $203 $90

Full Page Bleed Half Page Vertical Half Page Horizontal Third Page Horizontal Quarter Page Vertical Eighth Page Front Page Third Horizonal Front Page Masthead

Size Specifications Height x Width 303mm x 216mm 254mm x 93mm 125mm x 190mm 73mm x 190mm 125mm x 93mm 60mm x 93mm 73mm x 190mm 33mm x 45mm

Classifieds

Classified Ads per week

Half Page Vertical Quarter Page Vertical Eighth Page Horizontal Full Page Bleed

$182 $120 $72 $330

220mm x 93mm 107mm x 93mm 51mm x 93mm 303mm x 216m

Extras: Video Available Video next to front cover $200 per issue. Within the magazine $165 per issue.

Artwork Specifications: Please supply all artwork as High Resolution (300dpi) Pdf’s or jpegs.

Send artwork to kerri@mycustompublishing.com.au

DISPLAY DEADLINES Booking – Noon Wednesday for Monday edition. Material – Noon Thursday CLASSIFIED DEADLINES Bookings & Material – Noon Friday Terms: Account Clients- 14 days New Accounts: Payment on Booking All Classifieds- Payment on booking (Credit card preferred)

All prices quoted plus GST and based on Art being supplied.

We can create artwork if required – Eighth/Quarter $44 Half $66 which will be billed if complete art is not supplied to our specifications.

Video: Maximum 3 meg swf file.

Due to the regularity of timber & forestry e news and the tight deadlines no customer proofs can be sent.

Advertising Sales

Banner Ads &

Classified Ad Custom Group Advertising: Tel +61 3266 1429 1429 Email: cancon@bigpond.net.au cancon@bigpond.net.au Advertising: TelPublishing +61 77 3266 Email:

T: (07) 3266 1429

Sales

e: cancon@bigpond.net.au

e: brett@mycustompublishing.com.au

Production T: 0439 417 671 ISSUE 203 || 23.07.12 12.12.11 || Page PAGE 21 15 issue 231 e: kerri@mycustompublishing.com.au

www.industrye-news.com