6998
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issuE 260 | 11.03.13 | PAgE 1
Traders still unprepared for illegal logging regulations
This issuE • AFPA appoints new CEO • Rocky sawmill: bold plan by Tassie family
Watch your step .. industry treads warily through illegal logging regulations.
Shaky start in EU Eighteen countries say they have no established protocols for compliance effect last Monday (March 4), require operators importing or producing wood to identify its country of origin and legality. The regulation also prohibits the sale of illegally harvested timber on the European
Cont Page 8
• • •
Just Go t ood W
ne ree
®
market to cut profits from the trade worldwide, which analysts link to deforestation and desertification, rising CO2 emissions, corruption, armed
G
r sm
MicroPro
®
Treated
EUROPEAN rules to combat the trade of illegal timber have come into force, but industry analysts doubt the readiness of EU countries to carry out the legislation. The new laws, which came into
•
Long-term demand supply outlook for forest sector WoodScape study completed in NZ Not all green certifications are equal Lumber shortage looms in us US housing market: ‘we’re pumped’
MicroPro
®
Copper Quat
Want a good looking deck?
A p N A pro o lu v w Co m e nt ini d F ac um or t*
Then choose MicroPro for a lighter, more natural timber appearance providing improved painting and staining qualities.
Visit: www.osmose.com.au or phone: 1800 088 809 Osmose® and MicroPro® are registered trademarks of Osmose, Inc. or its subsidiaries. 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. * See MicroPro fastener and hardware information sheet. © 2012 Osmose, Inc.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 260 | 11.03.13 | Page 1
INDUSTRY NEWS
A road to opportunity .. proposed sawmill at Rockhampton wil draw on Caribbean pine plantations at Byfield in central Queensland.
Byfield sawmill taps into growing mining and tourism sectors
Improving our industry’s capacity to develop and maintain a skilled workforce ............................
Bold plan by Tassie loggers By JIM BOWDEN
IN a bold rebuff of tough times in the industry, Tasmanian logging contractors Ron and Brendon O’Connor are moving their defunct sawmill from Hobart 2700 km north to Rockhampton in Queensland to service the growing demand for construction timbers by the region’s flush mining and tourism sector. “We want to assure everyone that we are not leaving Tasmania and that our log harvesting business, established 37 years ago, continues to operate,” Brendon O’Connor said. He said the Rockhampton sawmill was a new project that offered many advantages sitting as it does in the heart of central Queensland’s booming infrastructure development, driven by mining in the Bowen Basin and tourism along the coastline. Mr O’Connor admitted the industry was in a downturn – “but out of adversity comes opportunity,” he said. “If we can crack it now in these hard times, we’ll be good and ready when the industry inevitably picks up. The opportunities are vast.” Figures last month show a 24% increase in housing starts in the
Page 2 | issue 260 | 11.03.13
Bowen Basin mining sector. The sawmill also has the opportunity to feed into the $600 million development of the Great Keppel Island resort off the central Queensland coast, which is building 750 resort villas, 300 apartments, a hotel, marina and 18-hole golf course – a 12 to 15-year project. The O’Connor family plans to transport a new HewSaw saw line, debarker and associated machinery and accessories from the Hobart mill to Rockhampton, probably by landing barge from the port of Hobart, along the coast line and up the Fitzroy River to the new sawmill site – a huge saving in transport costs. The sawmill, which has operated for 15 years, was sold to Forest Enterprises Australia and bought back by the O’Connors when FEA went into liquidation. Sawmilling machinery has since been disassembled and put into storage. While his father Ron remains with the logging contract business Timber Marshalling Services in Tasmania, Brendon O’Connor will take charge
FREECALL
1800 177 001
Melbourne
(03) 9321 3500
Sydney
(02) 8898 6990
Adelaide
(08) 8219 9028
Launceston
(03) 6331 6077
forestworks@forestworks.com.au
www.forestworks.com.au
ABN: 58 006 212 693
Cont Page 4
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
INDUSTRY NEWS
Public sector business expert appointed new CEO of AFPA Ross Hampton has expertise in environmental policy A PUBLIC sector business expert with global networking giant Cisco Systems has been appointed new chief executive of the Australian Forest Products Association. Ross Hampton is expected to take up his position in Canberra in May. He succeeds outgoing CEO Dr David Pollard who will retire in April but who will lead the AFPA study tour to Canada from April 3 to 12. Mr Hampton is currently general manager, Australian and New Zealand public sector business development, for Cisco, a position he has held for six years. Cicso is the world’s largest maker of computer networking equipment and aims to be a leading supplier of information technology to large businesses by expanding its presence in the services and software market. AFPA chairman Greg McCormack said he was delighted that Mr Hampton had accepted the offer to lead the organisation. “Among the most pressing
issues facing our industry is leveraging the natural advantages of forestry and timber products in a carbon constrained economy and timber’s future role in renewable energy and paper products,” Mr McCormack said. “Mr Hampton brings to our organisation a unique blend of global expertise in environmental policy at this crucial time.” Mr McCormack paid tribute to Dr David Pollard. “David has worked tirelessly in progressing the interests of the industry and its members in a challenging year, including the consolidation of the association following the merger of the National Association of Forest Industries (NAFI) and the Australian Plantation Products and Paper Industry Council (A3P) in 2011,” he said. “In particular, the development of the AFPA policy roadmap ‘A Renewable Future’ in 2012 has laid the foundation for promoting the multiple economic, social and environmental opportunities the forest, wood and paper products industry can provide
Pacific team and regularly travelled to Europe and the US to expose and explore global best practice. Mr Hampton has a strong focus on the power of the digital economy to enable regions to grow, diversify and become more sustainable.
Ross Hampton .. newlyappointed CEO of the Australian Forest Products Association.
in the new low carbon economy. Cisco Systems, a multinational leader in information communications technology, has been at the heart of the digital revolution since the beginning. At Cisco, Mr Hampton worked with senior public servants and politicians to help them understand the power of technology to underpin new business and governance models, driving innovation and unlocking potential and productivity. He operated within an Asia-
Prior to joining Cisco, Mr Hampton worked as an adviser in federal government in a range of portfolios and also as a television and radio reporter and producer. As a reporter with WIN TV Canberra in the early 1990s, Mr Hampton won a TV Logie award and a Walkley commendation for his expose on the first Very Fast Train proposal. Mr Hampton has remained a passionate advocate of the potential of high speed rail to transform regional centres ever since. He owns and operates a small area olive farm in the Wallaroo area and is vicepresident of the Southern Olive Growers Association.
Stay ahead of the game with COC certiication and Forest Management certiication Soil Association Woodmark are able to offer a streamlined audit for chain of custody (COC) certiication using FSC® and PEFC™/AFS standards. We also offer FSC Forest Management (FM) and Controlled Wood (CW) certiication and Legality veriication. We can provide a free quote with competitive prices and an efficient and friendly service. For an application pack please e-mail wm@soilassociation.org
www.soilassociation.org/woodmark
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 260 | 11.03.13 | Page 3
INDUSTRY NEWS
The proposed sawmill is a positive for central Queensland’s economy From Page 2
of the Rockhampton mill development. “We expect to have the mill up and running by December with capacity to process 200,000 cub m of pine logs,” Mr O’Connor said. The mill is expected to employ between 60 and 120 people and TMS will undertake both logging and trucking operations and milling rather than export logs with products ranging from high-end structural timber to landscape timbers marketed through a Brisbane trader. The mill will draw on plantation stands of Caribbean pine (Pinus caribaea var. hondurensis) at Byfield, near Yeppoon in central Queensland, which was established in the 1950s, and some hoop pine. Meanwhile, the project has
Massive project .. artist’s impression of the Fisherman’s Beach resort precinct, a $600 million resort proposed for Great Keppel Island by Tower Holdings.
‘We expect to have the mill up and running by December with capacity to process 200,000 cub m of pine logs’ – Brendon O’Connor
found an unlikely ally in Greens candidate Paul Bambrick who has strongly supported the project for the Byfield area, saying it should be located as close as possible to the Byfield forests where TMS had secured supply of plantation pine. “The proposed sawmill is a positive for the local economy, localising production in the region and decentralising Queensland,” Mr Bambrick said. He said timber was the clean, green building material with a low-embodied energy which locked up carbon instead of burning coal to make steel. The proposed mill would be one of the most energy-efficient mills in the world. TMS’s future outlook is to introduce a bio-coal product into Stanwell power station.
itreatTIMBER is now certified under the IVS Quality Assurance Program for Timber Preservation itreatTIMBER now brings you .. H3 Tru-Core® Green This water-based, low-uptake treatment is suitable for kiln dried timber in its final shape and condition. There are no solvents used in this process and as a result there are no VOCs and no odour. Call itreat today to discuss your treatment needs and for honest, sound advice on this new technology. 22 Neon Street, Narangba 4504 Qld Tel: (07) 3204 0444. Fax: (07) 3203 3797 Email: bill@itreat.net.au PAgE 4 | issuE 260 | 11.03.13
itreat TIMBER pty pty ltd ltd Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
WHAT’S ON? MARCH 2013 12: Sydney Hoo-Hoo Club 215 50th anniversary dinner. Rydges
Parramatta, 116-118 James Ruse Drive Rosehill, Paramatta, Sydney. Contact Heather Gattone on (02) 9660 7133 or Don Martin on 0417 763 838. 21: World Forestry Day Celebrations Queensland. Institute of Foresters of Australia rises to the challenge to educate about the importance of forests to the communities we live and work in. The events planned this year for Brisbane and Gympie will cost nothing other than a bit of your time and a desire to get involved. Event 1: Collaborative IFA-SOWN revegetation/restoration planting along Ithaca Creek - Dawn Street, Bardon (near where Coopers Camp Road crosses Ithaca Creek), March 21. Time: 8-8.30 am start with an expected finish around 11-11.30 am. Catering: Morning tea provided (billy tea, coffee, home made pikelets and freshly baked sausage rolls). Event 2: Free open day Saturday, March 23, at Woodworks Museum, Gympie, corner of Fraser Road and the Bruce highway, just north of Gympie. Time: 10am-4pm (normal opening hours). Catering: Free sausage sizzle (gold coin donation). Supporter/sponsor: PFSQ - Private Forestry Service Queensland. Contact Gary Bacon (gary-bacon@bigpond.com) or Stephen Walker (stwalker@bigpond. net.au). 22: Queensland Industry Unity luncheon. (Recognising World Forestry Day, March 21). Fratelli Restaurant, 103 Crosby Road, Albion (located at entrance to Brothers Football
Club). Invitation only. Sponsored by Brisbane Hoo-Hoo Timber Industry Club 218. Contact: Alan Jones 0419 754 681, Don Towerton 0428 745 455, Jim Bowden 0401 312 087, Tim Evans 0417 726 741
APRIL 2013 7-10: 6th international Woodfibre Resources and Trade Conference, Istanbul, Turkey. ‘Woodchips and Biomass for Global and Regional Markets’. Hilton Istanbul Hotel. Included in the program is a pre- and postconference field trip, two days of conference and the opportunity to visit Gallipoli. Visit www.woodfibreconference. com to register. Residues-to-Revenues 2013 Conference and CleanTECH Expo Wood energy and ‘cleantech’ industry developments. Crowne Plaza Hotel, Auckland, April 10-11, 2013; Bayview Eden Hotel, Melbourne, April 15-16, 2013. Event website: www. woodresiduesevents.com 7-11: Institute of Foresters of Australia conference – Canberra Rex Hotel, Canberra. Managing Our Forests into the 21st Century. Australian and international speakers will address delegates on both international and local issues that will face foresters and forest managers in the century, such as politics, policy and perceptions. Contact IFA, PO Box 7002 Yarralumla ACT 2600. Tel: (02) 6281 3992. Web: www. forestryconference.org.au
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
EVENTS 11-14: 43rd Annual JIV Hoo-Hoo Convention. Main Corner, Mount
Gambier. Accommodation at the Commodore Motel. Registration details on www.hoo-hoo-jiv. org.au or contact Maurie Drewer, 0418 394 296. Email: or mkdrewerdubai@gmail.com . 18-19: Inaugural Local Government Forest and Timber Industry Conference – Bayview on Eden, Melbourne Aimed at both local government and timber industry professionals from across Australia. The program will have a focus on socio-economic issues and the relationship between local government and the timber industry, and will feature presentations, discussions, workshops and opportunities to learn from and share experiences. Contact: Municipal Association of Victoria. Tel: (03) 9667 5529. Visit www.ntct.org.au
MAY 16-21: 3rd International Congress on Planted Forests – Lisbon,
Portugal. The congress aims to investigate the contribution of planted forests to sustainable development in the context of global changes. Topics will include the sustainability of planted forests, changing climates and the future role of planted forests in environmental protection and REDD+. Five of the major European Atlantic countries (Spain, France, Ireland, UK and Portugal) with large areas of planted forests have joined forces to organise this congress under the coordination of the Atlantic regional office of the European Forest Institute and the UN Food and Agriculture Organisation. Deadline for abstracts is February 28.
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 260 | 11.03.13 | Page 5
INDUSTRY NEWS ABROAD
Lumber shortage looms as US tries to keep pace with housing recovery Capacity crunch follows permanent sawmill closures THERE is no way North American stud lumber sawmills will be able to keep up with the recovering US housing market, new research compiled by the International Wood Markets Group shows. The shortage of studs – boards used to frame walls in residential houses – is expected to lead to record lumber prices and will make construction lumber profitable enough that European sawmills will likely make inroads into North America, where a supercycle is shaping up for commodity lumber. Wood Markets president Russ Taylor says lumber prices are high, breaking through the $US400 a thousand board feet barrier. But he says this is just the beginning. “Two or three years out is when we think it is really going to hit,” he said. US housing starts are expected to more than triple off their 2009 lows between now and 2017, when Mr Taylor predicts they will hit 1.5 million starts a year. Starts are expected to reach 925,000 to 950,000 this year,
Page 6 | issue 260 | 11.03.13
The US will adjust to a shortage of lumber through higher prices, imports from Europe, where costs are much higher, and substitutions with products like steel.
indicating the lumber rally still has a long way to go. “While all segments of the lumber industry are expected to benefit with the US recovery, studs are going to be affected the most,” Mr Taylor said, because there are limited opportunities to increase production capacity. Studs are generally made from logs cut to eight-foot (2.4 m)
lengths and are processed in mills designed to produce only two-by-four or two-bysix dimensions in that length. While a standard dimension lumber sawmill can produce studs, it usually means taking a more valuable piece of lumber and cutting it to the eightfoot length, something that may end up happening as the supercycle – which Russ Taylor
None of North America’s major wood-producing areas – British Columbia, eastern Canada, the US South and the US. Northwest – has the capacity to expand production significantly
says is now under way – leads to supply shortages. He said the market would adjust to the shortage through higher prices, imports from Europe, where costs are much higher, and substitutions with products like steel. The capacity crunch is the result of permanent mill closures. During the economic downturn, stud mills were affected the most, with mills in Quebec taking the deepest hit. In British Columbia, the mountain pine beetle epidemic has reduced the wood supply but sawmill fires have also had an impact. Prince George’s Lakeland stud mill was destroyed in an explosion and fire last year, permanently affecting production in this province. “It’s a pretty simple story,” Mr Taylor said. “But it’s still a huge story about where the lumber is going to come from.” He said none of North America’s major wood-producing areas – British Columbia, eastern Canada, the US South and the US. Northwest – had the capacity to expand production significantly.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
INDUSTRY news
Economic evaluation of wood processing opportunities completed in New Zealand WOODSCAPE, an economic evaluation of wood processing opportunities in New Zealand, has been completed by Crown Research Institute Scion. The study is a financial analysis and market review of 39 traditional and emerging wood processing technologies. It identifies pathways the wood processing sector could take toward achieving its strategic goal of doubling the value of forest sector exports to around $12 billion by 2022. Chairman of the Wood Council Doug Ducker says the council must now examine the study’s findings and integrate them into its action plan. A date for public release of the study has not yet been set. The study was commissioned by the Wood Council as one of the key steps in its Strategic Action Plan released last year. Funded by the council, Ministry for Primary Industries, New Zealand Trade and Enterprise and Crown Research Institute Scion, the study began in July 2012 and was delivered to the council on 28 February 2013. The Wood Council of New Zealand is a pan-industry body that represents the common interests of the forest and wood processing sectors. Members are the Forest Owners, Wood Processors, Pine Manufacturers, Farm Forestry and Forest Industry Contractors Associations. Woodco’s Industry Strategic Action Plan was launched at the ForestWood 2012 conference in Wellington. The forestry industry has set itself an ambitious goal of doubling its export earnings to $12 billion by 2022. The Strategic Action Plan, developed by growers, processors and manufacturers, sets out the benefits this would bring. The challenge for the industry now is to turn that into action.
In August last year, Woodco gave the go-ahead to a $400,000 research-based initiative which aims to get the highest value out of every cubic metre of timber harvested. Known as Woodscape, it is modelled on a major study carried out for the Canadian forest products industry in 2009. “In the next decade we will see an increase in the harvest. We are determined to extract the best value we can from this resource and reinvigorate our
sector,” Doug Ducker said.
Doug Ducker .. findings must be integrated into an action plan.
Woodco members are already moving on several market development initiatives designed to maximise returns for traditional forest products. These include a campaign to actively promote NZ timber in Australia, the development of a national timber quality assurance scheme and active promotion of timber to Christchurch homeowners as the material to be used in the post-quake rebuild.
Wood Protection
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
Tanalith E
A safe protection for all wood products This environmentally friendly preservative can be safely used for the treatment of timber products including those to be used for decks, handrails, outdoor furniture, as well as for council and national parks projects. Tanalith E is our water based Copper Azole formulation. It is a stable preservative providing uniform colour and is particularly suitable for the reduction of treatment processing residues. It has a lower corrosion impact on treatment plants and equipment as well as the fixings and fasteners used with treated wood products.
Contact the Australian Lonza team for full details of the Lonza value package. Phone:1300 650 636
issue 260 | 11.03.13 | Page 7
INDUSTRY NEWS
Federal election date has confused the status of the regulation in Aust A new parliament will either allow it to become law or disallow it From Page 1
conflict and the destruction of vulnerable communities. Analysis by London-based think tank Chatham House has found that the majority of governments polled said they needed additional expertise for their national authority to comply with the regulation, adding that a “substantial data gap” existed between member states. Eighteen of 20 countries admitted to having no established protocol for substantiated concerns of illegal logging. In Australia, the federal Department of Agriculture, Fisheries and Forestry has been running a series of regulation drafting workshops since December last year to develop the regulation required by the Illegal Logging Prohibition Act 2012. Timber industry representation at these workshops has been strong and the last drafting workshop is scheduled for March 27 in Canberra. The government has said it wants to pass the regulation this year so that industry has plenty of time to prepare for it before the implementation date of November 30 next year. The regulation will contain detail on what products are ‘regulated timber products’ and the specific due diligence requirement that importers of these products, as well as domestic processors of raw logs, will need to undertake. Regulated timber products will include all sawn timber, plywood, paper and wood furniture. The federal election date has confused the status of the regulation somewhat. Although the plan is still to finalise the regulation by the end of May, there is now no chance that
Page 8 | issue 260 | 11.03.13
EU illegal logging bill will tighten exportation from major timberproducing countries, including Indonesia.
they will be formally approved by parliament before the election. The regulation will sit in parliament and await the new parliament to either allow it to pass into law or disallow it. The EU law requires member states to lay down “effective, proportionate and dissuasive penalties”. However, despite two years of preparation, EU countries have so far failed to apply the legislation or impose credible penalties and sanctions. The introduction of the EUTR [EU Timber Regulation] was a landmark decision by the EU institutions, but it is meaningless unless it becomes a strong national law. In some member states, illegal timber trading can result in criminal sanctions and in others it may only lead to a fine, and it is doubtful that all EU countries will apply the law with the same rigour. The regulation covers both imported and EU-produced timber and wood products,
including paper and pulp to solid wood furniture and flooring. It also sets a landmark law obliging traders to apply “due diligence” to ensure the timber they are selling comes from legal sources. The EU is also pursuing bilateral agreements to tackle illegal logging with six major timber-producing countries – Cameroon, the Central African Republic, Democratic Republic of Congo, Ghana, Liberia and Indonesia. Interpol estimates that illegal logging contributes up to 30% of timber in the global market, costing in excess of $US20 billion each year. The EU accounts for 35% of the world’s primary timber consumption. The law, which was adopted by the European Parliament and Council in October 2010, is only just coming into force because of the measures member states and private companies had to put in place.
The introduction of the EU Timber Regulation was a landmark decision by the EU institutions, but it is meaningless unless it becomes a strong national law
The due diligence system (DDS) comprises three elements, including access to information relating to shipments’ country of origin, quantity and suppliers’ details; evaluation that the timber was produced in compliance with the laws of the country of origin; taking additional steps to ensure the legality of the timber if there is any doubt over its provenance. Environmental group WWF says much of the illegally traded timber comes from central Africa and southeast Asia, with a “significant proportion” processed in China and Hong Kong before being shipped to EU nations, particularly the UK. The annual total value of illegal logging could be as high as $100 billion. “Even though a wood product may be legal, it does not mean that it has been produced without destroying valuable forest ecosystems,” the WFF notes. “Implementing green public procurement policy to ensure the purchase of sustainable timber and products in public supply contracts across the member states will remain essential.” Asia Pulp & Paper (APP), described as one of the world’s leading pulp and paper companies, announced in February that it was ending the clearing of natural forests across its supply chain in Indonesia, where the company is based. In recent years, the company had been the focus of numerous environmental campaigns that questioned its environmental credentials. Jacek Siwek, APP director of sustainability and stakeholder engagement in Europe, said the EU was “demonstrating its Cont Page 15
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
passages
Dawn Lembke, 83, an industry friend and wife of legend THE life of Dawn Lembke, 83, a friend and supporter of the timber industry for many years, was celebrated in Sydney last week at St James Church, Turramurra. A gracious woman, Mrs Lembke was the wife of legendary timber journalist Con Lembke, OAM, who died aged 78 in 2008. Mr Lembke was editor and publisher of the Australian Forest Industries Journal – the industry ‘bible’ for more than half a century – taking over the roles in 1953 on the death of his father Conrad Otto Teodore Lembke, the magazine’s founder. Dawn Lembke attended her last industry function in Northern NSW last December when she joined 120 friends and family members of Spiro Notaras for the Grafton sawmiller’s 80th birthday. Mr Notaras remarked at the time that it was sad his longtime friend Con Lembke couldn’t be at the celebration. “God, I miss him,” he said. “How wonderful it was to have his wife Dawn here.” Before and during their retirement, Con and Dawn Lembke travelled extensively, the more exotic and distant their ports of call the better – the Outer Hebrides off the west coast of Scotland, Newfoundland, Nova Scotia, Europe, the Americas, China, the Australian Outback and the Gulf Country, and all points inbetween. Con and Dawn first met at a surf club social in Sydney. Dawn was a standard bearer at North Bondi Surf Club and Con was with her at reunions at Bronte in 2007 and at North Bondi in 2006 where she brought out the swim suit she wore as a surf marching girl. It was just before Christmas in
Old friends .. Dawn Lembke (left) catches up with Patsy Evans at the 80th birthday celebration for Spiro Notaras at Grafton in December last year.
2007 that Mr Lembke made his last trip to the Northern Rivers to fish at Yamba with friend Spiro Notaras. He had honeymooned
dennis@industrye-news.com
at Yamba with Dawn in 1953, and they celebrated their 50th wedding anniversary there. Mrs Lembke is thought to have died of a stroke or a heart attack at her home. She never fully recovered from a recent
accident
at
Sydney
International Airport when, as a volunteer ambassador, she was knocked down by a luggage trolly. She is survived by her daughter Suellen and son-in-law Roger, son Steven and his wife Deb, and five grandchildren – three boys and two girls. – JIM BOWDEN.
Before and during their retirement, Con and Dawn Lembke travelled extensively, the more exotic and distant their ports of call the better
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 260 | 11.03.13 | Page 9
FOREST MANAGEMENT
Gottstein forest course wins approval ‘EXTREMELY valuable, very enjoyable’ .. ‘great range of topics and speakers. I learned a huge amount’ .. ‘excellent networking. I want more’ .. and ‘a very valuable and informative program for beginners in forestry’. These were some of the comments received at the conclusion of the first Gottstein forest science course held last month at the University of Melbourne’s Creswick campus in west central Victoria. Participants from across Australia heard from a range of experts speaking on topics ranging from wood supply through to issues relating to carbon and forestry, native forest management, bushfires, water supply, processing timber and the importance of forestry
Speakers at the Gottstein forest science course included Ric Sinclair, managing director, Forest and Wood Products Australia, Sid Sidebottom, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, and Gerd Bossinger, Associate Professor and group leader for forest molecular biology and genetics at the University of Melbourne’s School of Forest and Ecosystem Science.
to Australia. Sid Sidebottom, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, spoke at a dinner
function on ‘the future of forestry in Australia”. The course was held in collaboration with the University of Melbourne. The next
Participants in the Gottstein forest science course study native forest management.
Gottstein forestry science course is expected to be held in February 2015, with the Gottstein Wood Science Course to be held in February next year.
Further investigation on claim that Gunns was trading while insolvent THE liquidator of collapsed Tasmanian timber company Gunns plans to further investigate its own claims the company may have been trading while insolvent. PPB Advisory has been Gunns administrator since it collapsed in September last year. It has been appointed as liquidator through a vote of creditors owed more than $750 million. Daniel Bryant from PPB says the liquidator will now investigate claims of insolvent trading raised in the administrator’s final report. “The liquidator can look more deeply into those transactions to determine whether there’s commercial recovery for the benefit of the stakeholders in that,” he said in an ABC report. The creditors meeting took place across the road from Gunns’ derelict former headquarters which has become overgrown with weeds.
Page 10 | issue 260 | 11.03.13
Aerial view of Gunns’ pulp mill site .. what now for multi-billion dollar project?
The decision to liquidate comes 140 years after the company was established and five months after it went into receivership. Gunns became the biggest hardwood sawmiller in the southern hemisphere and Australia’s largest exporter of woodchips. At its peak, it employed about 1200 people and turned a profit of $105 million. Gunns’ share price hit $4.70 in
2005 and fell to just 16c before its collapse. The Tasmanian Premier Lara Giddings came under pressure in parliament about her knowledge of Gunns’ financial situation. Greens MP Kim Booth told the Lower House a letter from Forestry Tasmania in July 2011 warned the Premier and the Resources Minister Bryan Green about the possibility of Gunns going into receivership.
He says the government should have alerted Tasmanian businesses. Ms Giddings told parliament she could not respond in detail until she had checked the timeframe of Mr Booth’s allegations. “It’s not up to government and particularly ministers to be providing investment advice to companies. We don’t do that and it would be irresponsible for us indeed to do that,” she said. The fate of the Gunns’ planned multi-billion dollar pulp mill remains unclear. Receivers Korda Mentha has already sold two of Gunns sawmills, and another two are on the market. But the receiver says it is waiting to shore-up wood supply before finalising a strategy to sell the pulp mill’s plans and permits.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
INDUSTRY NEWS
EWPs that tick ALL the boxes Engineered wood products manufactured by EWPAA member companies top the list
Workshops to get a handle on demand and supply outlook for Australia’s timber and forest sector.
ABARES analysing future demand for forest supply sector Worshops series in capital cities RESEARCH bureau ABARES is undertaking an analysis of the long-term demand and supply outlook for Australia’s forest sector. Through a series of workshops in most capital cities, ABARES is seeking input from industry and other stakeholders to assist in the development of underlying parameters and assumptions. This will ensure that key drivers affecting the industry are incorporated into the analysis. The ABARES modelling framework will be used to forecast levels of forest harvesting, product output and infrastructure investment out to 2050. The types of parameters that will be included in the analysis include market factors such as exchange rates, housing construction and economic growth; government policies which may affect log supply; and a range of options for investment in new processing capacity. The first workshop was held in Canberra on March 1 and included participants from
federal government agencies, as well as the Australian Forest Products Association, Timber Communities Australia and the Housing Industry Association. Workshops were held in Adelaide last week and are scheduled for Melbourne on March 12 and 13 and in Brisbane on March 20 and 21. ABARES will be hosting a workshop as a side event to the regular AFPA policy and chamber meetings to be held in Melbourne on March 22. AFPA members are encouraged to participate, to assist ABARES to refine its modelling approach. This workshop is also open to non-AFPA industry representatives. ABARES is a research bureau within the Department of Agriculture, Fisheries and Forestry. It provides professionally independent research, analysis and advice for government and private sector decision-makers on significant issues affecting Australia’s agriculture, fisheries and forestry industries.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
Consistent QUALITY LOWEST emissions Structurally SOUND and SAFE Wood from 100% LEGAL, CERTIFIED forests GUARANTEED to Australasian Standards JOBS security
EWPAA
guArAntEEd*
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 Email: inbox@ewp.asn.au Web: www.ewp.asn.au
* Independently tested to the highest standard; guaranteed to comply with Australian standards; certified under JAS-ANZ accredited product certification scheme; guaranteed to be safe and to carry the designated design load; complies with the Building Code of Australia; meets safety and quality requirements accepted by unions; meets all Workplace Health & Safety requirements.
issue 260 | 11.03.13 | Page 11
OPINION
Buyer beware .. not all green certifications are created equal Signs of LEEDS backlash in Northern America CERTIFICATION schemes have grown in popularity as businesses race to build a profile as good corporate citizens. But, as recent developments in the construction industry suggest, this approach to corporate social responsibility may be more complicated, more costly and less effective than it needs to be. Growing doubts have surfaced about LEED (Leadership in Energy and Environmental Design) certification, hitherto the gold standard of sustainable building for everything from warehouses and factories to office buildings and apartments. So successful has LEED certification been that it is has become the backbone for most municipal building standards across Northern America. But signs of a backlash are growing. The City of Ottawa’s environment committee recommended last month that the city council remove LEED certification as a requirement for all buildings over 501.6 sq m, attempting to repeal a regulation that has been in place since 2005. The recommendation came out of frustration over the cost and time LEED certification was taking. As it stands, there are 14 newly completed buildings in Ottawa still waiting for approval from the Canada Green Building Council, the administrator of LEED certification in Canada, according to a report by the city’s infrastructure services department. Whether it’s three buildings or 14, there’s a bigger question being asked that goes well beyond Ottawa: is LEED more of a hassle than it’s worth? And are there other options? You can get points for things
Page 12 | issue 260 | 11.03.13
Anticipated to be the world’s greenest home, the Tah Mah Lah residence in northern California, USA, has earned Platinum Certification and is designed to earn the most LEED points of any home ever built. This deep green residence has been designed to be as simple, efficient and as environmentally friendly as possible. The lowest environmental impact is achieved by installing a right-sized system; considerable effort was made to create an extremely high performance building shell. FSC or reclaimed wood was used for the entire project interior and exterior.
that aren’t necessarily making a better building LEED seeks to reduce environmental damage by setting standards for building practices that use energy and water more efficiently, reduce emissions and create healthier environments for a building’s occupants – with non-toxic materials, better air quality and more natural light. An array of competing certification systems has popped up in recent years. BOMA BESt (Building Environmental Standards) is the Canadian adaptation of Green Globes, an online environmental assessment and rating system that competes with LEED. The Building Owners and Managers Association of Canada (BOMA Canada) offers four levels of certification for
Doug Webber .. LEED provides a simple answer to a complicated question: Is your building green?
existing buildings in Canada. BOMA is said to be a faster and less expensive process than LEED. First, the application can be completed by building owners or managers online and “doesn’t require as much outside assistance” as LEED,
Whether it’s three buildings or 14, there’s a bigger question being asked: is LEED more of a hassle than it’s worth? And are there other options?
says John Smiciklas, director of Energy and Environment at BOMA Canada. Second, BOMA requires less consultation time because it is more of a checklist for applicants to complete themselves. Where LEED certification requires third party consultants to be part of the design, build and audit process, BOMA doesn’t apply to new buildings and only has a third party check the operating data provided by the applicant. For an average downtown Toronto office building, BOMA certification would cost about $C3000 to $C4000, says Mr Smiciklas, whereas LEED applicants can expect to spend upwards of $100,000 in fees for a gold or platinum office building in Toronto. To LEED’s credit, it created a benchmark for sustainable construction where none existed before. The LEED plaque and silver, gold and platinum designations have been a powerful incentive for developers and builders. And LEED is credited with pushing product manufacturers to provide greener building supplies to meet demand at less of a premium. “It’s valuable because it provides a simple answer to a complicated question: Is your building green? Yes, no, a little bit or a lot?” says Doug Webber, green building practice leader with Halsall Engineers and Consultants in Toronto. But builders and developers have made LEED standards increasingly irrelevant because the silver standards are baked into most major cities’ building codes. Most new buildings these days apply for gold or platinum. Cont Page 13
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
OPINION
‘LEED is a useful metric that turned the ship, but we should be moving on’ From Page 12
“Initially people struggled with LEED silver – now it’s easily achieved with existing systems and technologies. LEED gold used to be at a cost premium, but it’s become much easier. LEED platinum remains a challenge, but is achievable,” says Mr Schmitt. “You can get points for things that aren’t necessarily making a better building,” he says, citing the example of putting in a shower for people who bike to work. “LEED needs to push the industry harder,” he says. Danny Harvey, professor of geography and planning at the University of Toronto, believes a lot of “people are just gaming the system” by simply asking, “How can I get the most points for doing the least?” As the industry has caught up, critics say LEED has become all about the plaque, with not enough focus on energy efficiency and carbon emission reduction – the two most critical factors for reducing buildings’ environmental impact. Buildings alone are responsible for 35% of Canada’s overall carbon emissions, according to Industry Canada. Two other certification options are increasingly seen as the future of sustainable building: one is the Passive House Standard, developed in Sweden and targeted at houses, apartment and condominium buildings. The other, Seattle-based Living Building Challenge is targeted at commercial developments. Both of these newer and tougher processes focus on achieving ‘net zero’ carbon emissions. They are popular in Europe where rising energy prices have led cities such as Brussels to require the Passive House Standard for all private and public buildings. “Almost no heating is needed to keep [Passive House Standard]
buildings warm. They are so efficient they use the heat from people, lighting and daylight. If there were a power-failure, [this type of construction] will mostly stay warm,” says Danny
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
Harvey. The VanDusen Botanical Gardens’ new 1765 sq m, $22-million visitors centre in Vancouver was the first Canadian building to be
awarded Living Building Challenge certification in 2011. The centre is entirely carbon and energy neutral and able to generate its own energy and harvest and treat its own water.
issue 260 | 11.03.13 | Page 13
US in the reverse mirror as Canfor tracks lively lumber trade in China Second biggest economy turns to wood buildings THE forest industry in North America was struggling in the 1990s, facing the fall-out of an economic slump in the US as well as difficulties with the small print in agreements on softwood lumber a decade ago. But now it is vibrant, revitalised thanks in great part to the trade now enjoyed with China, says a senior Canfor executive. The economic value of that trade has increased from about $60 million a year a decade ago to more than $1 billion. Wayne Guthrie, senior vicepresident, sales and marketing for Canfor Corporation, a Canadian integrated forest products company based in Vancouver, said establishing a reliable trade partnership with China was difficult at first but it was stable now. “We believe firmly this market isn’t going away,” Mr Guthrie said. “It’s not going away. China is here to stay.” Mr Guthrie said British Columbia exported lumber for about 160 years, and for 155 of those years the province relied on one market, the US, which set the prices on lumber. “We put all the eggs in one basket,” he said. Breaking into the market in China took a lot of collaboration. Mr Guthrie said Canfor competed fiercely with its colleagues, but when the province worked to open a market in China, they worked with other like companies. “We literally went in arm in arm,” he said. “The key gain is to build a new market for BC.” At the time China had no building codes and didn’t use
PAgE 14 | issuE 260 | 11.03.13
Bound for the Orient .. another load of Canfor lumber is lifted onto a ship in Vancouver Harbour.
sized lumber. They introduced the metric two-by-four which is becoming a staple in the Chinese marketplace. Canfor created the Canfor Wood College, allowing working professionals to upgrade their skills building wood-framed structures. In 2008 the Canada Wood Group, an industry marketing association, took the college over. Helping promote wood building, the Chinese central government issued a report stating it supports wood building as a way to mitigate climate change. “There is a slow but sure movement from concrete and steel to wood,” Guthrie said. “In the 1990s and 2000s we were too beholden to the US market.
Wayne Guthrie .. slow but sure movement to wood away from concrete and steel in China.
Chinese demand took off in volume about the same time as the US market was devastated. China was a saviour at that time.” He
said
there
were
signs
‘In the 1990s and 2000s we were too beholden to the US market. Chinese demand took off in volume about the same time as the US market was devastated. China was a saviour at that time – Wayne Guthrie, Canfor
that the US market was now improving, combined with a probability of lumber shortages. However, due to Hurricane Hugo, one of the growing timber supply areas is in the southeast US. It’s been 25 years since the devastation of Hugo, when entire plantations were destroyed, and the southern pine that covered the land is now mature and ready for production. Servicing the needs of the US market will leave Canada with some US business combined with a desire to maintain Chinese influence. Mr Guthrie said China had the second biggest economy in the world; it had a tremendous amount of infrastructure that needed to be built. Lumber was being used more and more for that infrastructure. “About half of the 450 million cub m needed will have to be imported,” he said. “The province’s abilities match China’s needs.” Mr Guthrie pointed out the cost of getting lumber to, for example, Chicago, and the cost of getting it to Shanghai. The province is equipped with a great infrastructure, whether it’s harvesting or gathering wood, plus the province now has Prince Rupert, a deepwater port that is ice free. The port is also closer to China than any other in North America, shaving about three days travelling time on shipments. When trade was initiated, a lot of what China was buying in lumber was used to construct Cont Page 15
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
international focus
US housing market: ‘we’re pumped’
Sawmills back in business, more jobs in industry AN improved US housing market plus rising foreign demand for wood are boosting lumber prices, to the benefit of mill owners, retailers like Home Depot, and timber towns such as Eugene, Oregon. Home Depot’s announcement last week that its quarterly profit had jumped 32% – now more than had been forecast – helped lift the Dow Jones industrial average. The company’s shares climbed nearly 6%- its best percentage gain in four years. Frank Blake, CEO of Home Depot, said in a conference call that he attributed the results in part to the ongoing recovery of the US housing market. Newhome sales in January rose at their fastest rate since July 2008. Jon Anderson, president and publisher of timber industry newsletter Random Lengths, tells ABC News that increased demand from abroad for wood products also is responsible for higher prices. For the past five years, he says, China has been increasing its imports of North American lumber from both Canadian and the US.
The housing industry is surging back to health in the US.
The newsletter’s composite price for framing lumber (the kind used in home building) has jumped from $284 per thousand board feet a year ago to $415 now. The composite price for plywood and other kinds of panelling has shot from $332 to $513. Prices for panelling, says the newsletter, are now “within shouting distance of all-time highs”. Publicly traded wood products companies turned in solid
fourth quarter results, Jon Anderson reports. The stock of Weyerhaeuser, for example, has climbed steadily for the past 12 months, from a low of $21 to a recent high of over $31. Where might lumber prices go in the next six months? Mr Anderson says he isn’t in the prediction business. But for more than a year, he adds, demand has been on the increase. “Supply has been chasing
demand, but has not caught up,” he says. “Producers, because of the depth and length of the recession, have been reluctant to add shifts or increase production. They’ve held off re-opening mothballed facilities.” Now, though, they are starting to anticipate the day demand exceeds supply. “You’re starting to see mills increase production or come back online,” he says. In Saratoga, Wyoming, a sawmill closed for years has just reopened, creating 80 jobs, reports the Wall Street Journal. A closed sawmill in Albertville, Alabama, will reopen this spring. So will a mill in Davenport, New York. In timber-producing regions all across the US the same thing is happening. According to the Bureau of Labour Statistics, logging employment has rebounded 7% since 2010. “We’re pumped,” Glenda Poling, an Oregon economic development manager says. “It’s just feeling really good here.”
‘We are stealing Russia’s fibre market share’ From Page 14
forms for concrete. That is still a significant part of the market. However, more and more is being purchased for building purposes. As the middle class in China grows, so will the market on
value-added wood products, like furniture. Mr Guthrie said they intend to continue to grow this market. “We are stealing Russia’s market share in the sale of fibre,” he said, because BC could offer a product that was legally harvested and
sustainable. “They are looking at British Columbia s a great place to market with in the long run.” Through its forest tenures and timber licenses, Canfor has 15.1 million cub m of annual allowable cut, all of which is Canadian Standards
Association-Sustainable Forest Management certified. Canfor is the owner of the world’s largest sawmill in Houston, British Columbia, with an annual production capacity of 1,400,000 cub. – Extracts from Vancouver Sun.
EU demonstrates collective muscle against illegal timber From Page 8
collective muscle by closing one of the world’s largest markets to illegal timber”. He said regulations, such as the EUTR, were having a big impact on timber-producing
nations as they strived to protect their legal industries while eliminating or at least reducing illegal logging. “Indonesia is playing its part by matching the demand-side measures from the EU with coherent supply-side measures
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
such as the new SVLK legality system. SVLK is designed to ensure that all timber products legally exported from Indonesia can be traced from origin through transport, trade and processing.
The measures introduced by the EUTR form part of the Bloc’s Forest Law Enforcement, Governance and Trade (FLEGT) action
plan,
which
was
published in 2003.
issue 260 | 11.03.13 | Page 15
on the road
Juiced-up Volt almost a free ride Holden’s electric power-packed, value-packed hatchback WHAT, no electrically-operated seats? A tight squeeze for two passengers in the back seats, perched high on the battery, knees tucked up, and one of them complaining about her mussed gamine cut as she grazed her cranium on the low door frame. Minor whinges as we glided off from Zupps Holden on Logan Road in our electric ‘silver streak’ Volt contemplating the push-button control system on the pearlescent gloss hard white plastic console. Volt is designed to spend most of its life propelled by battery power alone; the engine will kick in to generate power for the electric motors when the electrons run dry. But when high on the invisible juice the car will travel around 600 km without clocking up cash for the petro Arabs. And there’s peace of mind. Even if you run out of battery power, the petrol generator will always get you safely home. On the test route, mostly around Brisbane, we started with a fully-charged battery and managed to return an average fuel consumption figure of just 4.1 l/100km While it marries an internal combustion engine with electric propulsion, the Volt is otherwise quite different from the current crop of hybrid vehicles. Under the bonnet is a 1.4 litre naturally-aspirated petrol engine, closely related to the 1.4 iTi turbo in the Cruze (which also shares the Volt’s Delta platform) but with a lighter block, different head, fewer accessory drives and other efficiency-oriented measures. It puts out a maximum of 63kW at 4800 rpm, and never needs to rev higher than that. At current household energy prices, the Volt can be charged in as little as four hours for around $2.50, but the battery
Page 16 | issue 260 | 11.03.13
Holden’s Volt .. plug it in and away you go.
Classy interior .. dazzling array of push-button controls.
The LCD display doubles as a reverse camera.
electricity
following day under electric power alone.
(as we did), and commute the
The Volt’s interior is dazzling
can be charged at night using cheaper
off-peak
futuristic. A 178 mm colour LCD panel replaces the traditional instrument cluster and nearly every button on the centre stack is capacitive, responding to a mere brush of a finger. The LCD display also contains climate information and energy details – for example you’re advised how efficiently you are driving and moreover how efficient your climate-control setting is. This screen doubles for the reversing camera image. A smallish car, at 300 litres, the boot isn’t especially big either. There’s no retractable cargo blind but a fixed fabric blind offers some security for cargo. Storage, however, is plentiful throughout the cabin, with lots of lidded boxes, shelves and cubbies It might seem expensive for a small car – retailing at $59,990 – but once you drive it the value becomes evident. On the test route, starting with a fullycharged battery, we managed average fuel consumption of just 4.1 l/100 km or around 5.5 l/100 km on petrol. But the Volt has a piece of magic no other petrol/electric can match – that’s 0.0 l/100 km. So if you’re commuting around 30 km each way, you’ll never have to queue up at the bowser again.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
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 &
T: (07) 3266 1429
Sales
Classified Ad Custom Publishing Group Advertising: Tel +61 7 3266 1429 Email: Email: cancon@bigpond.net.au 1429 e: timberandforestenews@bigpond.com e: timberandforestenews@bigpond.com
Production T: 0439 417 671 ISSUE 203 || 11.03.13 12.12.11 || Page PAGE 15 issue 260 17 e: kerri@mycustompublishing.com.au
www.industrye-news.com