Timber & Forestry E News Issue 340

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Setting the standard for sustainable forest management Globally recognised by PEFC, the world’s largest sustainable forest management certification scheme.

ISSUE 340 | October 20, 2014

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Delivered weekly to timber merchants, sawmillers, wood processors, foresters, members of national, state and trade organisations and associations throughout Australia, New Zealand and various countries.

British builders back wood plan

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92 percent of major UK construction The contractors side with timber industry NATIONAL

NEW findings published by Grown in Britain show that 92% of major UK construction contractors would back an industry-wide commitment to use more home-grown timber and more than 60% would specify wood in their contracts.

The research, which sought the views of the influential UK Contractors Group, comes as the second annual Grown in Britain Week, which concluded last week, highlighted the important role timber plays in the economy.

The contractor group’s members account for more than

voice for

Dougal Driver .. responding to clients’ demands for British timber.

$A60 billion of construction turnover, a third of the UK’s construction total output.

Alongside support for a commitment and contract clauses, the results show that

85% of major construction contractors would support Grown in Britain’s aim to increase UK woodland coverage, and 77% would be willing to help Cont P 2

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OCTOBER 20, 2014 | PAGE 1

INDUSTRY NEWS

Building contractors make home-grown wood choice From P 1

Innovation Skills and practices that work

25 March 2015 Canberra

Save the Date The 7th Annual Industry Development Conference followed by the AFPA and ForestWorks Gala Dinner at Parliament House.

www.forestworks.com.au

their supply chains better source home-grown wood products.

In order to support increasing demand for home-grown timber from the construction industry, the group has developed the first-ever licensing scheme to identify British timber and wood products.

The licence, launched in June, provides the supply chain, customers and procurement teams with a guarantee of the origin of timber products and is helping to bring millions of tonnes of British timber to the market.

CEO of Grown in Britain Dougal Driver explains: “The results of our research are very exciting.

While our research suggested almost 60% of the timber used in the construction industry comes from the EU, the message from the sector is clear – they want to use home-grown timber where they can.

Robust method of sourcing British timber “In fact, 70% of the contractors we asked thought their clients would prefer more materials to be sourced from Britain. That’s a remarkable figure, and our role now is to help the construction industry respond to this demand.”

Mr Driver said the new licensing scheme was a key to achieving this and provided the supply chain with a robust

A pathway for greater use of home-grown wood .. freshly cuts logs in Scotland’s Longart Forest, managed by the Scottish Forestry Commission.

method of sourcing British timber, making it possible to respond to client demands, demonstrate leadership and support the creation and management of UK woodlands.

[The Grown in Britain brand identifies wood that has been grown in Britain and assured through a new licensing scheme.

The brand has passionate backing of the government, industry and many other organisations].

Since launching in 2013, Grown in Britain has continued to attract high profile support from major contractors and businesses.

At last year’s Grown in Britain Week, the UK Contractors Group agreed on a joint statement of preference to use British timber wherever possible.

“Local procurement is an important talking point for the UK construction industry, partly driven by the Social Value Act and is increasingly seen as a key performance indicator for clients and government alike,” Grown

in Britain chairman Steve Cook said.

“Until now though, it has been hard to identify British timber in the market place. The work Grown in Britain is doing will not only help contractor procurement teams and the supply chain identify where timber is coming from, but also stimulate demand for more British timber which in turn encourages investment into woodlands and forests.

Continuing to attract high profile support “That will increase supply, but also ensure woodland creation across the country – which is good for people, wildlife and the economy.”

Grown in Britain Week 2014 held last week was marked by a series of national events celebrating the brand’s progress to date.

NZ’s forest safety review launched this month

This program has been produced with the assistance of funding provided by the Australian Government through the Department of Industry.

ABN: 39 946 785 543

THE sponsors of New Zealand’s Independent Forestry Safety Review, the Forest Owners Association, New Zealand Farm Forestry Association and the Forest Industry Contractors Association, are planning to launch for the first time the

PAGE 2 | OCTOBER 20, 2014

findings and report in Rotorua on October 31.

For the past nine months the Independent Forestry Safety Review panel has engaged in a thorough process of consultation and analysis of the factors impacting health and

safety in the forestry sector.

The report contains a package of practical recommendations that represent the additional steps necessary to bring about long-term, system-wide and integrated changes.

INDUSTRY NEWS

NSW timber sector revitalised New ‘whole-of-industry’ organisation enjoys a closer relationship with state government

By JIM BOWDEN

NOW only a heartbeat away from the state’s top job, ‘friendof-the-forest’ Troy Grant, 44, has been elected unopposed as the new Deputy Premier of New South Wales.

A former senior police officer with less than four years’ experience in politics, Mr Grant was appointed Minister for Hospitality, Gaming, Racing and Arts in the Baird government and became the leader of the NSW Nationals last week after Andrew Stoner announced he would not seek re-election next March.

Mr Grant promised he would “work his backside off” in his new job.

The Member for Dubbo has a close relationship with the forest industry; he was inaugural chairman of the NSW Forest Industries Taskforce, now chaired by Rick Colless, Deputy Whip in the Legislative Council, who has been a part of the NSW Nationals’ parliamentary team since entering the legislative council in 2000.

Mr Grant stepped down from the task force in April after a ministerial reshuffle that came after the resignation of Premier Barry O’Farrell, who was replaced by Mike Baird.

The forest industry has welcomed Mr Grant’s new position.

Creating members’ chapter “We appreciate Troy’s support of our industry which I am sure will continue; he has a close association with Senator Richard Colbeck, federal Secretary for Agriculture, developed during his time as chairman of the forest

Troy Grant

Andrew Hurford

industries task force,” the general manger of Timber NSW Maree McCaskill said.

Board members of the NSW Forest Products Association unanimously voted to change the name of the organisation to Timber NSW at their annual general meeting in Sydney on October 10 – a date that will mark a significant, strategic and responsible shift for the industry going forward.

Maree McCaskill

representing the various regions.

“Essentially, what we have done is voted to disband that system in favour of a members’ chapter which specifies what the organisation is about, what it does and what the expectations are,” Ms McCaskill said.

“Directors will be elected

Rick Colless

on their range of skills and expertise in geographic locations, rather than from a specific region or area.”

Directorships would go into a rotation, instead of the entire board stepping down each year.

At the next AGM, up to eight directors would be elected and Cont P 7

Education the key to role of forest industry “Timber NSW opens the way for membership to anyone involved in the growing or processing of timber or providing services to the industry in NSW – no matter their location or region,” Ms McCaskill said.

Hardwood sawmiler Andrew Hurford, who was president of FPA, now becomes the inaugural president of Timber NSW. The current board members will continue as directors of the new organisation.

Ms McCaskill said it was decided to dispense with association ‘branches’ as such.

The association constitution included strict requirements that branches be located in particular regions, with branch meetings electing directors

www.certisource.com.au

OCTOBER 20, 2014 | PAGE 3

INDUSTRY NEWS

Legality: industry information webinars give valuable update

More international, state guidelines before November 30

THE Department of Agriculture has provided the second illegal logging E-update to provide industry with the latest developments on the federal government’s illegal logging laws.

The department is hosting a series of information sessions on the due diligence requirements throughout October and November. These free sessions will be presented by officers from the department’s forestry branch and will outline the new requirements and what they are likely to mean for regulated businesses.

Free sessions presented by DA officers Sessions have been held in Sydney (October 15), Melbourne (October 16) and Brisbane (October 23).

Sessions will now be held in Adelaide, November 3; Perth, November 5; Cairns, November 18; and Darwin, November 20.

Additional information about the sessions can be found on the department’s website www.agriculture.gov.au under: Information Sessions 2014.

Log on .. E-updates on illegal logging laws.

Participants must register to attend these events.

[These events are currently awaiting Continuing Professional Development (CPD) accreditation for customs brokers by the Australian Customs and Border Protection Service].

A series of free online webinar information events designed for processors, importers and customs brokers will be presented by the Department of Agriculture in conjunction with Forest and Wood Products Australia.

Webinar session 1 for processors 1 was presented on October 21. Session 2 for custom brokers will be

presented on November 10, 1-2 pm, with webinar session 3 for importers on November 10 from 3-4pm and session 4 for processors 2 on November 14, 2-3 pm.

In order to view the webinar, participants will require access to both a phone line for the audio stream as well as a web browser to view the accompanying power point presentation.

Businesses should send an email to illegallogging@ agriculture.gov.au to register their interest in participating in an event. The email should specify which event they wish to participate in.

The department will provide

further details about how to access the webinar to registered participants prior to the event.

In collaboration with the FWPA, the department recently hosted a webinar that outlined the government’s illegal logging laws. A digital recording can be found on the FWPA website www.fwpa.com.au The department recently published the Italy and New Zealand country specific guidelines and associated quick reference guides. The guidelines will help importers better understand the logging laws in place in these countries and allow businesses to simplify and ‘fast-track’ their due diligence arrangements. These documents add to the existing Solomon Islands, Finland and Canada guidelines.

The department expects to publish further country specific and state guidelines in the lead up to November 30.

The Department of Agriculture has also published the Tasmania state specific guideline. This guideline will help Australian processors better understand the legal frameworks in place in Tasmania and simplify their due diligence requirements.

Engineered Wood Products from here to the future Local & international experts talk about innovation in new products new market applications & how global dynamics will impact Australia 13 - 14 November 2014 Surfers Paradise Marriott Resort Gold Coast, QLD

Find out more & register at www.cvent.com/d/84qdb5 PAGE 4 | OCTOBER 20, 2014

2014 AROUND THE CIRCUIT

OCTOBER

19-20: ForestTECH 2014: Remote Sensing - Field Inventory - Forest Estate Planning.

Rotorua, NZ. Visit www. foresttech2014.com 24: Australian Forest Contractors Association AGM, forum and gala dinner.

Bayview Eden Hotel, 6 Queens Road, Melbourne. Industry forum – ‘What happens when the boat’s full?’ – from 12.30 pm to 4 pm (lunch provided). Cost AFCA members $40 p.p; non-members $50. AFCA AGM from 4 pm to 5pm. AFCA gala dinner from 6 pm until late. Cost for AFCA members $150 p.p. (dinner only); $175 for dinner and forum. Non-members $175 for dinner only, $205 for dinner and forum. Forum speakers include Simon Gatt, general manager, Gippsland region for HVP Plantations, Tony Price of Australian Bluegum Plantations, Peter Ryan, an independent industrial relations consultant, and Dallas Frost on money management implications. The dinner includes inductions into the AFCA Hall of Fame, speakers on industry growth strategies and an update on AUSTimber 2016.

Booking details are available from Denise DeBattista at denise@afca. asn.au.

26-29: Australian Forest Growers 2014 Biennial Conference. Trees: The Future Crop for Changing Climates.

Southern Cross University, Lismore, NSW. More than 40 presentations from leading forest researchers and practitioners, a day of field trips, featuring local forestry initiatives, along with icebreaker and dinner events complete a full conference program. Speakers include Australian Farm Institute executive director Mick Keogh, former Governor-General Major General Michael Jeffery, Andrew Campbell, Charles Darwin University, Prof. Jerry Vanclay, Southern Cross University, and Rob de Fegely, president.

Institute of Foresters Australia.

Contact Mark Wright, AFG 2014 conference convenor. Email: agconference@afg.asn.au

NOVEMBER

13-14: Engineered Wood Products – From Here to the Future. Australian timber industry seminar.

Surfers Paradise Marriott Resort, Gold Coast. Co-hosted by the Engineered Wood Products Association of Australasia and Forest and Wood Products Australia. Australian and international speakers. Contact Eileen Newbury, marketing manager, Forest and Wood Products Australia.Tel +61 (3) 9927 3212. Mob: +61 (0) 41931 3163. Email: eileen.newbury@ fwpa.com.au or visit www.fwpa. com.au for registration and accommodation details.

25-26: ForestTECH 2014:

Remote Sensing - Field Inventory - Forest Estate Planning.

Melbourne. Visit www. foresttech2014.com

DECEMBER

2: Bioenergy Australia 2014 conference.

Stamford Grand hotel, Glenelg, Adelaide. Technical tour December 3. Visit www. bioenergyaustralia.org

THE AUSTRALIAN FOREST PRODUCTS ASSOCIATION

2015 FEBRUARY

15-20: Gottstein Forest Science Course.

Creswick, Vic. Contact Silvia Pongracic 0418 764 954 or www. gottsteintrust.org

MARCH

25: ForestWorks annual industry conference and dinner Canberra. Flagship event for the forest, wood, paper and timber products industries. Joining with the Australian Forest Products Association to co-host the popular networking industry dinner at Parliament House. Conference will look beyond the innovative technologies in industry and focus on the people, exploring how they can help to bring about innovation.

Further details will be announced in the coming months, including the conference theme, speakers and venue. Contact forestworks@ forestworks.com.au

Researchers create global map of world’s forests circa 1990

RESEARCHERS have created a global map of the world’s forests in the year 1990, enabling accurate comparisons between past and current deforestation rates.

The research, published in the US by University of Maryland scientists, is based on 30-metre resolution NASA satellite data, providing the highest-resolution map of 1990 forest cover ever developed.

EVENTS

The data is consistent with a recent study that developed maps for year 2000 and year 2005 forest cover, allowing researchers to measure 1990s forest cover change.

The lead voice in Canberra on policy affecting forest, wood and paper products industries.

AFPA strives to deliver benefits for the complete industry value chain including those involved in: • Forest growing • Harvest and haulage • Sawmilling and other wood processing • Pulp and paper processing • Forest product exporting

Join us today and share the benefits Call (02) 6285 3833

OCTOBER 20, 2014 | PAGE 5

EVENTS

Seminar: future technology for engineered wood development

NEW products and technologies emerging that will create new markets for engineered wood will be presented by international and local experts at the ‘Engineered Wood Products - from Here to the Future’, seminar to be held on November 13 and 14 at the Gold Coast.

Leading world experts from North America presenting at the seminar include Art Schmon and Paul Jannke of Forest Economic Advisors, senior analysts and forecasters to the forest products industry.

They will summarise the current macroeconomic forecast which indicates a surge of residential construction, with increases in demand and prices for panels and engineered wood products.

The outcomes will depend on the extent to which existing and planned capacity can meet the expected demand, and the likely consequences of projected demand/capacity scenarios.

Appetite for wood .. structural insulated panels (SIPs) are essentially a sandwich: the filling is a solid thickness insulation, and the bread is made of rigid building boards such as plywood or orientated strand board (OSB).

Professor Fred Kamke of Oregon State University will discuss developments in modified wood to enhance properties, focusing on thermalhydro-mechanical (THM) modification technology to enhance the strength, stiffness, and hardness of wood.

Product innovation and creativity could transform THM processing into a technology platform with a wide range of new opportunities for high value

commercial applications.

Chip Frazier, Professor of Sustainable Biomaterials at Virginia Tech, will present on industry/university cooperative research in North America, by fostering a middle ground with academic resources focused on industrial challenges.

Known as the Wood-Based Composites Centre, their working model has industry leaders directing academic experts, which results in a synergy that

to measure how well it was responding to climate change and to keep track of experiences and best practices so others could learn from them.

“Given our role in managing

our country’s natural resources, we have a particularly unique opportunity to respond,” said Dave Cleaves, US Forest Service climate change adviser.

“The scorecard is helping

stimulates cooperation among suppliers, customers, and competitors.

The day and a half seminar is intended for senior management and industry leaders in forestry, timber processing, wood products supply and distribution, and others interested to hear about future trends that will have impact on the forest and wood products sector.

Cooperative research in North America Hosted by the Engineered Wood Products Association of Australasia (EWPAA) and Forest and Wood Products Australia Ltd (FWPA), the seminar will be held in conjunction with the FWPA annual general meeting at Surfers Paradise Marriott Resort.

For more information on this important seminar and other activities in the event program, visit www.fwpa.com.au

US foresters keeping score on climate change

THE US Forest Service has developed something it calls the climate change performance card.

The scorecard was created as a way for the Forest Service

PAGE 6 | OCTOBER 20, 2014

more forest land managers develop an understanding of how climate change will impact rivers, tree health, wildfire activity, and more .. and what to do about it.”

INDUSTRY NEWS

FCS development role for Natalie Reynolds

Certification grows to 1.7million ha of plantations and forests FSC Australia CEO Natalie Reynolds has been promoted to a new role as transformation and development director for FSC International, beginning in the New Year.

The appointment was announced by FSC international director-general Kim Carstensen.

“The growth of the Forest Stewardship Council across the globe in recent years, particularly in Australia, has

Tackling the challenge of next 20 years been unprecedented in the organisation’s 20-year history,” FSC Australia chairman Jonathan La Nauze said “Natalie has made a remarkable impact on FSC Australia over the past three and a half years. Most significantly,

Natalie Reynolds

Jon La Nauze

the organisation has matured to the point that we have the capacity to develop a locally-owned national forest stewardship standard.”

Under Ms Reynolds’ leadership, there has also been consistent growth of FSC certification to more than 1.7 million ha of Australian plantations and forests and a 172% increase in product certification.

In her new international role, Natalie Reynolds has been tasked with leading a dedicated

Kim Carstensen

team in the creation of a strategy that will prepare the FSC to tackle the challenges of the next 20 years and assist the organisation in its mission to drive environmentally appropriate, socially beneficial and economically viable forest management.

“While we will miss Natalie at FSC Australia, we recognise that her strategic and transformation management skills make her the perfect candidate for this important new position,” Mr La Nauze said.

“The board has begun the process to recruit Natalie’s successor and we’re committed to ensuring a comprehensive handover of the FSC Australia CEO position can occur. We look forward to making further announcements in due course.”

At the FSC general assembly last month, FSC members delivered a clear mandate to develop a more efficient organisational set-up and governance model.

Mr La Nauze said Ms Reynolds’ role would help formulate a clear way forward for the FSC to tackle the many challenges it faced and continue to thrive in the many global markets where it operated.

The transition will begin from January 1, 2015, and Ms Reynolds will remain based in Melbourne while working fulltime in the new position with FSC International.

Directors will be elected on their range of skills and expertise

From P 3

then four would step down in the first year and four would remain in the second year when another four would be elected – a two-year rotation.

Timber NSW has launched a new logo, website (www.

Wood Protection

®

timbernsw.com.au under construction) and outreach materials.

While continuing to work effectively with state and federal governments to inform policy, Timber NSW will now also seek to boost communications

with stakeholders and increase public education about the role of sustainable forestry in the management of the state’s native forests and national parks.

“For most people, the distinction between hardwood

and softwood is not a major focus,” Maree McCaskill said.

“What is important is that the timber industry as a whole charts a sustainable, innovative course and remains a major regional employer in New South Wales,” she said.

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OCTOBER 20, 2014 | PAGE 7

EVENTS

Sydney forum got us thinking

But be a disruptive thinker, says Mark Bouris

By JIM BOWDEN

A QUALITY program and a quality audience .. the Forum for the Future event in Sydney on October 10 got people thinking.

More than 90 delegates filled the theatre at the Maritime Museum, representing a broad spectrum of the forest sector – industry leaders, government officials, foresters, sawmillers, timber merchants, educators, architects, specifiers and wood engineers.

A solid audience, for sure, but the forum – especially the speakers – deserved greater industry support.

The quality of the program can be gauged by the eager questioning of speakers beyond forum closing time.

These included Ken McBryde, lead design at Hassell Studio, Sydney; Daryl Patterson, head of operational excellence, Lend

His low-cost philosophy appealed to the middle- and working-class of the Bouris heartland (Punchbowl, Sydney) and Wizard blossomed into the

Quality program and a quality audience Forum speakers .. Daryl Patterson, Ken McBryde, Mark Bouris and Ross Hampton.

Lease Property, Ross Hampton, CEO, Australian Forest Products Association – and ‘wild card’ presenter Mark Bouris, chairman of Yellow Brick Road, a wealth management company.

Mr Bouris captured the imagination and thinking of delegates, pacing the stage, gesticulating to express nonstop points of view and refusing point-blank the warning that his

speaking time was up.

But the riveted audience was OK with that.

In fact, Mark Bouris probably has ignored a lot of warnings and has walked his own road.

His Yellow Brick Road has evolved beyond Wizard Home Loans the mortgage company he set up in 1996 that challenged the way Australia’s big banks run the market.

country’s second-biggest home lender. In 2004, he sold the business for a staggering $500 million to GE Money.

Encouraging the audience to think was fine with Bouris. He says he’s a thinker. Not much of a planner, he will tell you, but he has big ideas. Hundreds and hundreds of them. All the time.

Bouris likes to call himself a disruptive thinker – not an entrepreneur, but a thinker who challenges the norm. Now with

Do you import or process timber products?

Legislation to promote the trade in legally logged timber is now law.

If you are a business importing timber or timber products into Australia or processing domestically grown raw logs, you need to be aware of your new responsibilities.

From 30 November 2014, you will need to undertake due diligence to minimise the risk that the timber you are importing or processing has been illegally logged.

The department recognises it may take time for some businesses to transition to the new requirements. For this reason, for the 18 months following the regulation’s commencement, the department’s focus will be on helping importers and processors to comply with the regulation requirements.

To find out more visit agriculture.gov.au/illegallogging or call 1800 657 313.

PAGE 8 | OCTOBER 20, 2014

Cont P 10

Forestry sector welcomes $100m R&D program

THE two major national bodies in the Australian forestry sector have welcomed the launch of a federal $100 million rural research and development grants program, announced by the Minister for Agriculture Barnaby Joyce.

CEO of the Australian Forest Products Association Ross Hampton was pleased to see that the program covered the industry, which employs around 80,000 people and is the third largest manufacturing industry in Australia.

“The forestry sector covers the growing, processing and distribution of wood fibrebased products and sits at the interface between agriculture and manufacturing,” Mr Hampton noted.

“It is good to see the new program extends beyond the farm-gate and has a strong focus on supply chain and markets, as well as other key R&D activities.”

Applications for first round close on December 15 The new program is only open for applications from the 15 rural research development corporations, including Forest and Wood Products Australia, and will require at least 50% contribution in cash and in-kind.

Managing director of FWPA Ric Sinclair said that his organisation had already been canvassing potential investment partners across Australia.

“While this is a competitive grants program, we are hopeful that we will be able to submit a number of projects that will meet the stated criteria,” Mr Sinclair said.

Applications for the first round

INDUSTRY NEWS

Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 16000 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday!

Barnaby Joyce .. sector key driver of economy.

of funding close on December 15. Any potential R&D investors that wish to partner with FWPA should make contact with Ric Sinclair as quickly as possible.

The Commission of Audit had earlier this month recommended the abolition of sector-specific R&D programs and urged a reduction in support for rural R&D corporations to “better reflect the mix of private and public benefits”.

The National Farmers Federation had warned the federal government that breaking its promise for agricultural R&D would “undermine” the sector’s importance to the economy.

The money will be made available over four years for a competitive grants program to deliver “cuttingedge technology and applied research”.

Mr Joyce said despite the “dire fiscal environment”, the funding showed the government’s commitment to support the sector as a key driver of the economy.

Biosecurity and quarantine systems will receive $20 million over four years to enable response to import and export issues.

HEAD OFFICE Correspondence to Custom Publishing Group PO Box 569 Ormeau QLD 4208 Phone +61 7 5547 6547 PUBLISHER Dennis Macready Phone +61 7 5547 6547 dennis@industrye-news.com

EDITOR AT LARGE Editorial correspondence to Jim Bowden PO Box 330 Hamilton Central QLD 4007 Mobile 0401 312 087 cancon@bigpond.net.au ADVERTISING Phone Dennis +61 7 5547 6547 dennis@industrye-news.com

Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising. The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher - Custom Publishing Group.

OCTOBER 20, 2014 | PAGE 9

INDUSTRY NEWS

‘I love the warmth and touch of wood. You can’t relate that to the touch and coldness of concrete and steel’ From P 8

Yellow Brick Road he again aspires to challenge the big players and snare what market share he can.

“Australia’s banking structure is financially stable but seriously uncompetitive and unfair,” Bouris says. He’s not taking the banks on and he’s not asking the government to help him out.

Instead, he just wants to build a company that gives consumers a better deal and makes money for everyone.

The way he does that is through hard work. “I’m not a driven person. I just work hard, that’s all. And that comes from watching my parents work hard.”

Bouris admits he pushes his employees and expects them to fit into his culture – if it’s not for them, no hard feelings. Next!

Asked about the point of view of government policy and what can be done to enhance

From tree roots to beetroots .. Col Dorber, a former CEO of the NSW Forest Products Association (left) says he has ventured into fruit and vegetable canning. Now director of Queensland-based Colin Dorber Consulting at Regency Park, he is pictured at the TABMA Australia dinner in Sydney with Michael Swan, director, Swan Le Messurier, Sydney, and Peter Hutchison, state manager NSW, Victoria and WA, MiTek Australia Ltd, and president of TABMA Australia.

competition, regulation and wealth creation, Bouris replies: “Nothing. I don’t expect them to do anything and they’re not going to do anything. They’re going to talk about it, but they won’t do anything. It’s up to enterprising people and organisations and investors to do something.

Government should not interfere.

They shouldn’t change the way

info@forestry.org.au | www.forestry.org.au PAGE 10 | OCTOBER 20, 2014

the market operates. It should be up to people to recognise there’s an opportunity, take the risk, drive the opportunity and make money out of it.

Bouris also admits he knows very little about the timber industry. But it’s an industry that has amazing potential and a future, he says.

“I love the smell, the warmth and the touch of wood,” he says “And I use it all the time. Now you can’t relate this to the touch and coldness of steel and concrete.”

He adds: “But you’ve got to really fight as an industry – never, never let up. Push the virtues harder.

“If you’re in the ring then fight.

If you’re in the ring with me and you don’t fight then biffo. If you want to stand still then get out of the ring and just watch.”

Be a disruptor in an industry and the challenger, he says.

“The biggest asset you have is your time and ability to work in a business. If you’re willing to invest that, you want the return. Value your time, expertise and ability to grow and lead a business.

“Keep assessing markets.

Markets change and move.

Know your marketplace.

“Be fearless not reckless.

Fearlessness needs to be knowledgeable.

An understanding of your market combined with fearlessness will make you tough to beat – and

the competition should look out!”

Bouris continues to move on.

He told the Sydney forum that he wants TZ Ltd, the struggling lock technology company he chairs, to roll out post boxes this year that can be controlled via smartphone.

Since he took over a company that was close to administration as executive chairman in 2009, TZ has deployed its technology in data centre cabinet locks for a string of large, securityconscious government agencies and corporations, and in post lockers via national postal services to receive goods bought online.

They include Singapore Post, IBM, Amazon, Cisco, and the Italian and Indonesian postal services. Two weeks ago it won a contract to supply lockers to a global US-based logistics company.

Australia Post, whose digital mailboxes are popping up near businesses around the country, is a notable exception.

TZ demonstrated the original concept to Australia Post, but was too small to tender to supply its parcel boxes at the time. So it is now competing with Auspost through rivals such as TNT. “The way e-commerce gets delivered to a box station needs to be supplemented with the rollout of a home-based system, that’s the big revolution,” Bouris says.

“This calendar year is the time to start doing it.”

TZ makes its money from annual fees charged to its data centre and postal clients, but it envisages charging for its home parcel boxes as a monthly fee like a mobile or internet connection.

“It is really important, because that is an annuity business and that’s where shareholders get real value,” he says. “With all the governments we service around the world, we do charge an annual annuity, but this business is annuity [from] consumers, that’s very scalable.”

TABMA AUSTRALIA DINNER

Timber merchant tracing back to 1846 judged Member of Year Big celebration at TABMA gala dinner in Sydney

By JIM BOWDEN

A RETAIL timber merchant connected to a fifth generation building products and hardwood company that traces back to the 1800s and the construction of Sydney’s first horse-drawn trams was named Member of the Year at the TABMA Australia gala dinner in Sydney.

The award was presented to Steve Willis, NSW area manager for Hudson Timber Supplies,

by TABMA president Peter Hutchison.

The company’s long and illustrious history began when William Henry Hudson set up business in 1846.

Hudson’s growth accelerated when one of Sydney’s highest retention advertising slogans ‘Udson with a Haitch’ was

Recognition ..

TABMA Australia president Peter Hutchison (left) presents TABMA’s Member of the Year Award to Steve and Roslyn Willis, representing Hudson Building Supplies, Sydney.

developed in 1975. In 2003 the business name changed to Hudson Building Supplies Pty Ltd. In November 2010, Hudson was acquired by Crane Distribution Ltd, part of the Crane Group. In March 2011, the Crane Group was acquired by

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Fletcher Building, and in October this year it was sold to the Home Timber & Hardware Group (HTH), a wholly owned business of the home improvement joint venture between Woolworths Ltd and Lowe’s Companies Inc. With a strong footprint in timber and building materials, Hudson

Building Supplies has branches across New South Wales and southeast Queensland, a milling and moulding plant and a frame and truss operaton.

250 guests celebrate at Dockside More than 250 guests celebrated at the TABMA dinner, which was held at Dockside, Cockle Bay, on October 10.

Special guest speaker was Liberal senator for New South Wales Bill Heffernan.

The TABMA dinner followed the Timber NSW forum held at the National Maritime Museum on Darling Harbour (see report, Page 8).

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OCTOBER 20, 2014 | PAGE 11

TABMA AUSTRALIA DINNER

Enjoying the fun at Dockside .. Andrew Hurford, managing director, Hurford Hardwoods, Lismore, NSW (Timber NSW chairman), Ross Hampton, CEO, Australian Forest Products Association, Bill Heffernan, Liberal Senator for New South Wales, Miriam Dixon, CEO, Parkinson’s NSW, and Selwyn Black, Carroll & O’Dea, business lawyers, Sydney.

Lexie Hurford, Hurford Hardwood, Lismore, NSW, chats with Michelle and Paul Michael (chairman of the Timber Development Association and CEO Weathertex).

Catching up at the TABMA dinner are Craig Davies of ITI and Ian and Robyn Halliday (ex Harper Timber).

Being a TABMA member gives you: • Group buying discounts • Assistance with the placement of trainees & apprentices • CoC certification advice • Industry specific staff recruitment at competitive rates • National networking opportunities • An exclusive trade credit insurance plan • Technical advice and assistance • Industrial relations advice • WH&S audits • Annual Timber Industry Dinner Call 1800 822 621 for membership enquiries PAGE 12 | OCTOBER 20, 2014

Promoting the Chile Expo at the TABA dinner .. Nicolas Birrell, ProChile, Silvana Gattini, senior trade commissioner, Embassy of Chile, Sydney, Garth Smith, John Cook and Sons, and John Halkett, general manager, Australian Timber Importers Federation.

On side at Dockside .. Michael Gaske (Ozline Timber and TABMA Queensland chairman) and Carol Gaske with Alicia Oelkers, state manager, TABMA Queensland.

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INDUSTRY NEWS

NZ export log prices lift again as Chinese buyers test market

NEW Zealand based primary industry analyst Agrifax says the forestry sector is performing strongly, and exports this year have been setting high marks for both volume and value.

In particular, China’s demand for wood has led to massive shipments of New Zealand logs.

During the third financial quarter, New Zealand’s log exports to China were more than 3 million cub m, a 40% yearon-year increase, and made up 71% of New Zealand’s total log exports.

Over the past month, prices have reached their highest levels yet, with A-grade logs fetching $NZ114 a tonne, delivered to the wharf gate. This 23% year-onyear rise is the driver for most other rises in export log prices, Agrifax analyst Ivan Luketina said.

“Though the export prices

China’s demand for wood has led to massive shipments of New Zealand logs.

this year have not spiked to the same height as in 2011, the consistent performance means export values have been higher for longer,” Mr Luketina said.

“The average A-grade price delivered to the wharf this year has been an average of $NZ109/ tonne, compared to an average price of $NZ96/tonne for the whole of 2011, and $NZ86/tonne in 2012.

The value of log exports in the first three quarters of this year have reached just under $NZ1.7 billion – greater than the previous record of $NZ1.65 billion of log exports during the whole of 2011.

Chinese importers have resumed log buying after a glut of inventories on Chinese ports pushed down prices. China is New Zealand’s largest log market and wood is the nation’s thirdlargest commodity export.

New Zealand returns in the past two months have been bolstered by a decline in the value of the kiwi and cheaper shipping charges as a result of increased capacity.

“There has been an increase in buying as importers try to take advantage of the lower price but construction activity definitely seems to be down over there,” said Mr Luketina who visited China for the Global Timber and Wood Products Trade Conference last month.

“A lot of importers over there basically speculate on price so once they see that the log price had got to where they saw as the bottom, they started buying again so they would have the inventory at the lower price so they can make a margin on it when prices start rising again.

“The prices could be supported at this level now.”

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OCTOBER 20, 2014 | PAGE 13

INDUSTRY NEWS

PEFC nod to certification scheme lifts Indonesia’s forest credentials

From MICHAEL BUCKLEY

INDONESIAN forests, home to some of the most biologically diverse forests in the world, can now benefit from credible, globally recognised sustainable forest management certification following the endorsement of the Indonesian Forestry Certification Cooperation (IFCC)

by PEFC, the world’s leading forest certification system.

“This endorsement signifies a turning point for Indonesia, a country which is still struggling with combating high deforestation rates,” the secretary-general of PEFC International Ben Gunneberg said.

“Forest certification represents an important mechanism to verify and promote sustainable forest management, thus safeguarding the environmental, social and

economic benefits that forests provide,” he said.

“This is especially important in a country like Indonesia given the significance of its forest resources both in terms of protecting its invaluable biodiversity and its contribution to the livelihoods of the millions of people that depend on forest resources to make a living.”

With more than 50% of Indonesia’s land area forested, the country’s rainforest is the third largest in the world. It is considered one of the five most species-rich countries globally, home to about 10% of all known species of plants, mammals and birds.

It is estimated that 80 million Indonesians rely on forests for their livelihood. Responsible management of the country’s forest resources are also important from an economic

Ben Gunneberg .. a turning point for Indonesia.

point of view: smallholders and industrial forestry operators, along with pulp and paper producers, depend on forests, and contribute about $US$21 billion to the economy – around 3.5% of Indonesia’s GDP. More than 4 million people are employed by this industry.

“PEFC forest certification enables people to choose good wood, wood that comes from forests that have been

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independently verified as sustainably managed,” Mr Gunneberg said.

“We encourage companies and consumers alike to opt for PEFC-certified products to support forest owners in Indonesia that manage their forests sustainably,” emphasised Dradjad H Wibowo, chairman of the IFCC. “Finding the right balance that protects forests and the people who depend on them is critical to achieving long term sustainability. We have benefitted from the involvement of a wide range of stakeholders in the development of our national forest certification system towards this ambitious goal, and the endorsement

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INDUSTRY NEWS

Hard harvest looms in Tasmania Sector looks elsewhere to fill forest contractor shortfall

HUNDREDS of thousands of hectares of hardwood plantations are about to come online for harvesting in Tasmania, but the industry is struggling to find enough forest contractors.

The sector fears forest contractors will be brought in from New Zealand or interstate to meet the demands of the industry.

About 90 contractors took exit payments from the federal government two years ago to leave the native forest industry as part of the now defunct forest peace deal.

Colin McCulloch, who worked as a contractor for 40 years and used to head the Australian Forest Contractors Association, told the ABC it was a deeply frustrating situation.

“We’ve got really good Tasmanian businesses that may just have to sit and watch someone else come into the

Mr McCulloch said the exit scheme was poorly thought out.

“They are unable to participate in any forestry process for 10 years even though they were only ever exited for the native portion of their business,” he said.

Contractors can buy their way back into industry Running out ..Tasmanian industry may ‘import’ forest contractors.

state and do it,” he said.

“You’ve got this burgeoning prospect, we’ve got a shortage of contractors, we’re under subscribed and we’ve got really good Tasmanian businesses that may just have to sit and watch someone else come into the state and do it, it’s ridiculous,” he said.

Contractors who took the second round of exit payments from the federal government

cannot return to the industry for 10 years due to their deed of agreement.

Mr McCulloch said it meant highly qualified Tasmanian contractors would miss out on the work.

“Companies are going to get those workers from somewhere whether it be New Zealand, Victoria, Queensland or whatever – and it just doesn’t make sense,” he said.

New Forests, which bought Gunns’ plantation estate, has established a new company called Forico, which owns 100,000 ha of hardwood plantations that can yield two million tonnes of fibre annually.

Chief executive Bryan Hayes said at this time Forico was only able to harvest half of that.

“We are constrained at the moment at around one million Cont P 16

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PRODUCT NEWS

300,000 homes termite-free .. true Blue!

THE demands throughout Australia for Hyne treated timber are increasing – more than 300,000 homes using the ‘blue, red and green’ products have been built without a single report of any termite damage.

Hyne says the benefits of Hyne treated timber such as T2 Blue (T2 Red for areas north of the Tropic of Capricorn and T3 Green for external use) have been recognised across Australia.

Tim Masterton, purchasing manager with Sydney-based Masterton Homes, says the company has been offering Hyne T2 Blue to its customers since 2009,

‘We have a reputation to protect’ “We have a reputation to protect and therefore we want to use the best quality product

Jackie Porter-Kay .. a sustainable future.

to build and protect the ‘Australian dream’,” he said.

“We are a family-owned business and our target market is families.”

Mr Masterton said any increased cost using Hyne T2 Blue to build a home was very minimal compared to using untreated timber or continually having to treat for termites

Rural Research and Development for Profit The Australian Government’s Rural R&D for Profit programme is now open for applications. Applications close at 11.59 pm on 15 December 2014.

The Rural R&D for Profit programme aims to realise productivity and profitability improvements for primary producers through: • generating knowledge, technologies, products or processes that benefit primary producers • strengthening pathways to extend the results of rural R&D, including understanding the barriers to adoption • establishing and fostering industry and research collaborations that form the basis for ongoing innovation and growth of Australian agriculture.

Research projects must address one or more of the research priorities, which fall into four areas: • Increase the profitability and productivity of primary industries • Increase the value of primary products • Strengthen primary producers’ ability to adapt to opportunities and threats • Strengthen adoption and improve information flows The full list of priorities can be found in the programme guidelines at www.fwpa.com.au. The programme guidelines require Research and Development Corporations, including FWPA, to be the contracted party for administration of funds awarded under this programme. Project proposals require a minimum of 50% co-investment (cash and in-kind) by researchers and project collaborators.

FWPA invites potential research providers and project collaborators interested in developing proposals for this funding opportunity to make contact with Chris Lafferty, FWPA RD & E Manager via (03) 9927 3220 or chris.lafferty@fwpa.com.au as soon as possible to discuss potential submissions. Final proposals will need to be received

by FWPA by 21 November to allow for FWPA review and Board endorsement.

PAGE 16 | OCTOBER 20, 2014

every year.

“Treatments only go so far and the only real protection for timber is to treat the timber itself.”

Hyne’s NSW and ACT region manager Jackie Porter-Kay said ever since 1882 Hyne Timber had been successfully leading the way in terms of innovation, customer needs

and a sustainable future.

“The position of the company in 2014 maintains the same vision,” Ms Porter-Kay said.

“NSW companies such as Bay Timber at Beresfield only supplies T2 Blue and has been instrumental in converting its major builders such as Eden Brae Homes, Metricon Homes and Montgomery Homes.”

The Hyne Timber range of structural, engineered and industrial timber products include a variety of termiteresistant timbers that are guaranteed against termite damage for 25 years.

Hyne T2 Blue is manufactured in Australia using Australian plantation pine.

The H2F treatment is an envelope treatment that repels termites using the same chemicals used in flea collars and other insect repellents. It is totally non-toxic to mammals and can be cut, notched and disposed of in normal landfill.

Repaying exit money an ‘unrealistic’ expectation From P 15

tonnes by the capacity to harvest and transport,” he said.

In the next 12 months Forico is planning to spend $14 million in upgrades at the former Gunns’ mills at Hampshire in the state’s northwest and Longreach at Bell Bay. Mr Hayes said it would allow the company to double its output, but only if it could source enough contractors.

“At the moment we see a significant problem and a significant disadvantage in front of us if something can’t be done in the next 12 months,” he said.

Meanwhile, the federal government will allow contractors to buy their way back into the industry, but only if they repay their exit money.

Ken Padgett, a director of the Forest Contractors Association, said it was an unrealistic

expectation because the exit payments barely covered contractors’ debts.

The Parliamentary Secretary for Agriculture Senator Richard Colbeck has said the government was open to negotiations.

“I’d invite contractors who are interested in buying back in to come and talk to my department, have those conversations, but look it might not be viable for some,” he said.

Tasmania’s Minister for Resources Paul Harriss said he was in discussions with contractors and Canberra about the problem. He said there was a positive side.

“The light on the horizon of course is the confidence of people who have taken exit packages to want to get back in,” Mr Harriss said.

So far, only one contractor has paid back his exit funding.

HOUSING

ABS building recovery figures show activity now at its highest in 20 years NEW building activity figures released by the ABS show that the home building recovery has brought activity to its highest in 20 years.

“Back in early 2012 when activity was so low, the prospect of breaking through 180,000 starts within a couple of years was beyond almost everybody’s most optimistic expectations,” HIA senior economist Shane Garrett said.

“There is, however, no avoiding the downside apparent in the ABS figures. The multi-unit dwelling segment saw a sharp fall during the second quarter of this year, with detached house building also nudging down a little.

“On the renovations side, the volume of work done also fell, with a 3% reduction in activity during the June 2014 quarter.”

During the June 2014 quarter,

new housing starts totalled 45,527 in seasonally-adjusted terms. Despite representing a 6.9% decline on the previous quarter, the figures mean that total starts during 2013-14 was 180,833. This was the highest12month total since March 1995.

During the June 2014 quarter, detached house commencements slipped by 1.1% while other dwellings (multi-units) saw a 15% cent slide in seasonally-adjusted terms.

The new HIA Australian Economics Housing Report estimates that about 186,000 new dwellings will be required annually between now and the year 2050.

“Even in such a strong upturn, we are still short of this requirement today,” Mr Garrett said.

“This is a stark illustration of the serious supply-side issues

which will need addressing.”

Mr Garett said a number of factors continued to plague the capacity of the new home building sector. These included high taxation, stamp duties, planning restrictions, and delays in making residential land available.

“Failure to tackle these constraints will mean that the ability of the industry to provide for Australia’s long-term housing requirements will continue to be seriously undermined,” he said.

During the June 2014 quarter, new home starts declined in most states. These included New South Wales (-12.3%), Victoria (-3.3%), Queensland (-1.3%), South Australia (-1.7%) and the ACT (-48%). Three states saw building commencements rise during the quarter, namely Western Australia (+2%), Tasmania (+28.7% and the Northern Territory (+18.3%).

Master Builders Australia is also confident that the recovery in residential building is on track.

The latest ABS figures confirm a solid ‘first phase’ upswing in dwelling commencements took root in 2013-14, with over 180,000 starts nationally,” chief economist Peter Jones said.

186,000 dwellings required annually out to year 2050 “In line with Master Builders’ expectations, Australia is on track to top the record for annual starts sometime in 2015.”

In seasonally adjusted terms, there was a 7% fall in dwelling commencements in the June quarter. This is likely to reflect timing issues affecting the flow through from approvals into starts.

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OCTOBER 20, 2014 | PAGE 17

INTERNATIONAL FOCUS

MOU assures future Canada-China trade for wood-frame construction ANOTHER Chinese province has signed a memorandum of understanding with the Canadian province of British Columbia to increase the use of wood-frame construction.

Forests, Lands and Natural Resource Operations Minister Steve Thomson says the agreement enhances cooperation and communication between the two governments.

Trade shows secure new investments “The agreement with the province of Jiangsu is an opportunity to apply woodframe construction which the Chinese accept as energyefficient and reducing carbon emissions,” Mr Thomson said.

New investment .. Canada exploits China demand for wood-frame construction.

“Benefits of the partnership include wood-frame construction research, exploration of suitable locations for wood-frame building applications for Jiangsu province, joint promotion of wood-frame construction, and enhanced government and industry exchanges.

The agreement was signed

by Mr Thomson and Zhou Lan, Jiangsu’s Minister of Housing and Urban-Rural Development,

PAGE 18 | OCTOBER 20, 2014

which develops and implements policies related to housing and the overall development of the real-estate sector.

In China, a memorandum of understanding is the first step toward increasing commercial activity.

The MOU is the latest advancement of a relationship dating back to 2008, when Forestry Innovation Investment China and Canada Wood China first worked in Jiangsu

Province, collaborating on a series of wood truss roof renovations in the Baixia District of Nanjing.

Mr Thomson made the announcement during the 2014 Forestry Asia Trade Mission.

These missions secure new investment, propelling economic activity and job creation throughout the province.

“The fact that China is moving towards greener building policies is a win for British Columbia’s forest sector, since wood-frame construction is more environmentally friendly, more energy efficient and leaves a smaller carbon footprint,” Mr Thomson said.

“Jiangsu is well-positioned to succeed since two of their universities include woodframe construction in their curriculum.”

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Mob: 0401 312 087 OCTOBER 20, 2014 | PAGE 19