6355
AFS/01-10-01 www.forestrystandard.org.au
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issue 104 | 30.11.09 | Page 1
On dangerous ground Logs shortfall could have a devastating impact on Australian industry: HVP chief By JIM BOWDEN
DESPITE the 2020 Vision, the large amount of capital raised by management investment schemes and the almost doubling of the plantation estate from 1 million ha in 1994 to 2 million ha in 2008, Australia’s area of softwood plantations remains virtually unchanged. “The plantation area has only increased by 130,000 ha in 14 years – less than 10,000 ha a year,” the chief of HVP Plantations Linda Sewell said in a sobering presentation at the Forest Futures conference in Canberra last week. “The tide is turning; there is no longer a surplus of logs, specifically long rotation softwood logs. In fact, it’s quite the opposite.” Want more logs?
Long climb .. industry faces significant challenges from shortfall in log supply.
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“Sorry, there are no more. You will need to wait 30 years,” Ms Sewell told conference delegates. “I would hazard a guess that over 90% of the national estate is already committed to customers under medium to long-term supply contracts.” Ms Sewell said although the national plantation estate had been growing, it had predominantly been in short rotation hardwood, and his had not helped the large amount of processors committed to long rotation softwood. “They need to expand to remain competitive. To expand, they need more logs.” Ms Sewell said foresters for a long time had known that the national plantation estate had Cont Page 12
This Issue • Credible and recognised certification in Australia a ‘must’ • Coalition delivers on CPRS amendment
Futures 2009 conference big voice for industry • Federal body warns against high emission panel products • Homebush Bay Timbers: special feature • Get on the bus! Industry tour selling out fast
Forest
issue 104 | 30.11.09 | Page 1
industry news
Energetic sessions cover full gamut of industry issues at Forest Futures
Stakeholders mix with government and union leaders By JIM BOWDEN
WHAT do you get when more than 300 industry stakeholders rub shoulders with powerful politicians and trade union leaders and, yes, a few disruptive ‘green’ antagonists? An awful lot of attention on issues that matter to the future of the timber industry. The Forest Futures 2009 Conference and Industry Liaison Dinner in Canberra over three days last week attracted delegates from every state and New Zealand and from every corner of the industry – company CEOs, peak national and state organisation chiefs, sawmillers, foresters, plantation owners, timber communities, merchants, contract loggers,
Michael Hartman, CEO, ForestWorks (right) thanks sessions speakers Kayt Watts, chief executive, Australian Forestry Standard, and Senator Richard Colbeck, Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry.
trainers and academics. “Quite frankly, the conference and dinner were high-risk activities, but we got the numbers – and more than 280 at the industry liaison dinner,” said Michael Hartman, chief executive of ForestWorks, which presented the conference at the heritage-listed Hyatt Hotel Canberra, located in the national capital’s Parliamentary Triangle. “It is clear that more industry members than ever truly get the importance of taking a united voice to governments on key issues,” he said. “While we are able to easily communicate and share ideas electronically with industry here and across the globe, there is no substitute for the faceto-face contact and personal interaction of conferences such as this.” The energy at all conference events was truly palpable. With an election year looming, we can be sure ForestWorks won’t be waiting more than 12 months to stage a similar event
Page 2 | issue 104 | 30.11.09
in 2010. A conference ‘warm up’ on November 23 – an industry briefing on government policies on climate change and the industry standpoint ahead of Copenhagen – was followed by two intensive days of conference sessions looking at resource and investment, forest certification schemes, pulp and paper industry strategies, employment opportunities and a lively panel discussion on the Green Building Council – The Good, Bad or the Ugly? Events peaked with a bang last Tuesday evening when 280 delegates shared tables with government ministers, senators and MPs from both sides of the House at the NAFI-sponsored industry liaison dinner in the Great Hall at Parliament House. Keynote speaker Tony Burke, Federal Minister for Forestry, gave a very pro-forestry presentation praising the industry’s sustainability and its economic importance and the ability of wood to store carbon in an era dominated by climate change. “We appreciate that the carbon sequestration of a tree is just as great when it is lying down as when it is standing up,” he said. The Minister referred to the need for ‘fair’ dealings on forest certification and the outcome of the Primary Industries Ministerial Council meeting that supported equal recognition of credible forestry certification schemes. Organisations such as the Green Building Council of Australia must recognise good sustainable forestry practices promoted by the Australian Forestry Standard [AFS]. Cont Page 3
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INDUSTRY NEWS
Economics of good, sustainable forestry practices must be recognised: Tony Burke From Page 2
Mr Burke endorsed Victoria’s proposal to require governmentendorsed procurement and sustainability guidelines to give equal recognition to credible forestry certification schemes. The Minister said he was aware the clock on RFAs was ticking and it was important industry took a position on the outcome before the deadline. “It’s a case of balancing economic outcomes. Wellmanaged forests like those in Tasmania’s regrowth show what can be done if you get the management right.” Mr Burke was loudly applauded when he confirmed key amendments by the Government to the CPRS Fuel Credit Scheme, which now sees forestry on an equal footing with agriculture and fisheries activities. (See Page 9) He said the Government was continuing positive dialogue with China and other Asian countries on the illegal logging issue and thanked the industry, particularly importers, for their support and cooperation on the issue.
In a vote of thanks, Michael O’Connor, national secretary of the CFMEU’s forestry division, said Tony Burke was a passionate and articulate forestry minister. “The industry must also be grateful of previous forestry ministers who have been supportive and passionate about forests and wood,” he said. “You must grasp and make full use of the opportunities presented by such leadership.” Organisers were prepared for possible intrusion of the conference by green groups that had gathered outside the Hyatt. Federal police maintained positions at entries to the conference which progressed without disruption. However, four members of anti-wood chip group Chip Busters slipped through Parliament House security and gave a raucous diatribe from the stage as guests entered for the industry dinner. They were quickly removed without incident.
Federal Minister for Forestry Tony Burke (right) presents the 2009 Commonwealth Forestry Award (Southeast Asia and Pacific) to Dr Jerry Leech for his contribution to forest leadership and education. Adding congratulations during the presentation at the Industry Liaison Dinner in the Great Hall and Parliament House are Bob Newman, OAM, vice-president, Commonwealth Forestry Association, and Michael Bleby, regional representative (Southeast Asia and Pacific), CFA.
Ken Fraser, CFMEU PPWD, and Denise Campbell-Burns, PPI OHS&E Unit take some time out from the Forest Futures 2009 conference..
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issue 104 | 30.11.09 | Page 3
Enjoying the Forest Futures conference .. members of ForestWorks’ Young Forest Leaders Program with Jenne Isles, teacher from Oakland High School (third from left) Adrian Coward, pathway and employment coordinator, ForestWorks Tasmania, and conference MC Tonya Roberts. Lexie Hurford, Hurford Hardwood, Lismore, NSW (centre), chats with Timber Community Australia representatives Val Ferris (Richmond/ Tweed branch) and Tony Wade (NSW state manager).
Doug Massey, Forest Enterprises Australia, Ian Telfer, WA Plantation Resources, Tony Price, NAFI, and Ric Sinclair, managing director, Forest and Woods Products Australia. Ready for the first session.. Richard Stanton, chief executive, A3P, Julie George, Hyne, and Rod McInnes, chief executive, Timber Queensland.
• • • • • •
• • • • • • • •
Page 4 | issue 104 | 30.11.09
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events
WHAT’S ON?
4: Bioenergy: Linking Biomass and Technology Conference, Taupo, NZ. Tel: Lesley Caudwell +64 7 343 5846 or email Lesley. caudwell@scionresearch.com 8-10: Bioenergy Australia 2009. Radisson Resort Gold Coast. Technical tour on December 8. Contact: Steve Schuck, Bioenergy Australia manager on (02) 9416 9246. Email: sschuck@bigpond.net.au
february 2010 3-5: Australian International Furniture Fair Sydney Exhibition Centre, Sydney, NSW www.aiff. net.au
MARCH 2010 2-3: National Outlook Conference (ABARE) Canberra, ACT. www.abare.gov.au 5-17: Industry bus tour of Northern New South Wales. Contact: Karen Johnston at TABMA Queensland. Tel: (07) 3254 3155. Email: karen@tabma.com.au 21: World Forestry Day 22: World Water Day
APRIL 2010 18-21: APPITA Annual Conference and Exhibition/Pan Pacific Conference Melbourne. www.appita.com.au
MAY 2010 19-20: Wood Supply Chain Optimisation 2010, Bayview Eden,Melbourne, 6 Queens Road, Melbourne. www.vafi.org.au 21-23: Timber and Working with Wood Expo, Brisbane Showgrounds, Fortitude Valley.
24-25: Wood Supply Chain Optimisation 2010, Rotorua, NZ. www.vafi.org.au
JUNE 2010 3-4: AFCA Conference and Trade Expo, Novotel Resort, Coffs Harbor, NSW. www.afca.asn.au 18-20: Timber and Working with Wood Expo, Sydney Entertainment Centre, Sydney.
JULY 2010 14-18: Interforest 2010 Trade Fair for Forestry Technology Munich, Germany. www.interfrost.de 26-27: Wood Energy 2010 (World Reducing Energy Costs & Improving Energy Efficiencies) Melbourne.
AUGUST 2010 25-28: International Woodworking Machinery and Furniture Supply Fair (IWF) 2010 Atlanta, Georgia, USA. www.iwfatlanta.com
SEPTEMBER 2010 3-5: Canberra Timber & Working With Wood Expo, Exhibition Park in Canberra. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 6-12: Landcare Week. www.landcareonline.com 8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.or 15-16: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design, Melbourne.
Rotorua, NZ.
OCTOBER 2010 10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000. 15-17: Melbourne Timber and Working with Wood Expo, Melbourne Showground, Melbourne. Contact: (02) 9974 1393. Fax: (02)9974 3426
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The National Association of Forest Industries (NAFI) is striving for an ecologically sustainable Australian society achieved through dynamic, internationally competitive forest industries.
Email: info@eee.net.au
NOVEMBER 2010 17-19: ForestTECH 2010 Tools & Technologies to Improve Forest Planning & Operations, Rotorua, NZ. 22-24: ForestTECH 2010 Tools & Technologies to Improve Forest Planning & Operations, Albury, NSW.
Get on the bus! industry tour seats filling fast SEATS on the industry bus tour of NSW Northern Rivers in March next year are filling fast. About 30 of the available 48 seats are now reserved.
The tour, organised by Brisbane Hoo-Hoo Club 218, and supported again by TABMA Queensland and Timber Queensland, will be over three days – from March 15 to 17.
Don’t miss this one! Tour cost, details and registration inquires should be directed to Karen Johnston at TABMA Queensland on (07) 3254 3155 or email: karen@ tabma.com.au
2009
20-21: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design
SUSTAINABLE. RESPONSIBLE.
2010
DECEMBER 09
Get on the bus!
NAFI’s mission is to represent the interests of members by promoting the environmental sustainability and the prosperity of Australian forest industries. National Association of Forest Industries Ltd (Est. 1987) PO Box 239, Deakin ACT 2600 Tel: (02) 6285 3833. Fax: (02) 6285 3855 Web: www.nafi.com.au
issue 104 | 30.11.09 | Page 5
Catching up at the Forest Futures conference are Stephen Hawkins, Australian Paper, Phillip Dalidakis, chief executive, VAFI, and Vince Erasmus, chief executive, ITC Ltd.
Russell Ainley, executive director, NSW Forest Products Association, with ForestWorks representatives Sharmily Mukherjee and Antionette Hewitt, at the Industry briefing session on the Copenhagen climate change talks.
Sarah Gyopar, marketing and communications manager, FWPA, welcomes John Mills, forestry industry skills unit, TAFE, Orange, NSW, to the FWPA stand at Forest Futures 2009.
Page 6 | issue 104 | 30.11.09
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industry news
Michael Littlechild, ForestWorks, Melbourne, Colin McCulloch, president, Australian Forest Contractors Association, and Owen Trumper, HVP Plantations, Gippsland, Vic.
Michael Bleby, Millicent, SA, Bob Newman, OAM, vice-president Commonwealth Forestry Association, and Greg McCormack, McCormack Demby Timber, Dandenong, Vic, at the special climate change briefing sessions.
Chairman of the climate change briefing Michael Hartman, chief executive ForestWorks (centre) with, from left, NAFI contingent James Gray, communications manager, Danielle Bannon, office manager, and Allan Hansard, executive director, and Dr Bob Smith, forest consultant. Sharing a coffee break during conference sessions are Bob Pearce, executive director, Forest Industries Federation (WA), and Pat Martin, Timber Communities Australia, Perth.
Conferring on carbon and climate change are, from left, John Halkett, Australian Timber Industry Federation, Sydney, Lisa Marty, deputy director, Victorian Association of Forest Industries, Melbourne, Ron Gattone, managing director, Crescent Timber, Sydney, and Robert Owen-Jones, assistant secretary, multi-lateral negotiations branch, Federal Department of Climate Change.
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issue 104 | 30.11.09 | Page 7
David Drane, Australian Forest Contractors Association, Morwell, Vic, Travis Wacey, CFMEU FFPD division, Sue Richter, PPI SDU, Melbourne, and Zach Smith, CFMEU FFPD division.
Michael Hartman, CEO, ForestWorks, Melbourne (centre) with Ian Boyd, chief executive, Forest Industry Skills Council, New Zealand, and Robin Shreeve, chief executive, Skills Australia. The speakers addressed the session Employment Opportunities and Perspectives for Future Investments.
Enjoying a conference break are Les Baker, general manager of Gunns Ltd’s Bell Bay pulp mill project in Tasmania, Marcus Derham, chief executive Willmott Forests Ltd, and Jonathan Madgwick, chairman, Willmott Forests.
Meeting up with Mrs Bronwyn Bishop, MP, former Senator, at the Forest Industries Leadership Liaison Dinner in the Great Hall at Parliament House, are Bob Newman, OAM, vice-president, Commonwealth Forestry Association, Dr Jerry Leech, forestry systems practitioner and consultant (CFA regional award winner), and Michael Bleby, regional representative (Southeast Asia and Pacific), Commonwealth Forestry Association.
Breaking for lunch during the Forest Future conference are Tony Richardson, Trees Victoria, and Julia Levinson, executive officer, Timber 2020, Albany, WA.
Page 8 | issue 104 | 30.11.09
Trevor Brown, Timber Communities Australia, Bob Humphreys, president Victorian Association of Forest Industries, and David Drane, Australian Forest Contractors Association. Conference moderator Tonya Roberts makes presentations to pulp and paper industry strategy session speakers Michael O’Connor, national secretary, forestry and furnishing products division, CFMEU, Jim Henneberry, CEO, Australian Paper, and Dick Blin, International Federation of Chemical, Energy Mine and General Workers Union, based in Geneva. Mr Blin brought more than 25 years’ experience in the US and the global pulp and paper industry to the conference.
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industry news
Coalition delivers for forest industry on amendment to CPRS A KEY amendment to the CPRS Fuel Credit Scheme now sees forestry on an equal footing with agriculture and fisheries activities. The National Association of Forest Industries is delighted with the outcome of negotiations between the coalition and the Government on forestry amendments to the CPRS. “NAFI would particularly like to thank Senator Richard Colbeck who listened to the industry’s concerns and argued strongly for the amendments within the Coalition and got it on the negotiating table,” chief executive Allan Hansard said. “His efforts, along with those of Ian McFarlane [Shadow Minister for Energy and Resources] are greatly appreciated by the industry. “Obviously the final CPRS package was a negotiated
outcome and we are pleased we had bipartisan support for this amendment. In this regard, we are appreciative of the efforts of Tony Burke, Minister for Agriculture, Fisheries and Forestry, who championed this amendment within the Government.” Mr Hansard said this was an amendment for common sense; it would save the average forestry contractor around $14,000 a year. The original legislation excluded forestry from the CPRS fuel credit scheme, which amounted to a tax on off-road activities. “With agriculture, Australia’s second largest emitting sector being excluded from the CPRS, the forestry industry has an even greater role to play to help offset emissions from agriculture and other emitting sectors,” Mr Hansard said. Nick Connelly, Forestry Tasmania, Kay Gerard, WA Primary Industries Training Council, and Rob Rule, Timber Training Creswick, confer at Forest Futures 2009 in Canberra last week.
Gunns-ITC deal dashed PLANS by Tasmanian timber producer Gunns Ltd buy ITC Hardwood in a $100 million deal have been thwarted. The Australian Competition and Consumer Commission says it intends oppose the acquisition because it would substantially lessen competition for pulpwood in the northeast of Tasmania. Gunns announced the proposed acquisition in September and raised $145 million capital to fund it. The
Elders subsidiary had two sawmills in Tasmania and one in Victoria. It also owned half, with Forest Enterprises Australia, of a Bell Bay woodchip exporting business known as Smartfibre. ACCC says farmers and plantation owners would have faced lower prices if the acquisition had been allowed to proceed. The proposed acquisition would reduce the number of significant independent acquirers of hardwood pulpwood in the region from three to two.
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Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 6,000 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! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia Tel: +61 7 3392 9810 PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3256 1779 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready Tel: +61 7 3392 9810 production@industryenews.com.au
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issue 104 | 30.11.09 | Page 9
industry news
Federal body warns against use of high emission wood panel products
THE federal body responsible for the assessment and safe use of industrial chemicals has advised construction workers and wood panel users against the use of products that contain formaldehyde exceeding the low emission limits of E0 and E1. Products meeting E0 and E1 are considered safe in all applications including indoor and poorly ventilated applications. A new report by the Australian Government’s National Industrial Chemicals Notification and Assessment Scheme (NICNAS) has detailed the potential health hazards associated with formaldehyde exposure from pressed wood products that fail to meet low emission standards. “This notice is very comforting for the wood processing industry that for many years has battled against marketdamaging high emission imported products such as flat panel products that do not meet Australia’s low emission standards,” the general manger of the Engineered Wood Products Association of Australasia Simon Dorries said. “Independent routine testing
of imported panels purchased in the open market for formaldehyde emissions has shown a disturbing failure rate when compared to acceptable low emission limits but, more importantly, product is seldom branded to identify to the consumer low and high emission product as required by Australian Standards. Furthermore, some of the labeling claims which identify product as low emission are highly questionable. Mr Dorries said the EWPAA strictly maintained JASANZ accredited certification schemes that guaranteed its members’ factories complied with the Australian standards on low formaldehyde levels. The EWPAA carries out regular laboratory tests in its NATA accredited laboratories for formaldehyde emissions from all certified products manufactured in the Australasian region. The construction industry and users of wood components have been notified to refer to the NICNAS material safety data sheet before purchasing any pressed wood products. The Information Sheet No 30 issued in September, refers to Australian standards, labelling
Simon Dorries .. comforting news for engineered wood.
and product certification information available from the EWPAA. Pressed wood products are sheet materials in which wood is largely in the form of strips, veneers, chips, strands or fibres. The wood particles are bound together by glue which is commonly a formaldehydebased resin. NICNAS has identified pressed wood products as plywood for panelling, furniture and other products; particleboard for shelving, countertops, floor underlay, furniture and some laminated flooring; and medium density fiberboard (MDF) used for cabinets, furniture, doors and laminated flooring. Pressed wood products are
used in the construction of furniture, kitchens and flooring and are commonly used in caravans, mobile homes and demountable buildings. The current national occupational exposure standard for formaldehyde is 1 ppm 8-hour time weighted average (TWA) and 2 ppm short-term exposure limit (STEL). The NICNAS report recommends that the occupational exposure standard be lowered to 0.3 ppm TWA and 0.6 STEL, based on irritation of the eyes and nose. The Safe Work Australia Council, the agency responsible for setting national occupational exposure standards, is considering the recommended standard. The EWPAA maintains two NATA-accredited laboratories to test for formaldehyde emissions. Formaldehyde emissions for all EWPAA certified products are tested on a monthly basis. The schemes are accredited by the Joint Accreditation System of Australian and New Zealand (JAS-ANZ).
Be SURE about INSURANCE Trusted brokers to the timber industry since 1985
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Page 10 | issue 104 | 30.11.09
Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)
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industry profile: special feature
Timber industry icon back in business
Homebush Bay up and running under new ownership UNDER new ownership and up and running is the message from Homebush Bay Timber’s sales executive Scott Brechin. With 22 years in timber wholesaling and merchandising, Scott is a seasoned timber industry veteran. And he’s enthusiastic about the future of Homebush Bay Timber. “The company has been an iconic name in the NSW timber industry over many decades and we intend to extend that tradition,” he said. “We are delighted to say that Homebush Bay Timber is now well and truly back in business with a strong and diverse offering of timber products.” The product range at Homebush Bay Timber is quite diverse and includes Pacific maple, DAR mouldings and door jambs,
merbau, an extensive range of radiata Ezi-Prime internal and external products and more. Sales executive Alison Scott says she is also delighted to be part of the new Homebush Bay Timber sales team. With a background in the manufacturing and sales of high quality hand and machine turned wood products from a large variety of timbers, Alison is well suited to Homebush Bay Timber’s diverse product range. “Yes – while we are able to support merchants in supplying the residential home building and renovations market, one of our strengths and a point of distinction from others in the industry is our ability to support a range of timber-related business, such as joinery, cabinet making, windows and
door manufacturing and interior fit-outs with specialist timber species and customised milling service,” Alison said. She says the re-established Homebush Bay Timber is ready to support house construction and related manufacturing activity in New South Wales. “We consider ourselves to be one of the state’s leading timber suppliers, and we are now absolutely ready to satisfy a wide range of timber needs. “Give us a call – our product range and service will surprise you.” Homebush Bay Timber back in business .. sales executives Scott Brechin and Alison Scott.
We’re ready to provide your timber needs! Homebush Bay Timber is a leading supplier to merchants and manufacturing businesses in New South Wales
l l a c a s u e v
Contact: Alison Scott on 0448 447 420. Email: alison@hbt.com.au Scott Brechin on 0448 447 436. Email: scott@hbt.com.au
Gi
– our product range and service will surprise you
Homebush Bay Timber 5 Benson Road, Ingleburn NSW 2565 PO Box 336, Ingleburn NSW 1890 Tel: (02) 9625 8988 Fax: (02) 9625 8622
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issue 104 | 30.11.09 | Page 11
‘We need to plant trees now if we are to reduce the shortfall predicted in 2040’ From Page 1
to increase in size. “But until recently, it has only been an issue raised and understood by forest growers.” She said what used to be a forest grower’s strategic issue was now the issue for the extended supply chain. “Yes, issues of emissions trading, water and so on are critical for the processing industries in the supply chain. But, quite frankly, if there are no logs to start with, the remaining issues facing the industry become moot.” Ms Sewell went on to express why she believed there has been a complete and fundamental shift in the supply demand balance of logs in Australia: “The increase in demand is driven by both sawlog and pulp log. “It is now estimated that the housing stock deficiency built up due to low construction levels in recent years is now equivalent to about one year’s demand. “With increasing population, increased house sizes and changing demographics, this steady increase in demand is projected to continue with a projected shortfall of between 1 million and 2.5 million cub m a year by 2040. “And the domestic demand for pulp log has also increased.” Ms Sewell said pulp and paper manufacturers had been increasing their productive capacity to remain internationally competitive. Just in the last three years, there had been major upgrades at Norske Skog, Australian Paper’s Maryvale facility and Visy’s mill at Tumut. “All of these expansions require more resource,” she said. Why has there been no demonstrable growth in the estate in the last decade? Ms
Page 12 | issue 104 | 30.11.09
Speakers in the resource and investment session at Forest Futures 2009: Allan Hansard, CEO, NAFI, Vince Erasmus, CEO, ITC Ltd, Linda Sewell, CEO, Hancock Victoria Plantations, and Scott Whicker, manager of Kimberley-Clark Australia’s Millicent mill in southeast South Australia.
Sewell contends: Firstly, 75% of the estate is government owned. With competing priorities for public funds, it is challenging to maintain the estate, let alone increase its size; Secondly, it is almost impossible to get an acceptable return on building a greenfield plantation, given rising land values; Thirdly, whatever investment has been raised by the industry has been channelled towards shorter rotation bluegums. It is very hard for long run rotations to be as attractive as their shorter rotation counterparts. Hence the reason for the bulk of the national estate being in national hands; Finally, every year the national estate shrinks a little more in size through a raft of environmental or planning issues. “As an example, at HVP Plantations we lose areas every year due to compulsory acquisitions by local government, increased buffer
zones for environmental protection and urban encroachment,” Mr Sewell added. “And that’s without considering the areas that are uneconomic to replant. And then there is the loss of plantations to fire.” In the Black Saturday bushfires, HVP lost 16,500 ha of plantation; 10% of its estate was burnt in 12 hours. The trees ranged from newly planted to nearing maturity and everything in between. “That’s a lot of wood to lose and one which the industry will feel in about 10 years’ time,” Ms Sewell said. “Worse still, is the fact that some of the areas burnt will not be replanted; it’s simply uneconomic to do so.” Ms Sewell said the processing industry faced a significant shortfall which could have a long-term devastating impact on Australian industry, if not addressed. “We need to plant trees NOW
if we are to reduce the shortfall predicted in 2040. It is not an overnight solution.” Ms Sewell remains hopeful that government-led forums in place at the moment will find a way for government and industry to collectively solve the problem. But it will require: • A new investment model, quite possibly with government support. • A whole of government commitment to growing the estate given the environmental, water and planning conditions. • A visionary set of industry leaders who are prepared to work on the longer term in parallel to the short term achievement of results. Which ever way you look at it, it’s a worrying scenario; South American wood producers, encouraged by a strong Australian dollar, are positioned to fill Australia’s gap in supply – but at what cost to local industry? As the conference got under way last Tuesday, one of several shiploads of sawn timber products out of Chile’s port of San Vicente was nearing the east coast. Reports suggest significantly larger volumes of Chilean plywood and other engineered products are about to flood the market. San Vicente, only 18 km from the main forestry city of Concepcion, is one of a 25 ports stretching along Chile’s 6400 km string bean-shaped coastline. Chile has spent more than $US3 billion on ports works and infrastructure in the last 10 years. Latin America seems far away, but with just the Pacific Ocean separating Australia and Chile, we are practically neighbours – friendly neighbours after the signing in March last year of the Australia-Chile Free Trade Agreement.
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Certification a critical business issue
Endorsing sustainability credentials: Boral chief CERTIFICATION is becoming a critical business issue as specifiers and end-users become more aware of environmental and sustainability issues. But the ‘arrangement’ between the Green Building Council of Australia and the Forest Stewardship Council [FSC] is creating negative importation behaviour and confusion around Australian standards, says Bryan Tisher, executive general manager of Boral Timber. Addressing the Forest Futures 2009 session – GBCA and Forest Certification: The Good, Bad or the Ugly? – Mr Tisher said all parties must collectively decide on a constructive way forward on credible and recognised certification in Australia. “The Green Building Council of Australia endorses the FSC certification, which represents less than 5% of Australian certified forests,” he said. “Specification or requests for FSC timber in Australia will largely be supplied by imported product with higher carbon footprints.” He said more than 95% of Australia’s forests was AFS certified. This was the only certification scheme with an Australian standard – AS47082007: Forestry management and AS4707-2006: Chain of Custody. AFCS is linked to the world’s largest forestry certification scheme – PEFC. Mr Tisher gave examples where GBCA had promoted the use of imported timber over locallyproduced wood products. Boral Timber had installed a range of AFS certified products for a building project at Amberley Air Force Base in Queensland that had specified FSC products imported from Portugal.
Session moderator Jane Calvert, ForestWorks chair (second from right), makes presentations to Trevor Smith, AFS Ltd board member, Kayt Watts, executive officer, AFS Ltd, Alec Marr, Wilderness Society, and Bryan Tisher, executive general manager, Boral Timber.
In another project, FSC products were specified for a government office at Maroochy on the Sunshine Cost ahead of local AFS certified product to achieve Green Star rating. The project was seeking FSC certified material from China. “The decision was reversed to support indigenous product from Victoria, which cost the project considerably more in freight costs than if the timber had been sourced locally,” Mr Tisher said. “Queensland has now suspended the requirement of Green Star timber credits until the disadvantage against AFS products has ended.” In one of the worst examples of discrimination, a builder after installing softwood plantation AFS certified material on a government project was ordered to remove it from the site because it had failed to satisfy a 6-star GBCA rating.
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All the timber was replaced with FSC certified hardwood sourced from overseas, believed to be Brazil or Asia. Mr Tisher said Boral Timber, other timber companies and industry associations had made a number of representations to government, both federal and state, in an appeal for equal and fair treatment for AFS certification. GBCA is now under enormous pressure from state, territory and federal governments to recognise sustainable forestry practices in the domestic industry. The Primary Industries Ministerial Council, chaired by Federal Minister for Forestry Tony Burke, has advocated that the GBCA re-examine a green building rating system that discriminates against the Australian forestry certification scheme. In Queensland, the Department of Works has moved to include
the requirement of AFS certification in government contracts. Where to from here? Mr Tisher suggests: • Promotion of credible and recognised forest management and chain of custody certification should be the major focus. • AFCS is a credible, internationally linked certification scheme, certifying the bulk of Australian forestry that can contribute to a more sustainable future. • The GBCA/FSC arrangement is creating negative importation behaviour and confusion around Australian standards. A more positive local certification environment is possible. Boral is Australia’s largest building and construction materials supplier, with leading positions in USA and Asia. The company has 706 operating sites across 13 countries, employs 14,766 people and has an annual turnover of $4.9 billion. Boral Timber has presented numerous sustainability and chain of custody presentations to industry groups, architects and designers, stakeholder forums, conferences and customers to grow the awareness and importance of sustainable forestry management, wood production and usage. The company has entered into a partnership with television personality Jamie Durie to promote its sustainability credentials. “We will be leveraging the partnership to endorse our sustainability credentials through AFS certification,” Mr Tisher said.
issue 104 | 30.11.09 | Page 13
industry news
Gottstein reports focus on forest energy NEW Gottstein Trust reports released last week by chairman Peter Gunnersen focus on plantation forestry for bioenergy and biomass harvesting and energy in Scandinavia The report ‘Eucalypt Silvicultural systems: Plantation Forestry for Bioenergy and Solid Wood Production’ has been prepared by Jeremy Brawner, research scientist in the tropical production forestry group in CSIRO’s plant industry division at the Queensland Biosciences Precinct in Brisbane. The report summarises the findings of visits to the University of Florida and various companies in North America as well as plantations, processing facilities and research laboratories in Paraguay and Argentina. It seeks to identify and examine what has been learnt by North American forest managers on plantation forestry for bioenergy and solid wood production. The principal goal of the study was to gain a better understanding of alternative silvicultural regimes, processing methods and wood quality evaluation procedures that could be applied in the
replacing.
Jeremy Brawner .. eucalypt silvicultural systems.
Jorge Ramos .. forest biomass harvesting.
eucalypt plantation forest industry in Australia. The author points out the potential to increase the profitability of forest operations by increasing the recovery and use of residual biomass from thinning and harvest operations. The report ‘Sustainability and Operational Aspects of Forest Biomass Harvesting for Energy in Scandinavia” has been written by Jorge Ramos, resources forester with the Macquarie Region of Forests NSW, based in Bathurst. The report describes a study
tour of Sweden, Finland and Denmark to assess sustainability and operational aspects of forest biomass harvesting for energy generation. It discusses partnerships between forest owners and local governments, sustainable criteria for forest residue harvesting, planning procedures and supply chain recommendations. The focus in Scandinavia is on the assertion that use of forest biomass for energy generation should result in less greenhouse gas emissions than the fossil fuel energy systems that they are
The challenge is the production efficiency of bioenergy systems and the energy consumed producing, procuring and delivering the biofuel, and reduction in emissions is sought though innovation and efficient use of energy and resources throughout the whole energy chain. The author concludes with a series of recommendations for harvesting of residues from Australian planted forests. The reports are available for downloading from the Gottstein Trust website www. gottsteintrust.org Copies of the reports are available on CD format from Dr A. F. A. Wallis, secretary, J. W. Gottstein Memorial Trust Fund, c/o CSIRO Forestry and Forest Products, Private Bag 10, Clayton South, VIC 3169. Email: secretary@gottsteintrust.org. While there is no charge for access to these reports, a donation to the Gottstein Trust by those who are not already donors would be appreciated.
NZ forest owners: Kiwi deal an opportunity lost FOREST owners in New Zealand say pre-1990 forests are likely to be worth next to nothing because of the ETS. Owners have been landed with the massive liabilities of being part of the scheme, but can’t earn carbon credits. “Compensating iwi by giving them access to DoC [Department of Conservation] land to plant forests for carbon and wood recognises this fact, but iwi are the only ones getting this special compensation,” says Peter Berg, president of the Forest Owners Association. “It’s unjust, as well as being an opportunity lost,” he said. “The compensation will cost
Page 14 | issue 104 | 30.11.09
taxpayers hundreds of millions of dollars in real and opportunity costs. It will cost far more than the package the industry has been asking for: the right to offset these forests; to plant them somewhere else after harvest.” Mr Berg says that offsetting, if it was adopted before it was provided for in an international climate change agreement, would result in the government paying for the emissions resulting from deforestation on existing sites. But the government would get this money back as the offset forests grew on their new sites. “Providing offsetting would be a
win all round. It would provide a badly needed confidence boost for the forest industry and the long-run cost to the taxpayer would be small. Indeed, if the offset plantings were designed to maximise carbon storage, the government could actually make a profit on the transaction. “Instead, the government has chosen to give one sector of the industry free access to DoC land for planting and full ownership rights of the carbon and wood produced.” Mr Berg says it is important to recognise that iwi who didn’t get their forests as part of a treaty settlement won’t benefit
from the deal. They are in the same boat as other pre-1990 owners. “The only positive the industry can take from the deal is that the government has recognised the very real valuation issues relating to pre-1990 forests. “None of these forests have been sold since the detail of the ETS became clear. But if, as the experts expect, they have zero or very low value this is going to have huge effects on the balance sheets of many forestry companies. It is also going to create major issues for local bodies in forestry areas, when a major chunk of their rating base evaporates.”
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tabma annual dinner
TABMA Halloween night a howling success MORE than 200 ‘friends in industry’ kicked up their heels at a ‘monster’ dinner and dance at Brisbane’s Royal on the Park on Halloween Friday, October 31. More than anything – including an amazing magician and a hot dance band – the evening celebrated a unity among key stakeholders and executives from all sectors of the industry.
“It was an incredible night recognising not only the achievements of individual TABMA Queensland members, but the solidarity and resilience of our industry in a time when our unified voice is more critical than ever,” chief executive Karen Johnston said. ‘Monster’ sponsors were Thora Wholesale Timbers, Timber Queensland, Tasman KB
Catching up at the TABMA Queensland’s Halloween dinner and dance are West Hill, West Hill Consulting, Brisbane, and Charlie and Heather Henry of Charlie Henry Enterprises Pty Ltd, Gold Coast.
Troy and Angie Baker, Peachester Timber, and Lynn and Dave Wuiske, Langs Building Supplies.
and NTP Forklifts. ‘Mummy’ sponsors were Asian Pacific Timber Marketing, Gow Gates Insurance, DPR Hardwood (Ford Timbers), Tilling Timber, and AWX. Lucky door prizes went to Diane Dunshea of Manufacturing Skills (portable DVD player sponsored by Tilling Timber) and John Borg of Lindsay Meyers (Esky, sponsored by AWX).
TABMA Queensland has continued to expand its involvement in all areas affecting its members and has made great strides in the areas of management education and technical training. The organisation was established in 2001 due to an expressed need for a merchant-based member organisation in the Queensland timber industry.
Happy group at the TABMA (Qld) dinner are Wayne Norman, Wayne Norman Timbers, Alan Ford, Ford Timbers, Brisbane, Debbie Payne, Dindas Australia, Mal Gotham, Pacific Wood Products, and Rachel Fisher and John Menagh of Disprax Business Software Solutions.
Jeannie Alamkara, Lifestye Trader, Gold Coast, meets up with Jenny Williams, Alan Jones, and Kyla Wood of Austbrokers Premier, Brisbane.
Alicia Oelkers, TABMA Queensland, welcomes Gary and Diane Dunshea, Manufacturing Skills Australia, and Kersten Gentle, executive officer, Frame and Truss Manufacturers Association, Healesville, Vic.
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* Subject to confirmation
Luke Gaske, Ozline Timbers, and Pat Conduit and Melanie Hilcke, Hyne.
TABMA Queensland glamour Karen Johnston (chief executive) and Kelly Everett out front of the executive team, from left, Myles Forsyth, Forsyth & Romano Group, Mal Goatham, Pacific Wood Products, Keith Maitland, Tasman KB (TABMA Queensland chairman), Roger Healy, Simmonds Lumber. and Michael Gaske, Ozline Timbers.
Bookings: 07 3254 3166
issue | 30.11.09 | Page 15 Together to Benefit all of104 Industry
Chain of Custody I N F O R M AT I O N S E M I N A R
Brisbane • Thursday, August 20, 2009
Chain of Custody 433 On Logan Conference Centre 433 Logan Road, Stone’s Corner LIMITED INFORM A T I OTO N60SSEATS EMINAR
• Thursday, August 20, 2009 This Brisbane important and timely seminar, organised by TABMA Queensland, OnofLogan Conference will help reduce433 some the confusion relatingCentre to chain of custody. It 433 Logan Road, Stone’s Corner will ensure the Queensland timber industry has the information required LIMITED TO 60 SEATS for compliance with legislation,Key speakers will present information This important and timely seminar, organised by TABMA Queensland, and there will be a question and answer forum. will help reduce some of the confusion relating to chain of custody. It Speakers include: will ensure the Queensland timber industry has the information required
For Sale SLIP KILNS – GOOD AS NEW
Colin MacKenzie, timber application Timber Queensland for•compliance withmanager, legislation,Key speakers and will use, present information • Two x 20m3 solar only • One x 40m3 solar, gas assisted • Simon Dorries, Engineered of and there will be a General questionManager, and answer forum.Wood Products Association • SOLAR ONLY AND 1X40M3 SOLAR,GAS ASSISTED. Australasia Speakers include: • KaytMacKenzie, Watts, chief executive, Australian Forestry Ltd Queensland (AFS)Pacific Wood Products has been using these kilns to successfully dry their kwila • Colin manager, timber application andStandard use, Timber • Simon Dorries, General Wood Products Association • Michael Spencer, chief Manager, executive, Engineered Forest Stewardship Council (FSC) and NGofrosewood for the lastsix years. They are now surplus to requirements. Australasia • Kayt Watts, chief executive, Australian Forestry Standard Ltd (AFS) All three kilns have been recently refurbed and reskinned. Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast • Michael Spencer, chief executive, Forest Stewardship Council (FSC) If you need to dry your timber cost effectively these are a ‘must’ for you to and morning tea. Note: Arrival 7:30am. Breakfast 7:45 am. Presentations begin at 8 am. inspect. They are currently in operation and are available for inspection at our RSVP by Friday, August 14, to: Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast Tabma Queensland, PO Box 532, premises and morning tea. Note: Arrival 7:30am. Breakfast 7:45 am. Presentations begin at 8 am. in Brisbane. 500byBrunswick Street, Valley 4006 Asking $60,000 ono. RSVP Friday, August 14,Fortitude to: These kilns are very quick and easy to load and unload and are transportable. Tel: (07) 3254 3166. (07) 3254 4599. contact Mal Goatham Any interest, please Tabma Queensland, PO Fax: Box 532, 0438 295 136 Fortitude Valley 4006 500Mob: Brunswick Street, on (07) 32995477 They will be available for dismantling and collection mid-January 2010.
www.tabma.com.au
Tel: (07) 3254 3166. Fax: (07) 3254 4599. Mob: 0438 295 136
www.tabma.com.au Pacific Wood Products Pty Ltd, 16 Allgas Street, Slacks Creek, Qld, 4127 | Tel: (07) 3299 5477 Fax: (07) 3299 5733
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