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Weekly news for the Timber and Forestry Industries

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  • Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au 1ISSUE 266 | 06.05.13 | PAgE

    By JIM BOWDEN

    THE Tasmanian parliament on Tuesday night last week passed historic legislation formalising the agreement between the warring factions in the bitter forest feud after green groups and the industry backed amendments raised by the states upper house.Passage of the laws will now unlock more than $200 million in federal assistance to help the logging industry restructure, while more than 500,000 ha of forests will eventually be protected.Conservationists and loggers who signed a peace agreement

    must now deliver its jobs and environmental objectives, Prime Minister Julia Gillard said after the fi nal vote was counted.Emerging from the aftermath, Ta

    Ann Tasmania CEO Evan Rolley

    said the fi rst step now was to

    restore confi dence in product

    Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

    7068

    ISSUE 266 | 06.05.13 | PAgE 1

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    Cont Page 3

    Deal done: letsget on with it

    Budget options to drive industry forward Forest industry a giant still growing in Canada

    TCA joins CFMEU manufacturing campaign New home move by Bretts Wood expo a whos who in processing Wood Europes renewable fuel of choice

    THIS ISSUE

    Reduction in log volumes, but investmentcon dence returns to Tasmanias forests

    Evan Rolley .. encouraging private investment once again.

  • Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au PAgE | issuE 266 | 06.05.132

    THE peak body representing forest product industries has called on the federal government to make policy changes in this years budget to encourage the growth of regional manufacturing and specifically the forest, wood and paper industries.Newly-appointed CEO of the Australian Forest Products Association Ross Hampton said governments should be looking to grow these carbon neutral industries and provide a boost to regional Australia.Forest product industries offer enormous potential to take pressure off our cities and provide regional jobs for a growing population as we head for 40 million by 2050, he said. We will need 7.1 million new homes by 2050. By promoting timber, as opposed to materials which require much more energy to produce, we will also be doing good things for the environment.Mr Hampton said Australian policy makers must come to grips with the reality that major cities were choking and manufacturing industries in regional Australia needed support.Forestry and forest products offered the best chance of growth in a carbon constrained future.Some 85,000 men and women are quietly getting on with using a sustainable, renewable, strong and versatile resource to create everything from house frames and chairs to tissues and paper. Those 85,000 direct jobs generate about another 130,000 jobs and represent 6% of our total manufacturing.Strangely, government

    ministers insist on driving Australian made cars but allow their departments to buy overseas made paper with its greater risk of containing illegally sourced fibre.Lets see that change in this budget.However, Mr Hampton said the high dollar and soaring power, fuel and other input costs were putting many jobs at risk.Lets hear the government backing the hundreds of rural mills by accepting the science which says they can use forest waste to save on their power costs and claim renewable credits, he said.Lets hear the government get serious about new investment in plantations to bolster our current resources and international competitiveness in wood and paper processing.Lets hear the Treasurer Wayne Swan announce a review of building planning regulations to encourage greater use of timber in buildings. Australia lags behind Canada, France, Finland, the UK and even New Zealand and Slovenia with policies to encourage the use

    Ross Hampton .. we must make a start with the budget.

    INDUSTRY NEWS

    FREECALL

    Melbourne

    Sydney

    Adelaide

    Launceston

    1800 177 001

    (03) 9321 3500

    (02) 8898 6990

    (08) 8219 9028

    (03) 6331 6077

    ABN: 58 006 212 693

    forestworks@forestworks.com.au

    www.forestworks.com.au

    Improving our industrys capacity

    to develop and maintain a skilled

    workforce ............................

    AFPAs budgetoptions to driveindustry forwardManufacturing growth a must

    Cont Page 17

  • Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au 3issue 266 | 06.05.13 | Page

    investment in Tasmania, although he lamented the loss of significant volumes of specification logs.Yes, its really significant at least 40% of our previous wood supply is going into the new conservation reserves, he said.But now all this has been resolved by parliament, weve just got to get on with it; there can at least be a position where private investment can be encouraged, where we know what the new arrangements are and we can start and try to rebuild our business based on that knowledge.Mr Rolley said industry was now surfacing from a position where all private capital investment had been shut off for a long time in the forest product sector.Now at least, we know the position and we have a commitment by the signatories, including the Wilderness Society, the Australian Conservation Foundation and Environment Tasmania, to support wood supply into the market, both domestically and internationally, Mr Rolley said.We believe that with that support there is a basis on which we can rebuild and try to diversify our business.Established in 2007, Ta Ann Tasmania Pty Ltd adds value to eucalypt regrowth logs previously used only for

    woodchips by peeling them into high value PEFC certified veneer for domestic and international product. Two rotary veneer mills, one in the Huon Valley built in 2007, followed by the Smithton mill in 2008, resulted from a capital expenditure of $78.9 million, including a $10.4 million federal grant.The loss of log volume will see Ta Ann start negotiations with private growers who have lost a lot their wood supply agreements with Gunns since the companys collapse.There are also significant areas of plantations where currently the wood has no home, again because of the demise of Gunns. So we are going to work as hard as we can to rebuild our markets and supply chains, Mr Rolley said.Decisions on Ta Anns proposed $10 million plywood in the north of the state will remain on hold.Until we know the nature of contract negotiations with Forestry Tasmania and talk to the government, the plywood mill is a matter for the Ta Ann board, Mr Rolley said.The project is deferred and we need to re-consider the potential and re-pitch our business.In a media statement, the general manager of Ta Ann Robert Yong said the company was delighted that certainty has been returned to the industry and to national and international markets.

    The company looks forward to working with the state and federal governments and Forestry Tasmania to implement the matters of agreement set out in the legislation, he said.Mr Yong thanked the signatories for the years of hard work that has gone into the forest agreement and particularly the support of the ENGOs in the national and international market place.The federal Environment Minister Tony Burke said the legislation was a declaration that the forestry wars had ended in Tasmania.In terms of wars, yeah, look therell be the odd skirmish from small minor groups, he said last Tuesday. But what we have seen from the last 30 years ends tonight, and that is something to celebrate.The final deal, three years in the making, saw leading environment groups bow to changes by the states conservative upper house, the Legislative Council, to an original package.The changes do not affect a keystone nomination for a 170,000 ha extension to the Tasmanian Wilderness World Heritage Area, according to the Tasmanian Resources Minister, Bryan Green. It will go before the World Heritage committee in June.An accord on the Tasmanian Forest Agreement (TFA) Bill unlocked up to $216 million in federal-state assistance,

    Mr Green told the House of Assembly.Protection of the balance of 504,000 ha of native forests in two phases through to 2015 will only be triggered if global benchmark Forest Stewardship Council certification is achieved, and an independent council deems the peace durable.The Australian Conservation Foundation, The Wilderness Society and Environment Tasmania said the TFAs opportunities were so important they were willing to work with the revised legislative framework.Intensive talks since the Legislative Council amended the bill yielded guarantees from government agencies that the process would work, Environment Tasmanias director Phill Pullinger said.They were backed by industry and union signatories to the three year-long peace process, but the agreement split Green MPs and environment groups.State Greens backbencher Kim Booth refused to back the amended legislation, and the national Greens leader Christine Milne warned that apart from the World Heritage nomination, no forest protection was certain.The fa