PLANNING THE FUTURE
The Australian Forest Products Association (AFPA) has launched its Key Industry Asks document ahead of the Government’s new National Forest Industries Plan which will be revealed in the second half of the year.
“Forest industries have been fighting for a new national blueprint from the Federal Government for many years, given the last major plan was delivered in 1992. We have very different industries in 2018 compared with the 1990s, and that requires new policy and approaches,” Mr Hampton said.
Towards a National Forest Industries Plan – Key Industry Asks contains measures in five policy areas where modest change can trigger a surge in domestic manufacturing in Australia and add potentially 18,000 more jobs in regional communities. The five policy areas include:
“We need new trees planted. We need certainty in supply for sustainable native forestry. We need to take advantage of bioproducts including bioenergy opportunities. We need to grow domestic manufacturing, encourage jobs, foster innovation and do our bit to help meet emission reduction targets. We need more investment in research and development. We need the right infrastructure and we need red tape removed to allow forest industries to operate efficiently and to open new opportunities,” Mr Hampton concluded. Read more...
The Australian Forest Products Association (AFPA) has launched its Key Industry Asks document ahead of the Government’s new National Forest Industries Plan which will be revealed in the second half of the year.
“Forest industries have been fighting for a new national blueprint from the Federal Government for many years, given the last major plan was delivered in 1992. We have very different industries in 2018 compared with the 1990s, and that requires new policy and approaches,” Mr Hampton said.
Towards a National Forest Industries Plan – Key Industry Asks contains measures in five policy areas where modest change can trigger a surge in domestic manufacturing in Australia and add potentially 18,000 more jobs in regional communities. The five policy areas include:
- Delivering more plantation trees.
- Ensuring a sustainable native forest estate.
- Unleashing a biofutures revolution.
- Renewing research capability.
- Fast tracking infrastructure and cutting red tape.
“We need new trees planted. We need certainty in supply for sustainable native forestry. We need to take advantage of bioproducts including bioenergy opportunities. We need to grow domestic manufacturing, encourage jobs, foster innovation and do our bit to help meet emission reduction targets. We need more investment in research and development. We need the right infrastructure and we need red tape removed to allow forest industries to operate efficiently and to open new opportunities,” Mr Hampton concluded. Read more...
NATIONAL INSTITUTE FOR FOREST PRODUCTS INNOVATION HUB
The Australian Forest Products Association has welcomed the launch of the $4 million Mount Gambier Hub of the National Institute for Forest Products Innovation. This facility will partner with the Launceston Hub which was launched last year.
“The south-east of South Australia is a major region for softwood plantation innovation and the launch of this Hub is the realisation of a vision which was seeded several years ago,” Mr Hampton AFPA CEO said.
“There are nearly 180,000 hectares of plantation forests in South Australia, producing logs valued up to $321 million in 2015-16. This Hub will make the most of what is already a huge amount of knowledge and experience in forest industries in the Mount Gambier region. Read more...
BAG TO THE FUTURE
The Australian Forest Products Association (AFPA) is calling for a ban of single use plastic bag.
“It is good to see that many jurisdictions have already taken the step to ban single use light weight plastic bags.The UK Government has just announced it will eliminate avoidable plastic waste by 2042 across the nation and Australia should not be left behind,” CEORoss Hampton said.
“Australians use around 4 billion plastic bags every year. There is an alternative for plastic bags that is both convenient and good for the environment – renewable and recyclable paper bags that store carbon and are made from sustainably sourced Australian wood fibre.
“Using Australian renewable and recyclable paper products also underpins considerable economic activity and jobs in our sustainable paper businesses, many of which are based in our regions,” Mr Hampton concluded.
REGIONAL FOREST AGREEMENTS EXPIRE IN VIC
With RFAs coming to an end, green groups have started to apply the template of litigation and market intervention that has slowed Australia’s coal industry. The Wilderness Society’s national director Lyndon Schneiders said that International buyers are being warned off Australian products that do not meet “acceptable” forest practices.
The challenge for government is to not repeat the mistakes of the Managed Investment Schemes, introduced to encourage agricultural diversification after the decline of the local forestry industry. The MIS became an attractive tax deduction scheme for wealthy investors and soon spiralled out of control. Two of the largest schemes, Timbercorp and Great Southern, collapsed in spectacular fashion, with combined losses of more than $1bn.
Today’s industry has set a national target of planting an additional 400,000ha, with up to a quarter of that done by farmers on a small scale. For funding, the industry is eyeing $100m from the Emissions Reduction Fund across four years, establishment of low-interest loans for plantations and new carbon-related financing programs, “including carbon pricing mechanisms and purchasing of the rights to stored carbon”.
The industry says it can access 5.5 million hectares of Australia’s 125 million hectare state forest reserves. It wants the RFAs to be extended for another 20 years on a rolling five-year basis, with state and federal agreement that there will be no loss in net timber supply.
The National Parks Association (NPA) has done its own research, which has led it to some stark conclusions about the economics of the state forest operations. It says the value of Australia’s native timber stocks has declined by 30 per cent to $2bn between 2005 and 2015, and hardwood sawn wood production has dropped by 44 per cent over a similar period. In contrast, plantation stocks increased in value to $10bn and softwood sawn wood production is up by 10 per cent
NPA says the primary drivers behind the decline in hardwood production in state forests are increasing competition from hardwood and softwood plantations, both domestically and internationally, and higher costs relative to international competitors. There is weak demand for structural timber; decreasing demand from Japan for pulp because of falling paper consumption and efficiencies in the production process; and a reduction in the area of forest available for harvest.
“Many of these trends are predicted to continue, which means that demand will continue to fall and profitability from native forest logging will be increasingly difficult to achieve,” according to the NPA report.
“The industry is facing a shortfall of softwood timber because it put the wrong trees in the ground. They had the opportunity but billions of dollars was wasted on fraudulent tax schemes which put the wrong types of trees in the wrong places. Now they are going back again for another attempt." Read more...
WORKPLACE SAFETY
Agriculture, forestry and fishing remains the most dangerous industry in Australia, according Safe Work Australia data. Statistics show 44 workers died in agriculture, forestry or fishing in 2016 and over 3,500 people suffered serious injuries in the same time period. This is double the rate - 14 per 100,000 workers - compared to the second most dangerous; Transport, postal & warehousing with 7.5. These 2 sectors contributed 50% of all workplace fatalities. Agriculture has 2.6% of workforce but 21% of fatalities. Agricultural vehicles, for example tractors and quad bikes, accounted for 82 out of 221 (37%) worker deaths over 4 years. Forestry makes up around 10 percent of that overall workforce and around four per cent of workplace industry or death. Read more...
The Australian Forest Products Association has welcomed the launch of the $4 million Mount Gambier Hub of the National Institute for Forest Products Innovation. This facility will partner with the Launceston Hub which was launched last year.
“The south-east of South Australia is a major region for softwood plantation innovation and the launch of this Hub is the realisation of a vision which was seeded several years ago,” Mr Hampton AFPA CEO said.
“There are nearly 180,000 hectares of plantation forests in South Australia, producing logs valued up to $321 million in 2015-16. This Hub will make the most of what is already a huge amount of knowledge and experience in forest industries in the Mount Gambier region. Read more...
BAG TO THE FUTURE
The Australian Forest Products Association (AFPA) is calling for a ban of single use plastic bag.
“It is good to see that many jurisdictions have already taken the step to ban single use light weight plastic bags.The UK Government has just announced it will eliminate avoidable plastic waste by 2042 across the nation and Australia should not be left behind,” CEORoss Hampton said.
“Australians use around 4 billion plastic bags every year. There is an alternative for plastic bags that is both convenient and good for the environment – renewable and recyclable paper bags that store carbon and are made from sustainably sourced Australian wood fibre.
“Using Australian renewable and recyclable paper products also underpins considerable economic activity and jobs in our sustainable paper businesses, many of which are based in our regions,” Mr Hampton concluded.
REGIONAL FOREST AGREEMENTS EXPIRE IN VIC
With RFAs coming to an end, green groups have started to apply the template of litigation and market intervention that has slowed Australia’s coal industry. The Wilderness Society’s national director Lyndon Schneiders said that International buyers are being warned off Australian products that do not meet “acceptable” forest practices.
The challenge for government is to not repeat the mistakes of the Managed Investment Schemes, introduced to encourage agricultural diversification after the decline of the local forestry industry. The MIS became an attractive tax deduction scheme for wealthy investors and soon spiralled out of control. Two of the largest schemes, Timbercorp and Great Southern, collapsed in spectacular fashion, with combined losses of more than $1bn.
Today’s industry has set a national target of planting an additional 400,000ha, with up to a quarter of that done by farmers on a small scale. For funding, the industry is eyeing $100m from the Emissions Reduction Fund across four years, establishment of low-interest loans for plantations and new carbon-related financing programs, “including carbon pricing mechanisms and purchasing of the rights to stored carbon”.
The industry says it can access 5.5 million hectares of Australia’s 125 million hectare state forest reserves. It wants the RFAs to be extended for another 20 years on a rolling five-year basis, with state and federal agreement that there will be no loss in net timber supply.
The National Parks Association (NPA) has done its own research, which has led it to some stark conclusions about the economics of the state forest operations. It says the value of Australia’s native timber stocks has declined by 30 per cent to $2bn between 2005 and 2015, and hardwood sawn wood production has dropped by 44 per cent over a similar period. In contrast, plantation stocks increased in value to $10bn and softwood sawn wood production is up by 10 per cent
NPA says the primary drivers behind the decline in hardwood production in state forests are increasing competition from hardwood and softwood plantations, both domestically and internationally, and higher costs relative to international competitors. There is weak demand for structural timber; decreasing demand from Japan for pulp because of falling paper consumption and efficiencies in the production process; and a reduction in the area of forest available for harvest.
“Many of these trends are predicted to continue, which means that demand will continue to fall and profitability from native forest logging will be increasingly difficult to achieve,” according to the NPA report.
“The industry is facing a shortfall of softwood timber because it put the wrong trees in the ground. They had the opportunity but billions of dollars was wasted on fraudulent tax schemes which put the wrong types of trees in the wrong places. Now they are going back again for another attempt." Read more...
WORKPLACE SAFETY
Agriculture, forestry and fishing remains the most dangerous industry in Australia, according Safe Work Australia data. Statistics show 44 workers died in agriculture, forestry or fishing in 2016 and over 3,500 people suffered serious injuries in the same time period. This is double the rate - 14 per 100,000 workers - compared to the second most dangerous; Transport, postal & warehousing with 7.5. These 2 sectors contributed 50% of all workplace fatalities. Agriculture has 2.6% of workforce but 21% of fatalities. Agricultural vehicles, for example tractors and quad bikes, accounted for 82 out of 221 (37%) worker deaths over 4 years. Forestry makes up around 10 percent of that overall workforce and around four per cent of workplace industry or death. Read more...
