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issue 123 | 03.05.10 | Page 1

A tree change

Scholarships address challenge of declining university forest programs TWO first-year forestry students have received awards in the inaugural Forestry Scholarship Fund, established to address declining programs in university forestry programs. The two undergraduate scholarships valued at $10,000 were awarded to Andrew Egan and Nicholas Rudder, first-year forestry science students at Southern Cross University. The fund is an initiative of the Institute of Foresters of Australia, funded by both the IFA and A3P. IFA president Dr Peter Volker said universities were facing immediate challenges in sustaining forestry education in Australia due to low student numbers in undergraduate

This Issue • FWPA sponsors students to Italian conference • Timber trade on mend in North America

sustainability message at DesignEx • ETS mothballed • Plantation asset sale ‘sad day’ for industry • Timber treaters must get their act together

 Strong

Scholarships address forestry skills shortage.

degree courses. “The Forestry Scholarship Fund is the first step in increasing the attractiveness of studying forest science,” he said.

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It is estimated that Australia requires more than 50 forestry graduates each year to sustain Cont Page 2

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issue 123 | 03.05.10 | Page 1


industry news

Important role for Making young foresters in an carbon economy impact .. From Page 1

The Victorian Association of Forest Industries, representing the interests of the Victorian timber Industry

current work force requirements and to sustain a viable research capacity in future. The current number of forestry graduates Australia-wide is less than 20. “The forestry skill shortage applies across the range of specialist disciplines in forest related occupations including ecology, production, fire management, forest hydrology and wood processing,” Dr Volker said. The scholarship fund has been established with donations from A3P, Forests NSW, CRC Forestry and the Institute of Foresters of Australia. Further donations are being sought from industry and individuals with an interest in sustaining forestry education in Australia.

Andrew Egan

Victorian Association of Forest Industries Level 2, 2 Market Street Melbourne 3000 Tel: +61 3 9611 9000 Fax: +61 3 9611 9011 Email: info@vafi.org.au Web: www.vafi.org.au Nicholas Rudder

Page 2 | issue 123 | 03.05.10

across Australia’s forest and forest products industry .. since 1940

Dr Peter Volker .. great opportunities out there.

More scholarships will be offered for 2011. Applications will be open to all new and existing students enrolled or intending to enrol in undergraduate or post graduate forestry programs. The Forestry Scholarship Fund follows the establishment of the National Forestry Masters Program as a means to attract forestry students. The masters program is aimed at graduates who are looking for a career change; these could be described as genuine treechangers. Dr Volker says a forestry degree offers many opportunities to work throughout Australia and overseas managing native and plantation forests. “The face of forestry is changing and a professional forester will be involved in implementing ecologically sustainable forest management across all forest tenures,” Dr Volker said. “With the advent of the carbon economy, forests have a very important role and professional foresters will be at the forefront of new opportunities. “Career advisers, science teachers and parents should be letting students know what a great opportunity is out there for them.”

The Timber & Building Materials Association is Australia’s most progressive timber association and the only true national timber association. TABMA keeps abreast of all commercial, legislative or bureaucratic issues that impact on our industry and keeps members informed. The services and benefits offered to members are extensive and assist in keeping overheads and on-costs to a minimum. Call Nicolette at TABMA on (02) 9277 3100 to inquire about our very attractive membership rate.

www.tabma.com.au

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industry news

Ah, wood .. bellissimo!

FWPA sponsors student study to Italy conference IN an important initiative that underscores the importance of timber as a construction material, eight engineering students from around Australia have been selected to attend the 11th World Conference on Timber Engineering in Italy in June. This pilot program has been sponsored by Forest and Wood Products Australia through the Wood. Naturally Better program. The students, all from leading universities and including one PhD candidate, will be exposed to the latest work in timber design and construction from around the world and will carry

Ric Sinclair .. students have solid grasp of the benefits of wood.

their new learnings back to their respective universities, where they will up-date faculty

and fellow students through a series of agreed presentations. The prestigious international conference has attracted more than 400 speakers and submissions, and will be attended by more than 500 engineers, architects, educators and manufacturers. Topics include wood in architecture and civil engineering, wood and multistorey structures, resources and the global environment, wood engineered products, and advances in timber and earthquake and fire resistance. ‘This is a very important initiative for the industry; we are assisting engineers of the future to include the latest key concepts around timber construction and design in their studies and careers’ – Ric Sinclair Participating students were required to submit a 500word essay for independent review and the winning entries all highlighted the inherent structural properties of timber in relation to competing material, its aesthetic qualities, and the importance of better utilising what is a renewable resource to minimise construction impacts. Wood. Naturally Better spokesman Ric Sinclair said with wood increasingly the building material of choice for architects and engineers seeking to achieve key environmentally friendly design objectives, attendance at the conference offered future engineers a unique opportunity to understand how wood was being applied to modern

ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system. Core services: • Skill Standards • Material Development • Networks • Strategic Skills Planning • Project Management • Data Collection • Research • Industry Advice • Career Advice • Adult Learning Expertise

VICTORIA PO Box 612, North Melbourne 3051 Tel: (03)9321 3500 Email: forestworks@forestworks.com.au NEW SOUTH WALES PO Box 486, Parramatta 2124 Tel: (02)8898 6990 Email: smukherjee@forestworks.com.au TASMANIA PO Box 2146, Launceston 7250 Tel: (03)6331 6077 Email: wfoss@forestworks.com.au BRISBANE PO Box 2014 Fortitude Valley 4006 Tel: (07)3358 5169 Email: bharle@forestworks.com.au

Cont Page 4

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issue 123 | 03.05.10 | Page 3


industry news

Important initiative for industry From Page 3

construction and engineering processes around the world. “This is a very important initiative for the industry; we are assisting engineers of the future to include the latest key concepts around timber construction and design in their studies and careers and this will ultimately have a flow-on effect for the timber industry,” Mr Sinclair said. “We were struck by the very solid grasp students already have on the benefits of wood as a construction material, from an engineering and environmental perspective. “Clearly this is a strong area of focus in engineering faculties around the country and we are pleased we can help to extend this emphasis and, we hope, excite and stimulate students to further think about timber as a key construction and

Timber engineering students like these will be exposed to the latest work in timber design and construction from around the world at a wood engineering conference in Italy next month.

engineering solution. “Timber building products come from a renewable resource, they have a low energy requirement for manufacture compared to other materials, and they store significant volumes of CO2. Studying advances in using wood not only in residential dwellings but in commercial buildings

and public infrastructure and facilities is a critical part of improving sustainability and environmental efficiencies.” Mr Sinclair said the strong enthusiasm shown for the WCTE project by participating universities meant sponsorship opportunities would be expanded for the 12th conference, which will be held

in New Zealand in 2012. “We are already asking all major universities around the country to register their interest and we are looking at the feasibility of ensuring selected students from both architectural and engineering faculties have an opportunity to attend,” he said. In the meantime, FWPA looks forward to feedback from students following this year’s WCTE and viewing their presentations. Students attending the conference are from the University of Tasmania, Curtin University of Technology, University of South Australia, University of Southern Queensland, University if Adelaide, University of Technology Sydney, and RMIT and Monash University in Melbourne. The conference runs from June 20 to 24 in Trentino, Italy.

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Page 4 | issue 123 | 03.05.10

AUSTRALIA TimTech Chemicals Pty Ltd 7/12 Discovery Drive, North Lakes, Qld 4509. PO Box 522, North Lakes , Brisbane Qld 4509, Australia. Tel:+61 7 3480 5802 Fax:+61 7 3491 7983 australia@timtech.info

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events

WHAT’S ON?

18: Victorian Timber Industry Supply Chain Seminar: Connecting the Pieces for Business Success. Radisson Hotel, 380 William Street, Melbourne. Contact: Peter Roberts, Timber Merchants Association on (03) 9875 5000 or John Halkett, Australian Timber Importers Federation on (02) 9356 3826. 19-20: Wood Supply Chain Optimisation 2010. Bayview Eden Melbourne. Technical seminar details successful strategies that have been adopted to improve planning, logistics and operations through the wood supply chain. Contact FIEA +64 3 470 1902. www.woodsupplychain.com 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. 21-22: Frame Australia 2010 Conference: Housing Construction and Sustainability. Sofitel Melbourne. The major national event for engineered timber and pre-fabrication. View: www.frameaustralia.com.au 21-22: Skills Tasmania Conference, Hobart. Showcasing workforce development and planning.

June 28-July 2: 18th Commonwealth Forestry Conference, Edinburgh, Scotland. www.cfc2010.org

JULY 2010 14-18: Interforest 2010 Trade Fair for Forestry Technology Munich, Germany. www.interfrost.de 21-22: Wood Energy 2010 reducing energy costs and improving energy efficiencies. Rotorua, NZ. 21-22: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Rotorua, NZ. www. scantechevents.com 26-27: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Melbourne. www. scantechevents.com 26-27: Wood Energy 2010 (World Reducing Energy Costs & Improving Energy Efficiencies) Melbourne. 26-29: Combined workshop. ATTA / FIAPS / ForestWorks combined annual workshop Hobart. Details: www.atta.org.au

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 7-9: Wood Manufacturing 2010. Profitable Wood Manufacturing: Tooling, Technology & Design. Rotorua, NZ. www. woodmanufacturingevents.com 8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.org

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13-15: Wood Manufacturing 2010. Profitable Wood Manufacturing: Tooling, Technology & Design. Melbourne. www.woodmanufacturingevents.com

SUSTAINABLE. sustainable. responsible. . RESPONSIBLE

15-16: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design, Melbourne.

The National The National Association of of Forest Association Industries (NAFI) Forest Industries (NAFI) represents is striving for an Australian companies, ecologically sustainable individualssociety and Australian organisations involved achieved through in thedynamic, forestry and forest products internationally industries. competitive forest industries. NAFI works with state and

20-21: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design Rotorua, NZ. 30-2 October: The Future of Forestry and Forest Science Conference. Celebrating the centenary of forestry education in Australia. Sydney Myer Asia Centre Carrillo Gantner Theatre, Melbourne University. Contact: Event Planners Australia forestry. Email: 2010@eventplanners.com.au

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

2010

MAY 2010

Email: info@eee.net.au

19-20: MTC Global Woodmart: Gateway to International Wood Markets. The first ‘one-stop’ selling and buying platform for all suppliers and buyers of wood and wood products. Early bird discount 5%. Organised by the Malaysian Timber Council at the Kuala Lumpur Convention Centre, Malaysia. Contact: Malaysian Timber Council. Tel: +60 3 9281 1999. Fax: +60 3 9289 8999. Email: council@mtc.com.my

federal governments to support interestsis of to its NAFI’sthemission members while the same represent theatinterests time improving industry of members by standards and practices, promoting the promoting sustainable environmental forestry management and educating the broader sustainability and community on theof the prosperity economic, environment Australian forest and social benefits of industries. a strong sustainable forest industry. National Association of The National Association Forest Industries Ltd of Forest Industries (Est. 1987) Ltd (EST.1987) PO Box 239, PO Box 239, Deakin ACT 2600 Deakin, ACT 2600 Tel: (02) 6285 3833. Tel: (02) 6285 3833 Fax: (02) 6285 3855 Fax: (02) 6285 3855 Web: www.nafi.com.au www.nafi.com.au Web:

issue 123 | 03.05.10 | Page 5


industry news

Gay, Gray leave Gunns to focus on pulp mill plan LONG-serving chairman of Gunns Ltd John Gay and board member Robin Gray are leaving the Launceston-based company. Mr Gay will stand aside for a new chairman and will now head up new subsidiary company Southern Star Corporation, which will try and attract an overseas investor for the proposed $2 billion Bell Bay pulp mill in the Tamar Valley, near Launceston. Gunns employs about 2550 employees in its operations in Tasmania, Victoria, South Australia and Western Australia. Robin Gray, who was Liberal Premier of Tasmania from 1982 to 1989, will remain a director of Gunn’s plantations’ arm. Operation of the pulp mill has always focused on 100% plantation timber following Gunns securing access to the Great Southern timber resource. Gunns intends to sell-off its 28,000 ha native forest estate to serve a dual purpose of debt reduction while beginning the transition to a wholly plantationbased company. In an ABC interview, industry analyst Robert Eastment said he believed Gunns was in transition phase. “John Gay has certainly been the driving force behind Gunns. It would not be the size of the company or success it’s been without John Gay,” he said. Mr Eastment said the any future restructure of Gunns would depend very much on the person who comes in as new chairman. “From my point of view I think it should be somebody with a lot of international experience, particularly in the forestry sector.”

Page 6 | issue 123 | 03.05.10

John Gay

Robin Gray

Gunns, founded in 1875 by brothers John and Thomas Gunn, it is one of Australia’s oldest companies. It has more than 900 sq km of plantations, mainly eucalyptus and has a turnover in excess of $600 million. It was reported that John Gay has sold $3 million worth of shares in Gunns. Traditionally an accumulator of the shares, he sold 3.4 million on the market between December 2 and December 7. The price varied between 90c and 88c – the lowest price for some time after the shares were $1.30 in October. Mr Gay, who earned $1.3 million in 2009 including a bonus, retains 15.6 million shares.

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INDUSTRY NEWS

In the long-term, forestry will be carbon-positive, regardless of whether a forest has been planted or has been naturally regenerated.

ETS mothballed as global warmth frenzy turns cool

‘Mixed blessing’ for forests PRIME Minister Kevin Rudd’s delay of the government’s carbon pollution reduction scheme until the end of 2012 is seen as a ‘mixed blessing’ by the forest industry. Mr Rudd last week cited the Opposition’s decision not to support an ETS and the slow global progress on a climate change response as key reasons for the delay. “I guess it is confirmation of the inevitable given that the government wouldn’t get its legislation through the senate,” A3P chief executive Richard Stanton said. He told T&F enews: “It also means there is continued uncertainty for the industry on ETS, putting up questions will the ETS model be the same after the next election or might the [elected] government ‘soften the ground’ with changes to the scheme?” In his announcement, Kevin Rudd said that by 2012, when the current Kyoto deal expired, governments around the world

Kevin Rudd .. climate off the agenda.

would need to make clear their new carbon reduction commitments. “That will provide the Australian government at the time with a better position to assess the level of global action on climate change,” he said. Rudd’s decision follows the failure to secure a meaningful global agreement at the Copenhagen summit last year and the Obama administration’s decision not to pursue an

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ETS. It now means a Rudd government ETS will not be in place until after John Howard’s proposed ETS was set to take effect from 2011. A delayed ETS will save billions in the May 11 federal budget. Mr Rudd’s view on the need for an ETS remains unchanged and he says climate change remains a key global issue. But the government is clearly trying to get climate off the agenda before the election and the Opposition has seized on the ETS backdown as a humiliating retreat by Mr Rudd. Leader Tony Abbott has accused Mr Rudd of running away from climate change and called on him to outline details of his climate change policy. NZ government commended on ETS - P. 10 Meanwhile, the politics of climate change are changing rapidly across the globe, most notably in Australia and the US. Whereas once polls showed

high levels of public support for saving the planet, today public support for costly policies to curb global warming are in fatigue mode. American faith in the science of man-made global warming is almost in the minority – from 71% a year ago to 51% today, according to Gallup. The governments of China and India insist they won’t join the West in what they see as an economic suicide pact. In France, the Sarkozy government recently shelved plans to introduce a carbon tax. In Germany, polls show only 42% of Germans worry about global warming. In the European Union, the ETS has been a victim of fraudulent traders and done little to curb emissions. In Canada, the ETS is stalled in legislative limbo. And in Australia, Tony Abbott’s “direct action” plans are more popular than Labor’s “great new tax”. Cont Page 12

issue 123 | 03.05.10 | Page 7


industry news

EWPs that tick Plantation asset sale now ‘sad ALL the boxes day’ for industry Engineered wood products manufactured by EWPAA member companies top the list

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* Independently tested to the highest standard; guaranteed to comply with Australian standards; certified under JAS-ANZ accredited product certification scheme; guaranteed to be safe and to carry the designated design load; complies with the Building Code of Australia; meets safety and quality requirements accepted by unions; meets all Workplace Health & Safety requirements.

Page 8 | issue 123 | 03.05.10

IN haste to sell its plantation forestry asset, Forestry Plantations Queensland, the Queensland Government has turned its back on conservation by abandoning the landmark South East Queensland Forestry Agreement of 1999 and the more recent Western Hardwoods Agreement. These agreements between the timber industry, conservation movement and the state government allowed for the hardwood industry to exit crown native hardwood forests for plantations over a transitional time frame. The government agreed to plant 20,000 ha of new hardwood plantation by 2015 (commencing in 2000) so industry could begin the transition by 2025, or earlier, if the plantation was ready. To facilitate the sale of the plantation asset, the government has agreed to extend the planting time frame by 10 years to 2025 and, more significantly, as most of the hardwood plantation is on freehold land, will allow the new plantation owner to sell off freehold land acquired from the sale. Chief executive of Timber Queensland Rod McInnes says the Industry is astounded and

Pinus elliottii clearfall resource at Toolara state forest.

bitterly disappointed that after the government has spent more than $100 million implementing these agreements and championing them as ‘win-win situations’ for both conservation and industry that it would walk away from them for short-term financial gain. “This is a sad day for both forestry conservation and the hardwood industry,” Mr McInnes said. “Obviously the government doesn’t care about either saving the native forest or the industry’s future. Now it is unlikely industry will be able to stop logging native forests by 2025 as planned and the government’s chest thumping about forest conservation is just hollow rhetoric.”

New funds for skills training A $40 million first round cofund agreement with industry for 11,000 extra training places has been announced by the Minister for Education and Employment Julia Gillard. This is part of the skills-boosting Enterprise Based Productivity Places Program for existing workers in small, medium and large businesses. A second round of funding

under the program of $10 million is now available and it is estimated that 2700 additional training places will be made available. ForestWorks can help enterprises with the application process. Contact Sharmily Mukherjee, national program manager, on 0438 252 622 or Tina Cochico, project officer at ForestWorks on (02) 8898 6994, or email tcochico@forestworks. com.au

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INDUSTRY NEWS

Weinig purchase of Holz-Her gives market strength TWO of Germany’s most respected mechanical engineering companies, both global leaders in the manufacture of machines for solid wood processing, have joined forces. Weinig AG has purchased HolzHer, which will operate as an independent enterprise within the Weinig Group. The company, established in 1914, had gone into financial administration and the supervisory board approved the asset deal. “With this step, Weinig has shown its determination not only to retain, but to expand its leading market position specifically in this difficult economic climate,” Weinig chairman of the board Dr Thomas Bach said. The latest acquisition marks a return of Weinig to its growth strategy The latest acquisition marks a return of Weinig to its growth strategy which had been interrupted by the economic crisis. In the past, Weinig had completed its solid wood process chain through consistent integration of key companies such as Waco, Dimter, Grecon, Raimann and Luxscan. The acquisition of Holz-Her adds a proven specialist for panel processing machines. “The core competence of Weinig is solid wood. We will remain true to this strategic direction,” Holz-Her board of management chairman Walter Fahrenschon said. Holz-Her will be managed under the umbrella of the Weinig Group as an independent business

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 6,400 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!

Dr Thomas Bach .. attractive new product portfolio.

HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au

and production division with its own brand presence. “As a globally established market leader, Weinig can offer the newly integrated company an ideal platform to market its attractive product portfolio successfully once more,” Dr Bach said. “However, Weinig will also profit technically from Holz-Her, particularly in the fields of CNC processing centres as well as edge and cutting capabilities.” Weinig believes the market presence of German mechanical engineering has become stronger. Walter Fahrenschon says HolzHer is a brand which represents a valuable piece of German engineering. “We are pleased to be able to secure the future of this long-standing name.”

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issue 123 | 03.05.10 | Page 9


INDUSTRY news

NZ government commended on ETS FOR more than two years, New Zealand forest owners have been bound by the emission trading scheme. Although this has caused difficulties for many of them, they say unwinding the scheme now would be hugely complex and costly. It would also undoubtedly reduce interest in new forest planting. “We commend the government for its resolve,” the president of the NZ Forest Owners Association Peter Berg said. “The ETS charges that will apply to fossil fuels from July 1 are a necessary first step in the long journey New Zealand has to make to become a lowcarbon economy. “Unwinding the ETS now would send powerful messages to affluent overseas consumers and potential tourists about New Zealand’s real commitment to its 100% Pure brand. Trade protectionist lobbies would not hesitate to use it to undermine

Peter Berg .. ETS charges on fossil fuels a necessary step.

our access to their markets.” Mr Berg said it now appeared that the majority of Kyoto forest owners were registering their forests with MAF so they could be part of the ETS. “MAF estimates that more than $1 billion worth of credits will be paid out to them in the next 12 months – much of which will be used to fund the planting of new Kyoto forests. It also places an obligation on forest

FSC shapes up to brand awareness MARKETING strategist The Shape Group is partnering with FSC Australia to develop increased FSC brand awareness. Shape will introduce FSC to its extensive database in the building industry, which includes more than 6000 architects, building designers,

interior designers, builders and developers in Victoria alone. With more than 10 years’ experience, the company is well positioned to build awareness of the FSC brand and communicate the benefits that come from working with FSC certified companies.

owners to replant following harvest,” Mr Berg said. The ETS is intended to encourage consumers and businesses to reduce their carbon emissions and become more energy efficient. Emitters can also offset their emissions by buying carbon credits from owners of Kyoto forests and, because it is an intensity-based scheme, reduce their exposure by becoming more energy efficient. “Quite apart from the need for New Zealand to reduce carbon emissions and meet its Kyoto obligations, these behaviour changes are strategically important for New Zealand,” Mr Berg says. “We need to reduce our dependence on imported oil and we need to encourage the planting of forests on erosionprone farmland which is often uneconomic for production forestry.” He says the quite small ETS charges that will apply to fuel and energy add up to significant sums when calculated across the whole economy. But they need to be seen in the context of recent market price movements. For the next two years – and the government is not looking much further ahead than that – the ETS will cost the average dairy farmer 1.8 c/kg of milk solids,

a figure that can be compared with the 40 c/kg increase in prices announced recently by Fonterra. The average electricity price increase of 5% is dwarfed by the 72% increase in prices from 2000-2008. “While no-one wants to pay more for anything, the ETS charges are modest and will doubtless encourage changes for the better,” Mr Berg said. “Further charges are scheduled for 2013 and 2015, but the government says their implementation will depend on what other countries are doing – which seems eminently sensible.” Mr Berg says much is being made of the need to align the NZ ETS with whatever Australia is doing. “We need to understand the huge differences between the economies and emission profiles of the two countries. Australia is largely a fossil-fuel powered mineral exporter. New Zealand is a food and fibre exporter with large renewable energy resources,” he said. “One of the real gains that comes from the ETS lies in establishing the clean green credentials of our food and fibre exporters. This is hugely important when servicing high value world markets, in Western Europe and North America and increasingly, Asia.”

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Page 10 | issue 123 | 03.05.10

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industry news

Timber trade on mend in North America

Housing recovers in US, but wood in short supply LUMBER prices in North America are surging to their highest levels in three years, buoyed by tight supply and better demand, leading industry executives to project a multiyear cycle that will see wood enjoy a boom experienced by other commodities such as oil, copper and coal. “The worst is definitely behind us,” says Ken Shields, chief executive of Conifex Inc., a privately held Vancouver lumber producer. US housing starts jumped 8.9% early this year, a further sign that the troubled sector is on the mend. The Commerce Department said that the number of units on which construction has been started jumped to a seasonally adjusted annual rate of 574,000, reversing the sharp decline experienced late in 2009. The figure was in line with market expectations, and suggests construction is reviving after a horrific slump in the US housing market that sent the economy into its worst recession in decades. The benchmark futures contract for lumber has spiked to $US315 on the Chicago Mercantile Exchange, the highest in nearly three years as it jumped the maximum daily

Lumber on the move again in Canada and the US.

limit of $10. The advance, sparked by an improvement in still-moribund new-housing statistics in the US, highlights a run that has seen lumber rise almost 30% this year, among the best of any commodity. The steady gains have been made on the basis of extremely tight supplies, with lumber yards at many dealers near empty and the amount of new product coming out of the forests of British Columbia are well below a year ago. An industry that has gone

through a severe three-year depression is now seeing the best quarterly results in recent memory. The West Fraser Timber Co. of Vancouver, North America’s largest lumber producer, that nearly drowned in red ink, will likely report big profits. Meanwhile, the Canadian Institute of Forestry has called on the US Green Building Council to recognise all wood from certified legal and sustainably managed sources in Canada, and the benefits of

using wood in general, in its LEED (Leadership in Energy and Environmental Design) green building system. Currently, the program’s material and resources section only gives credit for forest products from areas where operations are certified by the Forest Stewardship Council (FSC). While the FSC is a well recognised standard for sustainable forest management, it is only one of several systems that provide the means to assess sustainable forest management. The Canadian Standards Association (CSA) and the Sustainable Forestry Initiative (SFI) also provide assurances that forest products come from sustainably managed forests. The criteria and benchmarks used to assess forest products as coming from sustainably managed forests are sciencebased and developed with the direct involvement of forest professionals and practitioners. Canadian Institute of Forestry also suggests that LEEDs considers a life-cycle approach to the entire design of buildings and the building materials used. It is here that wood makes many positive contributions that as yet are not recognised in the LEED rating system.

If it’s your timber, make sure it’s in the competition. Ring the architect, builder or owner; pay the fee; organise the photos. The 2010 Australian Timber Design Awards is your chance to have your timber products showcased. If you’ve supplied timber or timber products to an eye-catching house, office block or resort development, make sure your contact knows about the Timber Design Awards. Let us know about the project by email at info@timberawards.com.au

ENTRY FORMS AND INFO AVAILABLE AT

www.timberawards.com.au Entries close 16 July

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issue 123 | 03.05.10 | Page 11


industry news

Sustainable forests are carbon-positive, whether planted or naturally regenerated From Page 7

It is clear Labor and Democrat strategists naively thought climate change would transform the political landscape. In any future approaches on ETS, it is hoped governments will take stock of the forest industry’s viewpoint. Some environmental groups have suggested that the native forest sector should be treated differently from the plantation sector in the development of an ETS. Proponents of this suggestion claim that native forests (especially old-growth forests) contain large amounts of carbon which will be released into the atmosphere when the forest is harvested. They ignore that fact that after harvesting, a significant proportion of the carbon continues to be stored

There is considerably less diversity in forestry than there is in agriculture.

for many years in products such as house frames, engineered wood products, flooring, furniture and even paper. In addition, when the forest is regenerated it removes additional carbon from the

Producing the cream of Australia’s best hardwoods for 150 years If you’re into hardwoods get into Enright’s

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atmosphere. Thus, any shortterm release of carbon during harvesting operations is likely to be countered during the lifecycle of the regenerated forest. In the long-term, forestry will be carbon-positive, regardless of whether a forest has been planted or has been naturally regenerated. Timber Communities Australia says the subdividing the forest industry into various sectors is artificial and if applied to an ETS would lead to ambiguities, difficulties in definitions and complexities in administration. ETS should clearly differentiate between forestry and deforestation

ies Deliver isbane r es B eliveri

ht d – freig d anywhere ge arran e eastern on th coast

• Structural hardwoods – F27 to F14 • Tall girders, bridge decking and fence-grade timbers • Hardwood flooring and 150x35 ripple decking • Green offsaw dressing • ACQ treatment to H3 and H4 • Durabiliy 1 and 2 species • Mostly spotted gum (Corymbia citriodora)

ENRIGHTS SAWMILL Timber – Trade and Retail 144 Brisbane Street, Beaudesert, Queensland 4285 Tel: (07) 5541 1077 Fax: (07) 5541 3298 Email: enrights@hotkey.net.au

Page 12 | issue 123 | 03.05.10

TCA suggests that proposals to exclude the native forestry sector from an ETS have nothing to do with carbon but are part of a broader agenda to remove timber production from all native forests in Australia. During the 2002-03 bushfire season it was estimated 130 million tonnes of C02 was released due to high intensity wildfires – an amount equivalent to one quarter of Australia’s reported emissions. TCA suggests that an ETS should clearly differentiate between forestry (which is not

land use change as it does not result in a loss of forest cover) and deforestation (which is defined by the Australian Greenhouse Office as the deliberate, human induced removal of forest cover and replacement with pasture, crops or other uses). Deforestation may result in net carbon emissions; sustainable forestry will result in net carbon storage. The Institute of Foresters of Australia in its submission on the Garnaut Review’s Issues Paper No. 1 (Climate Change: Land Use – Agriculture and Forestry) said improved fire prevention and fire management were vital in reducing greenhouse gas emissions. The Forest Industries Association of Tasmania made this point very clearly in its submission on the Garnaut Review: • There is considerably less diversity in forestry than there is in agriculture. • Forestry crops are generally routinely measured to estimate the standing volume of wood. • It is easier to generalise regarding the stored carbon in a forest crop than it is to generalise regarding the storage and emissions of greenhouse gases in a diverse agricultural context. • Forestry crops generally take much longer to reach harvest age than agricultural crops; plantation forests are harvested on a rotation of 8-35 years while native forests are often harvested on rotations of 60 years or more. • Forestry is highly regulated by governments. • The sustainability of Australian forestry is increasingly being internationally recognised through certification schemes such as the Australian Forestry Standard.

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events

Industry delivers strong sustainability message to architects at design show A WIDE range of certified timber products contributed to the sustainability message at DesignEX staged at Sydney’s Convention and Exhibition Centre, Darling Harbour, from April 22 to 24. More than 300 local and international brands and boutique suppliers were represented at the tradeonly event, including many producers and suppliers of timber floors, panelling, veneers and engineered wood products. A design for stability (D4S) section brought in the latest sustainable products and pioneering services for the architectural, building and design industries and occupied an entire hall at the exhibition centre. D4S is about designing products in a way that reduces their environmental impact. A big crowdpuller was the Wood Naturally Better exhibit where more than 250 people registered to receive information on the initiative. The exhibit featured a 25-year-old woodcrafted go-cart created by Richard Crosland and a clock and furniture by Will Mathysen from Fox’s Furniture Gallery. English-born Richard Crosland began working with wood in Australia in the late sixties. By 1970, he was designing and making furniture on commision and by 1977 he was teaching cabinet making at Sydney Technical College. In 1979, while continuing his commisioned work, he established his own woodworking school, both of which he maintains today. “I am inspired to make these mechanical sculptures because of my appreciation for mechanical devices, and I love working with wood,” Mr Crosland says.

Plenty of activity on the Wood Naturally Better strand at DesignEX in Sydney.

“Once I get an idea for a piece, my aim is to incorporate into it, not only a sense of style, proportion, and perhaps a certain degree of elegance, but also to create something which does justice to the medium from which it is made.” Assisting FWPA personnel on the Wood Naturally Better stand over the three-day event were Martin Lewis, Furniture Industry Association of Australia, Harry Stresser of Boral Timber Flooring, Ben Lucy from Kennedy’s Aged Timbers, Jeffery Price, Innovative Timber Ideas, Trevor Molly, Embelton Flooring, Wendy Boyd, Hyne, Elias Akle, Osmose, Craig Pockington, Species Australia, Glenn Cairncross, Weathertex, Craig Wilson, Carter Holt Harvey, Lea Richards, Lea Furniture Design,

Robert Holstein and Peter Warr, Britton Timbers, John Halkett, Australian Timber Importers Federation, Andrew Penny, Easy Craft, Kevin Leeson, Dale & Meyers and TABMA Australia staff. The growth of US hardwood forests has been exceeding annual cut for decades Michael Buckley fielded inquiries on the American Hardwood Export Council stand at DesignEX which was visited by former AHEC board member Ron Carlsson, president of USA Woods Inc., based in Memphis, Tennessee. Mr Buckley said specialist hardwood importers across Australia had been distributing American hardwoods for many years and they had established

Getting together on the American Hardwoods Export Council stand at DesignEX are, from left, Robert Holstein, Britton Timbers, Ron Carlsson, USA Woods Inc, and John Halkett, Australian Timber Importers Federation. - Picture by Turnstone Singapore.

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clients for US species in solid lumber and veneer. “American hardwoods fit into a number of interior markets in flooring, furniture and joinery with such items as doors, panelling, stairs and kitchens,” Mr Buckley said. “While some are structurally strong and durable, they are generally not used in exterior situations – especially in the harsh Australian climate. “However, there are exceptions, such as heat-treated tulipwood.” Mr Buckley said tulipwood was one of many sustainable species growing in eastern US; it happened to be the second fastest expanding in terms of forest growth, as well as being the tallest hardwood producing excellent lengths of relatively clear lumber. “The growth of US hardwood forests has been exceeding annual cut for decades, with oaks accounting for about 40% of the resource and the balance mainly ash, maples, cherry and walnut – to name a few,” he said. In the last four years, Australian importers have purchased on average $US4million worth of American hardwood lumber – “clearly a specialised business,” says Mr Buckley. AHEC this year launched its ‘Green Card’ providing facts on the embodied energy in wood and data on the sustainability and legality of harvesting US hardwoods. Responding to this need, AHEC is commissioning the most comprehensive life cycle assessment ever undertaken in the hardwood sector. The results, to fully conform to relevant ISO standards, will be rolled out from the second half of 2010 onwards.

issue 123 | 03.05.10 | Page 13


transport

Logging into the weight debate Contractor’s solution to tougher CoR legislation CHAIN of Responsibility (CoR) legislation is a reality for anyone involved in transportation. But for the logging sector where the chain extends from truck operator to plantation and woodchip yard, the legislation poses severe financial repercussions for those not following a code of practice. Monaro Logging, based in Bombala, 50km from the Victorian border, is one organisation whose dedication to comply with CoR has seen their operation benefit greatly with a Bulknet wireless system. For service manager Brett Roberts, having a clear solution to weigh the 400,000 tonnes of softwood pine they transport each year from plantations in the state forest was a critical necessity. Running 14 B-Double Kennedy trailers with Kenworth prime movers in the fleet, the Bombala-based company say that although they always had scales on their trucks they decided to fit the more user friendly, wireless Bulknet system. ‘If we’re a tonne overloaded we won’t get paid for that tonne, so we need to be spot on every time’ – Brett Roberts “When we purchased our first Bulknet weighing system some 18 months ago we were looking for new weighing technology that was more accurate and simpler to use,” Mr Roberts said. “Our trailers have ABS braking and roll stability, so that’s enough wiring in the loom as far as we’re concerned. When you consider the hydraulic hoses and that our log bolsters slide backwards and forwards and fold up and down – wires in a weighing system is the last

Page 14 | issue 123 | 03.05.10

“The strict guidelines that logging industry have had to run on for some time now will no doubt make their way down to general road freight soon enough,” Mr Roberts said. “Most in the logging industry have weighing scales in place – the challenge is finding one that works best and that doesn’t cost an arm and a leg. Those that don’t have good scales are leaving themselves wide open.”

Under mass management, logging companies need to write down the weight of every load before they leave the loading site.

thing we want to worry about. “Add to this that the Kennedy front trailer folds up and sits on the back of the truck, any wires bending is just another potential problem that we don’t need.” Mr Roberts says that authorities in his region are getting tougher with CoR. “Now everyone’s responsible, from the loader to the truck driver through to the managers and directors – no-one is spared and you can’t have any excuses. It just has to be right.” Truck safety is also a huge concern in the region; being a state forest contractor, the chain extends right through to government – hence the need for strict compliance. In a bid to be responsible, VicForests is looking at docking pays for overloads. “So if we’re a tonne overloaded we won’t get paid for that tonne, so we need to be spot on every time,” Mr Roberts said. “Because we run on mass management we’re allowed an extra two tonne on our payload, but if we’re 50 kg over then we get charged for 2050kg.” He says the Bulknet system makes keeping track of that

Brett Roberts .. authorities getting tougher with CoR.

process really easy, especially with the remote hand held unit. “We can give it to the loader driver and he knows exactly what weights he’s putting on his truck. The drivers are very confident that they’re always doing the right thing.” Brett adds that the remote element of the system also increases safety, allowing drivers to stand away from the truck at a safe distance while it’s being loaded, while still being confident that when they leave the site they’ve done the right thing. His analysis of his daily load print-outs shows drivers have been ‘spot on’ since introducing the Bulknet system.

Chain of responsibility is similar to the legal concept of ‘duty of care’ that underpins occupational health and safety law CoR Legislation specifically applies to vehicles in excess of 4.5 tonnes. This legislation was originally drafted by the National Transport Commission (NTC) in 2003, and approved by the Australian Transport Council of Ministers (ATC) in 2004. Since this time, each state has been preparing its own laws in order to have the same effect in every state. Chain of responsibility is similar to the legal concept of ‘duty of care’ that underpins occupational health and safety law. Chain of responsibility investigations supplement the state RTAs current enforcement practices, while not replacing them. Transport inspectors and police officers can investigate along the transport chain and up and down the corporate chain of command. “Road safety and logging has always been an emotive topic and with so many variables to consider, logging companies are loading blind without the right tools to help them,” says Bulknet’s national business development manager Nik Maljkovic.

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opinion

Treaters must get their act together before it’s too late ONCE upon a time, Kaptain Preservation and his band of merry men used to patrol the timber yards of Queensland making sure the forces of evil were not up to their dirty tricks selling branded or tagged timber products which purported to meet the designated treatment standards but which, in fact, had barely passed within the vicinity of a treatment plant. Regrettably, this is no longer the case. What has resulted from this situation is a decline in treatment quality which will, ultimately, not only harm the treatment industry, but has the potential to cause inordinate harm to the entire timber sector. TUMA is fast withering on the vine Fence palings are already a lost cause, although because of their make-up and the fact that they are in a vertical situation, they actually still perform a reasonable job. The more urgent problem is that the practice of selling pine garden sleepers which have been treated green has become rampant leading to products failing through fungal attack and termite decay after a very short time in service. Fence rails are another potential timebomb. It needs to be emphasised, that it is not all producers and not all treaters taking the shortcuts and the cheap way out. Certainly many are doing the right thing Those who are not .. well, you all know it’s wrong and most of you, peculiarly, seem to have the desire to do it right. But, “because Joe Loss down the

the

Watchdog

Now in it’s 24th year the Queensland Timber Industry Charity Golf Day is set for:

FRIDAY 28th MAY, 2010 Invite clients for a day of networking to show your appreciation for their support or use it as a team building experience for your staff. Spend a day socialising with industry peers, enjoying a day on the green and raise money for a children's’ charity.

THE DETAILS: Competition is a 4 ball Ambrose, 4 players per team. Prizes awarded to teams for 1st, 2nd & 3rd places as well as the Bradman prize for last place. There is a maximum of 36 teams able to play so get in quick! DATE: COST: VENUE:

road is doing it and undercutting me by a dollar, I’ve got to do it as well to stay in business”. It has to stop. There is a well established and easily understood Australia standard for timber treatment, which is being flouted every time a tag or a brand is placed on an improperly treated piece of timber, or an unbranded, improperly treated product is sold as “treated”. Kaptain Preservation is no longer in action. TUMA is fast withering on the vine. The government has made it clear it is not their problem; it’s the industry’s problem and the industry should fix it. So, it is left to the industry itself to put its hand up and get its house into order. Can it be done? Of course it can. But it needs a lot of effort and willingness to work together, not to eliminate competition, but to give the public what they expect when they buy a treated timber product – something that will last a lifetime. Contributed

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RSVP:

Friday 28th May, 2010 $600 per team of 4, includes lunch. $165 per individual, includes lunch. Gainsborough Greens Golf Course Yawalpah Road, Pimpama Friday 7 May, 2009

AGENDA FOR THE DAY

8.00am Arrive & register at Gainsborough Greens Golf Course. A hot BBQ breakfast will be served. 9.00am Shotgun start. 2.00pm Return to clubhouse for a hot lunch. Well renowned entertainer, Steve Allison followed by prize presentation.

The beneficiaries will be designated Children's Charities.

A Joint Industry Association Event

PLEASE COMPLETE BELOW BELOW & RETURN BY FAX TO 5483 6179 OR EMAIL MORTY@SPIDERWEB.COM.AU

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issue 123 | 03.05.10 | Page 15


Dual Paul II Series Optimized Docking Line with New Ulti-Vision Colour Scanner

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Page 16 | issue 123 | 03.05.10

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This important and timely seminar, organised by TABMA Queensland, will help reduce some of the confusion relating to chain of custody. It will ensure the Queensland timber industry has the information required for compliance with legislation,Key speakers will present information and there will be a question and answer forum. Speakers include: • Colin MacKenzie, manager, timber application and use, Timber Queensland Skookum offers a huge range of Australia •Spare Simon Parts Dorries,including General Manager, Engineered Wood Products Association of Cambio Ph (1800) 600 053 Australasia parts: Debarker • Kayt Watts, chief executive, Australian Forestry StandardDarren Ltd (AFS)Ousey 0407 041 947 Tool ½” Flangechief executive, • Tool Shaft ••Michael Spencer, Forest Stewardship Council (FSC) Arms Washer New Zealand • Pyramo Tips • 1” Tenslink Registration fee: $65 pp (TABMA member) $80 pp (non-member) hot breakfast Ph• Includes +64 9 276 2402 • Tool Holder • 3” Tenslink and morning tea. Note: Arrival 7:30am. Breakfast 7:45 am. Presentations begin at 8 am. (0800) SKOOKUM • Roller Spikes • Rotor Bearing RSVP by Friday, August 14, to: • Gearset • Refurbishment Jonathan McLachlan Tabma Queensland, PO Box 532, Crown/Pinion +64 27 6488 488 500 Brunswick Street, Fortitude Valley 4006 Tel: (07) 3254 3166. Fax: (07) 3254 4599. Donna Neil us Mob: Give 0438 295 136a call for a Quote on +64 9 276 2402

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issue 123 | 03.05.10 | Page 17


Timber & Forestry e news is published by Custom Publishing Group. Timber & Forestry e news is a full colour e magazine emailed every Monday to Decision Makers within the Australian and New Zealand Timber and Forestry sectors. Advertising is booked with a minimum 4 week booking with discounts for 12, 24 and 48 week bookings.

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Issue 123  

A weekly online magazine to the timber and forestry industry

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