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ISSUE 295 | 11.11.13 | PAGE 1

Due dilligence: clock is ticking for industry

THIS ISSUE Lest we forget

Illegal logging Bill assessed as new parliament begins sittings this week Women cut timber for World War trenches

THE clock is ticking .. new regulations requiring Australian timber merchants and manufacturers to undertake due diligence before importing or processing raw logs will commence on November 30, 2014. Meanwhile, the new federal

government is re-examining the legislation to make sure the Illegal Logging Prohibition Bill relates to its broad policy objectives before the 44th parliament opens this week. Federal forestry officials have had talks with industry on Amendment Regulation

• Call for forest products innovation institute • iFA annual general meeting in Melbourne • Message in warsaw: carbon tax must go • Kate Carnell new AFs chair • AFG holds fast • Pulp mill: tamar valley or Burnie?

2013 which was registered as a legislative instrument on May 31. An ABARES report released this month provides analysis indicating what the ‘affected community’ would have Cont Page 2

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industry news

Coming to grips with scale, complexity of due dilligence From Page 1

looked like if the regulation was in effect in 2011 and 2012. It assumes that importers and processors that will be regulated from November 30 next year are reasonably represented by trade flows in these years. The report shows that if the regulation had been in place in 2012, 17,254 importers, 452 brokers and 468 domestic processors would have been affected. Further, 25,805 suppliers located in different countries around the world would also have been affected. The report says around 184,000 consignments worth $5.78 billion were imported in 2012 and met the criteria described in the regulation. Industry leaders this week expressed concern that the Bill may impose unnecessary red tape and compliance costs on Australian producers. While the focus in the ABARES report is on imports, some data is also presented for domestic processors who will be required to undertake due diligence

Ross Hampton .. concerns over unnecessary red tape and compliance costs for Australian producers.

before processing raw logs that have been grown in Australia. The key elements of this report are an analysis of regulated timber product imports and the affected community. The aim is to establish a baseline of timber imports and characteristics of importers as well as brokers and import suppliers that together with domestic processors will form the ‘affected community’. Trade flows were also investigated to provide a greater understanding of

the trade profiles of primary source countries, which will help develop country-specific guidance for the affected community. The locations of importers and brokers were determined using postcodes recorded in business addresses reported in Customs declaration forms to inform potential outreach and educational programs under the illegal logging regulation. The focus of the report is to establish a baseline of timber imports and characteristics of importers, brokers, suppliers and domestic processors that form the affected community. Such characteristics vary across different product types, frequency of import, value and source country. Establishing such a baseline provides an understanding of the scale and complexity of due diligence and regulation processes for industry and government as well as assisting future research on compliance activities under the regulation. In terms of the combined value of Australian regulated timber Cont Page 9

AFPA calls for forest products innovation institute THE Australian Forest Products Association has called on the Coalition government to back regional jobs and revitalise industry with $40 million over four years to establish a national institute for forest products innovation. CEO Ross Hampton said forestry R&D in Australia had effectively collapsed over the last five years. In 2008, 100 million was being spent on R&D; that had shrunk to about $30 million. A force of 730 forestry researchers had been decimated to about 250. “And all the while our

PAgE 2 | issuE 295 | 11.11.13

competitors have been gearing up their R&D initiatives, to target new markets – including the Australian domestic market,” Mr Hampton said. “We now import $4.2 billion in timber and paper products each year – incredible when you consider the natural advantages of our nation in growing and processing timber.” AFPA, in consultation with the broad Australian forest and forest products research community, has produced a major research paper outlining the state of research and development and the potential

for government and industry to work together to kick-start a ‘new golden age’. Mr Hampton said: “There is no time to delay. Other better organised nations are rapidly prototyping cheaper and faster production techniques. They are applying chemistry and ‘cell wall level’ microscopic research to create whole new families of products and new sales opportunities. “In those countries, governments and industry are organised around a common purpose – to deliver forest industries of world beating capability and scale.”

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industry news

Kate Carnell appointed new AFS chair

Geoff Gorrie retires, new directors appointed WELL-KNOWN industry personality Kate Carnell was appointed independent director and chair of Australian Forestry Standard Ltd at the AFS annual general meeting in Melbourne last month. A former CEO of the National Association of Forest Industries and chair of the Cooperative Research Centre for Forestry, Ms Carnell is the granddaughter of Queensland’s first Conservator of Forests Victor Grenning. AFS Ltd owns and manages the Australian Forest Certification Scheme, which is built on two standards – AS4708 and AS4707. It is the Australian member of the Program for the Endorsement of Forest Certification, the world’s largest certification organisation with more than 253 million ha certified under PEFC. Kate Carnell replaces the inaugural chairman of AFS Geoff Gorrie who is retiring. She is currently CEO of Beyondblue and her previous experience includes Chief Minister of the ACT and CEO, Australian Food and Grocery Council. Professional forester Dr Hans Drielsma, who was appointed an independent director, praised Mr Gorrie’s substantial contribution to AFS Ltd.

Kate Carnell

Dr Hans Drielsma

Geoff Gorrie

Colin Fitzpatrick

Nathan Trushell

Craig Dunn

Alison Carmichael

Craig Smith

David West

On behalf of all current and former members, directors and staff, Dr Drielsma thanked Mr Gorrie for his dedication and

enthusiasm. AFS directors appointed were Nathan Trushell, VicForests, David West HQ Plantations,

NSW (representing forest grower members); Craig Dunn, Australian Paper (primary processors); Colin Fitzpatrick, TABMA Australia (supply chain members); Alison Carmichael, Institute of Foresters of Australia (community, social and environment members); and Craig Smith, CFMEU (employee representative organisation members). National secretary based in Canberra Richard Stanton has reminded stakeholders that the public consultation period for the revised draft Australian standard for chain of custody of forest products (AS4707) closed last Friday. AS4707 underpins the traceability of wood from wellmanaged forests. The draft revised standard can be viewed on the AFS Ltd website www.forestrystandard. org.au AFS Ltd has registered another six AFS members for new C-o-C certification: Nannup Timber Processing Pty Ltd, Oxygen08 Pty Ltd, Newells Creek Sawmilling Co Pty Ltd, Adams Sawmill Pty Ltd, Aquafern Pty Ltd, and Endeavour Industries, trading as Nangarin Timbers.

www.vafi.org.au/ad/ The peak body for the Victorian forest and wood products industry

info@vafi.org.au 03 9611 9000 Twitter: @VAFIOnline

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issue 295 | 11.11.13 | Page 3


STUDY TOUR

Forest managers in europe are considered friends of the trees

Gottstein mission looks at close-to-nature systems SOCIAL acceptance of forestry is high in Europe, largely due to a history of professional forest management, a high level of active private forest ownership, a profitable forest processing sector and a high level of forest access. This is the opinion formed by John Hickey, general manager (forest management), Forestry Tasmania, after a Gottstein Fellowship mission to central Europe. “Tasmania has much higher levels of reserved forest and long-term retention for mature forest habitat, but the public still believes the forest needs to be ‘saved’ from the forest managers who they believe are ‘trashing the forest’,” Mr Hickey said. “The familiarity of the forestry sector is lacking in the Thick shade tolerant regeneration under closed canopy in Europe. Australian public and the ‘woodThick shade tolerant regeneration under closed canopy in Europe is good’ message isn’t yet so acceptable,” Mr Hickey observed. understood. “Sadly, we still have a long way “This is where the largely forest can to go before Australian forest shade-tolerant managers are looked upon as regenerate under successive friends of the forest rather than harvests without a need for significant disturbance.” pillagers”. The Gottstein study investigated He said a ‘close-to-nature’ whether European selection scenario for Australian wet silviculture would work in wet eucalypt forests would still eucalypt forests and why the require essentially a clear social acceptability of forestry fell so the shade intolerant is so high in Europe compared eucalypts could regenerate, to the contentious issue it is and fire would still be likely as a management tool to provide the John Hickey .. Improved here in Australia. Mr Hickey divided his significant disturbance required profitability by developing project basically into three by the eucalypt seedlings to markets for energy wood. areas – understanding regenerate. the forest management “But the public don’t like the more visually acceptable forest systems; investigating clear-fell concept so a variable management style”, Mr Hickey various certification schemes; retention system, where clumps explained. and understanding social of trees are kept in a harvested “Certification systems vary acceptability of forestry as a area may still achieve the forest in Europe and there is a legitimate and non-contentious regeneration objective with a significant difference between jurisdictions. “For example, land-use. “The ‘close-to-nature’ forest ‘It’s going to take time, but I believe a management in central durable social licence for native forestry can Europe is what makes the forest management practices be achieved in Australia’ – John Hickey

PAgE 4 | issuE 295 | 11.11.13

FSC certification varies according to national standards that can specify quite different limits to clear-fell area based on either market advantages, government direction or community pressure, even though the forest type is similar. “Both major certification schemes work well in Europe, but PEFC certification appears to be more about working with the forest owners rather than imposing conditions on them.” Mr Hickey’s ideas for a way forward include: • Promoting the value of native forest products as stylish, durable, carbon friendly and renewable with low-embodied energy. • An increase in domestic processing. • Improved profitability by developing markets for energy wood. • Informing the public as to why wood is good. • Developing more effective mechanisms for balanced stakeholder engagement. “We have a lot of work to do to balance the negative image currently held of native forest management,” Mr Hickey said. “Australia’s forest managers haven’t always got it right but they are generally committed to continual improvement through their widespread adoption of environmental management systems and forest certification. “It’s going to take time but I believe a durable social licence for native forestry can be achieved in Australia. But it will need meaningful ongoing stakeholder engagement, fostered through forest certification, in order to build more trust and increased public understanding of the ecological basis of silvicultural management of Australia’s native forests”.

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events

wHAt’s On? nOveMBer 23: TABMA Queensland timber industry gala dinner. Moda Events Portside Level 2, Portside Wharf Hamilton. Contact Alicia on (07) 3254 3166 or alicia@tabma. com.au 25-26: Bioenergy Australia 2013, Crowne Plaza Hunter Valley. Technical tour November 27. Abstracts for presentations and posters are currently being sought. The conference covers all aspects of bioenergy including biomass feedstocks, energy conversion technologies and overarching issues such as greenhouse gas balances and financing. Contact Daniel Evans at bioenergyconf@ theassociationspecialists.com. au or Stephen Schuck, Bioenergy Australia sschuck@bigpond.net.au Web: www.bioenergyaustralia.org 26-27: Foresttech 2013 (including the forest industry safety summit and steep slope wood harvesting conference – Rotorua, NZ. www.foresttech2013. com

MAY 2014

2014 FeBruAry 2014 17-21: Gottstein wood science Course, Melbourne. Inquiries to Dr Silvia Pongracic (Gottstein Trust), 0418 764 954 or secretary@ gottsteintrust.org or www. gottsteintrust.org

MArCH 2014 19: Forestwood 2014. Politics, Policies and Business Impacts. Pan-industry conference jointly hosted by Forest Owners Association, Wood Processors Association, Pine Manufacturers Association, Forest Industry Contractors Association, and supported by Woodco, NZ Farm Forestry Association and the Frame and Truss Manufacturers Association. Museum of New Zealand Te Papa Tongarewa, Wellington. Registration opens October 2013. Contact conference organisers Paardekooper and Associates on +64 4 562 8259 or email info@forestwood.org.nz Visit www.forestwood.org.nz

19-20: Frame Australia – Park Hyatt Melbourne. National event for engineered timber and building pre-fabrication, providing a unique forum on markets, products and systems for timber and wood used in the detached housing and multi-residential markets The conference – Prefab Timber and Engineered Wood in Building Construction – covers truss and frame pre-fabrication on Day 1 and pre-fabrication in building on Day 2. Frame conveys the very latest information at a global and local level to provide valuable knowledge on timber and engineered wood as sustainable and cost-effective construction systems for residential and commercial building. Spponsorship options available. Contact: Frame Australia Pty Ltd, PO Box 242, Albert Park, Viic 3206. Tel (03) 9537 3800. Fax (03) 9537 3822. Email: info@frameaustralia. com.au

AUGUST 2014 6-9: AwisA 2014 exhibition. Brisbane Convention and Exhibition Centre. The Australian Woodworking Industry Suppliers Association Ltd has decided that the exhibition will move from Sydney to Brisbane next year. Inquiries about booking space: email info@awisa.com or call Geoff Holland. Tel: (02) 9918 3661. Fax: (02) 9918 7764. Mob: 0412 361 580 Email: info@awisa.com

EDITORIAL INQUIRIES TEL: +61 32661429

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Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association. The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI). AFPA was established to cover all aspects of Australia’s forest industry: - Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting. For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.

ISSUE 295 | 11.11.13 | PAGE 5


industry news

industry calls for carbon tax abolition before climate talks THE Australian Forest Products Association has added its voice to the growing chorus demanding business certainty, calling on the federal parliament to abolish the carbon tax. Parliament resumes just as the 19th round of the United Nations Framework Convention on Climate Change talks commence in Warsaw Poland. AFPA chief executive Ross Hampton, who is travelling to Warsaw to represent the Australian forest and forest products industry, said the Coalition had a clear mandate to remove the carbon tax and replace it with the direct action policy. “It is in our national interest that businesses have certainty and that our political and departmental representatives sent to negotiate at COP 19 have policy clarity at home,” Mr Hampton said. “‘Both the Abbott government and the previous Labor government agreed to unconditionally reduce national GHG emissions by 5% over 1990 levels by 2020. ‘At COP 19, AFPA will be arguing that forest harvesting and regeneration has the potential to play a much greater

PAgE 6 | issuE 295 | 11.11.13

Message for Warsaw .. mission will be advocating the need to recognise all major pathways for emissions abatement from forestry, including the carbon sequestered by growing trees and stored in forest products.

role in Australia’s carbon emission reduction target.” A growing body of research is showing that failing to include life cycle assessments of harvested wood products in climate policies can lead to perverse mitigation outcomes. This is because a narrow focus on the carbon sequestered in standing forests is only part

of the solution and does not capture some of the longer term abatement benefits from forestry. AFPA will be advocating the need to recognise all of the major pathways for emissions abatement from forestry, including the carbon sequestered by growing trees and stored in forest products,

the substitution of more emissions intensive materials (such as steel and concrete) with forest products, and the use of woody biomass for energy, thereby displacing fossil fuels. The other major issue which AFPA will be seeking to have properly considered at the climate talks is the growing number of ‘megafires’ and their associated impacts on carbon emissions at a global scale. Mr Hampton said: “We are seeing a growth in the number of forest fires of massive scale and intensity. A changing climate may indeed be a contributing factor, but AFPA will argue that significant blame can be sheeted home to a lack of effective fuel reduction activities over recent decades.” He said the current approach of ‘suppress flames at all costs’ while severely limiting burning off and fuel reduction by extracting some trees and undergrowth, had made many forests denser, drier and more fire prone. “We have created the powder kegs around our cities and we now hold our breath every Cont Page 7

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industry news

weyerhaeuser Co. joins international voices to scale up forest management WEYERHAEUSER, one of the world’s largest private forest owners, has joined 25 other members of the World Business Council for Sustainable Development announcing the need to significantly scale up sustainable forest management. The council’s forest solutions group is responsible for nearly 40% of annual global forest product, paper and packaging sales. These companies are committed to transforming forest-related challenges into forest-based opportunities and solutions. The companies endorsed the announcement following an international discussion including three forest certification systems – the Forest Stewardship Council, the Sustainable Forest Initiative and the Program for the Endorsement of Forest Certification – at the council’s meeting in Istanbul on November 4. A leadership statement on the value and future of forest certification recognises that reducing forest loss is a global societal priority requiring immediate and concerted action. Earlier this year, Weyerhaeuser attained international stakeholder membership of

Forest fuel powder kegs around cities From Page 6

summer wondering which will explode,” he said. “The magnitude of greenhouse gas emissions from bushfires is so significant it must be on our climate talk’s agenda. In Australia, the average annual emissions from bushfires over the past decade was 57 million tonnes (Mt) – making it a larger contributor than four other categories including industry.”

PEFC, the world’s largest forest certification system. PEFC, which is made up of large forest owners and hundreds of thousands of family forest owners around the world, has endorsed two North American certifications standards, including the Sustainable Forestry Initiative. In the US, PEFC also endorses the American Tree Farm System, which means landowners certified to SFI and Tree Farm also comply with the PEFC’s sustainability benchmark.

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issue 295 | 11.11.13 | Page 7


industry news

Membership holds as AFG adjusts to economic pressure WELL-KNOWN industry identity Warwick Ragg has stepped down as chief executive of Australian Forest Growers as the organisation rationalises operations brought on by economic pressures in the industry. “Any rumours that AFG is in mothballs are greatly exaggerated,” the president David Fisken told Timber&Forestry enews. “The oganisation is very much alive and membership is holding in all states,” he said. AFG, established in 1969 as the Australian Forest Development Institute, is a national association representing and promoting private forestry and commercial tree growing interests in Australia. It is run by a voluntary board of growers, supported by a small paid staff based in Canberra. The national office is managed by Terry Greaves who has a background in small business and marketing. Mr Fisken said there had been some reduction in AFG membership, the result of many private softwood owners completing harvests and retiring from the industry. “Financial constraints brought on by hard times across the forest and timber sector over

The Australian Forest Grower magazine .. the private forest grower’s ‘bible’.

the past two to three years have had their effect,” Mr Fisken said. “However, AFG continues to retain all its services and support functions to the private forest sector and will continue to publish the respected Australian Forest Grower, a quarterly magazine, with the spring edition now at the printers,” he said. Warwick Ragg has a background in rural advocacy. Prior to his appointment as chief executive of AFG, he was an area manager for the NSW Farmers Association based in northwest New South Wales. He has a strong appreciation of the critical importance of gaining environmental outcomes through commercial forestry and agriculture.

‘Full house’ for ForestteCH WITH just over three weeks to go, FIEA’s ForestTECH 2013 conference in Rotorua has reached full capacity of around 370 delegates. Online registrations are closed but people who still want to attend can call the FIEA Rotorua office to access a wait list. The double-header conference includes the simultaneous running of a steep slope wood harvesting conference alongside a forest industry safety summit.

PAGE 8 | ISSUE 295 | 11.11.13

Two-thirds of delegates have registered for the harvesting conference. The conference has attracted forest manager and contractor groups from Chile, Australia and North America. Contact Christa Otter on +64 7 921 1382 or by email to office@ fiea.org.nz. Christa will make contact with people on the list as and when places become available.

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industry news

A high number of processors will be impacted by Act

From Page 2

product imports across all chapters, China is the primary source country – particularly for paper and furniture products. China is currently the world’s largest producer of paper and paperboard products and a major exporter of furniture and secondary wood products. New Zealand is Australia’s primary trading partner for wood articles and pulp products. In 2012, 125 countries provided regulated timber product imports to Australia in consignments worth at least $1000. Meanwhile, the Australian timber industry has not waivered in its concerns about regulations attached to the Illegal Logging Act “Illegal logging is a worldwide problem and the industry supports, in principle, any attempt to stamp out this activity,” Australian Forest Products Association CEO Ross Hampton said. “But while there is a need to support international efforts to curb the trade in illegally sourced wood and paper products, AFPA is concerned that it may impose unnecessary red tape and compliance costs on Australian producers,” Mr Hampton said. “These domestic industries

already operate within a stringent legal and compliance framework for sustainable forest timber & Forestry e-news is the most authoritative management.” and quickest deliverer of news and special features He said Australian manufacturers to the forest and forest products industries in of wood, tissue and paper Australia, New Zealand and the Asia-Pacific region. products had a high uptake of weekly distribution is over 7,000 copies, delivered independent and internationally every Monday. Advertising rates are the most recognised certification competitive of any industry magazine in the region. schemes and reporting and timber&Forestry e-news hits your target market – compliance requirements for every week, every Monday! low-risk Australian producers should be streamlined and HEAD OFFICE not raise costs by duplicating Custom Publishing Group existing legal processes. unit 2- 3986 Pacific Highway “The ABARES report is Loganholme 4129 Qld, Australia concerning because of the high number of domestic processors Address all correspondence to that will apparently be impacted PO Box 330, Hamilton Central, Qld 4007 by this Act,” Mr Hampton added. Timeline: The Illegal Logging Prohibition Bill was passed by the House of Representatives dennis@industrye-news.com on August 20, 2012, before being debated and passed by PUBLISHER the Senate on November 19, dennis Macready 2012. The Act received Royal dennis@industrye-news.com Assent on November 28 and is now law in Australia. The Illegal Logging Prohibition Amendment Regulation 2013 was registered as a legislative mAnAgIng EDITOR instrument on May 31 this year. Jim Bowden This regulation operates under Tel: +61 7 3266 1429 the Illegal Logging Prohibition Mob: 0401 312 087 Act 2012 which came into effect cancon@bigpond.net.au on November 29, 2012. The new requirements set out ADVERTISIng in the regulation will come into effect on November 30, 2014. Tel: +61 7 3266 1429

cancon@bigpond.net.au

us softwood imports jump HIGHER lumber consumption in the US has resulted in both increased domestic production and a rise in importation of lumber in 2013, reports the Wood Resource Quarterly. Total production in North America was up almost 7% from January through July this year compared to 2012, and imports from

Canada and overseas jumped 18% during the same period. North American lumber production was up 6.7% during the first seven months of 2013 compared to the same period in 2012, with all regions on the continent showing higher production this year.

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

issue 295 | 11.11.13 | Page 9


industry news

sustained recovery for building as Reserve Bank keeps rates on hold

‘Australian dollar still uncomfortably high’: Stevens MASTER Builders Australia says the Reserve Bank’s decision to leave rates on hold at 2.5% is the right call for the moment, as the building recovery starts to gain strength. “There are now a range of indicators that gives the building industry confidence of a sustained recovery ahead,” CEO Wilhelm Harnisch said. “However, the full effects of low rates are still flowing through and keeping rates low at this point makes sense,” he said. “It will help boost the confidence of both the building industry and investors that we have a strengthening and sustained recovery on our hands.” Meanwhile, according to a News Crop report, Reserve Bank governor Glenn Stevens is trying to ‘jawbone’ the Australian dollar lower in place of further rate cuts. The central bank chief is unwilling to cut the cash rate deeper into record territory as house prices climb, according to leading analysts.

But a statement released by Mr Stevens last week, as the RBA kept the rate on hold for another month, underlined the central bank’s desire for a weaker currency. “The Australian dollar, while below its level earlier in the year, is still uncomfortably high,” Mr Stevens said. “A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy.” In more good news for the building industry, Tasmanians buying their first home will be given a $30,000 boost under the most generous first home builders grant in the country. Premier Lara Giddings announced a doubling of the state’s first-home builders grant at the Jobs Forum in Launceston last week in a bid to dramatically stimulate activity and job creation in the building sector. The housing industry described the unprecedented grant as the tonic to provide a significant

Glenn Stevens .. lower level of the exchange rate is needed to achieve balanced growth in the economy.

adrenalin shot for the economy. Ms Giddings said the grant for first home owners who bought or built a new home would be increased from $15,000 to $30,000, effective immediately. She said the take-up for the $15,000 grant, which was increased from $7000 last year, had been slower than expected. “It was always expected that

applications would accelerate over time, but we recognise the need to create jobs right now,” Ms Giddings said. “Builders have told us that there has been a lot of interest from people wanting to build their first home, but they needed more time to accumulate a deposit. “That is why we have taken the decision to turbo-charge the incentive for people to build their first home, effectively paying the cost of a deposit on an average new home build.” Housing Industry Association executive director Stuart Clues says the policy should avoid the usual criticism from naysayers that it will just increase house prices, because it will only be available for the construction of new homes. “New home construction has continued to languish while existing home sales are starting to move. This policy initiative will hopefully close that gap and create much needed Cont Page 11

New owner sought for this business. See Page 14

PAgE 10 | issuE 295 | 11.11.13

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industry news

Closing the gap to create additional construction jobs

From Page 10

construction jobs.” Mr Clues said the grant boost would benefit more than just a struggling local construction industry – an industry that normally employed up to 20,000 Tasmanians, but had seen 5000 jobs disappear in the past 12 months. “Every time a new home is built it generates significant flow-on employment to around 35 other small businesses, from carpet layers, to white goods sales and landscape supplies,” he said. The Premier said the new grant meant there was no time like the present for Tasmanians to own their first home. “I would encourage anyone

who has been thinking about building or even buying a new home off the plan to think seriously about taking advantage of this offer,” Ms Giddings said. Tasmania was among the cheapest places to realise the great Australian dream of building a new home, she said. “The average cost of constructing a first home in Tasmania was around $234,000 in 2012-13 and this grant will make building an even more attractive proposition.” Mr Clues said he hoped young Tasmanians would make the most of the $30,000 offer while it was on the table. The scheme will run until December 2014.

industry ‘sidestepped’ by steel house tender THE New Zealand timber industry fears a government tender will lead to thousands of Chinese-built, pre-fabricated, steel-framed houses flooding the Auckland market. Red Stag Timber group chief executive Marty Verry says the industry could be “sidestepped” by the government, which may grant a tender for the overseas construction of “2100 two-bedroom Housing Corp properties”. “I know one major company is looking offshore to China to bring those in already fabricated with components and modules ready to bolt together in steel framing,” Mr Verry said. “The prospect of the government making a rash decision to import thousands of steel-framed pre-fab houses and plonk them on land in Auckland posed a threat to

the local timber industry and the overall economy,” Mr Verry said. First Union general secretary Robert Reid says he would be “absolutely horrified” if the government tender allowed such a move. “We’ve got this crazy procurement process at the moment which takes no account of the economic development of New Zealand. Something like that could be easily manufactured by the [recently liquidated] Tachikawa sawmill with a new owner, or by a number of other wood sites who would love the work,” Mr Reed said. The possibility of overseasbuilt Housing Corp homes was raised after the liquidation of Tachikawa Forest Products at Rotorua, with 120 workers facing redundancy.

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ISSUE 295 | 11.11.13 | PAGE 11


industry news

Support for Tasmanian pulp mill: in the tamar valley or at Burnie? AS the Tasmanian Labor government and state Liberal Opposition give new support to the ‘mothballed’ Bell Bay pulp project, a Palmer United Party proposal to build a pulp mill at Burnie has set a cat among the pigeons. The proposed pulp mill in the Tamar Valley, northwest of Launceston – estimated to have been built at a cost of $2.3 billion by failed timber company Gunns Ltd – was to be fed with 100% plantation eucalypts to produce 1.1 million tonnes of air dried pulp annually. The Palmer United Party wants a new pulp mill to be built in Burnie and it will build its platform on the issue in the lead-up to the state election. The lobbying to re-ignite the idea of building a pulp mill at Hampshire rather than the Tamar Valley comes on

the back of more job losses in Burnie. Mining machinery manufacturer Caterpillar announced last week 200 jobs would go as it set up shop in Thailand. PUP’s newly-elected Tasmania senator Jacqui Lambie floated the idea of a north-west revival driven by a new pulp mill. The idea was echoed by the party’s state candidate Kevin Morgan, who also stood for the Lower House in September’s federal election. “I have done a lot of work on this issue over the past 12 months and we absolutely need this kind of industry in this region,” Mr Morgan said. “We are developing a policy around the idea and will take it to the state election as one of our key platforms.” Meanwhile, the timber industry

Jacqui Lambie .. floating the idea of a north-west Tasmania revival driven by a new pulp.

has applauded state MPs for maintaining their support in principal for a pulp making plant, saying the Tasmanian plant could potentially produce the material to replace the imported pulp which is the base

material for high-quality paper and tissue production. Australian Forest Products Association CEO Ross Hampton said Tasmanians had made their views clear in the way they voted at the last federal election. “They are not swayed by emotional arguments about large projects which have the potential to deliver hundreds of jobs as well as stability to communities,” Mr Hampton said. “There are almost 230,000 ha of eucalypt plantations in Tasmania; many were planted specifically to support the pulpmaking mill and are now ready for harvest. “Much of the wood fibre in question is a crop owned by hundreds of Australians – many of them family scale farmers.”

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Prefab Timber and Engineered Wood in Building Construction PAGE 12 | ISSUE 295 | 11.11.13

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iFA AnnuAL GenerAL MeetinG in MeLBOurne

IFA seminar launches revised version of standard for valuing commercial forests

Mike Leonard (Victoria) and David Wood (Queensland). Rob de Fegely (president, IFA) and Alison Carmichael (CEO, IFA) presenting the Annual Report at the National IFA 2013 AGM (below).

THE Institute of Foresters of Australia, in conjunction with forest industry specialist Pöyry Management Consulting Australia, launched a revised version of its ‘Standard for Valuing Commercial Forests in Australia’ at a seminar in Melbourne last Friday. The Association of Consulting Foresters of Australia, a division of the institute, received funding from Forest and Wood Products Australia to develop the standard. Ian Ferguson, emeritus professor at Melbourne University, and Jerry Leech, a former long-term staff member of the Woods and Forests Department of South Australia (now ForestrySA)

have combined their skills and years of specialist knowledge to produce this second version of the forest valuation standard. They consulted with the Australian Accounting Standards Boards and have been in regular contact with foresters in New Zealand as well as other international bodies to provide this standard on how forest values should be correctly reported. The pictures by Stephen Walker were taken at the IFA annual general meeting in Melbourne the day before the seminar. • A report on the seminar will appear in the next issue of Timber&Forestry enews.

Rob Youl (Victoria) and Professor Gerd Bossinger (Victoria).

Bill Jackson (CEO, Parks Victoria) and Ross Peacock (chair, NSW division). Attendees at the 2013 IFA AGM held in Melbourne.

More pictures, page 17.

Opportunity: new engineered product Project seeks access to on-going timber resource

ThIs engineered product is manufactured from small diameter treated true round plantation logs that would normally be chipped or destroyed. Resource cost is minimal. The production system is low capital cost and can be set up in a minimum of time and at a minimum of cost. Compared with current systems such as LVL, sawn timber etc. this product has unrivalled versatility, fire resistance, projected longevity and sustainability. This product has the ability to lower the costs of floor and wall framing in modern homes, as well as being ideal for low-cost housing The entire buildings can be erected on site using unskilled labour. The product has undergone comprehensive testing at the engineering faculty of the University of Technology Sydney under the guidance of internationally renowned timber engineer Prof. Keith Crews.

Engineered Timber Products

The project is keen to establish a plant near a guaranteed resource. Loggo products have undergone comprehensive Contact: (02) 4256 4767 or email pat@loggo.com.au testing at the engineering faculty of the University www.loggo.com.au of Technology Sydney. Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

ISSUE 295 | 11.11.13 | PAGE 13


COMPAny PrOFiLe

Gareth Lazarides calls it a day New owner sought for specialised timber business and warehouse facility in Brisbane

A LONG-established timber merchant and specialist in Australian and imported cabinet and furniture timbers, based in Brisbane, is looking for a new owner for the business, which has been under the guidance of its founder for more than 25 years. Gareth Lazarides has been in the specialised cabinet timber industry for almost 50 years and has decided it’s time the business moved up to the next stage. After working for 53 years – since the day he left school – Mr Lazarides has decided to retire. “I am looking for anyone who would enjoy the same feelings of satisfaction and achievement from seeing fine timbers transformed into beautiful creations – someone who is prepared to grow the business,” he said. Mr Lazarides was first employed by Thomas Moxon of Moxon & Co in 1964 as a general trainee at the company’s South Brisbane yard. Under Tom Moxon’s guidance, Mr Lazarides was trained in all aspects of the timber business, rising to the position of general manager before leaving to branch out on his own. During his time in the industry, Mr Lazarides travelled widely throughout Australia, New Zealand, the Pacific islands, southeast Asia and north and south America to establish contacts and inspect a wide range of timbers for the Australian market and to export to other countries. Today, Lazarides Timber Agencies still continues to market fine timbers from all parts of the globe. In the early years, Mr Lazarides travelled to every sawmill in

PAgE 14 | issuE 295 | 11.11.13

A fine reputation .. Troy Lazarides takes stock of timbers at the company’s Banyo warehouse.

North Queensland. All of them were supplying large volumes of cabinet timbers throughout

Australia and overseas. “About eight or 10 major and probably a dozen smaller

Gareth Lazarides .. his specialised timber business is on the market.

sawmills were operating then,” Mr Lazarides said. “Today this has been reduced to two or three small operations, a result of the closure of the major mills by the Hawke government.” Mr Lazarides still draws significant amounts of cabinet timbers from the region and his relationship with one of the mills goes back 40 years. This specialised part of the timber industry has allowed Mr Lazarides the privilege of supplying beautiful timbers in the refurbishment of several heritage buildings, including the old Parliament House, the new Parliament House in Canberra, the Crown Casino in Melbourne, the Reef Casino in Cairns, many of the new and refurbished hotels established for the 2000 Sydney Olympics, and many of the super yachts constructed in Brisbane and on the Gold Coast. Mr Lazarides established his company in March 1989, operating from his home and storing small volumes of timber at a warehouse in Nudgee. After a couple of years, he leased his first small shed at Bunya Street, Eagle Farm. His first employee was his son Troy who is still involved in the business and has worked with his father to develop the company. Within a few years the company moved to larger premises on Kingsford Smith Drive, Eagle Farm. After a further five years, the Lazarides family decided it was time to “take the plunge” and purchased a larger shed and yard at 15 Hurricane Street, Banyo, the current premises. The move saw the business expand dramatically. The new warehouse on 4000 sq m is close to the Gateway Motorway, Cont Page 15

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iFA AnnuAL GenerAL MeetinG in MeLBOurne

Conferring at the IFA AGM in Melbourne .. Hugh Stewart (Victoria), Patrick O’Shaughnessy (Victoria), Mark Parsons (ACT) and Stuart Davey (chair, ACT division).

Jodie Mason (Victoria), Alison Carmichael (CEO, IFA) and Ross Hampton (CEO, Australian Forest Products Association).

Meeting in Melbourne .. Hugh Dunchue (NSW), Michelle Freeman (IFA director, Youth and Women), Mark Poynter (Victoria) and Braden Jenkin (chair, ACFA division).

Tim Sanders (Victoria) and David Sedunary (Victoria).

Professor Ian Ferguson (Victoria), Professor Rod Keenan (Victoria) and Braden Jenkin (chair, ACFA).

Alan Brown (IFA honorary member), Erica Leslie (ACT), Peter Fagg (Victoria) and Professor Ian Ferguson (Victoria).

Guest speaker Graham Wilkinson, chief forest practices officer, Tasmania, chats with Stephen Walker, chairman, Queensland division, Institute of Foresters of Australia.

Ross Peacock (chair, NSW division), Stuart Davey (chair, ACT division) and Alison Carmichael (CEO, IFA)

Dressed-to-order service a ‘first’ for Queensland From Page 14

the main highway taking traffic north and south and just a few minutes from Brisbane Airport and 20-25 minutes from the Brisbane port and city. The company has installed machines to offer a dressed-toorder service for all clients also

out-sourcing machining for special profiles – whether they be trades people or hobbyists. Mr Lazarides believes he is the only merchant in Queensland who is stocking such a wide range of species that can offer this type of service. The company also stocks a wide

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range of species in various sizes in turning blanks for the hobby wood turner. The service can be for one length of timber to truck loads with the company regularly sending orders to all states and territories. Gareth Lazarides will be

pleased to talk to anyone who has a genuine interest in purchasing his business and the warehouse. Inquiries can be directed to David

Ginnane

at

Sunbelt

Business Brokers on (07) 5529 3700.

issue 295 | 11.11.13 | Page 15


Redwood trees have been ‘recording’ climate history for thousands of years

Weather report could stretch back to Roman times THE tallest trees on the planet, the coastal redwoods, trapped a record of the Pacific Ocean within their ancient wood. Centuries of fog from the ocean left a chemical signature in the rings of the massive redwoods (Sequoia sempervirens) that was distinct from the chemicals left by rainwater. A recent study identifies that difference and has used it to reconstruct the climate patterns of the past 50 years. The same method could produce a Pacific Ocean weather report stretching back to the Roman Empire. “Redwoods are restricted to a very narrow strip along the coastline,” says study co-author Jim Johnstone, a climatologist at the University of Washington. “They’re tied to the coastline, and they’re sensitive to marine conditions, so they actually may tell you more about what’s happening over the ocean than they do about what’s happening over land.” Molecules in a redwood tree trunk reflect climate changes experienced throughout the tree’s lifetime, according to climate scientists at the University of Washington. “This is really the first time that climate reconstruction has ever been done with redwoods,” Mr Johnstone said about the study, published in the Journal of Geophysical ResearchBiogeosciences. Redwoods are native to California and Oregon. They suck up moisture caused by the oceans and atmosphere that surrounds them. Mr Johnstone played on this feature by tracing back climate patterns in the past 50 years. He found that the proportions of

PAGE 16 | ISSUE 295 | 11.11.13

Dwarfed .. publisher of Timber&Forestry enews Dennis Macready stands beside giant redwoods in California’s Redwood National Park.

oxygen and carbon in the wood correlated with weather data from five decades ago, which led him to the theory that the same method could be used to determine climate changes that took place thousands of years ago, since some redwoods can have 2000-year life-spans. “These trees have just been sitting there, recording information about the year-toyear climate,” Mr Johnstone said. “And it gives us hope that these trees can tell us things

about the climate going back maybe a thousand years or more.” Rather than counting the rings around the redwood’s trunk – which would yield inaccurate results since the rings on redwoods are uneven – now the new method allows scientists to measure how much oxygen is trapped in the wood from both rain and fog. Two different forms of oxygen were measured – O-16 and O-18. Mr Johnstone and his

the proportions of oxygen and carbon in the wood correlated with weather data from five decades ago, which hs led to the theory that the same method could be used to determine climate changes that took place thousands of years ago

team looked at spring growth between April and June as well as fall growth from August to October. The results showed that the proportion of both kinds of oxygen matched with weather data during the past 50 years. “We actually have two indicators that we can use in combination to determine if a particular summer was foggy with a little rain, foggy with a lot of rain, and various combinations of the two,” Mr Johnstone explained. Since fog is related to ocean surface temperature, the method could reveal long-term ocean change patterns and distinguish between man-made and natural climate change. “It’s possible that the redwoods could give us direct indication of how that’s worked over longer periods,” Mr Johnstone said. “This is just a piece that contributes to that understanding in a pretty unique place.” California redwood is an evergreen monoecious tree living 1200–1800 years or more. The tallest reach up to 115.5 m in height (without the roots) and up to 7.9 m in diameter at breast height. Before commercial logging and clearing began by the 1850s, this massive tree occurred naturally in an in an estimated 8500 sq km area strip along much of coastal California (excluding southern California where rainfall is not sufficient) and the southwestern corner of coastal Oregon within the US, An estimated 95% or more of the original old-growth redwood forest has been cut down, [due to its excellent properties for use as lumber in construction.

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tHe wAr eFFOrt: Lest we FOrGet

Women cut timber to build trenches and installations for both world wars THOUSANDS of metres of timber used to build military installations and trenches in both world wars were cut by all-women British civilian organisations. The Women’s Timber Corps (WTC) was created during World War 2 to work in forestry, replacing men who had left to join the armed forces Formed in 1942, the origins of the WTC went back to the World War 1 and the Women’s Timber Service In 1940 to solve a labour shortage and an increased demand for timber, the Forestry Commission started recruiting women as forestry workers and to work in sawmills. The Women’s Timber Corps had a maximum strength of more than 6000 working throughout the UK. The work included all the jobs involved with forestry including felling, snedding (stripping the side shoots and buds from the length of a branch or shoot), loading, crosscutting, driving tractors and trucks, working with horses and operating sawmills. The work was heavy and arduous, but there was a grudging acceptance from farmers and foresters that the women of the WTC were as good as the men they had replaced. Towards the end of the war some of the women were considered skilled enough to be posted to Germany to help salvage the sawmills there. Much of the timber cut by women during World War 1 found its way to the trenches, the battleground of The Great War – and the final resting place for millions of young men. On the July 28, 1914, World War 1 began and soldiers from both sides of the battle began digging big holes in the ground where they would live, eat, sleep, fight and die together.

Women and the war effort .. a member of the Women’s Timber Corps strips bark from a felled tree to be used as a telegraph pole.

Indeed, the Great War – a phrase coined even before it had begun – was expected to be a relatively short affair and, as with most wars, one of great movement. But the First

dramatically with sweeping advances by the Germans through Belgium and France en route for Paris. The Western Front was the name the Germans gave to a

World War was typified by its lack of movement, the years of stalemate exemplified on the Western Front from autumn 1914 until spring 1918. Not that there wasn’t movement at all on the Western Front during 1914-18; the war began

series of trenches that ran 700 km from the Belgian coast to the Swiss border. Think of a ditch deep enough to stand in zigzagging its way alongside the Hume Highway from Melbourne to Canberra. The holes in the ground were

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home to millions of soldiers throughout the war years and although many men died in battle just as many were killed by disease or infection brought on by the inhuman unsanitary conditions of life in the trenches. It has been estimated that up to one third of Allied casualties on the Western Front were sustained in the trenches. Aside from enemy injuries, disease wrought a heavy toll. Rats in their millions infested trenches and lice were a neverending problem, breeding in the seams of filthy clothing and causing men to itch unceasingly. Frogs by the score were found in shell holes covered in water; they were also found in the base of trenches. Slugs and horned beetles crowded the sides of the trench. As at Gallipoli, machine-gun fire caused terrible casualties on the Western Front. Both sides had dug trenches, sometimes only metres apart, as their only protection from the murderous gun fire. But they were never safe from the explosive artillery shells that rained down on the front line soldiers every few seconds for days at a time. The British High Command needed troops urgently. So after the Gallipoli veterans were rested in Egypt, and had been strengthened by the ‘fair dinkums’ from Australia, they were sent to France to fight Germany. But Gallipoli was not the last time the ANZACs fought the Turks; the Light Horsemen were sent to the Middle East where they took part in several battles, the most spectacular of which was the mounted charge at Beersheeba. Lest we forget, we shall remember them.

issue 295 | 11.11.13 | Page 17


ON THE ROAD

Holden Trax LTZ punches well above its weight for performance and price WE stepped out of the 1977 Kingswood into the 2013 Holden Trax LTZ – both exciting cars. One had completed a 3800 km trip from Central Queensland to Mission Beach; the other had returned after a 25 km drive to Humpybong, near Woody Point on the Redcliffe peninsula. Although not as courageous as the Holden Kingswood’s tough journey in aid of needy kids, the dynamic Trax was yet to complete a two-week test run that would take it over an assortment of country roads, city freeways and ocean-front esplanades. It turned out to be another Holden ‘king’ of the road. The Trax LTZ auto, built at General Motor’s Bupyeong plant in South Korea, takes on its rivals with gusto, backed with the confidence of Holden’s local engineering and Australiawide dealer network. On all roads, the Trax punches higher than its modest price tag suggests – $27,990, which gives it a keen price advantage against main competitors such as the Nissan Dualis 2WD, the Mitsubishi ASX 2WD and the Hyundai ix35 2WD. You can’t really describe the front-wheel-only Trax as a true SUV, but it’s a car canny buyers will go for, especially if they’re downsizing for economy. Powered by the familiar Korean-sourced naturallyaspirated 1.8-litre, four-cylinder petrol engine – as fitted to most Cruze models – the Trax gives maximum power of 103 kW at 6300 rpm and peak torque of 175N delivered at 3800 rpm. Combined cycle fuel consumption is rated at 7 L / 100 km for the manual and 7.6 for the automatic. Australia gets the two-wheel drive version, powered by the same 1.8-litre in-line four found in the current Holden

PAgE 18 | issuE 295 | 11.11.13

Holden Trax .. taking on competitors wth gusto.

Cruze. Buyers have the choice of either a five-speed manual transmission or a six-speed auto in the LS and auto-only in the LTZ. All models come with an impressive box of tricks – even the entry-level LS model is equipped with features such as a rear-view camera, six airbags, the full suite of electronic driver aids including hill start assist and descent control system, 16-in. alloy wheels, rear parking sensors, ISOFIX child seat anchors, leather-wrapped steering wheel and a superb ‘infotainment’ system This includes a 7-in. colour touchscreen and Holden MyLink with embedded apps for BringGo

An impressive box of tricks .. inside the Holden Trax.

navigation, Pandora Stitcher SmartRadio.

and

In a sign of the Y-gen times, the centre stack does not include a

Queensland Variety Bush Bash veteran .. Brisbane Hoo-Hoo Timber Industry Club 218’s 1977 Holden Kingswood stops for ‘drink’ at Isisford on the Barcoo River on the way to tropical north Queensland.

CD slot with most people now using Smartphones as their source of music. MyLink allows audio and phone streaming via Bluetooth for Android while iPhone connectivity is via cable. As well, the system allows people to view images and movies while the vehicle is parked using USB storage connected via cable. The luxury Holden Trax LTZ adds extras such as 18-in. wheels, upgraded seat trim, heated front seats, front fog lights and some extra storage inside. The cargo space might be a modest 356 litres with the seats up (785 litres seats folded), but it’s about par for the subcompact SUV course and similar to that of the average hatchback. Outward vision is also better than the average hatchback, thanks to the higher seating position. The Trax finishes off with a comfortable, spacious interior – enough for four full-grown adults – and it’s well equipped; the inside has storage bins galore and there’s a handy hide-away drawer under the passenger seat for valuables including laptops. The Holden Trax is on track to be a best seller.

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events/CLAssiFieds Registration of Expressions of Interest Ta Ann Tasmania is planning a plywood manufacturing addition to its Smithton Veneer mill. It is expected that positions will likely be progressively filled during the first half of 2014. To assist in planning the staffing of the mill Ta Ann Tasmania is seeking to develop a register of experienced machine operators interested in being advised of opportunities as they arise. To be placed on the register you will have extensive experience in operating any or all of the following machinery in a plywood industry: • Face/back composer • Core builders • Glue spreader and cold press • Hot press • Double saw • Sander

• More than 6700 deliveries and 15,000 viewers each week

Ta Ann Tasmania seeks to identify highly talented machine operators with a range of mechanical and technical skills including: • Plywood processing • Technical aptitude • Problem solving ability • Initiative and passion for improvement Please send a letter or email registering your interest by 30 November 2013, including contact details, email contact for project updates and details of your experience in the plywood industry to: The Human Resources Coordinator, ta Ann tasmania Pty Ltd 150 davey street Hobart TAS 7000 Email hr@taanntas.com TA ANN TASMANIA

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issue 295 | 11.11.13 | Page 19


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