21 June, 2006
ARTICLE: Cockatoo threat to pulp mill
The Age, June 21, 2006
A $650 million pulp mill has been put on hold because of plans to cut down six potential nesting trees for an endangered cockatoo.
Yesterday the federal Department of Environment and Heritage wrote to the developers of the Penola Pulp Mill in South Australia, just over the Victorian border, demanding more evidence that their plans would not affect the south-eastern red-tailed black cockatoo.
The mill's project director, John Roche, said he was surprised by the intervention, and concerned that the pulp mill might go the way of a Gippsland wind farm, recently vetoed by Federal Environment Minister Ian Campbell because of a one-in-1000-year risk of it killing an endangered orange-bellied parrot.
"To build the mill we have to knock over six red gums that could be used as nesting habitat for the birds, but up until today we thought that decision would be made by the local council," Mr Roche said.
"Now that decision is with the Federal Government, obviously people are a little bit anxious after what happened with the wind farm in Victoria recently."
Better known to Victorians as Commonwealth Games mascot Karak, there are only about 1000 remaining south-eastern red-tailed black cockatoos, which are found only in western Victoria and parts of South Australia.
The greatest threat to their survival is the destruction of their nesting trees and food sources. A final decision on the mill is likely to take between three months and a year.
Original article
12 June, 2006
ARTICLE: Timber sale not much chop, says industry
The Age (Business section), June 12, 2006
Victoria's forestry industry has launched action against VicForests' latest timber auction, saying it is unfair and produces outcomes that threaten parts of the industry.
The director of operations at the Victorian Association of Forest Industries, Nick Murray, said many of the prices reached in the auction were unsustainable.
Some of the state's best and most progressive value-adding sawmills refused to pay the high prices, and were feeling threatened, he said.
VAFI has lodged formal grievance procedures with the auction manager of online auctioneers BOMweb. The grievances will have to be heard before contracts arising from the auctions can be finalised.
The grievance procedure involves representatives from VicForests, BOMweb and an independent probity officer making a decision on the complaint.
The auction was held last week, the second in the new timber sales system that VicForests, the State Government's commercial forestry arm, will progressively introduce over the next decade.
The current system, where sawmills receive long-term licences and VicForests sets the prices for the various sawlog grades, will be progressively phased out. All native forest timber will be sold at auction by 2015.
The first auction in April was for 174,100 cubic metres of sawlogs, while the second was for about 700,000 cubic metres.
Mr Murray said the auction did not operate as buyers had been led to believe. He said it was far more complex than the first auction, with a combination of lots creating an incredible number of variables.
"There are a number of aggrieved buyers and bidders, both successful and unsuccessful, hit by the vagaries of the system," he said. "Many felt compelled to pay more than they would have thought, and others missed out on buying wood as a consequence."
Successful buyers were believed to include Neville Smith Timber Industries, Gould Sawmills, Auswest and Fenning Bairnsdale. Those missing out are believed to be leading players such as McCormack Timbers, Drouin West Timber and Black Forest Timbers.
Mr Murray said several prices, including for mountain ash, were excessive at 20-50 per cent above the administered price delivered at the mill gate.
Original article
10 June, 2006
ARTICLE: Pulp mill gets green light
The Age (Business Section), June 10, 2006
Construction of a $700 million pulp mill at Heywood in Victoria's south-west will get under way by the end of this year after the project received the go-ahead from the Victorian Government.
The mill, 20 kilometres from Portland, will take two years to build and is expected to produce its first pulp by 2009.
It is a sister mill to a proposed pulp mill in Penola, north of Mount Gambier, which is awaiting approval from the South Australian Government.
Together, the two pulp mills represent $1.3 billion in investment, and each will employ 120 people when in full production. About 600 jobs will be created in building each mill.
Woodchips for the mills — 1.4 million green tonnes a year — will be sourced from Timbercorp's blue gum hardwood plantations in the Green Triangle, the fertile region that stretches from Warrnambool in Victoria to Kingston in SA.
The Heywood pulp mill is valued at about $400 million, but the total project will cost about $700 million when other works are included. These include a 120 megawatt, gas-fired power station connected to the SeaGas gas pipeline between Victoria and SA, and upgrades to road, rail and terminals at the Port of Portland.
Both plants will be chemi-thermomechanical pulp (CTMP) mills. CTMP is used to manufacture soft and absorbent tissue, box-board and coated fine paper among other things.
The developer is Protavia, which is backed by an alliance of companies that includes Timbercorp, chemical giant Orica, CellMark, Andritz and Silcar. CellMark is the world's largest pulp and paper trader, Andritz is the world's largest provider of the CTMP technology, and Silcar is a joint venture between German companies Thiess and Siemens.
Project director John Roche said there was huge demand for the CTMP pulp and prices were very high. "It requires much energy to produce, and Australia's energy prices are very competitive," he said.
"We are not competing against Australian electricity prices, but prices in the rest of the world. Only Russia and South Africa are comparable with Australia, but they do not have the same stable political environment." Mr Roche said adding value to the woodchips would be of great benefit to Australia. Woodchips sell for about $150-$160 a tonne, whereas pulp fetches about $800 a tonne. Mr Roche said the pulp would be exported to Taiwan, Korea and China. The two mills are expected to generate export earnings of $700 million a year, which will put a big dent in Australia's annual $2 billion trade deficit in wood products.
Timbercorp's plantation timber is certified by the Forest Stewardship Council.
Original article
06 June, 2006
LETTER: Missing the logging message
The Age ( letter) 6/6/06
Some 15,000 people rallied in Melbourne on Sunday to protect Victoria's old-growth, high-conservation forests and water catchments from woodchipping.
The message at the rally was loud and clear. Unfortunately, The Age (5/6), appears to have largely missed this message. It used the rally to advertise Steve Bracks' campaign to reduce power use — as important as the water use reduction campaign — thus diverting attention away from the fact that forested catchments continue to be logged primarily for woodchips.
Logging reduces water supply by as much as 50 per cent, yet the Bracks Government continues to allow our forested water catchments across Victoria to be cleared, while producing a sustainable water strategy that ensures that demand for water will exceed supply in the next 20 years for Melbourne, Ballarat and Geelong.
The Premier did say that logging has been reduced by 30 per cent over the past 6½ years. Not good enough, Mr Bracks. Protect our forests, our water, our air and our wildlife. End native forest logging now.
04 June, 2006
ARTICLE: Vic urged to protect old-growth forests
Sunday, June 4, 2006
Environmentalists want the Victorian Government to do more to protect the state's old-growth forests from logging.
The Wilderness Society says while the Government has bought out about one-third of the state's logging quotas and it should now go further.
Marking World Environment Day tomorrow, the society's Alec Marr says the old-growth forests in the east, water catchments and the homes of endangered wildlife must be saved.
"We certainly expected the Government to do more this term than they have and we are running out of time," he said.
"So we want to see the Premier take a leadership role and protect all of these fantastic areas of forest that the community has been fighting for for years."
17 May, 2006
ARTICLE: Forest industry can't see wood for the (imported) trees
The Age, May 17 2006
Plantation hardwood woodchip exports increased significantly last financial year, but Australia is set to record another $2 billion trade deficit in forest products.
Log removals from eucalypt hardwood plantations — mostly blue gums — rose by 58 per cent to 2.9 million cubic metres last financial year, according to the Australian Bureau of Agricultural and Resource Economics in its latest report on forest and wood products. Sales of eucalypt sawlogs from native forests fell by 4 per cent, to 10 million cubic metres.
ABARE's executive director Brian Fisher said the logs were used for woodchip exports.
Exports of hardwood and softwood woodchips totalled a record $858 million last financial year. Woodchips were 40 per cent of Australian timber exports of $2.1 billion, but this was dwarfed by forest product imports of $4.1 billion.
About half the imports ($2.1 billion) were of paper and paperboard, with printing and writing paper ($1.4 billion) the main source. Figures for this financial year's first half show imports totalling $2.05 billion, and exports $1.02 billion.
Chief executive of the National Association of Forest Industries Catherine Murphy said the rise in plantation woodchip exports showed the effectiveness of the Federal Government's policy, which gives tax benefits to individual plantation investors.
"We have been able to build a strong plantation sector on this platform," she said.
Ms Murphy said plantations would form the basis of the pulp mills planned for Australia. Gunns aims to build a pulp mill in northern Tasmania, and pulp mills are planned for south-west Victoria and south-east South Australia, based on the regions' blue gum plantations.
The high level of paper imports showed the necessity to get such projects off the ground, she said. But Ms Murphy said the figures also underlined that the native forest sector could not be underestimated.
"It's still three times the size of the plantation hardwood sector," she said.
Sawn wood exports in both the September and December quarters remained just above $31 million, about 22 per cent higher than the same period the year before. Dr Fisher said the increase was driven by the rise in pine sawlog exports to Asia, particularly Chinese Taipei.
Original article
16 May, 2006
ABC: Tasmania suffers downturn in woodchip demand
Tuesday, 16 May , 2006
Reporter: Tim Jeanes
The state's biggest timber company, Gunns Limited, is now cutting some timber contracts by up to 40 per cent.
And the Liberal Opposition and Tasmanian Greens are calling for a crisis meeting to help forest contractors.
Quotes from Greens Senator Bob Brown in the interview:
BOB BROWN: There must be a crisis meeting to deal with the pain that's being felt by so many contractors and workers in the industry who just 18 months ago were cheering John Howard and Paul Lennon in the run to the federal election. They're not cheering now.
BOB BROWN: Well, the one thing about the Greens is we've got a transition strategy, which would have saved the industry from this pain.
Let there be no doubt about this. The Greens and the environment movement, in particular the Wilderness Society, are going to continue to campaign to save Tasmania's old growth forests, because that's what we should doing for Australia's magnificent ecological resource in these remnant forests, but it's also the best long-term prospect as far as job creation and long-term, good quality job creation.
Through the hospitality and the tourism industries we won't have this boom and bust phenomenon.
Original article
15 May, 2006
ARTICLE: Timber sale gets strong price growth for coffers
The Age, May 15, 2006
Cutting to the chase. Some in the timber industry believe the prices achieved have been manipulated.
VICFORESTS' first auction of native forest timber has dramatically increased the money going to Treasury's coffers, but has been strongly criticised by the timber industry.
The weighted average price of timber sold was 43 per cent higher than the prices paid by timber mills under the current licence system. Some wood lots were 118 per cent higher, while others were 22 per cent lower.
VicForests' sales director, Matthew Crapp, said the percentage increases were on top of the 10-20 per cent price rises for licensed timber brought in last year.
The auction was the first in the new timber sales system that VicForests, the State Government's commercial forestry arm, will progressively introduce over the next decade.
The current system, where sawmills receive long-term licences and VicForests sets the prices for the various sawlog grades, will be phased out.
All native forest timber will be sold at auction by 2015.
A total of 174,100 cubic metres of sawlogs in 47 lots was sold, with forward sales spread over all years until 2014-15. Revenue was $3 million higher over the 10 years than it would have been under the administered system.
Mr Crapp said the catalogue was small, but gave bidders the opportunity to use the new system. "The system worked well and is broadly accepted," he said.
The average lot size was 1610 cubic metres, with the largest 5000 cubic metres and the smallest 500 cubic metres. The 931 bids involved 14,000 different price calculations.
A total of 42 bidders qualified for the first two auctions, and 34 eventually placed bids, with 18 successful. All were Victorian domestic processors.
Mr Crapp said competition was strongest for the higher-grade lots, which was reflected in the higher prices.
"The higher-grade logs tended to go to the value-adding sawmills," he said.
"Bidding dropped during rounds three and four, when most lots went above the administrative price levels."
Mr Crapp said the specialised, mixed species lots from East Gippsland, such as yellow stringybark and silvertop ash, received the best prices.
Longer-term lots outperformed the shorter-term, and larger lots were also more popular. The prices would be more moderate in the long term, he said.
The director of operations at the Victorian Association of Forest Industries, Nick Murray, said while industry accepted the auction model, it was not a true market-based system.
"It is conducted by a monopoly supplier that, with other parts of government, dictates the release of wood to the market in terms of volume and tenure," he said.
"It thus has the ability to manipulate both to extract the maximum price from buyers."
Mr Murray said despite the State Government's formal commitment to a sustainable yield of 560,000 cubic metres of sawlogs, industry remained uncertain about the total volume of wood available in the future. This uncertainty created an artificial market environment and helped explain why the auction prices were so high.
Mr Murray said the prices were much higher than administered prices for wood in other states. "These higher prices are not necessarily a reflection of the intrinsic commercial value of this wood," he said.
Mr Murray said bidders marginally costed the wood and offset this against wood supplied under the supply contracts.
The small catalogue lots also gave the market the chance to "cherry pick" prime lots, while other bidders used the auction to improve their wood quality so as to forfeit supply of lower-quality wood, he said.
Mr Murray said many big businesses did not win any wood, or only small volumes. This indicated the prices were unrealistic and uncommercial for business of scale, he said.
VicForests will hold a second auction this month for 680,000 cubic metres of sawlog. Mr Crapp said this would give an indication of what the future timber industry might look like.
Original article
03 May, 2006
ARTICLE: $6m to end clear-fell
SUE NEALES
3 May 2006
A NEW $6 million research program will focus on finding alternatives to the controversial dual issues of the clear-felling of ancient native forests and the use of 1080 poison in private forestry plantations.
Federal Forestry Minister Eric Abetz said the partnership between the Federal and State governments would ensure scientific rigour was added to the often heated and emotional debate surrounding these contentious forestry practices.
Announcing the research initiative in Hobart yesterday, Senator Abetz said it was important science determined the outcome of these issues, rather than the "shrill mantra of some in our community".
About $4m of the research by the Forestry Co-operative Research Centre, based at the University of Tasmania, has been flagged as part of the 2004 Regional Tasmanian Community Forest Agreement, while the State Government is contributing another $2 million.
Forests Minister Bryan Green is confident the alternatives to clear-felling developed by the Forestry CRC will allow all clear-felling of "old growth forests" to be eliminated by 2010.
The State Government has already committed to this.
However, Mr Green said that, in practice, this clear-felling of native forests termed as "old growth" by Forestry Tasmania only accounted for 300 to 400 hectares a year.
But the conservation movement claims this figure is playing with statistics because Forestry Tasmania labels any ancient forest that has had a natural wildfire through it as regrowth to be clear-felled, rather than old growth.
"A lot of this is recycling announcements and commitments that have already been made, and muddying the water with confusing statistics," the Wilderness Society's Vica Bayley said last night.
Also announced yesterday was a renewed commitment by both the State and Federal governments to seek an alternative to the use of 1080 poison on farms and in private plantations.
The use of 1080 to kill browsing native animals that harm crops and young tree seedlings was stopped last year by Forestry Tasmania in the face of a growing international storm about the mass and cruel killings of species such as wallabies, Tasmanian devils, bandicoots and paddymelons.
Original article
02 May, 2006
ARTICLE: Forest protest flap
By LIZ McKINNON
2 May 2006
A PROTEST to save the Cobboboonee forest near Portland and the state's remaining old-growth forest took a windy turn at a Warrnambool landmark yesterday.
Protesters scaled the dizzy heights of the Fletcher Jones water tower in the early hours
The first said in colourful writing `Save the Cobboboonee' and the second `Save Our Old Growth Forests' in black and white. Students from Deakin University and University of Melbourne launched the protest to stop clear-fell logging,
sparking outrage from Warrnambool City Council.
The council hired a crane to take down the banners later in the morning at a ``significant cost'' out of fears for the public's safety.
Warrnambool conservationist and protest member Piers Johnson said that in the past 100 years 95 per cent of the Portland forest management area and Cobboboonee forest had been cleared.
he area was home to endangered species such as the red-tailed black cockatoo and is under threat of land clearing, forest burning and general habitat destruction because of logging, Mr Johnson said.
``Actions will continue until (Premier) Bracks acts to protect remaining forests and declare them part of the existing Glenelg National Park,'' he said.
University of Melbourne student union environment officer Julia Dehm said the State Government vowed to stop logging in state forests at the last election but had continued to assign contracts to logging companies.
She said state parks like Cobboboonee should be declared national parks for future protection.
``Nothing has been done to stop it. We are hoping to put more pressure on the Government to ensure it is protected,'' she said.
Two protesters fitted with professional climbing apparatus scaled the rusted tower ladder at 2am yesterday and didn't abseil down until 5.30am.
Ms Dehm said the prominence of the site made it ideal to stage the protest.
``I think a lot of people support us. They are passionate about protecting their forest,'' she said.
Warrnambool City Council economic development director Andrew Minack said the banners were put up illegally and in a very dangerous site.
``Because of occupational health and safety we had to get a crane in to do anything. It was at a significant cost,'' he said.
``Council staff are forbidden to go up there. There are parts of the ladder rusted off.''
He said the banners were weighted down by bags filled with bricks and sand which had the potential to fall through the Fletcher Jones building roof onto TAFE students or pedestrians on paths. ``I understand people feeling passionate
about old-growth forests, but I don't think this is an appropriate way of displaying or promoting it,'' Mr Minack said.
21 April, 2006
ARTICLE: Not Out of the Woods Just Yet
New York Times, April 20, 2006
OUR forests are the heart of our environmental support system. And yet, in the 36 years that have passed since the first Earth Day, on April 22, 1970, we have lost more than one billion acres of forest, with no end in sight.
The people most vulnerable to the disappearance of forests are the poor: nearly three-quarters of the 1.2 billion people defined as extremely poor live in rural areas, where they rely most directly on forests for food, fuel, fiber and building materials. But those of us in the developed world are hardly immune. Smaller forests mean fewer predators keeping insects and rodents in check in the Northeastern United States, a phenomenon linked to the spread of Lyme disease and West Nile virus, among others.
Everywhere, forests prevent erosion, filter and regulate the flow of fresh water, protect coral reefs and fisheries and harbor animals that pollinate, control pests and buffer disease. That is why the single most important action we can take to protect lives and livelihoods worldwide is to protect forests. And one of the best ways to do that is to change how we think about their economics.
First, we must connect local, informal foresters, who harvest timber and other forest products for a small fraction of their value, to better markets. A good example is in Papua New Guinea. A community there receives about $13 for a cubic meter of tropical hardwood. That same cubic meter of wood, transferred through a series of intermediaries, shows up in New York Harbor with a new price tag, $700. Minimally processed into thin veneer, it sells for $2,300. That same cubic meter, fully finished, goes for over $3,000. Small forest holders who receive just pennies on the dollar for a valuable natural resource can hardly be expected to practice sustainable forestry. Opening access to regional and global markets at fair value will create strong incentives for sustainable forest management.
Second, we must recognize the importance of forests in maintaining water and soil by encouraging their preservation along rivers. Markets can help here, as well. Costa Rica's hydroelectric power companies pay upland farmers to keep land forested to prevent the companies' dams from filling with silt. The cost is shared between a power company and its customers. Logic dictates that those who benefit when forests stop erosion should return some of those benefits to those who protect forests.
Third, we must seek a global trade agreement that promotes legally, sustainably harvested timber. We should not tolerate the forest destruction abetted by most countries, which will neither monitor what is extracted at home, nor place conditions on imports. When we first visited Sumatra and Borneo fewer than 20 years ago, there were vast tracts of forest. Recent estimates indicate that these two islands, among the six largest in the world, could be largely clear-cut by 2012. With those trees will go people's livelihoods, communities, cultural values and health, as well as the forests' unexplored biological diversity.
Finally, we must protect the role that forests play in mitigating global warming by absorbing carbon dioxide, a greenhouse gas. Markets for trading carbon dioxide emissions credits must expand to all sources and all nations. They already exist in the developed world, where yesterday morning carbon credits from efficient factory operations and tree re-planting projects were traded at roughly 30 euros per ton.
If a company in Belgium can own carbon credits because it has reduced its factories' carbon emissions, then a forest owner in the Central African Republic should be able to trade the carbon credits he earns by not cutting down its trees. To the atmosphere, a ton of carbon is a ton of carbon. By opening trade in carbon credits to all countries, we provide economic opportunity to developing nations and create a very powerful incentive to conserve forests.
Together, these measures have the potential to reverse rates of forest loss. Sustainable forests, in turn, can form the basis for the health and economic well-being of the poorest among us, while benefiting everyone else as well. What could be a more satisfying vision for Earth Day 2006?
Don Melnick is a professor of conservation biology at Columbia University. Mary Pearl is president of Wildlife Trust."
ARTICLE: Supporters sought to lobby Govt on sustainable logging
21 April 2006
A campaigner for sustainable logging in the Wombat Forest is trying to rally like-minded people to lobby the State Government.
Increasingly tough restrictions being placed on logging activity in the forest have forced some sawmills to close.
But Loris Duclos says a State Government adviser told her the Government had not made a final decision on the forest's future.
"He reassured me that the Government did not have a lock-up agenda for the Wombat, so those who support a small native forest industry in this area need to be ringing the minister and making sure that a strong voice from this side of the debate is heard, because they certainly hear a lot from the other," she said.
http://www.abc.net.au/news/newsitems/200604/s1621116.htm
ARTICLE: Supporters sought to lobby Govt on sustainable logging
21 April 2006
A campaigner for sustainable logging in the Wombat Forest is trying to rally like-minded people to lobby the State Government.
Increasingly tough restrictions being placed on logging activity in the forest have forced some sawmills to close.
But Loris Duclos says a State Government adviser told her the Government had not made a final decision on the forest's future.
"He reassured me that the Government did not have a lock-up agenda for the Wombat, so those who support a small native forest industry in this area need to be ringing the minister and making sure that a strong voice from this side of the debate is heard, because they certainly hear a lot from the other," she said."
Original article
18 April, 2006
LETTERS: Green logging solution gets the chop
The Heraldsun (letter), 18/4/06
Your article on Ron the “lumberjack” (“Ron vows to go out swinging”, April 8) brought up the important point that the environment movement is not about no logging, it’s about sustainable logging that makes sense.
Woodchipping old-growth forest in 2006 doesn’t make sense on any level. It isn’t boosting the economy. It isn’t creating jobs. And this isn’t wasteland.
The area being clear-felled in East Gippsland is a national treasure. Its destruction is so sad.
I applaud Ron for his comments, and I applaud the unlikely alliance between loggers who do have a vision for the future with greenies who always have.
Bracks would win my vote and that of many of my friends and family if he was brave enough to stop woodchipping of old-growth forests.
Colin Smith, St Kilda
The Heraldsun (letter), 18/4/06
Your story about the small timber cutter in Bruthen (“Ron vows to go out swinging”, April 8) shows up the hypocrisy of the State Government about forestry. It denies him any logs and sends them aji to the chip-mill instead. This makes a nonsense of its claim to be interested in value-adding. Instead, it promotes clearfelling, which is value-destruction.
Peter Quinn, Lome
The Heraldsun (letter), 18/4/06
Park Victoria and the Bracks Government sadly are on a hat-trick of tourism decimation. After last year’s Wi!sons Promontory burn fiasco and this year’s Grampians inferno, Parks Victoria next summer could well be responsible for the Colac/Otways bushfire that is coming because an ecological burn is well overdue.
Parks Victoria and Bracks Government are pandering to inner-Melbourne greens. Parks Victoria’s pest management is also a disgrace in the Great Otways National Park.
So enjoy your visit to the Colac-Otways while you can. Parks Victoria's incompetence could well mean a charred Great Ocean Road landscape.
16 April, 2006
ARTICLE: Death puts spotlight on Leadbeater plight
The Sunday Age , April 16 2006
Leadbeater's possum was once the tiny comeback kid of Australian wildlife.
Thought to have vanished, the possum was rediscovered alive and struggling in 1961. Ten years later it was made the faunal emblem of Victoria. Now it looks as if we will have to find a new one.
The death of the last Leadbeater in captivity, which was announced yesterday, means the little possum is no longer a promise and symbol of life renewed. In the wild, there are thought to be only a 1000 left.
In what appears to be a last-ditch stand, author Peter Preuss is calling for co-operative effort by Victoria's zoos, the timber industry and the State Government to relaunch a possum breeding program.
Preuss is the biographer of late amateur naturalist Des Hackett, who successfully bred the possums in captivity.
He said efforts to revive the possum's population faltered after Mr Hackett died in 1997, and today the possum's natural habitat was under threat from logging.
Preuss said the last possums in the wild lived in a 50-square-kilometre area in Victoria's central highlands - the mountain ash forests around Noojee, Powelltown, Marysville and Warburton.
In one positive sign, he said possum numbers were increasing in the Yellingbo Nature Reserve, an area of swamp and forest protected for the helmeted honey-eater, Victoria's bird emblem.
"This shows the possums can survive if we give them some nesting boxes," he said.
A spokesman for Healesville Sanctuary yesterday confirmed that the last captive possum, a male, died on Monday, following the death of its female mate last month. The pair had become too old to breed.
With AAP
12 April, 2006
ARTICLE: Timber group invests heavily to stay at the cutting edge
April 10 2006
The coloured laser beams quickly hone in on the timber slab as it moves along the conveyor, pinpointing accurately how best to cut the wood.
Vince Erasmus looks on with approval. The South African, who has just joined timber group Integrated Tree Cropping as chief executive, is a firm believer in the role of new technology in giving a competitive edge. Previously, an operator would have judged manually the best way to cut the timber, but lasers do it better.
Neville Smith Timber, a division of ITC, uses the laser equipment at its processing plant at Heyfield in Victoria, along with a new piece of technology that was pioneered for the aerospace industry.
The $400,000 investment applies the technique of ultrasonic void detection to solid timber — the first time this has been done in the world.
"With ultrasonics, we're now able to affectively see inside each solid piece of timber that comes through the mill and pick up discontinuities in the wood," Erasmus said. "The technology allows us to detect tiny internal faults that are invisible to the eye."
Those faults make the timber unsuitable for appearance-grade products, but fine for structural use such as joints, lintels and bearers.
In South Africa, Erasmus was executive manager of Hans Merensky Timber, the country's largest sawmilling group and an operator of extensive eucalypt and pine plantations with a turnover of $210 million.
ITC, a listed subsidiary of Futuris Corporation, is of similar ilk; it manages more than 140,000 hectares of hardwood plantations, and through Neville Smith, is the largest hardwood timber processor in Australia.
Neville Smith's main timber mills are at Heyfield in central Gippsland, but it also has operations in Seymour, Tasmania and southern NSW. Neville Smith, acquired by ITC 20 months ago, has the capacity to process more than 250,000 cubic metres of native hardwood, all sourced from regrowth forests.
On an inspection tour at Heyfield, Erasmus said timber processing was going through a tough period. "Internationally, supply now exceeds demand for hardwood products and demand is not that good," he said. "It's difficult to sell products at the right price."
Erasmus said hardwood processing was volume driven, but customers were getting increasingly choosy, so timber quality was paramount.
Hence the new investments at Neville Smith. Erasmus said that, apart from the check scanner, ITC was buying a reconditioner kiln to dry timber more slowly and to a higher standard. A finger jointer will also be acquired to turn offcuts that would be normally woodchipped or made into sawdust into a new, higher-value product. ITC is also putting a greater emphasis on sales and marketing, having hired seven sales staff. ITC has been Perth-based, but Erasmus is seeking a house in Melbourne, signalling ITC's intention to locate itself on the east coast.
Erasmus said there was capacity for growth in the Australian timber market through high-quality niche products.
About 18 per cent of Neville Smith's products are exported, and Erasmus signalled interest in forging a partnership with a Chinese manufacturer. "China is an opportunity for us, given Australia's relative proximity to China and the cheaper shipping rates compared with other countries," he said.
ITC has launched a campaign to market its products as "GoodWood", emphasising the timber is harvested from regrowth native forests, not old growth or tropical forests, and highlighting its advantages as a storer of carbon in the age of climate change.
Erasmus said ITC intended to gain Forest Stewardship Council certification for its native hardwood products. ITC has already gained FSC approval for its plantation management. FSC is allied to WWF and is supported by green groups.
Bell Potter Securities, in a research paper, noted ITC's negative cash flow despite the company's profit of $6.3 million in the first half of 2005-06.
Analyst Ian Gibson said the result was below expectations, but was entirely due to the processing division. "With respect to processing, we believe that the operating performance has bottomed … when the recovery does come, the Neville Smith Group will be stronger."
But uncertainty about the tax treatment of managed investment schemes and the housing market may weigh on the share price, causing it to trade below Bell Potter's assessed value of $1.67, Gibson said.
ITC's share price closed at $1.09 on Friday.
Original article
11 April, 2006
ARTICLE: Protesters held over logging blockade
Police have arrested three anti-logging protesters and moved 17 other demonstrators from a blockade in the East Gippsland region of Victoria.
Goongerah Environment Centre (GEC) spokeswoman Fiona York said the protest was in an area of old growth forest being logged less than 100 metres from the Goolengook forest.
The three protester who were arrested had chained themselves to logging machinery, she said.
"The rest of them have been moved out of the coupe by 20 or so Parks Victoria, DSE (Department of Sustainability and Environment) and police," Ms York said.
Thirty arrests had been made at 15 blockades in East Gippsland since December 2005, she said.
The Goolengook Forest is the subject of an investigation by the Victorian Environment Assessment Council (VEAC).
"This particular coupe is right on the border of the assessment area that VEAC is looking into protection for Goolengook," Ms York said.
"While the Goolengook Forest is being investigated and under moratorium from logging, forest of comparable value is being logged right next door."
The area was at the headwaters of the Arte River, and the old-growth forest and rainforest were habitat for endangered flora and fauna, she said. Its unique eco-system was home to more than 300 rare and threatened plant and animal species, including the tiger quoll and the powerful owl.
"Premier Steve Bracks needs to do more than just investigate icon areas for the sake of a few votes," Ms York said.
"All old growth forest needs to be protected immediately."
AAP
07 April, 2006
LETTER: Lucky polly (Campbell "protects" the orange bellied parrot
The Age, April 7, 2006
Luckily for the orange-bellied parrot, it spends some of the year in a marginal seat that's arguing about the aesthetics of wind farms. Our whales, sooty owls, tiger quolls and hundreds of other threatened species aren't so lucky under the Federal Government's Environment Act.
The $11 million logging industry in East Gippsland, for example, takes out threatened species every day without a shred of concern from the Howard Government.
06 April, 2006
MEDIA RELEASE: Sustainable timber industry council announced
Thursday, April 6, 2006
The sustainable growth of Victoria’s timber industry will be assisted by the establishment of a new peak advisory body, the Sustainable Timber Industry Council (STIC), the Minister for Agriculture Bob Cameron announced today.
Mr Cameron said STIC would foster a united, whole of industry approach to securing the sustainable development of Victoria’s forest and forest products sector and will provide advice to him on a broad range of timber industry issues.
“The timber industry in Victoria is based on plantation and native forest timber resources. It has an annual turnover of more than $3 billion and is of critical importance to the economic future of this state.
Mr Cameron said as part of the ‘Our Forests, Our Future’ policy initiative, the Bracks Government made a commitment ensuring that our forests, the timber industry and their communities are protected for the long term.
“That commitment was reiterated in the ‘Moving Forward’ Provincial Statement announced late last year and STIC is an important part of that process.
“One of STIC’s major roles over the next year will be the development of a Timber Industry Strategy, which will establish Victoria as a world leader in sustainable timber industries,” Mr Cameron said.
Mr Cameron said he was pleased to announce Christian Zahra as the Chair of STIC.
“Christian Zahra has an excellent understanding of the important issues facing the timber industry in Victoria and is widely respected within the sector,” Mr Cameron said.
The remaining members of STIC come from key industry sectors, and include:
- Diane Tregoning – Chief Executive of Black Forest Timbers Pty Ltd
- Andrew Lang – Chairman of SMARTimbers Cooperative Ltd
- Bob Smith – former CEO of State Forests of NSW
- Kevin White – former CEO of Hancock Victorian Plantations
- Ken Robertson – former Strategic Development Manager for Carter Holt Harvey.
- Michael O’Connor – National Secretary of the forestry section of the CFMEU
- Ian Kennedy – former Executive Director of Regional Development Victoria
28 March, 2006
LETTER: Bracks must protect Leadbeater's habitat
It is sad news indeed that only one Leadbeater's possum, Victoria’s state faunal emblem, remains in captivity after its mate died in a Melbourne sanctuary.
The possum’s survival is under threat because clearfell logging of the Central Highlands, including Melbourne’s water catchments, is destroying its habitat. It needs old trees with hollows for its nests.
Steve Bracks should act immediately to protect these forests and prevent the possum's extinction in its natural habitat. He should also protect the remaining forest habit of Karak, the Red-tailed Black Cockatoo which was the Commonwealth Games mascot, to assist its survival in the wild too.