Brumby urged to step up wood supply

Certainty of access to forest timber resources and improved estimates of sustainable yield are key demands in the strategy submissions by the Furnishing Industry Association of Australia, the Victorian Association of Forest Industries and forestry group ITC. ITC, a subsidiary of listed company Elders, is Victoria's largest timber processor.

The Victorian forest industry generates $3 billion in economic value, with forestry and wood products employing 32,000 people in the state.

Victorian FIAA chief John Osmelak said it was increasingly difficult to source hardwood such as Vic ash and blackwood used by furniture makers because of constant reductions in sawlog supply. "The tenure and supply arrangements from public native forest needs to be improved to secure ongoing supply," he said. This would give certainty to mills to invest in processing seasoned quality sawn hardwood suitable for furniture manufacturers.

Mr Osmelak said the draft timber industry strategy virtually ignored the Victorian furniture sector, the largest in Australia with revenue of more than $2 billion. Emphasis now was placed on gaining the highest price for logs. "The draft . . . contains nothing more than motherhood statements and pretty pictures," he said.

Mr Osmelak said the strategy should give preference to sawmills that processed logs into the highest quality. "Consideration should be given to banning export of 'boutique' native timbers unless they have been substantially value-added," he said.

ITC said it was unclear whether industry had access to the entire 600,000 hectares of forest set aside for timber production and that this should be guaranteed in the legislation.

Also, sustainable yield was estimated at 500,000 cubic metres of timber annually for 15 years. "However, this does not not equate to an increase in harvest levels as suggested in the draft strategy," ITC said.

The VAFI and ITC said the draft was comprehensive but should improve the auction system for native forest logs and clarify the roles of government agencies in forest management.