Forest Products Industry

Responsible Wood CEO Simon Dorries has resigned after more than 11 years of service to Responsible Wood and sustainable forest certification in Australia. Source: Timberbiz Mr Dorries joined the organisation in May 2015 and played an instrumental role in the development and growth of Responsible Wood and the PEFC certification system in Australia. During his time as CEO, Responsible Wood has strengthened its position as Australia’s leading forest certification scheme, while building greater awareness of the importance of sustainably managed forests and responsibly sourced wood and paper products. “Simon has always been much more than simply the CEO of Responsible Wood,” Responsible Wood chairman Dr Tony Bartlett said “He genuinely believes in certification, in the principles behind PEFC, and in the role responsible forest management can play in supporting our forests, our industry and the communities that depend upon them. “His passion, technical knowledge and commitment to Responsible Wood have been evident throughout his leadership. He has represented the organisation nationally and internationally with professionalism and integrity and has built strong relationships across the forest and wood products sector, government, environmental organisations and the broader PEFC network.” Dr Bartlett said Mr Dorries had made the decision to take on a “new professional opportunity” as he begins transitioning towards eventual retirement. “While we are naturally disappointed to see him leave Responsible Wood, the Board fully supports his decision and wishes him every success in this next chapter,” Dr Bartlett said. The Board will shortly commence a recruitment process for the next Chief Executive Officer with the position to be publicly advertised. During this transition, Matt de Jong, Responsible Wood’s Sustainability Manager, will act in the CEO role, ensuring continuity for our members, certificate holders, stakeholders and PEFC partners.

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The Federal Coalition will move to introduce a Bill to end what it says is the Federal Government’s Net Zero obsession that is making Australians poorer and stop taxpayer money being used to help investment funds buy up Australian farmland and turn it into carbon-offset projects. Source: Timberbiz Under the move the Coalition would introduce new legislation to end the Federal Government’s over $80 billion net zero spending spree and prohibit the Clean Energy Finance Corporation (CEFC) from providing funding or financial assistance to entities to acquire agricultural land in Australia for the purpose of growing trees to offset carbon emissions. The move follows the sale of Tasmania’s 21,745-hectare Rushy Lagoon property to UK investment firm Gresham House for $142 million, with the taxpayer-backed Clean Energy Finance Corporation providing $69 million towards the purchase. Around 9000 hectares of the property is expected to be converted to pine plantation, sparking concern from farmers and regional communities about productive agricultural land being lost to carbon projects. Opposition Leader Angus Taylor said Australia’s food security should come before taxpayer-backed carbon schemes that take productive farmland out of agriculture. “Families are already paying too much at the supermarket and the last thing we should be doing is weakening our ability to grow food by turning productive farms into carbon assets,” Mr Taylor said. “It is extraordinary that taxpayers are being asked to help investment funds outbid farmers for Australian farmland. “We support practical action to reduce emissions, but it should not come at the expense of our farmers, our food security and the future of regional communities,” he said. “When a farming family wants to expand, they should not have to compete with a foreign carbon fund backed by tens of millions of dollars from the Australian taxpayer. “This is about putting Australians first, protecting productive farmland and making sure government policy does not push up the cost of producing the food Australians put on the dinner table.” Leader of The Nationals Matt Canavan said the Federal Government’s net zero obsession was driving up power prices, increasing inflation and shutting down Australian industry. “At the heart of Labor’s net zero transition is a transfer of Australian jobs overseas and a transfer of wealth from Australian families to multinational companies living off taxpayer subsidies,” Senator Canavan said. “Under Labor’s net zero ideology, prime Australian agricultural land that should be growing food for Australians is being locked up to grow weeds and breed pests. “The Liberals and Nationals will repeal Labor’s failed net zero laws and stop taxpayer money being used to buy up the farms that feed us.” Deputy Leader of the Nationals and Shadow Minister for Agriculture, Fisheries and Forestry Darren Chester said protecting productive farmland was critical to Australia’s food security and the future of regional communities. “Prime agricultural land is a national asset, and once it is taken out of food production it can be very hard to get it back,” Mr Chester said. “Regional communities should not be hollowed out so carbon funds can chase credits while Australian farmers are priced out of their own backyard,” he said. “We need to protect our food security, back the next generation of Australian farmers and make sure taxpayer money is supporting regional communities, not working against them.” Shadow Minister for Energy and Emissions Reduction Dan Tehan said Labor’s climate policies were creating perverse incentives to take productive land out of agriculture. “The CEFC was established to support clean energy investment, not to bankroll funds buying up Australian farmland for carbon credits,” Mr Tehan said. “Under Labor, big emitters can find it cheaper to buy offsets than make real changes to their own operations, and regional Australia is being left to carry the cost. “We cannot allow a situation where productive farms are steadily swallowed up because carbon credits are worth more than growing food, running livestock or giving the next generation of Australian farmers a chance to get on the land. “This is a sensible safeguard that protects farming, food production and regional communities while allowing genuine forestry and emissions-reduction projects to continue in the right places. “This is part of our plan to fix the economy and protect our way of life by putting Australians first, protecting our food security and backing the farmers and regional communities who feed our nation.” The Coalition will also seek to introduce a bill into the Parliament to abolish the Federal Government’s net zero and carbon taxes to ensure Australians have access to affordable and reliable power.

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The Hyne Group has commenced a strategic review of its XLAM Cross Laminated Timber (CLT) manufacturing business. The company says the business does not fit with the long-term strategy of the Group’s parent company James Jones & Sons Ltd. This review does not point to a closure of the business but an opportunity to find a new owner to continue the business. Source: Timberbiz The review will assess all scenarios, but the preferred outcome is to secure a new owner with the capability, passion and commitment to build on XLAM’s strong foundation, continuing to manufacture CLT and providing specialised design and engineering services that support sustainable, carbon-storing construction throughout Australia, New Zealand and the broader southern hemisphere. XLAM was founded in New Zealand in 2010 and later became part of Hyne. The company’s site is located in Wodonga, Victoria where prefabricated CLT panels are made for commercial and mass timber construction. It also provides specialised design and engineering services. A formal process to seek expressions of interest from suitably qualified parties within Australia and New Zealand, as well as North America and Europe has started. Hyne Group Chief Executive Officer Jim Bindon said the Group remained optimistic that a suitable purchaser could be found while being transparent with employees, customers and stakeholders about the process. “Over the past 14 years, the XLAM team has established the business as Australia’s leading Cross Laminated Timber manufacturer, delivering some of Australia and New Zealand’s most innovative and award-winning timber buildings while genuinely advancing the use of sustainable construction,” he said. “Our clear preference is to see XLAM continue under new ownership, preserving its manufacturing capability, specialist expertise and the opportunities it creates for our people, customers and the broader construction industry. “XLAM is a highly respected business with world-class manufacturing capability, experienced technical expertise and an enviable portfolio of landmark projects. We believe it offers a compelling opportunity for an organisation whose long-term strategy is centred on mass timber, prefabricated and modular construction, and the commercial construction industry.” The Hyne Group will work closely with employees, customers, suppliers and government throughout this process and will provide further updates as appropriate.

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The Timber, Furnishing and Textiles Union has welcomed the announcement of $150 million in new grants through the Albanese Labor Government’s Forestry Growth Fund. Source: Timberbiz The centrepiece is up to $85 million to transform timber processing and manufacturing, backed by funding for innovation, skills, plantations and stronger checks on timber imports. The grants form part of the Government’s initial $300 million Forestry Growth Fund commitment, which also includes $150 million in concessional finance for wood-product processors through the National Reconstruction Fund. TFTU National Secretary Michael O’Connor said the Fund gave the industry a fighting chance to grow. “This is a vote of confidence in timber workers and Australian manufacturing,” Mr O’Connor said. “This announcement shows the Government believes there is a strong future for our industry and the workers, families and communities who rely on it. “The package is well designed and responds directly to the Timber Fibre Strategy – the long-term plan developed by industry and endorsed by the Government. “In recent years, around 40% of Australia’s harvested timber fibre has been exported as wood chips or unprocessed logs. “We can create more jobs from the timber we already harvest by processing more of it here. “This is not just about replacing old machinery – it is about doing things different with new investment, new technology, new processing, new skills, new products and new jobs. “This is what Future Made in Australia should mean – Australian resources, value added and turned into Australian products by Australian workers. “We welcome a policy approach that links industry growth and transformation with secure, well-paid jobs, workforce skills, safe and high-performing workplaces and a real voice for workers. “Targeted plantation funding strengthens future timber supply, gives manufacturers confidence to invest in value-adding and supports local timber jobs. “Minister Julie Collins has shown real leadership, with strong support from Prime Minister Anthony Albanese, Environment Minister Murray Watt and Industry Minister Tim Ayres. “Our message across politics is simple: back the industry, back the jobs and do not play politics with timber workers’ livelihoods. “Give this industry a fighting chance and it will make a massive contribution to the national interest – building homes, growing Australian manufacturing, increasing Australia’s economic resilience and sovereign capability, and providing good, secure jobs in regional communities.”

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The Federal Government yesterday announced new grants and initiatives that will be delivered through the Forestry Growth Fund. Source: Timberbiz The Government will be investing $150 million in five key streams to help modernise Australia’s forest industry, support more well-paid, secure jobs and rural communities, strengthen innovation and industry modernisation, secure a sustainable fibre supply, and increase our sovereign capability to produce high-value products to support housing and construction. AFPA Acting CEO Richard Hyett said the $150 million in funding was a significant vote of confidence and step in the right direction for Australia’s forestry and forest products sector. “Forestry is already a major contributor to regional communities and the national economy, and this much-needed investment provides us with a vital opportunity to build on that strong foundation,” Mr Hyett said. Through this funding the Government will deliver: Up to $85 million to encourage forestry industry transformation through investment in modern wood product processing and value-adding through large-scale grants that significantly transform manufacturing capabilities and innovative facilities; Up to $30 million to encourage forestry industry innovation to promote greater efficiency and productivity across the supply chain; Up to $15 million to build forestry workforce capacity, to continue supporting well-paid regional jobs, with clear forestry career pathways and safe and high-performing workplaces; Up to $15 million additional support for plantation establishment to boost the supply of domestic forest resources for our nation’s manufacturing and construction needs; and $5 million to strengthen the integrity of forest product imports by developing and using tools to support compliance with Australia’s illegal logging laws and reduce the risk of illegally logged or conflict timber entering our supply chains.   These investments will support the forestry industry and workforce of the future –one which is at the centre of the Federal Government’s national goals including a Future Made in Australia and our $47 billion Homes for Australia plan. The design of these investments has been informed by consultation across the forestry industry, unions, communities and state and territory governments. This will ensure the Government’s investment reflects the sector’s key priorities and supports a stronger forestry industry, more secure jobs, better pay and increased production of high-value products. It will also help ensure workers remain an important part in shaping the future of Australia’s forestry industry. Grant development is now underway, with first grant opportunities to open in thecoming months. The new measures are part of the $300 million Forestry Growth Fund and support delivery of the Timber Fibre Strategy. The Fund also includes $150 million in concessional finance to support advanced manufacturing investments for wood-product processors, including mills and manufacturers. Applications for finance are open through the National Reconstruction Fund Corporation. These investments bring the Federal Government’s total forestry funding to $600 million. “Australia’s forestry industry has a bright future, and our government is committed to delivering new opportunities to make this happen,” Agriculture, Fisheries and Forestry Minister Julie Collins said. “This will mean more secure jobs, better pay and high-value outputs, particularly in regional Australia. “The investments we are announcing today demonstrates the Albanese Labor Government’s commitment to our world-leading forestry-sector, recognising the significant economic, environmental and social benefits it delivers for everyday Australians.” Mr Hyett said that it was positive to see the program – which aligns with the Timber Fibre Strategy – had been informed by industry, unions, communities and state and territory governments. “This consultation has been crucial because the people working across our industry understand where the opportunities are and what is urgently needed to help forestry grow and thrive,” he said. “Australia’s sixth largest manufacturing industry has an important role to play in our future, and we want to make sure we have the certainty and investment needed to keep growing and supporting communities.”

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The Tasmanian Government’s inquiry into Rushy Lagoon matters because this was never just a private land sale. At the centre of it is a simple question. Did Commonwealth taxpayer funding help a foreign-backed buyer acquire Tasmania’s largest farm and put Australian agricultural buyers at a disadvantage? The Clean Energy Finance Corporation committed $69 million to a broader $142 million Gresham House investment platform. On top of that, the Tasmania Natural Asset Trust, managed by Gresham House, was awarded an $8.8 million plantation establishment grant before the Rushy Lagoon acquisition had received foreign investment approval. The trust had been established just six days before grant applications closed. The inquiry needs to establish who approved what, when they approved it and whether taxpayer support strengthened the buyer’s position before the foreign investment decision was made. The CEFC’s $69 million investment was also approved by its Investment Committee under delegated authority rather than by the full board. That may be perfectly lawful, but with taxpayer money, foreign ownership and Tasmania’s largest farm involved, the level of oversight should be tested. When government puts tens of millions of dollars behind one investment strategy, it is no longer standing on the sidelines. It is helping shape the market. That is why claims this was simply a private transaction do not stack up. Public investment helped finance the buyer. Public grant money supported the plantation. Federal approval enabled the foreign acquisition. Gresham House must also provide clear answers about what it intends to do with Rushy Lagoon. How much land will be planted to trees? How quickly? How much will remain in agriculture? What farming will continue? The community needs firm commitments, not shifting numbers or distractions about agritourism and mountain-bike trails. The claimed 190 jobs also need to be tested. How many are short-term planting jobs? How many will be permanent? How does that compare with the jobs Rushy Lagoon could support through dairy, beef, contracting, processing and other agricultural activity? The same applies to the environmental argument. Carbon sequestration may support Australia’s net-zero goals, but climate policy should not come at the expense of food production. The Paris Agreement itself recognises that climate action should not threaten food production. The principle matters here. Finally, Rushy Lagoon was also not continuously on the market for nearly a decade. It was offered for sale in 2017, withdrawn, and formally returned to the market in September 2024. That distinction matters when claims are being made that Australian agricultural buyers had years to act, we must be extremely careful with the spread of disinformation in the community on this point. The inquiry must follow the money and the decisions. Who approved the funding, when was it approved, what influence did it have on the sale, and was Tasmania’s agricultural interest properly considered? Clearly, in this case there have been several failures to protect Tasmania’s interests. Federal safeguards have not worked, and the state has had no mechanism to fall back on to protect agriculture. This inquiry is important because when the Federal Government fails to act in Tasmania’s interests, we need our own safeguards to protect productive farmland, agriculture and regional communities. That is why this inquiry matters. Nathan Calman is CEO, TasFarmers

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