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Despite a myriad of Federal Government housing initiatives, Australia is on track to fall over 110,000 homes short of its National Housing Accord target. Source: Timberbiz Master Builders Australia has released its 2024 building and construction industry forecasts which, for the first time, cover the full five-year period of the Accord. From 1 July 2024 until 30 June 2029, Master Builders forecasts 1,087,325 new home starts. Master Builders Chief Economist Shane Garrett said work started on just 163,285 new homes during 2023, a 10.5% reduction on the previous year. “During 2023, detached house starts dropped by 16.4% to 99,443. This is the lowest in a decade. “The final three months of the 2023 quarter saw higher density home starts drop for the third consecutive quarter. “A total of 62,720 higher density homes were commenced during 2023 overall – the worst performance in 12 years. “The mismatch between the supply of new homes to the rental market and demand for rental accommodation is particularly worrying. “Rental inflation continues to accelerate at a time when price pressures across the rest of the economy have been abating,” Mr Garrett said. Master Builders CEO Denita Wawn said that we were seeing inflation starting to near its target range and we can expect a fall in interest rates which will lead to a more favourable investment market. “The Federal Government has also announced a number of significant housing measures that focus on increasing supply in social and affordable housing and the rental market. “However, constraints on the supply side like workforce shortages, industrial relations changes and a poor planning system counter the full effectiveness of these measures,” Ms Wawn said. “Productivity in the industry has fallen 18% over the last decade. It’s clear that governments need to expedite the rollout of planning reforms to reduce the high costs and time it takes to build. “Concerningly, the full impact of the Closing Loopholes Bills and union pattern bargaining negotiations underway in several states has not been factored into these forecasts. “Workforce shortages continue to be the biggest challenge for the industry across all sectors. “At a federal level, the government’s priority should be growing the building and construction workforce. “We heard only recently from BuildSkills Australia that the industry needs 90,000 workers in the next 90 days. “Domestically, we cannot fill this gap. We need to think outside of the box with better apprenticeship incentives, reskilling migrants already in Australia, and a targeted international campaign to bring in skilled migrants. “Investment and support in the whole built environment is important. While the commercial and civil construction sectors have helped shield the economy from periods of negative economic growth, this is coming to an end. “We can’t build the homes we need without the appropriate commercial and civil infrastructure to support it. This includes critical infrastructure such as utilities. “Builders are up to the challenge to reach these targets but the barriers on the road need to be cleared to get the job done,” Ms Wawn said. Full forecasts can be purchased here: https://masterbuilders.com.au/product-category/forecasts/

A mass sandalwood supplier with NT roots has entered receivership after a lengthy period of turmoil. Quintis Australia leases land for sandalwood plantations in the NT, Queensland, and Western Australia. Source: NT News The company’s NT holdings are in the Douglas Daly area. Quintis Australia is the largest sandalwood supplier in the world – selling oil, powder, logs, and chips – but appointed FTI Consulting as receivers on April 2. An FTI Consulting spokesperson said they were now in control of the majority of Quintis Australia’s businesses, assets, and operations. “This includes sandalwood plantations and real estate in the Kimberley and Northern Territory, an operations centre in Kununurra, a small plantation and land in Queensland, and the Mt Romance oil distillation facility and shop near Albany,” the spokesperson said. “[We] will urgently call for expressions of interest in the sale and/or recapitalisation of the business and are currently working closely with key stakeholders to quickly conduct an independent assessment of the financial position of the entities that are the subject of their appointment and their ongoing and future viability.” Quintis Australia’s dealings in the NT were previously granted Major Project status, but said status was revoked in 2018. The company went into voluntary administration in January 2018. The move came after Federal Court proceedings were brought against ex-Quintis director Frank Wilson for allegedly misleading the market about terminated contracts with Swiss giant Nestle, and allegedly failing to discharge his duties as a director in 2017. The Federal Court in 2023 found Mr Wilson did not breach his duties regarding disclosure of the termination of key contracts.

Gippsland East Nationals MP, Tim Bull, has queried whether Premier Jacinta Allan, who is overseeing the shutdown of the native timber industry, even knows the difference between hardwood and softwood. Source: Timberbiz “In Parliament last year I asked the Premier a simple question, which read as follows: With the close of the native hardwood timber industry on 1 January 2024 and the Intergovernmental Panel on Climate Change recommending the use of timber as the best climate change mitigation measure we can take, resulting in consumer demand increasing, can the Premier provide details on where Victoria’s supply of hardwood timber will now come from? “However, in her response, the Premier made no mention of hardwood whatsoever, and stated new plantations in Victoria would focus on softwood timber, and softwood sawlog production will boost the state’s supplies of pine plantation building products,” Mr Bull said. “The question never mentioned softwood, only hardwood and it was relating to where the supply of it would come from for our flooring and furniture, as well as a host of other items Victorian manufacturers produce. “The answer indicates one of two things; either the Premier does not know where the hardwood our industries need is coming from, or she does not know the difference between the two products.” Mr Bull said the final comment in the answer from Premier Allan was galling, where she stated, “we have listened to the timber industry and the support we are providing aims to ensure certainty of work for harvest contractors, their families, communities, and local businesses”. Mr Bull said there would be timber industry workers infuriated to read this. “This sustainable industry did not want to shut down, so they certainly were not listened to,” he said. “In addition, many have been left with offers that do not provide the security required, and other down the line businesses that have been promised support and have received none. “Sadly, the Premier may have changed, but we get the same old political nonsense in the answers they provide us,” Mr Bull said.

Walk out your front door and look down the street.  If you are in the regions or in suburbia, then you will look at a tall wooden pole that carries the cables that gives you electricity. Have you taken much notice of them?  Probably not, but the pole is native hardwood harvested from a native forest where, through the application of science, it was encouraged to grow that straight. Timber power poles are selectively harvested from regrowth or working forests. On 7 March 2024, the NSW ALP Minister for the Environment in NSW Budget Estimates had the following exchange with the Hon Wes Fang, National Party. The exchange reveals how uninformed the Minister is, who is a strong environmentalist. In the same Budget Estimates hearing, the Minister was boasting about the Great Koala National Park process she commenced. A process that is like that of a kangaroo court with a pre-determined outcome (but that is for another day). The Minister for the Environment is also the Minister for Energy. The Chair of the Committee is The Hon Sue Higginson, Greens MLC. The Hon. WES FANG: Minister, how many hardwood utility poles will be needed as part of the new network infrastructure for the transition to renewable energy in New South Wales? The Hon. PENNY SHARPE: Good question. I don’t know. I’ll take it on notice. The Hon. WES FANG: Have you done any planning around how many poles you’ll need for the next 20 years? The Hon. PENNY SHARPE: There will have been some. There’s obviously different types of poles. We’re also looking at non-wooden poles. There are steel poles. There’s a whole range. There’s concrete poles. Some of that work’s being undertaken. I’ll take it on notice and I’m happy to provide it to you. The Hon. WES FANG: I note you’ve talked about the other sorts of poles. Do you know why we use hardwood poles over some of the other poles, such as steel and concrete? The Hon. PENNY SHARPE: Different uses for different applications. The Hon. WES FANG: Minister, do you agree that there are environmental and practical benefits to using hardwood poles over those other types of poles, such as concrete, steel, softwood poles and composite poles? The Hon. PENNY SHARPE: I wouldn’t pretend to be an expert in the types of poles and the ways in which they’re best used, but I’m happy to accept on value that they’ve been chosen for a reason and there’s probably some benefits – sure. The Hon. WES FANG: Do you know where we source the majority of our poles in New South Wales? The Hon. PENNY SHARPE: Yes, in the State forest. The Hon. WES FANG: Minister, given the majority of the poles do come from the New South Wales mid-coast and are processed on the mid-coast, would you agree that the public native forestry industry is critical to the electrical supply industry and the renewable energy transition of your Government? The Hon. PENNY SHARPE: First, I’d say I have taken a lot on notice in terms of the assessment of the need for poles, where they’re coming from and how they need to be used. If this is a question around the impact on pole supply as a result of the creation of the Great Koala National Park, which is what I think you’re trying to get to – The Hon. WES FANG: It’s very much where I’m going to, yes. The CHAIR: They come from plantations. The Hon. PENNY SHARPE: Yes, fantastic. The process is currently underway around the creation of the Great Koala National Park and all of those issues are being worked through. The Hon. WES FANG: Have you put any safeguards in place to make sure that we continue to have a private native forestry industry in New South Wales whilst the Great Koala National Park is implemented? The CHAIR: Private? Public? Plantation? The Hon. PENNY SHARPE: I’m not quite sure where you’re trying to get to there. I’m not the forestry Minister. The Hon. WES FANG: You’re the environment Minister. The Hon. PENNY SHARPE: Yes, I’m aware, and I’m very pleased to be. The Hon. WES FANG: Are you putting some safeguards in to make sure that your Great Koala National Park isn’t going to shut down our forestry industry? The Hon. PENNY SHARPE: You should know better than most about this. The Great Koala National Park has been talked about for a long time. It’s this Government’s most significant national park that I believe we’ll create, although I do think that all national parks are important, just to be clear. It is a big area that we’re assessing. That’s why we’re doing the environmental, economic and social assessment in relation to the impact of the creation of the park. It is why we have three different panels, including an industry panel. They’re examining all of that work. We have done two things. One is obviously create the koala hubs in the area, which is about 5% of the park. The rest of the work is being assessed. That is what we’re doing and that’s the way we’re managing it, in a mature and thoughtful way. The Hon. WES FANG: But you would agree that the hardwood timber industry is a key stakeholder for you as the energy Minister, particularly around that issue of – The Hon. PENNY SHARPE: Yes. It’s why I’ve met with people, it’s why I’ve been on people’s farms. It’s why there is an industry panel in relation to the Great Koala National Park. As I said, one of the things that I think is extremely important in the work that we do, particularly in the environment, is that we misunderstand a lot of stakeholder’s concern and their desire to be part of the solution, and we have them at the table, and that has been a priority for me, as well as having others. The Hon. WES FANG: Prior to the election your colleague, who was […]

Stability seems to have been delivered for the timber industry in Tasmania following a deal struck between the minority Rockliff Government and the three newly elected members of the Jacqui Lambie Network. According to The Mercury, the Jacqui Lambie Network has traded an astonishing level of loyalty for a handful of things the government was either doing anyway or which deliver an uncertain result at an indefinite time. The Lambie Network MPs have agreed to be more loyal to the Liberal Party than even the Liberal Party’s own MPs – who are not bound to inform their party in advance if they intend to vote against it. The Jacqui Lambie Network’s website says that candidates don’t support an expansion of native forest logging in Tasmania but that more support for plantation timber is needed as “it’s a critical employer and the timber and fibre produced is essential for our sovereign capability”. However, with the Labor Opposition publicly backing the timber industry in the lead-up to the March election, the Network’s opposition will be of little strength. Combined, the Government and Opposition would have 24 votes available on any timber industry matter. The Government does need one more vote, with Tasmanian Labor leader and now Independent David O’Byrne being mentioned as a likely contender. Mr O’Byrne was expelled from the Labor party room and not endorsed as a candidate after sexual harassment allegations surfaced in 2021. Prior to the election he told The Australian he would work in a “mature and co-operative (way) … across the parliament”. With former Senator Eric Abetz, who served as the Minister for Fisheries, Forestry and Conservation in the Howard Government between 2006 and 2007, named Industry and Resources Minister overseeing Tasmanian forestry there must now be a certain amount of certainty for the industry. As TFPA Chief Executive Officer Nick Steel pointed out Mr Abetz spent many years in the Federal Parliament representing Tasmania’s forestry industry on the national stage. He has shown he’s a strong supporter of the important and sustainable work of our industry and the 5,500 Tasmanians employed by it.