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New home sales nationally fell by 12.6% in May after the draw forward in sales in April due to increases in costs associated with National Construction Code (NCC) 2022. The HIA New Home Sales report is a monthly survey of the largest volume home builders in the five largest states and is a leading indicator of future detached home construction. Source: Timberbiz “The changes to the NCC 2022 came into effect in Victoria and Queensland for any new home building contract signed from 1 May 2024,” HIA Chief Economist Tim Reardon said. “These two states have seen a decline in sales in the month of May as a result of the pull-forward in April to get ahead of the cost increases due to NCC 2022,” he said. This was a repeat of the experience of New South Wales in September when it introduced its energy efficiency standards. Sales in the months thereafter fell as a result of this pull-forward. “The draw forward in sales distorts the new home sales dataset, which makes it difficult to ascertain the market trends,” Mr Reardon said. “The increase in the cost of construction driven by increased regulatory requirements, and higher interest rates, will further impede the goal of increasing the supply of housing and place more pressure on public housing requirements. “If governments want to increase the supply of homes, they need to, at the very least, stop making new homes more expensive.” He said that lowering the cost of delivering new homes to market was essential to achieving the Australian Government’s target of 1.2 million new homes over the next five years and improving housing affordability across the country. Sales in the month of May increased by 15.1% in New South Wales, followed by Western Australia (+14.6 %) and South Australia (+3.2 %). The other states recorded monthly declines in sales, led by Victoria (-41.0 %) followed by Queensland (-10.3 %).

The blame for the recent failure of the New Zealand Emission Trading Scheme auction can be laid squarely at the feet of the Climate Change Commission along with the previous Labour Green Government, reflecting a series of manufactured crises rather than a fundamental issue with the market, according to the Climate Forestry Association (CFA). Source: Timberbiz The quarterly ETS auction failed to attract any bids, following a partial clearance of units in March raising NZ$190 million and the unprecedented failure of all four auctions under Labour/Greens in 2023. Climate Forestry Association chief executive Andrew Cushen says the continued uncertainty in the market highlights the ongoing impacts of years of meddling by the previous Government. “What we are seeing play out is a natural response to the regular fiddling with settings, endless reviews and constant changes, which reflected a culture of interference from the Labour Government, the former Minister for Climate Change and the Climate Change Commissioner,” Mr Cushen said. “Although participants in the market are understandably gun-shy after so long without any clear direction for the ETS, today’s auction doesn’t affect the fundamentals. At its heart, the ETS is a market mechanism, and it is designed to deal with short-term issues like the ones we’re seeing. “Despite not clearing today, that shouldn’t mean we lose faith in what is essentially our most successful – and our one-and-only – tool for meeting our climate commitments and reducing our emissions.” Mr Cushen says that the Coalition Government really couldn’t be clearer that it supports the stable, long-term operation of the ETS in its current form. “Last week, at Fieldays, both Forestry Minister Todd McClay and Climate Change Minister Simon Watts restated the Government’s commitment to climate action and recognised that a strong and stable ETS is our most effective tool for achieving our climate targets,” Mr Cushen said. “It is widely recognised that the market is currently significantly undervalued. Consistent policy settings and a long-term commitment to stability – like that signalled by the Government – are needed to bring back confidence in the sector and certainty in the market. “The Emissions Trading Scheme needs a strong and rising market price. This will enable the local investments in reductions and removals that are essential to meeting New Zealand’s climate targets.” Mr Cushen said despite the Government’s signals, it could reinforce those assurances by clearing up some areas that have created confusion in the market. “The suggestion of a lowering price floor contained in the latest Ministry for the Environment consultation, which was presented without any obvious rationale, was not at all helpful for the market and the broader sector,” Mr Cushen said. “To really draw a line under this period of market uncertainty, the Government should announce that this suggestion will be dropped, and no further work done on its development. “Ultimately, the efficient and stable functioning of the ETS will support the climate action we need to meet our international targets, and ensure Kiwi taxpayers are not left footing the bill for ex-pensive offshore mitigations. “We were very pleased to see the Government back up its commitments on the ETS last week and hope to see them take more definitive action around the consultation, ahead of the next auction.”

Forico has released a fourth Natural Capital Report, now available to download free from the company’s website. Source: Timberbiz Forico also has a strong commitment to Natural Capital and believes it to be a fundamental requirement for a sustainable global economy. Recognised worldwide, the report is a leading illustrative example of nature-based reporting. The company is motivated to play a key leadership role in this opportunity for the sector, through the production of its Natural Capital Report, production of sustainable wood fibre and championing new methods and markets in carbon and biodiversity. CEO Evangelista Albertini has said the Natural Capital Report “represents a vanguard for Financial and Sustainability Teams everywhere, encouraging them to embrace and lead the change to direct decision-making in new, essential, and increasingly urgent, nature positive and planet friendly ways”. The 2023 Natural Capital Report can be downloaded from the Forico website at https://forico.com.au

Locally grown and manufactured timber will provide the building blocks for South Australia’s new technical colleges at Tonsley and Mount Gambier, as announced by the State Government. Source: Timberbiz “This announcement is great news for the timber manufacturing industry in South Australia, with the State Government leading by example and using mass engineered timber to build the technical colleges that will educate the next generation of our workforce,” said Mr Nathan Paine, Chief Executive Officer of the South Australian Forest Products Association (SAFPA). “We wholeheartedly congratulate Premier Peter Malinauskas, Minister for Forest Industries Clare Scriven and Minister for Education and Training Blair Boyer for choosing to build these two new technical colleges from locally grown and manufactured timber. “This not only supports the State’s $3 billion forest industries, the over 21,300 people who directly and indirectly work in the State’s forest industries but will be reducing the carbon footprint of these buildings which will help South Australia achieve its net zero targets.” Mr Paine added that NeXTimber’s state-of-the-art manufacturing facility at Tarpeena will be supplying the Cross Laminated Timber for these projects with every cubic meter for finished softwood storing 718kg of CO2-e, the only building product that is carbon positive. “We have an amazing opportunity here in South Australia to grow, process and build out of mass timber which will store carbon and deliver not just positive environmental benefits but buildings that provide healthier and happier spaces for people to live, work and play,” said Mr Paine. “Timber bas been the ultimate renewable building material, as it locks and stores carbon reducing the environmental impact on the construction industry, whilst delivering a sustainable, cost-effective building that has a positive impact on the well-being of those around it. “Mass timber building materials such as Cross Laminated Timber is the building material of the 21st Century and is a product being embraced by leading international architects, builders and designers to replace carbon-manufactured materials like concrete and steel. “Forestry is the industry that builds our nation, and with the State Government using locally grown and locally manufactured timber to build local facilities these projects are a true tick of approval for South Australia’s forest and timber industries.”  

The National Timber & Hardware Association’s 2024 Victoria & Tasmania Timber & Hardware Industry Awards have showcased the outstanding achievements and contributions within the industry and recognised the exceptional talent and dedication of all participants. Source: Timberbiz The winners were: Benalla Mitre 10 – Garden Department of the Year Takasho – Garden & Outdoor Supplier of the Year Jenkins Home Hardware – Retail Store of the Year Under 2500sqm Permewans Mitre 10 – Retail Store of the Year Over 2500sqm Provans Mitre 10 – Trade Store of the Year AAA Advanced Trusses – Best Frame & Truss Operation Meyer Timber – Trade Supplier of the Year Bremick – Retail Supplier of the Year Rebecca Cunningham, Dulux – Supplier Sales Representative of the Year Sarah Jenkins, Jenkins Home Hardware – The REAL Difference Award

Having killed off the native forest timber industry by edict, the WA government is now taking the next step to cement its hypocrisy in legislation. Reece Whitby, the Minister for the Environment has recently introduced an amendment to the Conservation and Land Management Act 1984 (WA) to “lock in this Labor government’s historic decision to stop the unsustainable practice of commercial native logging”. Specifically the Bill will: repeal the provision in section 55(1a) that allows timber production on a sustained yield basis to be a purpose for which indigenous state forest and timber reserves may be reserved. limit the regulation-making power in section 55(1a) so that timber production cannot be prescribed in the CALM regulations. amend section 55 to clarify that timber production does not include the removal of salvaged forest products arising from, or in anticipation of, prescribed activities or purposes.” So, in order to “stop the unsustainable practice of commercial native logging” the government proposes to ban sustainable timber production from a State Forest as a whole in favour of unsustainable timber production from a State forest when it is being used for mining. Bizarre. This comes just eight months after the WA Minister for Forests, along with other State and Commonwealth ministers signed up to “continued sustainable management of forests”. But timber production from salvaged forest products from mine sites is not quite what it seems. The government also has another State Agreement obliging it to supply logs to produce charcoal for silicon production. In the absence of firewood logs from the broader state forest, this means that regardless of quality, most of the salvaged timber from mine sites will be sold as firewood for domestic or industrial use. Bauxite operations in this State has so far removed the forest and most of the soil from 30,000 ha and fragmented 90,000 ha or 17% of the north-west jarrah forest ecosystem (coincidentally the same proportion as the Amazon rainforest clearing). Despite being in operation for nearly sixty years, the operation has yet to be fully assessed by the EPA. The wanton destruction of this unique forest, with only rudimentary environment oversight and totally inadequate reservation of even the remnants is unfathomable, and in the light of the recent proposals, the height of hypocrisy. Jack Bradshaw is a former manager of the Forest Management Branch of the Dept of Conservation and Land Management.

Federal Member for Gippsland Darren Chester says he is committed to continuing to expose the hypocrisy of bans on the native hardwood timber industry after visiting Australian Sustainable Hardwoods (ASH) in Heyfield. Source: Timberbiz Mr Chester said ASH was ‘continuing to make an outstanding contribution to the social and economic life of Gippsland’ despite the illogical decision by the Labor Government to ban the harvesting of native hardwood timber. “All credit goes to the team at ASH who have worked hard to secure timber supplies from other sources and continued to invest in new technology that allows the business to successfully compete with imported products,” Mr Chester said. “I spoke in Federal Parliament again last week about the madness of shutting down the timber industry when it’s so important for our region and the nation. “It is hypocritical of city-based Labor, Greens and Teal MPs to be calling for a nationwide ban on native timber harvesting when the alternative is taking timber for countries with poorer environmental protocols. “I am at a loss to understand how it is a positive environmental outcome to transport hardwood timber long distances just because the Victorian Government has made a decision based on political science, and not environmental science.” Mr Chester said ASH was a world-class business that had been forced to adapt to the changes in state legislation, and he would support efforts to secure Federal Government funding for further improvements to facilities. “ASH has already adapted and modernised its worksite to employ people with mobility issues, including wheelchairs, and a higher proportion of female staff, which is a credit to the business, which continues to employ more than 200 locals,” he said. “The company has invested in modern technology to develop products which are now being used on major construction projects throughout Australia, including in several capital cities. “For example, ASH produces MASSLAM, which is a glue-laminated mass-engineered timber solution that is helping to decarbonise the construction sector and contribute to our national goal of achieving net zero by 2050. “The Victorian native hardwood timber industry has changed dramatically over the past 30 years. It’s now a sophisticated, world-class and environmentally sustainable industry that supports Australian jobs, protects our communities and wildlife from bushfires, and reduces our carbon footprint. It should never have been attacked by the Labor Party, but now we have to play with the cards we’ve been dealt. “That means continuing to extract every bit of value out of the wood supplies that are available and investing in the equipment to make it possible for a sustainable business to prosper in the future. “If the Federal Government is serious about its ‘Made in Australia’ policy, it would partner with companies like ASH, which are already manufacturing products that are in high demand.”