Regional Forest Agreement - The RFA and the timber industry |
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The State's native forest-based timber industry employs more than 20,000 people directly and indirectly, and has an annual turnover of more than $850 million. Although the RFA will reduce the annual supply of jarrah and karri sawlogs available to the industry, it aims to offset job losses through long term resource certainty and industry development package. As part of the RFA, the Commonwealth and WA governments have agreed to a $41.5 million timber industry development package. They have signed a Memorandum of Understanding to establish a $38.5 million WA Forest Industry Structural Adjustment Program (WA FISAP) for the native hardwood timber industry. The FISAP program includes an industry development component to facilitate greater efficiency, competitiveness and value adding; and an adjustment component for businesses and their employees who may be impacted by the RFA. The Industry Development component will include a mix of grants and interest subsidies, to leverage up to $40 million in loans to industry, to help retool to meet value adding objectives and expand local manufacturing. For example, the transition to whole bole milling, expansions to kiln capacity, marketing and product development. The program will encourage the development of co-operative initiatives between independent businesses to more efficiently develop and utilise new infrastructure and benefit regional communities. As part of the RFA, both governments have agreed to bring forward the reductions in resource supply which had been foreshadowed in the Forest Management Plan to occur from 2003. An independent scientific panel has verified the long term sustained yield for the RFA. As a result, the annual contracted level of jarrah sawlog cut will reduce from around 482,000 cubic metres at present to 286,000 cubic metres from 2004. As agreed with industry, the average annual jarrah sawlog cut to 2003 will be 324,000 cubic metres. The annual level of karri sawlog cut will reduce from around 203,000 cubic metres at present to 178,000 cubic metres from 2004. Average annual harvesting to 2003 will be 186,000 cubic metres. While the overall volume of first and second grade sawlog available will be reduced, governments have agreed on the need to enhance the resource available and to use each tree more efficiently. Consequently the WA government will contribute $3 million over the next five years to enhance the forest through thinning of jarrah regrowth stands. WA will also work with industry over the next few years to trial the implementation of whole bole milling. Should the trial prove successful, this change is likely to result in significant increases in log recovery. The RFA has identified priorities for the timber industry including the development of an internationally recognised certification program for Western Australia's forest products; investigation of alternative uses for lower grade and residue wood; support for small operators to more effectively process, market and export timber products. There will also be a focus on research and development into techniques and technology to increase value adding for karri and marri timbers, including kiln drying, glueing and finishing. Even with the reductions in resource supply agreed in the RFA, economic studies by ABARE and independent consultants suggest that the WA timber industry has the potential to:
As a first step in the implementation of the WA FISAP, both governments have agreed to contract an independent consultant to work with the industry to identify and confirm priority areas and the most effective mechanisms for using the industry development funds for maximum gain. A final report is expected to be available within three months. The Commonwealth and the State Government believe that Western Australia can have both a sustainable native forest based timber industry and a plantation based industry. This is the intent of the National Forest Policy which underpins the RFA. |
