THE Federal Government should discourage log exports and increase its focus on local timber processors, according to State Shadow Forestry Minister Clare Scriven.
Her comments were made in reaction to growing regional dissatisfaction regarding logs bypassing local sawmills for the export market.
Asked for her view on Member for Barker Tony Pasin’s recent warning in parliament South East regional timber processors were stymied for growth because of ongoing log exports, Ms Scriven said log being made available to local processors should be incentivised.
“I certainly understand the smaller processors’ need for a sustainable log supply and their concerns in this regard,” she told The Border Watch.
“Big processors with long-term contracts do not have this problem.”
Ms Scriven said China and India’s demand for log was growing, putting pressure on the local industry.
“With the international rising demand for wood comes an expectation of plantation expansion for Australia,” she said.
“At the same time log access for smaller processors becomes increasingly important.
“The State Government has a role to play in lobbying Federal Government on these issues.
“We should – as a matter of urgency – look at solutions from all angles.”
Ms Scriven’s comments follow an eventful few weeks in the regional timber industry with Mr Pasin, Member for Mount Gambier Troy Bell and Regional Development Australia Limestone Coast chair Peter Gandolfi throwing their weight behind South East timber processors, saying increased log exports were hurting the industry.
Mr Bell proposed a 30pc export tariff on logs that are not offered to local manufacturers first in order to grow jobs in the South East and boost the local economy.
He said he had been approached by three companies wanting to establish or expand in Mount Gambier over the past 12 months, but unfortunately they could not access any additional wood fibre.
Mr Bell said the potential investment equated to over $300m, including the possibility of around 600 new jobs.
Mr Gandolfi called for a 50pc reduction in log exports from the Limestone Coast.
He called on forest growers in the region to make 50pc of their current log exports available to the local processing industry first.
Earlier addressing the House of Representatives, Mr Pasin said prospects for growth in the processing industry in forestry regions was currently limited by the lack of access to domestic log supply – “not because we do not have access to that resource, but because we are exporting that resource in the form of raw logs directly to overseas processors”.
Mr Pasin said in addition to advocating for the National Forest Industries Plan to include measures to expand Australia’s forestry estates, the industry needed urgent measures to increase the access our domestic log processors have to the domestic log supply – in short, Aussie logs for Aussie timber mills.
He said last year in the Green Triangle more than 1.7 million cubic tonnes was exported, equating to close to 50pc of national exports.
