Raw log direct exports limit regional timber processors’ growth potential

MEMBER for Barker Tony Pasin has warned in parliament South East regional timber processors are stymied for growth because of the ongoing direct export of raw logs to overseas processors.

Addressing the House of Representatives last week, Mr Pasin said prospects for growth in the processing industry in forestry regions are 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”.

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.

“Local processors tell me they are constantly fielding requests for more export product,” he said.

“We need to develop a strategy to ensure that this industry, one which enjoys bullish prospects, particularly in what looks increasingly like a carbon-constrained future, is not only sustained but afforded the ability to grow.”

Mr Pasin said the recent Australian Government budget’s $20m for the National Forest Industries Plan signified the government’s willingness to support the industry and its continued success.

“But we need to do more to take the handbrake off the timber-processing industry,” he said.

“In addition to advocating for the National Forest Industries Plan to include measures to expand our forestry estates, the industry needs urgent measures to increase the access our domestic log processors have to the domestic log supply – in short, Aussie logs for Aussie timber mills.

“Without this, not only will Australian sawmills be unable to expand and thereby employ more Australians, but the jobs of those already in the sector will be in jeopardy.

“I ask colleagues to remember that in a land as vast as ours, with some of the world’s best forestry plantations, we import $2b more in wood products than we export.

“We can do better than this – we need to do better than this.”

Mr Pasin said he had an innate sense of how important the forest industry was to not only the local community, but the nation as a whole after growing up in Mount Gambier.

He said it was estimated Mount Gambier’s local timber processing industry employed more than 1500 people directly and many more indirectly.

“This equates to around 10pc of the total employment of the town,” he said.

“The economic contribution this industry made in 2016/17 in that same community was around $198m in gross regional product.

“To be quite frank, this is not an industry we can afford to ignore nationally or locally.

“Its importance cannot be overstated, particularly in my hometown of Mount Gambier.”