The members of A3P have voted in favour of the formation of the Australian Forest Products Association (AFPA) by the merging of A3P and the National Association of Forest Industries.  AFPA is now operating under the guidance of a Transitional Board.  A3P is encouraging its members to become members of AFPA as soon as possible.  A3P’s key staff, assets and obligations will be transferred to AFPA in an orderly fashion and as quickly as practicably possible.  Once key staff have been transferred, AFPA will undertake the activities and provide the services previously provided by A3P, including the preparation and distribution of this e-newsletter.

 

Anti-Dumping System Update

Minister for Home Affairs and Justice Brendan O’Connor released an update on the Government's consideration of anti-dumping laws on 5 May 2011. The statement can be found here. Australian anti-dumping laws aim to prevent the dumping of goods imported at a price below ‘normal value’ and found to cause, or threaten to cause, ‘material injury’ to domestic manufacturing industry. A final position has not yet been reached by Government, because it is still considering the Productivity Commission’s (PC) report on Australia’s anti-dumping system. In addition, in March 2011 South Australian Senator Nick Xenophon introduced a Bill to amend the current anti-dumping system, which is currently being considered by a Senate Committee. A3P and forest product manufacturers strongly support the continuation of an effective, efficient, and accessible anti-dumping system that helps to provide a more level playing field for Australia’s competitive industries, and is vital to the future of manufacturing in Australia. Although A3P acknowledges that this policy area is complicated, it remains a major concern to Australian manufacturers that uncertainty continues and that their capacity to seek action against dumping may be further constrained if the Government accepts the recommendations of the PC.  A3P is continuing to make representations to Government opposing the PC’s recommendation to introduce a “public interest test” and its recommendation on the continuation of measures.

Contact: Gavin Matthew

 

Peak Stakeholder Liaison Group Meeting on Carbon Pricing Mechanism

The Department of Climate Change and Energy Efficiency (DCCEE) convened the second meeting of its Peak Stakeholder Liaison Group last week; membership consists mainly of industry associations and other representative groups. The purpose of this group appears to have more to do with information than consultation, with very limited opportunities for questions. The Group was given updates from DCCEE officials on the Climate Change Commission, the Garnaut Review Update, the Multi-Party Climate Change Committee, the international climate change negotiations and the Carbon Farming Initiatve. It was clear from these presentations that, if any progress on the design of the carbon pricing mechanism has been made, the Government is not releasing details at this point. A3P remains concerned that sufficient time for consultation with industry and other interested parties on the design of the carbon pricing mechanism has not been factored into its development. The next meeting of the Peak Stakeholder Liaison Group will be in approximately six weeks.

Contact: Marion Niederkofler and Richard Stanton

 

First Meeting of Land Sector Working Group

The Land Sector Working Group was established by the Minister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig, and Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, to advise the Government on the impact of climate change to the land sector. AFPA is a member of the working group representing the forest industry along with the Forest Industries Association of Tasmania.

The group met on 3 May to discuss issues and opportunities that a carbon price would have for farmers and landholders in rural and regional Australia, including flow-on effects to manufacturers and processors. Key issues discussed included the Carbon Farming Initiative (CFI) Bill, the architecture of the carbon pricing mechanism and transitional measures to move toward a lower emissions economy.

Many farming groups have concerns regarding the flow-on effects of a carbon price on input costs and the limited potential of the CFI to promote wider uptake of carbon sequestration activities, at least in the short term. AFPA raised similar concerns regarding higher input costs on wood processing as well as impediments in the current design of the CFI to fully recognise the carbon storage opportunities from forestry activities. The Minister invited representatives to make a submission by 10 May, with further meetings of the working group scheduled in the near future; AFPA is preparing a submission.

Contact: Mick Stephens

 

Change to Solar Credits for Small Generation Units

Last week the Minister for Climate Change and Energy Efficiency, Greg Combet, announced that the Government would reduce its assistance to household solar installations such as PV panels and water heaters. According to this fact sheet, this is being done by reducing the multiplier for solar credits under the small-scale renewable energy scheme (SRES), which is the uncapped part of the Renewable Energy Target (RET) that allows eligible small generation units to earn a commercial return on renewable energy. The multiplier started at 5 for the 2009/2010 financial year, and was to reduce by one each year until it reached 1; however, the multiplier for 2011/2012 is now 3 rather than 4 and will be 1 from mid-2013. This should help to reduce the surplus of small-scale credits that liable entities are obliged to purchase. A3P and other industry groups have previously raised concern about the impact of the SRES on electricity prices.

Contact: Marion Niederkofler

 

Forest Industry Inquiry Progress

The House of Representatives Inquiry into Australia’s forestry industry has now received over 100 submissions, with more still promised.  A3P, NAFI, AFG and the Forest Grower CEOs’ Forum have all made submissions, which are broadly complementary, reflect the priorities of their members and constituencies, and together present a comprehensive picture of the industry and its issues and challenges in the coming decades. A3P’s submission draws on A3P’s strategic plans, the Pulp and Paper Industry Strategy Group’s Final Report, recent plantation investment research projects, and A3P submissions to several other inquiries and reviews, such as anti-dumping, illegal logging, the energy efficiency strategy, the carbon farming initiative and other climate change consultations, R&D funding, and agribusiness MIS, to address two “long-term considerations” — first, Ensuring there can be a sustainable long-term forest resource to supply future demand for wood, paper, energy, chemicals and ecosystem products and services; and second, Ensuring that society’s demand for products and services can be met to the greatest degree possible by Australia’s forest and wood products industries. A3P’s submission will be available after Wednesday 11 May. The Committee expects to schedule its public hearings to commence late in May, and intends to invite the Australian Forest Products Association to appear. 

Contact: Richard Stanton and Alan Cummine

 

Myrtle Rust Coordination Group Meeting

The Myrtle Rust Coordination Group met on Friday 6 May.  Progress on the six themes (Coordination & Communications; Immediate Disease Control; Taxonomy; Potential Impact and Distribution; Chemical Control Options; and Resistance Breeding options) was discussed.  The major meeting outcomes were as follows:

• Queensland would distribute information on the changed conditions for entry of myrtaceous plants from other infected states;
• The Commonwealth announced that $500,000 seed funding would be made available for determining the taxonomy of Uredo rangelii, and $200,000 seed funding for a project to identify the genetic basis for environmental host susceptibility and resistance. RIRDC also announced that $150,000 was being made available for resistance screening;
• That the Commonwealth was keen to ensure that others strains of Guava rust did not come into the country.

Contact: Grant Johnson

European Union Imposes Anti-Dumping and Anti-Subsidy Measures on Chinese Paper Imports

On May 6,  the Council of the European Union regulations imposed definitive anti-dumping and anti-subsidy duties on imports of coated fine paper originating in China (here). The anti-subsidy tariffs are as high as 12%, and anti-dumping duties are as high as 35%; they are applicable for five years. Anti-dumping laws aim to prevent the dumping of goods imported at a price below ‘normal value’ and found to cause, or threaten to cause, ‘material injury’ to domestic manufacturing industry. The Council of the European Union decision again highlights the ongoing threats of dumping and predatory pricing activities in world trade.

Contact: Gavin Matthew

 

ANZIF 2011 Conference Report

ANZIF 2011 (the joint conference of the Institute of Foresters of Australia (IFA) and New Zealand Institute of Forestry) was held in Auckland NZ from 2-5 May 2011. The theme for the event was ‘Pacific Forestry,’ primarily targeting forestry policy makers, managers and practitioners from the South Pacific region. Topical issues that are currently impacting on Australian forestry included illegal logging (both from an importing and exporting country’s view), community acceptance of forestry (plantations and native), competition for viable land (land-use change from forestry to other uses including food security issues), and climate change policy/implementation. A3P will look to incorporate lessons learnt and different approaches from other countries into ongoing policy development and implementation. For further information please visit the conference website.

Contact: Gavin Matthew

Energy Users Association of Australia Training Course

‘Is a lack of Electricity Market knowledge costing your business money?’ – The Energy Users Association of Australia (EUAA) is conducting a one day training course on 17th, 18th & 19th of May in Melbourne, Brisbane and Parramatta respectively on ‘Electricity Market Fundamentals’. This 1-day course is the perfect way to understand those tricky issues that affect long-term and day-to-day management of your electricity needs. It has been developed for participants with little or no previous knowledge of the electricity market, although it is suitable for those who have already had some exposure to the market and are looking to update or renew their knowledge. For more information visit the EUAA website or call (03) 9898 3900.

 

SawTECH 2011

To showcase the latest tools and technologies that can be adopted by sawmilling companies to improve their efficiencies, SawTECH 2011 has been set up to run for Australian sawmills, both softwood and hardwood operations,  in Brisbane on 15-16 June 2011.  SawTECH 2011 will focus on using practical hands-on sessions with sawmilling experts. New technologies in primary log breakdown, secondary processing, saw machine centre improvement and lumber trimming, sorting and stacking systems will be profiled by major technology providers from North America, Europe and Australasia. Local companies that have worked with the technologies will also be outlining how the equipment was selected, installed and used and what it’s meant operationally and financially to their own company.  Full details on the new SawTech 2011 programme can be found here.