THE State Government has been criticised for declining to partner with the Federal Government to address timber shortages in the building and construction sector.

In September 2021 the Australian Government announced a $15.1 million program to support the transportation of bushfire-salvaged softwood to timber mills, seeking co-funding and delivery in partnership with state governments.

Wannon MP, Dan Tehan has called on the Victorian Government to reconsider its decision.

“This program is a huge opportunity to ease some of the timber supply issues for our building and construction sector and help to address shortages in Victoria,” he said.

“There are processors in my electorate that are crying out for more wood supply, and we know how much our building sector needs more timber.

“This program also provided an opportunity for the expansion of domestic manufacturing boosting the industry’s resilience to international markets and securing jobs locally.”

The program targets bushfire-affected timber on Kangaroo Island in South Australia and would deliver much-needed funding to allow the transport of these resources from South Australia to Victorian timber mills with spare processing capacity, which would boost Victorian timber supply.

Forestry and Fisheries assistant minister, Jonno Duniam said the long-term impacts of devastating bushfires, the unprecedented demand for new homes, renovations, and COVID-19 have presented challenges for our timber supply chains.

“I am disappointed that for all of their talk about supporting industry in Victoria, the Labor Government is yet to get on board with this program,” he said.

“The Victorian Labor Government’s decision leaves local Victorian timber mills in the lurch, costing jobs and making the timber shortage worse. It will also mean that hard working Victorians won’t be able to build their homes.

Victorian Forest Products Association chief executive, Deb Kerr said that over the last 30 years, Victoria’s supply of timber for construction has remained static while the number of new homes has more than doubled.

“With no other timber resource to fill the gap, the Kangaroo Island resource presents a one-off opportunity to improve the supply of timber for housing, new jobs for Victorians and to support vibrant regional economies,” she said.”

However, a local timber outlet didn’t think the initiative was necessary, with their mill supplier in Mount Gambier being able to meet increasing demand.

“In the raw materials, there’s no shortage of trees,” Permewans Hamilton managing director, Paul Bast said.

“The thing is, the demand on the products is a lot higher, so they’re producing more than they’ve ever produced.

Mr Bast said they were “in constant contact” with the mill who had already been expanding their output capacity and wasn’t aware of any shortfall.

In another announcement related to the timber industry, the Federal Government said it was increasing support for construction businesses to use low-carbon timber.

Through the Clean Energy Finance Corporation (CEFC), $300 million will be invested in the Timber Building Program.

Mr Tehan said the new investment would support jobs across the Wannon region and lead to lower emissions from the construction industry.

“This investment will help our industries to make more innovative forest and wood products right here in Australia and create more jobs,” he said.

“The program will also help to develop local skills and experience that will lead to more low-carbon timber-based building activity in the future.”

Industry, Energy and Emissions Reduction minister, Angus Taylor said the program will finance the use of low carbon engineered wood materials in apartments and office buildings to reduce construction emissions.

“Increased use of low-carbon construction materials like wood products will help achieve our target of net zero emissions by 2050,” he said.

“The production and delivery of building materials account for 28 per cent of emissions in the construction industry globally.

“Australia's Long Term Emissions Reduction Plan sets out the approach the government is taking to help industries reduce their emissions, through research and enabling technologies.”

Mr Duniam said the Federal Government understood the value of forest industries and supporting jobs.

Forest industries make an enormous contribution to rural and regional communities across Australia and employ over 65,000 people,” he said.

“Our National Forest Industries Plan is reducing barriers to investment in our plantation estate, improving Australia’s value-adding capability and delivering opportunities for better returns on investment for our foresters.”

The Timber Building Program will finance eligible projects Australia wide on a case-by-case basis, which includes construction projects in office, retail, industrial, healthcare, education, residential, seniors living, hotels, and student accommodation.

More information about the CEFC’s Timber Building Program, including the application requirements for interested builders, is available on the CEFC website.