The construction industry is welcoming the federal government’s commitment to growing more timber amid supply shortages, but the forestry sector remains tentative.
Key points:
- Industry groups are waiting to hear if the major political parties in SA will match the funding
- The funding is intended to make up 40 per cent of the cost of projects, with states and the private sector expected to contribute
- The SA Forest Products Association says water allocations on the Limestone Coast will need to be examined
A building boom during the COVID-19 pandemic saw Australia grappling with a major shortage of construction timber.
The $86.2 million will be spent over five years to plant up to 150 million trees, with the expectation participating state governments will contribute 60 per cent of a project’s cost.
Private operators would then be expected to match the total cost of a given project in full.
Master Builders South Australia chief executive Will Frogley welcomed the announcement.
“The last few years have really shown that Australia really does need to ramp up its domestic supply,” Mr Frogley said.
“In recent years, we’ve imported about 20 to 25 per cent of our structural timber.
Plan welcomed
About 12 per cent of Australia’s softwood timber is grown in the Green Triangle, in SA’s south-east.
Weeks out from the state election, the industry is now eagerly awaiting to hear if the major parties plan to match the government’s commitment.
“We do need them to have a seat at the table and have already flagged it with them,” SA Forest Products Association chief executive Nathan Paine said.
SA Labor’s spokesperson for forestry, Claire Scriven, said the party welcomed the Prime Minister’s announcement but was not making any commitments yet.
“Should Labor be fortunate enough to form government after March 19, then we’ll be in position to look at it in much more detail,” she said.
State Liberal MP and Primary Industries Minister David Basham made similar remarks.
“The plan has not been discussed with the SA government and we look forward to seeing further details,” he said.
Existing water policy in SA makes expanding timber plantations in the Green Triangle area more complicated.
Additional trees would need to be factored into the water allocation plan for the Limestone Coast region, which will be reviewed next year
Mr Paine said it was the next step.
“If we can get the finances right, we need to then get the water policy right to ensure that that we are able to plant those trees in the areas where the trees need to grow,” he said.
