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Forest Products Commission ▪ ▪ July 2001 – June 2002A n n u a l R e p o r t - V o l u m e 1

The Commission

The Forest Products Commission isa Government enterprise workingwith industry and the communityto develop and promote the use ofWestern Australia’s renewable timber resources.

The business

We harvest and market the State’s plantation and native timber in a sustainable way, growand expand plantations, and develop and promote the forestproducts industry.

How we operate

We operate at international standards of environmental management to maximise the valueof forest products in a renewableand balanced way.

Shaping the future

We are shaping a modern and innovative forest products industry, creating regionalemployment and generating export income for the benefit of all Western Australians.

To the Minister . . . . . . . . . . . . . . . . . . . . . 2

Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Values and Objectives. . . . . . . . . . . . . . 4

Organisational Structure . . . . . . . . . . . 5

Our Organisation . . . . . . . . . . . . . . . . . . . 6

Business Profile. . . . . . . . . . . . . . . . . . . . . 9

Our Forest Resources . . . . . . . . . . . . . . . 9

Our Customers . . . . . . . . . . . . . . . . . . . . . 10

Our Links with Government . . . . . . 10

2002 Highlights . . . . . . . . . . . . . . . . . . . 11

The Future . . . . . . . . . . . . . . . . . . . . . . . . . 12

Financial Overview 2001-02. . . . . . 13

Environmental Services . . . . . . . . . . . 14

Industry Development . . . . . . . . . . . . 17

Regional Development . . . . . . . . . . . . 23

Our People . . . . . . . . . . . . . . . . . . . . . . . . . 25

Working with Industry . . . . . . . . . . . . 27

This publication is the first of two volumes, which together form the Forest Products Commission Annual Report 2001-02.

For information on corporate services and compliance, key performanceindicators and financial statements refer to Volume 2 of the Annual Report.

For a copy of the full report visit www.fpc.wa.gov.au or contact the Forest Products Commission on (08) 9475 8888.

Certification No 8289Certified 11 July 2001

C o n t e n t s

TO THE HON KIM CHANCE MLC

MINISTER FOR AGRICULTURE, FORESTRY AND FISHERIES

In accordance with Section 66 of the Financial Administration and Audit Act,I hereby submit for your information and presentation to Parliament, theAnnual Report of the Forest Products Commission Western Australia for theyear ended 30 June 2002.

Murray JorgensenChairman, Forest Products Commission Western Australia

The year 2001-02 was

the first full year of

operation as a Commission.

Commissioners and the

management team are proud

of the way in which the

agency has stabilised

following the challenges of

separation from the previous

departmental structure, and

responding as a commercial

enterprise to changes in

forest policy.

The Commission has a very clearfocus on development of the newSouth-West timber industry that willdeliver high rates of employment,high value production and exportrevenue from the available jarrah,karri and marri resource. Initiativesto assist the development of exportmarkets are highlighted later in thisreport. The end products willdepend almost entirely on theoutcomes of the request forproposals for jarrah sawlogcontracts, and our staff have workedtirelessly during the year to designthe request, then work through theintricacies of the proposals thatwere submitted. This time has alsobeen very difficult for businessesand their employees in the forestproducts/timber industry, and theCommission appreciates theprofessional and cooperativemanner in which industry hasworked with Government to createthe conditions which we all hopewill produce a new and vibrant, high-value industry in the coming years.

During the year, the Commissionhas also turned its attention fromestablishment of the organisationto the strategic direction fordevelopment of the forest productsbusiness in Western Australia. Inaddition to the restructuring of theSouth-West industry, the maindirection is development andexpansion of the plantations andrelated industry.

The Commission has now securedapproval from the Government forcapital investment into newplantations over the next fouryears. The Commission’s prioritiesare targeted at meeting the growthprojections for the existing andproposed softwood industries, anddeveloping new opportunities forWestern Australia. In a cohesiveand coordinated way, theCommission is looking to developplantations that will supplyidentified processing industries inrelevant regions - the right trees inthe right place for the rightindustries.

Running on solar power, theseplantations will deliver:

▪ timber;

▪ salinity control;

▪ biomass energy;

▪ carbon sequestration; and

▪ protection and enhancement ofbiodiversity

This is a five star investmentproduct.

The Commission’s philosophyrecognises trees and plantationsprovide much more to WesternAustralia than financial returns -they are a renewable resource thathelps to deliver on truly sustainabledevelopment. We are proud of ourrole in delivering these benefits toWestern Australia.

The Commission wishes toacknowledge the professionaldedication of the staff inresponding to the challenges ofbecoming a more commerciallyfocused enterprise during asignificant period of change inforestry in Western Australia.

Murray JorgensenCHAIRMAN

Paul BiggsGENERAL MANAGER

R e v i e w

Our mission

To contribute to Western Australia’seconomic and regional growth by:

▪ developing the sustainable use ofthe State’s plantation and nativetimber resources;

▪ promoting innovation and localvalue adding for these resources;and

▪ achieving appropriate returns tothe State for the use of publiclyowned and Forest ProductCommission-managed timberresources.

Values

AchievementWe will deliver best practice service.

InnovationWe will be creative and innovativein meeting our objectives.

LeadershipWe will provide leadership to assistin the development and restructureof the timber industry.

Customer focusWe will understand and meet ourcustomers’ needs.

Environmental responsibilityWe will adhere to ecologicallysustainable management.

AccountabilityWe will adhere to processes that are understood and measured.

IntegrityWe will act honestly and ethically in accordance with theCommission’s Code of Conduct.

Objectives

The values of the Forest ProductsCommission underpin all ouractivities as we work to:

▪ Provide forest products toindustry from publicly owned andmanaged plantations and nativeforests, consistent withmanagement plans.

▪ Increase the areas of hardwoodand softwood plantations to meet regional developmentopportunities and environmentalobjectives.

▪ Promote increased levels ofeconomic return to WesternAustralia from the use of forestproducts by:

▪ increasing the level of valueadded production anddownstream manufacturing inWestern Australia throughGovernment assistance, settingconditions on contracts of saleand providing security forinvestment;

▪ contributing to the marketingof forest products;

▪ contributing to the researchand development of newproducts and techniques forprocessing Western Australiantimbers;

▪ providing leadership in therestructure of the native forestproducts industry; and

▪ promoting the environmentallysustainable sale and use oflower grade and residuematerial.

V a l u e s a n d O b j e c t i v e s

Our vision

An environmentally sustainable and commercially viable forest products industry providing economic andsocial benefits to the people of Western Australia.

The Forest Products

Commission was created on

16 November 2000 as the

State’s trading enterprise

responsible for the allocation

and sale of forest products

from State-owned and State-

managed plantations and

from the State’s native

forests and woodlands.

The Commission works with

industry and the community

to develop and promote the

use of Western Australia’s

renewable timber resources.

During the year, the Commissionrevised its structure in response tothe reduced level of activity andrevenue from native forests. TheDivision of Industry Developmentand Marketing was suspended and

its functions transferred to the twooperational divisions. WithinNative Forest Operations, twobranches operating from Harvey andManjimup were amalgamated into asingle South-West branch based in

Harvey. These changes helped theCommission to reduce operationalcosts and staffing to levelsappropriate for the current nativeforest business.

O r g a n i s a t i o n a l S t r u c t u r e

Minister for Agriculture, Forestry and Fisheries

Chairman / Commissioners

Executive Branch General Manager

Customers:

Harvesting and transport contractorsLog buyers

Downstream manufacturersSawmillers

Corporate Services DivisionNative Forest Operations Division

Plantation Operations Division

The Commissioners are

appointed for their expertise

in commercial activities, the

plantation timber industry or

in the labour relations field,

as is relevant to the

functions of the Forest

Products Commission.

Murray Jorgensen - Chairman

Mr Jorgensen is the Principal of amanagement and businessconsultancy for a wide range oflocal Government and commercialclients. He has extensiveexperience in local Government,including five years as the ShireClerk at the Shire of Manjimup and10 years as the Chief ExecutiveOfficer of the Town of Albany. Hewas Deputy Chair of Commissionersat the City of Cockburn betweenApril 1999 and December 2000.

Dr Per Christensen - Deputy Chairman

Dr Christensen is a forester and aconsultant ecologist with broad andauthoritative experience in forestryand fauna ecology in WesternAustralia. He has extensiveexperience at senior managementlevel within State Government andcurrently sits on a number ofcommittees, including the SharkBay World Heritage PropertyScientific Advisory Committee. Dr Christensen is the scientificadviser and member of themanagement committee of Project Eden, which aims to ridShark Bay’s Peron Peninsula of feral cats and foxes.

Sandy Breeze

Ms Breeze has been a businessproprietor and manager in thefurnishing industry since 1982.National Director of the FurnishingIndustry Association of Australia(FIAA), she has been a councillor ofthe FIAA (WA) since 1990 and VicePresident since 1999. She has alsobeen Chairperson of the AustralianFurniture of the Year Awards since1995.

John Castrilli

Mr Castrilli has been Mayor of theCity of Bunbury since May 1997.He has extensive experience inaccounting, financial managementand commerce and is a boardmember on a wide range ofGovernment, business, educationaland community groups.

Dr Marilyn Clark-Murphy

Dr Clark-Murphy is a senior lecturerin finance at Edith CowanUniversity (ECU). Prior to joiningECU she had a long career inindustry and has broad experiencein financial management and stockbroking. Dr Clark-Murphy hasserved as a board member of severalGovernment instrumentalities/agencies. She was a Commissionerto the City of Wanneroo fromNovember 1997 to December 1999,overseeing the creation of twoseparate local Governmentauthorities, and member of theMetropolitan Cemeteries Board from1994 to 2002.

T h e C o m m i s s i o n e r s

O u r O r g a n i s a t i o n

C o m m i t t e e s

Commissioners sit on a

number of committees to

evaluate and make

recommendations on specific

aspects of the business.

Risk Management and Audit Committee

Dr Marilyn Clark-Murphy - ChairpersonMr John CastrilliMr Ray Curo

Bole Log Utilisation Sub-Committee

Mr Ray Curo - ChairpersonDr Per ChristensenMr Nick Oaks

Finance Committee

Dr Marilyn Clark-Murphy - ChairpersonMr John CastrilliMr Ray Curo

Communications Committee

Ms Sandy BreezeDr Per Christensen

In addition, Mr Murray Jorgensen is a member of the Forest Management Plan Steering Committee with members of the Conservation Commission and staff of the Department of Conservation and Land Management. The General Manager and staff of the Commission also attended meetings of the Steering Committee.

Forest Products Commissioners.Pictured from left to right (background)are John Castrilli, Sandy Breeze, Ray Curo, Dr Per Christensen (Deputy Chairman), Nick Oaks, and(front) Murray Jorgensen (Chairman)and Dr Marilyn Clark-Murphy.

Ray Curo

Mr Curo is self-employed as acabinetmaker. He has extensiveknowledge of the Western Australianhardwood timber industry through 25years of bush work, roading, contractmanagement, training, andmanagement of harvestingoperations. He has extensiveexperience in land use conflictresolution and continues to work asa consultant to industry. Mr Curowas Chairman of the Forest IndustriesTraining Services between 1995 and1997 and has been a Manjimup ShireCouncillor since 1997.

Nick Oaks

Mr Oaks is currently employed as aWorkers Employment Advisersupporting the implementation ofthe Workers Assistance Program, apart of the Government’s“Protecting Our Old Growth Forests”policy. He was previously theSouth-West organiser of theAustralian Workers’ Union for 11years. Mr Oaks is a board memberof the Forest Heritage Centre,President of the Bridgetown-Greenbushes Shire Council, Chair ofthe Timber Training Group, Chair ofthe WA Primary Industries TrainingCouncil and Deputy Chair of theWarren Blackwood Economic Alliance.

The Board of Commissioners met 17 times during the year with allCommissioners attending 14 or more meetings.

Murray Jorgensen 14

Dr Per Christensen 16

Sandy Breeze 16

John Castrilli 14

Dr Marilyn Clark-Murphy 14

Ray Curo 17

Nick Oaks 16

The Commission Executive,

headed by Dr Paul Biggs,

takes responsibility for the

three divisions of the

organisation - Native Forest

Operations, Plantation

Operations and Corporate

Services.

Dr Paul Biggs - General Manager

Paul Biggs holds a Bachelor ofScience (Hons) in Forestry and aPhD in Forestry from MelbourneUniversity. He has a strongtechnical background in forestmeasurement and has beenrecognised for scientific writingwith awards from the AmericanSociety of Photogrammetry and theInstitute of Foresters of Australia.He worked in a range of seniorpositions with the Department ofConservation and Land Managementand has been a Policy Adviser toprevious Ministers for theEnvironment and Forest Products.

Gavin Butcher - DivisionalManager Plantation Operations

Gavin Butcher has a careerspanning more than 20 years inplantation and native forestmanagement and has particularstrengths in the strategic, analyticaland financial fields of forestrymanagement. He holds a Bachelorof Science in Forestry and has alsolectured part-time at Edith CowanUniversity. His previous positionwas Plantations Group Manager withthe Department of Conservation andLand Management.

Jon Murch - Divisional ManagerNative Forest Operations

Jon Murch has been involved in themanagement of forest resources inWestern Australia for nearly 30years, and has specialist experiencein managing native forest andplantation contracts and the sellingof timber products. Before beingappointed to his current position,he was the Manager for ForestResources with the Department ofConservation and Land Management.He holds a Bachelor of Science(Hons) in Forestry, specialising inharvest management and theselection of harvesting systems.

Gary Downes - DivisionalManager Corporate Services

Gary Downes has occupied theposition of Chief Financial Officerfor a number of boards ofmanagement and has extensiveexecutive experience in businessanalysis, information technology,legal issues, strategic positioningand company secretarial matters.He holds a Bachelor of Businessdegree, is a Fellow of CPA Australiaand is a member of the AustralianInstitute of Company Directors. Hewas Deputy Chair of Uniting ChurchHomes and Chair of the Board’sFinance and Audit Committee.

T h e E x e c u t i v e

The Forest Products CommissionExecutive (left to right) Gary Downes,

Gavin Butcher, Jon Murch and Dr Paul Biggs (General Manager)

The year 2001-02 was the first fullyear of operations for the ForestProducts Commission which hasresponsibility for the commercialproduction, allocation and sale offorest products from WesternAustralia’s State-owned andmanaged plantations and nativeforests.

Established by the WesternAustralian Government in November2000, the Commission reports tothe Minister for Agriculture,

Forestry and Fisheries through aseven-member Commission. It operates as a GovernmentTrading Enterprise and is expectedto operate profitably and returndividends to its shareholders - the people of Western Australia.

The agency’s day-to-day operations is led by a GeneralManager who oversees divisions for Plantation Operations, NativeForest Operations and CorporateServices.

As required under the ForestProducts Act 2000, the Commissionaims to ensure that a profitconsistent with planned targets ismade from the use of forestproducts while ensuring:

▪ the long-term viability of theforest products industry; and

▪ the principles of ecologicallysustainable forest managementare applied in the management ofindigenous forests located onpublic land.

Western Australia produces

an array of unique timbers

from native forests as well

as sought-after timbers from

an increasing number of

plantations.

There are approximately 2.5 millionhectares of publicly-managed nativeforest in the South-West region andthe Commission has access toapproximately 990,000 hectares ofnative forest. Consistent withGovernment policy, all old growthforest has been placed in reserves,or is otherwise “protected” andunavailable for timber production.

The forest sector extends across theSouth-West of Western Australia.These areas include native forestspecies such as karri and jarrah,which have a dark colour andconsistent grain pattern that makethem significantly different fromother Australian eucalypt timbers.Their distinct features have greatappeal in highly visible productssuch as furniture and flooring.

Increasing amounts of softwoodresources are now being developedon plantations in the South-West.These timbers are used primarily instructural applications such asroofing or in panels such as mediumdensity fibreboard andparticleboard. Extensive areas ofprivately-owned hardwoodplantations for export pulpwoodmarkets are also being establishedin the State’s South-West and SouthCoast regions.

Sandalwood and arid timbers growthroughout the semi-arid to dryareas of the State and there isconsiderable potential fordevelopment of this resource.Sandalwood, for instance, is foundover an area of 161 millionhectares, with 79 million hectarestotally excluded from any form ofharvesting. New research indicatesstrong potential for newpharmaceutical applications, whichcould provide the basis for new,high-technology industries inWestern Australia.

Tropical plantations are also beingestablished in the Ord Riverirrigation area near Kununurra.

B u s i n e s s P r o f i l e

O u r F o r e s t R e s o u r c e s

The Commission supplies

forest products to a wide

range of businesses in

Western Australia and, to a

lesser extent, overseas.

In producing and delivering these products, the Commissionuses the services of a large number of contractors forharvesting, transport, roadconstruction and maintenance,plantation establishment and tending.

Ultimately, the Commission and our clients work together to serve the needs of our end customers - the community of Western Australia and its trading partners.

The Commission interacts with anumber of Government agencies oncommon issues, but is also acustomer of the:

▪ Conservation Commission;

▪ Department of Conservation andLand Management;

▪ Water and Rivers Commission;

▪ Water Corporation;

▪ Department of Industry andTechnology;

▪ Department of Petroleum andMineral Resources Office of MajorProjects;

▪ Austrade; and

▪ WA Government Trading Office.

O u r L i n k s w i t h G o v e r n m e n t

O u r C u s t o m e r s

Measuring moisture levels of timber.

Maritime pine plantation at Pinjar with timberdestined for the new laminated veneer lumberplant at Neerabup.

In its first full year of operation,the Forest Products Commission has achieved or played animportant role in:

▪ ISO14001 certification forenvironmental managementsystems, which validates the factthat the Commission assesses itsimpact on the environment, hasobjectives to manage that, iseffective in implementing itsenvironmental systems, andmonitors and reviews itsperformance.

▪ The first shipment of plantationwoodchips from Commission -managed plantations from Albanyto Japan. The shipment heraldedthe establishment of a newtimber industry and exportincome for Western Australia withpositive flow-on effects in termsof employment and economicactivity for the industry and theregion.

▪ Final negotiations to establish alaminated veneer lumber plant atNeerabup, which will enable theForest Products Commission tomove ahead with the clearing ofthe Gnangara mound, increasingwater production and opening upthe area for conservation andrecreation purposes.

▪ Working with farmers and waterand land management agencies tomake considerable progress indeveloping new eucalypt sawlogplantations. The first of theproject’s trees were planted inwinter 2002 in the lower rainfallareas of the water resourcerecovery catchments in theWarren-Tone and Kent Rivercatchments.

▪ The development of eucalypthybrid cuttings at the PlantPropagation Centre that willprovide greater profit whenestablished in plantations onmarginally saline lands, withgreater survival and growth indrier climates and strongerdisease resistance.

▪ The successful negotiation tosecure a research partnershipbetween Western Australia andCanada with the potential togreatly improve the profitabilityand productivity of pineplantations. The Commission’sreputation was a major factor inthe Canadian forest biotechnologycompany’s decision to selectWestern Australia to test itsleading edge tissue culturetechnology.

▪ The selection of short-listedproponents for the future use ofjarrah sawlogs, eachdemonstrating a commitment tovalue adding, employment andmaximum recovery at every stageof the supply chain.

▪ The implementation of theGovernment’s “Protecting Our OldGrowth Forests” policy and theindustry restructuring requiredwithin it.

▪ Providing assistance to theFurniture Industry Association ofAustralia (FIAA) in developinginternational markets, inparticular sponsoring the NationalFurniture Awards held at theBurswood International Resort inNovember 2001, and inparticipating in the FIAAtradeshow at the San FranciscoFurniture Mart in January 2002.

▪ Arranging the sale throughauction of 15 tonnes of sawnspecialty Goldfields timbers(including gimlet, native currantand beefwood and specialtytimbers from the South-Westincluding curly jarrah, sheoak,peppermint and jarrah burl) atthe Commission’s first specialtytimber auction. The auction wasaimed at people who mightotherwise have trouble obtainingthe harder-to-find timbers.

▪ Collaboration with MurdochUniversity to establish a studyinto the relationship betweennative marsupials such as thewoylie and the distribution ofsandalwood seed. Informationfrom the 12-month study willbuild on knowledge and thesilvicultural practices used by theCommission.

2 0 0 2 H i g h l i g h t s

Planting eucalypt plantations in theKent River catchment.

The first shipment of woodchips forJapan from the Albany port.

In the year ahead, the ForestProducts Commission expects to:

▪ Progress, in association withCommonwealth Governmentprograms and industry partners, afarmland reforestation programwhich will deliver a range ofenvironmental managementbenefits as well as providing along-term and sustainablealternative timber source.

▪ Work with communities and otherstakeholders to develop an actionplan to battle salinity andachieve other objectives within aviable industry structure.

▪ Continue to restructure theindigenous forest productsindustry under the Government’sforest policy.

▪ Develop contracts for thePemberton Sawmill to maintainemployment levels.

▪ Develop contracts from some orall of the 10 industry proposalsfor the future use of jarrahsawlogs.

▪ Increase production from theState’s managed softwoodplantations.

▪ Hold more specialty timberauctions in regional areas toimprove access to WesternAustralia’s valuable timberresources.

T h e F u t u r e

Plantations provide diversification andmultiple benefits for farmers in terms ofshade and shelter for stock and crops,income from grazing, better control ofsalinity and improved visual appearance.

The 2001/2002 financial

year was the first full

year of operations for

the Commission. We are

pleased to advise that the

Commission was able to

return good operating

profits for the year,

despite difficult trading

conditions.

The Commission’s financial statements are summarised below:

2002 2001(33 weeks)

($’000) ($’000)

Total revenue from ordinary activities 124,097 90,148

Profit after income tax equivalents 3,105 1,352

Current assets 31,462 25,531Non current assets 308,460 302,529Total assets 339,922 328,060

Current liabilities 20,207 24,355Non current liabilities 79,930 78,958Total liabilities 100,137 103,313

Net assets / total equity 239,785 224,747

The following ratios reflect the financial performance of the Commission:

Ratios:Return on equity 1.29% 0.60%Return on assets 3.43% 2.50%Debt to equity 34.36% 34.26%

Natural resource assets:

The net carrying value of theCommission’s natural resource assetshas decreased by $1.2m this year,which is mainly attributable to adecrease in the valuation of thePlantation Reforestation Programmedue to a change in accountingmethodology, offset in part by anincrease in native forest’s valuation,due to a decrease in costs previouslyattributed to the Commission.

Gearing:

Gearing continues to be adverselyaffected by $75m interest-bearingliabilities transferred to theCommission from CALM on theCommission’s inception in 2000, for which the Commission receivedno compensating assets. Showing acompensating increase in assets forthese liabilities improves theCommission’s gearing to 26%.

F i n a n c i a l O v e r v i e w 2 0 0 1 - 0 2

The Commission has worked

with the Conservation

Commission and the

Department of Conservation

and Land Management

throughout the year to

develop the new Forest

Management Plan for release

as a draft in August 2002.

The plan is the blueprint for

native forest and plantation

management for the next

10 years and includes the

quota of timber available for

harvesting each year.

The Commission is also

actively taking up the

increasing opportunities to

work in partnership with

both private and public sector

businesses and organisations

to support tree planting.

The Commonwealth Government ispotentially a major partner andduring the year the Commission hasbeen part of the State negotiatingteam to develop possibilities forCommonwealth funding to plantmore trees. Particular emphasis hasbeen placed on opportunities thatwould be eligible for funding fromCommonwealth grant schemesincluding the National Action Planfor Salinity and Water Quality, theNatural Heritage Trust (Part 2) andthe Greenhouse Gas AbatementProgram.

The Commission has therefore takena strategic approach to developingplantations and farm forestry in theSouth-West and is identifying andestablishing plantations in areasclose to regional centres that wouldalso attract new industries.

The focus has also involvedplanting a broader range of treespecies, matching the differenttypes of trees to the diverseconditions. A range of eucalyptsand sandalwood, as well as pinetrees, was established inplantations during the year.

Potential benefits from the newplantations include the developmentof new regional industries based onthe supply of timber. The trees alsoprovide environmental benefitsincluding carbon sequestration andhelp to control the groundwatertable with associated effects onsalinity, biodiversity and landdegradation. They also providebroader land management benefitssuch as countering wind erosion,providing shelter for livestock andadding to the appeal of the land.

Environmental ManagementStandard

The Commission was independentlyaudited in July 2001 and certifiedas having environmentalmanagement systems (EMS) thatmeet the international standard ISO14001.

The standard ensures thatenvironmental management issystematic and thorough.

Having an effective EMS in placeprovides benefits including:

▪ protection of the environment;

▪ conservation of natural resources;

▪ an equal competitive basisbetween companies in relation toenvironmental investment;

▪ demonstrated compliance withregulations;

▪ reduced costs from inefficientprocedures and corrections;

▪ improved community relations;

▪ improved customertrust/satisfaction;

▪ improved senior managementattention; and

▪ an ability to be environmentallyproactive rather than reactive.

E n v i r o n m e n t a l S e r v i c e s

Plantations play a vital role in mitigating landdegradation and salinity and contribute to a

reduction in carbon in the atmosphere.

Battling salinity

The Commission continued its work- independently and with BP - toestablish maritime pine (Pinuspinaster) and other species oncleared farmland in the Katanningand Mount Barker region - areasthreatened by salinity caused byrising groundwater tables. The BPproject, in partnership withlandowners, is believed to be thefirst tree-planting program inAustralia with the twin goals ofcorrecting land degradationproblems and offsetting carbonemissions.

BP became involved in the projectin 1999 and originally planned toestablish 300 hectares of plantationeach year until 2010. The companyincreased this figure to 350hectares in 2001 and has set ahigher target again for the 2002planting season. The acquisition ofland for the planting season is wellunderway.

Meeting the silviculturechallenge

Silviculture - the regeneration,growing and tending of trees - isone of the key functions of theForest Products Commission.Natural regeneration, supplementedby an appropriate planting regime,is the primary outcome of theCommission’s silvicultural programin all previously harvested forest areas.

During the year the Commission:

▪ Completed regeneration on 1340hectares of harvested karri forestand prepared 1250 hectares ofharvested karri forest forregeneration.

▪ Treated for regeneration 8120hectares of previously harvestedjarrah forest, non-commerciallythinned 1740 hectares of forest(including 710 hectares achievedthrough the jarrah forestenhancement program involvingdisplaced timber workers.

Forest Management Plan

The Commission has worked withthe Conservation Commission andthe Department of Conservation andLand Management throughout theyear to develop the new ForestManagement Plan for release as adraft in August 2002. The plan isthe blueprint for native forest andplantation management for the next10 years and includes the amountof timber available for harvestingeach year. A draft of the plan isdue to be released early in the newfinancial year.

The reduced level of harvesting innative forests will result in asignificantly reduced native forest-based industry with a strong focuson increased manufacturing intovalue added products such asoutdoor and indoor furniture,flooring and joinery.

The Commission will work withindustry to make the best use ofthe resource that is made available.

Implementation of the RegionalForest Agreement

The Commission is responsible forimplementation of four of thecommitments made under theRegional Forest Agreement (RFA)between the Western Australian andFederal Governments signed in May 1999.

The following have been completed:

▪ development of a Memorandum ofUnderstanding for a ForestIndustry Structural AdjustmentProgram; and

▪ review of timber harvestingdocuments with a view toimprove understanding by fieldoperators and field staff.

Substantial progress has been madeon the following:

▪ legislative review and competitiveneutrality review in relation towood-based businesses; and

▪ pre-logging fauna assessment.

Murdoch studies woylie link

Following an approach by theCommission’s Arid Forest Branch inNovember 2001, Murdoch Universityis now undertaking a fundedresearch project into therelationship between nativemarsupials and the distribution ofsandalwood seed.

The 12-month study commenced inJanuary and is examining thecaching behaviour of the woylie(pictured opposite). The study willfocus on the relationship betweenthe marsupial and sandalwood withthe aim of determining the rolewoylies have in the dispersal andrecruitment of the important treespecies.

Information from the study willbuild on the knowledge andsilvicultural practices used by theCommission.

Commission Plant Propagation Centregrows a wide range of species for theestablishment of plantations, farmforestry and forest regeneration.

Woylie - Photograph © Babs & Bert Wells and Department of Conservation and Land Management

Nursery innovation

The Commission’s 226-hectarenursery at Manjimup is the base forcommercial production and sale oftree seedlings, the sale anddeployment of native andgenetically improved seed, and theresearch and development of treespecies for commercial production.

During the year the PlantPropagation Centre, which is basedat the Manjimup nursery, developedeucalypt hybrid cuttings that willprovide greater profit whenestablished in plantations onmarginally saline lands, greatersurvival and growth in drierclimates and disease resistance.

The hybrids, which could bedispersed among regular seedlingsin plantations, are mainly used forsawlog production. The wastage issuitable for pulpwood.

Tree seedling production at thenursery has been reduced by 50 percent as a result of a drop in demand for tree seedlings -primarily due to cutbacks inplantings of blue gums. Productionis expected to drop from a peak of35 million in the late 1990s, toabout 18 million in 2002.

The nursery is pursuing adiversification of opportunities to respond to this drop, and be well placed to service an increasein activity from new tree-farmdevelopments in mid to low rainfall zones.

Feral goat management

A pilot program that could have a dramatic impact on managingferal goats was started in theNorth-East Goldfields in May.

The Commission is working with a pastoralist and the Department of Agriculture to develop bettergrazing control processes that will also reduce the impact of feral goats grazing on sandalwood trees and allow greater regeneration of the trees.

The Commission is funding theestablishment of trap yards on the property, which will contain the goats within certain areas,reducing the costs of musteringstock and improving livestockmanagement.

Commission Manjimup Nursery overseerYvonne Nicol (left) and nursery workerWendy Dudley tending to seedlings.

T h e Y e a r A h e a d

In the year ahead the Commissionplans to:

▪ Contribute to a final agreementwith the CommonwealthGovernment for new investment inthe battle against salinity, throughthe National Action Plan forSalinity and Water Quality, andthe Natural Heritage Trust.

▪ Offer plantation developments,both through the Greenhouse Gas Abatement StatementProgram and individually, tocorporate investors to assist inremoving carbon dioxide from theatmosphere, while also combatingrising water tables and providingregional development in timbergrowing and processing.

▪ Develop regional reforestationplans with Regional NRM (NaturalResource Management) groups toaddress the environmental needsof each area by matching themwith prospective plantationdevelopments and industries,which also have the capacity to deliver economic and socialbenefits.

▪ Develop the hardwood sawlogprogram in catchment headwaters.

▪ Develop harvesting plans forremoval of pines from Gnangara,taking into account the protectionof wetlands and cave systems andPerth’s water needs.

The Forest Products

Commission is committed to

working with the private

sector and other relevant

Government agencies to help

create a modern, vibrant and

prosperous industry, which

maximises the value of our

unique native timbers and

our plantation timbers

through downstream

processing and generates

fresh employment

opportunities. The

Commission’s focus is on

encouraging and promoting

greater levels of value adding

of Western Australia’s

unique and world-class

forest resources.

Old growth policy

The Commission worked with otherGovernment agencies - theDepartments of Conservation andLand Management; Industry andTechnology; Employment andTraining; and Treasury - and theprivate sector during the year tofurther progress the restructuring ofthe timber industry following theintroduction of the StateGovernment’s policy “Protecting OurOld Growth Forests” in 2001.

The restructuring plans aim tomaximise the use of the reducedamount of timber available, providecompensation to help businessesleaving the industry, assist workersaffected by the changes, and todevelop new opportunities for theindustry.

In 2001-02, the Governmentassessed the areas of State forestwhere logging had been stopped,taking into account scientific,economic and community valuesand the impact of logging onsalinity. The assessment identifiedareas that will be retained as partof the Wellington National Park, andthe moratorium on three otherforest areas at the Palmer andLeach blocks near Collie and atHelms Block near Nannup waslifted. These areas will be availablefor harvesting in the future.

The Department of Industry andTechnology (DoIT) and theCommission worked closely toassess the eligibility of applicationsfor Business Exit Assistance as partof the industry restructuring. DoIT received 86 applications in2001-02. At June 30, $28,429,441in assistance had been approved ofwhich $15,366,507 had been paidto 26 businesses.

As part of industry development,the Commission has also workedwith industry groups to help themachieve greater value from thetimber available - making the mostuse of the timber and creatingalternative jobs.

Jarrah sawlogs proposals

The plan to restructure the timberindustry and bring certainty for thepeople and communities involvedreached a major milestone duringthe year.

The first stage of the process todetermine the future use of jarrahsawlogs was completed and 10industry proposals were selected forfinal consideration. All proposalsincorporated the vision of the newtimber industry in Western Australiawith the focus on value adding andcreating employment opportunities,including producing outdoor or finefurniture, timber flooring, joinery orwoodcraft.

The critical factor in the selectionof the final 10 proposals was thateach showed a commitment tomaximum recovery from the timberin the forest, in the mill, and at allstages of the supply chain.

Detailed business plans from eachof the final proponents wereanalysed by representatives fromthe Commission, Department ofIndustry and Technology, Treasuryand independent financial expertsto confirm their financial viabilityand eligibility for Governmentassistance.

The timber contracts that will bedeveloped from the proposals willbe in line with the final sustainedyield set for the next 10 years.This will be determined by the newForest Management Plan, which iscurrently being finalised.

I n d u s t r y D e v e l o p m e n t

First Albany blue gumplantation exports

The first shipment of plantationwoodchips was exported fromAlbany to Japan in March 2002.The Commission is planting andmanaging about 26,000 hectares of blue gums in the region for this project.

The Albany Plantation ExportCompany’s mill is expected to beprocessing one million tonnes ofblue gum a year by 2007, creatingabout 630 jobs and earning $80 million in export earnings.

The first shipment of woodchipsfrom Albany was the culmination ofa project that started in 1993 andstimulated the planting of over150,000 hectares by a number ofcompanies privately or with theCommission. The result is newtimber industry and export incomefor Western Australia with flow-oneffects to the industry and theregion including increasedemployment and economic activity.

Expansion of furniture exports

A crucial element of restructuringthe native forest timber industry isthe development and expansion offurniture manufacturing - anindustry sector that can employlarger numbers of workers in theSouth-West and create maximumvalue from the reduced quantity oftimber now being extracted fromthe State’s forests.

Jarrah provides a world-class timberfor furniture - hardwood which isdurable as well as even-grained forfinishing. Western Australianfurniture is making an impression inexport markets because of thesefeatures.

Outdoor jarrah furniture has madethe largest gains, with substantialexports to both USA and Europe,estimated to be worth up to $20 million. The Commissionprovides technical backup andassistance to timber furnituremanufacturers. It also providesinformation on the managementand sustainability of the forestsfrom which the timber comes, togive customers confidence in theenvironmental aspects of timberharvesting.

Currently the indoor furniture sectoris pursuing a similar increase inexport markets. Access to thosemarkets will provide the necessaryfinancial return to allow the high-value industry to stand strongly andprovide stable employment inWestern Australia.

The Commission is proud to assistthe Furnishing Industry Associationof Australia (FIAA) in developingthese markets. During the year theCommission was a Platinum sponsorof the National Furniture Awards inNovember 2001 and participated in the FIAA tradeshow at the San Francisco Furniture Mart inJanuary 2002.

Expanding pine plantations

The plantation estate betweenMoora and Esperance was expandedduring the year, with theCommission establishing 3234hectares of first rotation sharefarmplantings and replanting another943 hectares of second rotationland. Particular emphasis was given to maximising regionalemployment opportunities and theenvironmental benefits from theplantation sources.

Increasing demand in the softwoodtimber markets has resulted inWespine planning to take 300,000cubic metres in 2002-03 compared with 275,000 cubicmetres in 2001-02.

Wespine is also working with theCommission on a joint sawmillingstudy to investigate the differenttraits involved in tree breeding todevelop the most profitable, ratherthan the biggest trees. The study is looking at factors includinggrowth rate, stem straightness,branch size and wood density andhow they affect the quality of thesawn product. Preliminary resultsduring the year show animprovement in grade yields fromthe timber in the trials.

Loading of woodchips from the Albany port.

The Hon Kim Chance, Minister forAgriculture, Forestry and Fisheriestaking a closer look at newly establishedmaritime pine plantations in Moora.

Laminated veneer lumber plant

Negotiations to establish alaminated veneer lumber (LVL)plant at Neerabup were largelycompleted during the year and thenew plant is expected to be builtand operational in 12 to 18 months.The plant will produce laminatedveneer for targeted export marketsincluding Japan and the UnitedStates of America.

The agreement between the StateGovernment and Wesbeam includes25 years access to the State pineresources in the Gnangaraplantations. This will enable theForest Products Commission to moveahead with the clearing of theGnangara mound more quickly,opening up the area for waterproduction, conservation andrecreation purposes.

The LVL process involves peelingpine logs, cutting them to athickness of three millimetres andthen layering them with resinbefore being re-sawn into boards.The end product has high strengthand is capable of replacing nativetimbers in structural uses.

New eucalypt sawlog industry

Considerable progress was madeduring the year to develop a newindustry based on the commercialgrowing of eucalypt farmland, andthe first trees in the project will beplanted in winter 2002. The keyobjectives are to:

▪ improve farm profitability andsustainability;

▪ improve water quality in keywater catchments;

▪ establish a core resource for anew eucalypt sawlog industry;and

▪ create new commercialopportunities for ruralcommunities includingdownstream processing to add value.

Under the scheme, landownersprovide land in exchange for up-front incentive payments and ashare of the timber crop at harvesttime. The first projects are centredon the lower rainfall areas of thewater resource recovery catchmentsin the Collie, Warren-Tone and KentRiver catchments, and Commissionstaff are working closely withfarmers to help plan their individualrequirements.

More than 400 hectares areexpected to be planted in theWarren-Tone and Kent catchmentareas this winter as part of a jointinitiative with the Waters and RiversCommission, supported by fundingfrom the National Heritage Trust.

Negotiations are underway for otherareas to be involved in the neweucalypt sawlog industry which aimsto establish about 1000 hectares ayear, subject to future funding.

Close up of laminated veneer lumber(LVL) (top) and one of the many uses of LVL.

The Forest Products Commission isworking closely with farmers inestablishing a new eucalypt sawlogindustry.

Value adding of sandalwood hasincreased significantly this financialyear, in particular, with the productionof New Mountain mosquito sticks.

Page 20

Sandalwood

Sandalwood is found across anestimated 161 million hectares of Western Australia with an area of 79 million hectares excludedfrom any form of harvesting. The reserved sandalwood area isequivalent to about the size ofEngland and France combined. The current annual harvest of green sandalwood is between 1000 and 1200 tonnes each year,and a similar volume of deadsandalwood is harvested.

During the year the Commissionsigned a contract with NewMountain, part of the Wescorpgroup, to use Western Australiansandalwood powder in a range ofnew incense products includingmosquito-repellent sticks.

The contract allows for 200 tonnesof sandalwood powder to bepurchased annually from the ForestProducts Commission. This figurehas been achieved withoutincreasing harvest levels, but byusing powder extracted fromsandalwood oil production or byusing dead sandalwood.

At full capacity, New Mountain’snew factory in Bibra Lake isexpected to produce more than one million sticks a week andcreate about 50 new full-time jobs.

The Commission has set a target ofhalf the sandalwood production inWestern Australia being value addedwithin the next five years. The NewMountain contract lifts the valueadding component of the currentannual sandalwood production from25 percent to 30 percent.

The Commission has also continuedto support Mount RomanceAustralia, based near Albany, whichis Australia’s major producer ofsandalwood oils with value addedmarkets based on perfumery andpharmaceutical products.

Small-scale plantations of WAsandalwood are being establishedalongside farms being planted withmaritime pine and will provideadditional sandalwood resources in20 to 30 years.

Timber Advisory Centre

The Commission was a keycontributor to the development of anew timber products buildingdisplay centre opened at the Home Base Complex in Wembley inJune 2002. The Timber AdvisoryCentre’s Lifestyle Home andExhibition Centre features anarchitect-designed timber homethat combines plantationsoftwoods, native hardwoods andmodern building materials.

It also includes displayshighlighting timber products infeatures including joinery, floors,decking, pergolas and furniture,with experts available to provideadvice on timber and its uses.

The centre is a project of the Forest Industries Federation ofWestern Australia (FIFWA) following a proposal from one of its sub-committees, the Timber Promotion Council. TheCommission is represented on theCouncil’s advisory panel and willprovide $20,000 funding towardsthe Centre’s operation each year.

Timber technology

The Timber Technology Centre isfunded and directed by Governmentto “support the development ofproducts and processes thatmotivate the industry to useWestern Australian timbers inhigher value products”. The focusof the Timber Technology Centre inthe past year has been onplantation timber research.

While eucalypts grow well asplantations, studies undertaken atthe Centre in Harvey show thatknots from unpruned branchesseriously limit the value ofunmanaged stands of eucalypttrees. Utilisation studies on treesthat are pruned at an early ageshow the effect of silviculture onthe quality of sawlogs. The work isaimed at being able to providesilvicultural recommendations forgrowers so they can achieve thebest results.

Western Australia also joined theCooperative Research Centre (CRC)for Wood Innovations, which isbased at the University ofMelbourne with partners in otherStates. This is a seven-yearnational research project thatdeveloped from an earlier projectinitiated by the University. Thenew project aims to control the useof microwaves to modify the cellstructure of wood. Involvement inthe work means Western Australiawill have a share of the intellectualproperty from the project and thatspecies of interest to the State canbe evaluated.

Work on native timbers, which hasbeen the major focus of TimberTechnology for the past 15 years, isalso continuing. The Commissionworks with buyers of native logs tohelp solve technical problems inproducing value added products.The aim of the research is tomaximise the use of the nativetimber to help improve businessand create additional jobs.

The Commission has also completedthe third year of its involvementwith the CRC for CarbonAccounting, quantifying carbonstocks and changes associated withtimber use in building andconstruction. An assessment of asingle-storey home this year will befollowed by a similar assessment ofa two-storey home the followingyear. The project aims to enablethe forest products industry todemonstrate the advantages ofusing timber for building.

Tree research

Work has continued on a NationalHeritage Trust funded project toimprove the drought tolerance ofcommercial tree crop species. Theproject, involving the majorconifers (Pinus pinaster, Pinusradiata and Pinus brutia), isparticularly relevant to commercialforestry in medium rainfall areasand all of the trials have shownmore than 95 percent survival.

As part of the project, trials of P. pinaster are continuing on farmsfrom Moora to Esperance andresearch plots using P. brutia wereestablished at Esperance andDandaragan. P. brutia has acapacity to survive drought and ispotentially a very important speciesfor Western Australia.

The Commission is a partner in the Australian Low Rainfall TreeImprovement Group, which hasestablished trials on 10 sites acrossSouthern Australia. As part of thisproject, large family trials ofimportant species of low-rainfalleucalypts were established at Mooraand Esperance during the year.

Encouraging early results were alsoobtained from the trials of variousforms of western blue gumseedlings planted at Rocky Gullyand Denmark during the previousyear. The one-year-old trees atDenmark had an average height of3.6 metres compared with threemetres for a tree grown in its usualplace of origin.

Commission Technical Officer, Justine Murphy and Research Scientist,Martin Beel inspecting timber that hasbeen passed through a planing machine.

WA selected for new research project

The Commission’s worldwidereputation as a leader in improvingthe genetics of Pinus radiata hasresulted in Canadian forestbiotechnology company, CellFor,selecting Western Australia to testits new tissue culture technology.

The technology, which involves asophisticated propagation andfreezing process, opens newopportunities for P. radiata and hasthe potential to greatly improve theprofitability and productivity ofplantations. It would mean agreater supply of wood with moredesirable characteristics such asstraight grain, consistent size,increased wood fibre and superioroverall quality.

Trial plantings will be established at Jarrahwood, near Busselton, next year.

Introducing treejacking

One of the challenges facing theCommission is to continue todevelop harvesting methods and,during the year, treejacking wasintroduced to help achieve this. Treejacking involves fellingtrees 180 degrees against their lean using special hydraulic jacks. Trials have shown that treejackingcan increase the coupe utilisationand environmental protection,enabling falling of trees that wouldotherwise be left standing or riskfalling into sensitive reserve areas.The process also has safetyadvantages as well as benefits forfire control and silviculture.

The Commission bought two jacks and trained two staff in the first stage of introducingtreejacking into Western Australia.The Commission demonstrated theuse of the equipment to itsharvesting contractors in theManjimup area in December.

Safer felling

Tree harvesters are a safer way offelling trees and are being usedincreasingly in plantation areas and native forest. The Commissionbrought an assessor to WesternAustralia in December and 30contractor staff were certified asmeeting the National AustralianStandards to operate tree harvestermachines.

In the year ahead the Commissionexpects to:

▪ Gear up harvesting contracts andfinalise logging plans to supplythe proposed new laminatedveneer lumber plant as soon as it is built.

▪ Develop opportunities formarketing surplus industrial woodfrom Albany and Bunbury.

▪ Develop contracts for thePemberton sawmill to maintain or increase employment levelsthrough value addingopportunities.

▪ Develop contracts, from some orall of the 10 industry proposalsfor the future use of jarrahsawlogs, that will lead to newprocessing industries in theSouth-West.

▪ Increase the proportion of sawlogsales constituted by bole sawlogsand third grade sawlogs.

▪ Increase prospects for the marrifurniture industry through thedevelopment of new markets formarri residues.

Commission Technical Officer, Natalie Broadbent, transferring seedlings from CellFor.


The Commission is

committed to providing

leadership in the restructure

of the native forest products

industry, and increasing the

level of value added

production and downstream

manufacturing.

A key challenge for the

Commission has been to

work within the changing

nature of the resource base

as a result of the

Government’s policy to

protect the State’s old

growth forests. It is working

with communities and

industry to create

employment opportunities in

the timber industry.

Greenbushes Sawmill

Sale contract arrangements put into place for Greenbushes in 2000continued to prove successful, with on-site value adding andmanufacturing conditions in 2001-02 exceeding the target set as part of the contracts agreed with the Commission.

During the year an outdoorfurniture manufacturer, StallwoodFurniture, was established on-siteat Greenbushes, co-existing with itswood supplier, Whittakers TimberProducts. Stallwood can nowcontrol and reduce large timberinventories because of itsrelationship with the mill and isable to practise ‘just-in-time’manufacturing. This means they donot have to hold unnecessary levelsof materials. Whittakers is alsoable to better plan to meetcustomers’ processing and stockrequirements.

Following Stallwood’s relocationfrom Perth, a stable workforce of 16has been established with another19 full-time jobs available duringpeak months. Up to 87 contractorsare employed in related areas suchas transport, security andmaintenance.

Timber and furniture fromGreenbushes is selling locally,nationally and internationally andWhittakers Timber Products hasbecome recognised in thesawmilling and value addingcommunity as a fully integratedsawmill and processing site,working with the Commission toachieve the greatest value fromlocal timbers.

Nannup Sawmill

The Nannup Sawmill, which changed ownership in May 2001,has exceeded its agreedemployment numbers with a high of 63 people employed during theyear. The employment number isexpected to remain steady at 55 - still higher than the agreedminimum level of 43.

This was despite the mill’s timbersupply being reduced by almost halfin response to the new reservelevels under the Regional ForestAgreement.

During the year the new owners,Nannup Timber Processing,relocated significant timberprocessing equipment andoperations to create a more fullyintegrated site at Nannup and haveinvested more than $1 million inkiln drying and processingoperations.

Pemberton Sawmill

The workforce at the PembertonSawmill was reduced by nearly halfto 55 late in 2001. TheCommission is continuing to workwith other Government agencies(including the Department ofIndustry and Technology) and theSouth-West community to achieve asustainable working wood resourcefor the karri sawmill. The sawmillis currently owned by Sotico, whichis negotiating to sell the mill.

The sale is expected to take placein the new financial year and theCommission will manage the supplyof karri sawlogs to the new owneras part of the contract arrangement.

R e g i o n a l D e v e l o p m e n t

Loading timber at thePemberton Mill site.

The contract would require the newowner to commit to value adding,downstream processing andmanufacturing on the site, creatinglocal employment opportunities andsupport to the community.

As part of the negotiations, thepotential buyer has submitted abusiness plan to Government, whichincludes a commitment tosignificant capital injections,market research and marketingprograms, and the employment of alarge local workforce - creating amill which demonstrates bestpractice in the use of karri andother resources.

The longer-term aim is to positionthe use of karri in a structuralapplication, establishing it as amarket leader in flooring, indoor and outdoor furnituremanufacturing, and architecturaland commercial applications.

Promoting the industry

The Commission has adopted a moreintegrated approach to promotingthe manufacturing, downstreamprocessing and value addingindustries that use the State’stimber resources and nursery.

Staff from all branches has takenpart in informative and vibrantexhibitions, expos and shows acrossthe State. This included both theannual timber and woodworkingshows held at the Claremontshowgrounds in August 2001 andMarch 2002. Large crowds attendedand enormous interest was shownin the timber samples and furnituredisplayed by the Commission fromboth WA native forests andplantations.

Rural shows covering an area fromDowerin in the North to Esperancein the South-East and to Manjimupin the South-West, promoted thebenefits of plantations, sharefarmingand value adding, and explainedand the Commission’s role.

Other information sessions,workshops and displays have alsobeen staged for woodturning andwoodcraft groups of all sizes.

Specialty timber auction

The Commission’s first specialtytimber auction was held inKalgoorlie in March 2002. About 15tonnes of sawn specialty Goldfieldstimbers (including gimlet, nativecurrant and beefwood, and specialtytimbers from the South-Westincluding curly jarrah, sheoak,peppermint and jarrah burl) wereauctioned.

The auction was part of theCommission’s commitment toprovide access to the State’s uniqueforest products to as many peopleas possible.

Information and tips on how towork with and care for the timberswere also provided. Most of thetimber was sold and similar events are planned for other regional areas.

The Commission fosters the timberindustry by participating in events suchas the Manjimup Expo (far left) andPerth Wood Show (right).


In the year ahead the Commissionexpects to:

▪ Develop further plans based onnew plantation/tree farmingdevelopments across the broadagricultural region.

▪ Continue to restructure theindigenous forest productsindustry under the Government’sforest policy with a view tomaximising regional benefits.

▪ Hold more specialty timberauctions in regional areas toimprove access to WesternAustralia’s valuable timberresources.

The Commission has 187 employeesworking from the corporateheadquarters in metropolitanRivervale and 12 regional officesaround the State.

The Commission’s employees arecommitted to working closely withindustry in a dynamic environmentthat holds enormous potential forthe entire Western Australiancommunity.

The Commission has a total of 225positions within its approvedstructure. However, a number ofthese are vacant as a result ofrestructuring and downsizing thathas taken place as a consequenceof the reduction in native forestharvesting. Following the inceptionof a new organisational structure

early in the new financial year,these positions will be abolished, ascurrent industry projections indicatethat there is no further need forthese positions.

As at 30 June 2001, staff numbersand their locations were:

All employees are committed to theCommission’s values and act withintegrity, professionalism andunderstanding.

The Commission’s managementseeks to develop the skills of itsemployees and build on thepersonal commitment of eachmember of the team with atargeted program of professionaldevelopment.

O u r P e o p l e

Kununurra

Kalgoorlie

Esperance

Albany

ManjimupNannup

KatanningCollie

HarveyBunbury

GuildfordKensingtonRivervale

PERTH

Moora

0 400kms

Albany 15 0 4 19 17 2

Bunbury 17 1 0 18 10 8

Collie 9 0 3 12 9 3

Esperance 2 1 0 3 1 2

Guildford 8 1 0 9 4 5

Harvey 21 4 0 25 18 7

Kalgoorlie 4 0 0 4 4 0

Katanning 2 0 0 2 2 0

Kensington 3 1 0 4 1 3

Kununurra 1 0 0 1 1 0

Manjimup 20 1 1 22 17 5

West Manjimup Nursery 9 0 13 22 13 9

Moora 1 0 0 1 1 0

Nannup 6 2 0 8 6 2

Rivervale 34 3 0 37 17 20

Totals 152 14 21 187 121 66

Full-

tim

e sa

larie

d st

aff

Part

-tim

e sa

larie

d st

aff

Wag

es e

mpl

oyee

s

Tota

l

Men

Wom

en

Improving tree species (left) and siviculture planning (right)

are two important aspects ofCommission business.

Industry development training

During its first full year ofoperation, the Commission appliedto become a Registered TrainingOrganisation (RTO). The status asan RTO will confirm theorganisation complies withnationally agreed standards for thequality of its training delivery,assessment and recognition, which contributes to communityconfidence in the products andservices that it provides.

As an RTO, the Commission willprovide accredited courses that willbe available for all staff in theirrelevant areas as well as contractorsand associated groups working inthe forest industry. Trainingprograms for the Commission arecurrently conducted under theauspices of the Department ofConservation and Land Management.

Lending a helping hand

Six Commission staff travelled toNew South Wales at a moment’snotice in January 2002 to provideassistance during the devastatingfires that swept the State. All sixhad experience in fire incidentmanagement and joined theDepartment of Conservation andLand Management and Fire andEmergency Services Authoritypersonnel called upon to help outat forest fire control centres nearSydney.

The Commission officers spent 10days helping to control the fires,and their assistance has beenformally recognised by the NewSouth Wales Government.

Many staff are regularly called uponto protect Western Australiansagainst devastating fires, as wasthe case in January when a rash oflightning strikes resulted in 46bushfires in the South-West.

Communication

During the year the CorporateExecutive endorsed the formation ofa “People Reference Group”consisting of up to 10 people fromthe organisation. The group willaddress key issues affecting peopleworking in the Commission,including the creation andmaintenance of a communicationsnetwork. The group has a directlink to the General Manager.

Award winning performance

Commission staff have achievedoutstanding individual results whichhave significant benefits for theorganisation and the industry.

▪ Owen Donovan, the Manager ofMidwest Sharefarms, was awardeda Gottstein Skill AdvancementAward and spent three monthsoverseas where he studied the dryland pinus species in Turkey,Spain, Canary Islands and France.The Joseph William GottsteinMemorial Trust was established in1971 as a national educationaltrust for the benefit of Australia’sforest products industries. In addition to gaining a betterappreciation of the adaptability ofthe pinus species, Owen identifiedopportunities for the use ofgenetic materials that could beused to advance the State’s tree-breeding program, including theuse of hybrid pines. The trip alsoconfirmed Western Australia’sstatus as a world leader insilviculture with a record forsuccessfully establishing pines insome of the harshest country inthe world.

▪ Another staff member, SeniorForester Neil Worrell, is the latestCommission recipient of aGottstein award and will travel tothe eastern states of Australia andNew Zealand, in October 2002, tostudy softwood log segregationwithin integrated harvestingoperations and the utilisation andmarketing of products for export.

The Forest Products

Commission works vigorously

with the timber industry

to achieve its mission

including development of the

resource, promoting

innovation and adding value.

Our work with the industry

over the past year has not

only focused on achieving

the best outcomes from

the restructuring of the

industry (following the State

Government’s “Protecting

Our Old Growth Forests”

policy) but developing new

opportunities and marketing

our skills and product

overseas.

Forest Heritage Centre and School of Wood

In the past year, the ForestProducts Commission contributed tothe operation of the Forest HeritageCentre and the School of Wood andGallery in Dwellingup - the site of adevastating bushfire in 1961.

Nine students graduated from thetwo-year diploma course infurniture design in December 2001.Of these, three have commencedtheir own fine wood designer/makerbusiness, three are working withestablished makers and three areemployed in an associated business.

In addition, 25 women participatedin the 160-hour introductorywoodcraft course with 14 extendingtheir knowledge through a chairdesign course and one progressingto the diploma course.

The school also operated 42weekend and corporate workshopsduring the year for 221 students toenjoy the country atmosphere andto make chairs, coffee tables,jewellery and trinket boxes, woodturning and other items usingWestern Australia’s unique timbers.

The Interpretive Centre, whichprovides information and displayson forest management, was visitedby 11,372 people during the year.There are walk trails withdescriptions of forest management,identification of flora andAboriginal heritage.

Established in 1996, the Centre hasbecome recognised for itsexcellence in the education of finewoodworkers. At the end of eachyear, students stage an end-of-studies exhibition and displayseveral items of their work for sale.

Half round drawer unit awarded the“Best of the Best”.

Furniture awards

The Commission was again theprincipal sponsor of the “Furnitureof the Year Awards” whichrecognises excellence in furnituremaking, furniture design, use ofmaterials and marketability.

The awards, which are run by theWA branch of the FurnishingIndustry Association of Australia,were held in Perth in November. In 2001 they attracted entries fromaround Australia and New Zealandand 500 guests attended the gala event.

The event provides the Commissionwith a high level of recognition forits involvement with industry, andshowcases good use of timberresources in furniture includingone-off pieces, household designsand commercial use. Some of theentries are also displayedinternationally.

Tony Mercorella of the BenjaminTimber Studio in South Australiawon the national “Best of the Best”award for his “Half Round DrawerUnit”. The Western Australian “Best of the Best” award went toStuart Gardiner of Stuart’s House of Bedding in Welshpool for his“Manhattan” bed.

The awards are an importantshowcase for the furniture industryin WA, which has an important roleto play in the successfulrestructuring of the timber industry.Exporters and their customers needsecurity of supply to encourageinvestment in their manufacturingcentres, improved design andinternational marketing.

W o r k i n g W i t h I n d u s t r y

Native forests consultation

The 2002 Harvest Plan for South-West Forests, which was preparedby the Department of Conservationand Land Management with inputfrom the Commission, was promoted to the public throughnotices in the media and directmail to organisations, shire councils and individuals with aninterest in the plan.

Feedback and further enquiriesabout harvest proposals wereencouraged and, in response,detailed coupe maps were providedto 15 voluntary conservation bodiesand stakeholder agencies, as well asmany individuals.

Commission staff conducted sixforest coupe tours with members oflocal conservation groups betweenJanuary and April. In several cases,input from this consultationresulted in minor coupe designmodifications.

The Commission also participated ina number of forums, which focusedon forest resource management andharvest and regenerationoperations.

During the year, senior Commissionmanagers and technical expertsworked with officers from theConservation Commission and theDepartment of Conservation andLand Management in progressingelements of the new ForestManagement Plan, and withinterstate and local researchers inforest silviculture and firemanagement.

Representatives of indigenouscommunities were closely involvedin consultation in forest areaswhere indigenous heritage valueswere identified. Several joint fieldvisits were conducted anddiscussions held with indigenouslandowners and Commission staff.The Commission used detailedinformation provided by Aboriginalelders in its forest management, inconsultation with the Aboriginalgroups involved.

The Consultation Officer conductedfive forest management educationaltours with high school, TAFE anduniversity student groups, andother awareness tours with groupsincluding Members of Parliamentand international forest and timberindustry representatives.

Property owners whose land adjoinsharvest coupes have routinelyreceived early advice aboutadjacent operations and beeninvited to discuss any concernswith the Commission’s planningofficers.

Plantations

The Commission participatedactively in Regional PlantationCommittees in the South-West(Trees South West) and GreatSouthern (Timber 2002) as well asthe TIRES (transport planning)group. Senior staff also gavepresentations at various strategicplanning forums and are regularcontributors to the local branch ofAustralian Forest Growers (thenational private forestry body) andWA Agroforestry Working Group.

International links

The Commission actively pursuesinternational links to exchangeknowledge and skills and promoteour own products.

The Commission’s Manager of SouthCoast Sharefarms, Barry Jordan,visited various forestry operationsin Europe in April 2002. The tour,which was jointly funded by theAlbany Plantation Forest Companyof Australia Pty Ltd and the ForestProducts Commission, provided theopportunity for him to developlinks with foresters in othercountries and study their methodsin growing the same species oftrees as those grown in WesternAustralia. Japanese investorsinvolved in forestry projects in theAlbany region joined him inPortugal where they were able tocompare the management practicesin the two countries.

Commission Senior Forester, Chaz Newman with LedHart (Anthropological Consultant) and Ken Colbung(Nyoongar Elder) in Barrabup State Forest.

Head Office

Level 1, 117 Great Eastern HighwayRivervale WA 6103

Locked Bag 888Perth Business Centre WA 6849

Phone: (08) 9475 8888 Facsimile: (08) 9475 8899

Albany (South CoastSharefarms)

120 Albany Highway Albany WA 6330

Phone: (08) 9842 4530 Facsimile: (08) 9842 5279

Bunbury

Cnr South Western Highway and Dodson Road Bunbury WA 6230

PO Box 236Bunbury WA 6231

Phone: (08) 9725 5288 Facsimile: (08) 9725 5255

Collie (South West Sharefarms)

20 Throssell Street Collie WA 6225

Phone: (08) 9734 1688 Facsimile: (08) 9734 5649

Esperance (South East Sharefarms)

92 Dempster Street Esperance WA 6450

PO Box 1955Esperance WA 6450

Phone: (08) 9071 7255 Facsimile: (08) 9071 7299

Guildford (Midwest Sharefarms)

Lot 1, 260 Kalamunda RoadSouth Guildford WA 6055

Phone: (08) 9279 4088 Facsimile: (08) 9279 5481

Freecall: 1800 231 242

Harvey

64 Weir RoadHarvey WA 6220

PO Box 499, Harvey WA 6220

Phone: (08) 9729 2888 Facsimile: (08) 9729 2499

Kalgoorlie

Post Office, Public Building Hannan StreetKalgoorlie WA 6430

PO Box 10484 Kalgoorlie WA 6433

Phone: (08) 9021 8643 Facsimile: (08) 9021 5186

Katanning (South Coast Sharefarms)

11 Dore Street Katanning WA 6317

PO Box 114 Katanning WA 6317

Phone: (08) 9821 3208 Facsimile: (08) 9821 3332

Manjimup

Brain Street Manjimup WA 6258

Locked Bag 6Manjimup WA 6258

Phone: (08) 9777 0988 Facsimile: (08) 9777 2233

Moora (Midwest Sharefarms)

C/o 20 Roberts RoadMoora WA 6510

PO Box 16 Moora WA 6510

Phone: (08) 9651 0537 Facsimile: (08) 9651 1008

Nannup

Warren Road Nannup WA 6275

Phone: (08) 9756 1888 Facsimile: (08) 9756 1499

Plant Propagation Centre

Burnside RoadWest Manjimup WA 6258

Locked Bag 6Manjimup WA 6258

Phone: (08) 9772 0377 Facsimile: (08) 9772 1211

Timber Technology Centre

64 Weir Road Harvey WA 6220

PO Box 505Harvey WA 6220

Phone: (08) 9729 1913 Facsimile: (08) 9729 2063

www.fpc.wa.gov.au

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forest products commission annual report - volume 1 … · forest products commission annual report...

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