"I have more respect for your money than to just write blank cheques to industries which, let's face it, have been very good at using taxpayers' money, but haven't always been that good at maintaining production and jobs.”- TONY ABBOTT, ABCTV Lateline 5 August 2013 

http://www.abc.net.au/lateline/content/2013/s3818773.htm

 

 

      When will major political parties apply this standard to the native forest woodchipping industry?

 

Subsidy/ grant

Amount

Source

Institute of Foresters of Australia  for 'Futures Leaders' program Nov 2017 $205,000 From the Turnbull Government's $5 million Leadership in Agricultural Industries Fund. A grant to boost the lobbying capacity of the logging industry.http://minister.agriculture.gov.au/ruston/Pages/Media-Releases/-Investing-in-leadership-in-our-fisheries-and-forestry-industries.aspx
Forestry Tasmania losses 2004 to 2017 $1 billion Since its peak in 2004 it has lost over $1 billion from forestry activities. http://tasfintalk.blogspot.com.au/2017/11/forestry-tasmanias-final-report.html
Heyfield Timber Mill, Australian Sustainable Hardwoods $40 to $50 million Victorian Government buys mill. "Heyfield Timber Mill Secured"   http://www.premier.vic.gov.au/heyfield-timber-mill-secured/ 
Farm Forestry projects $200,000 Subtropical Farm Forestry Association and Specialty Timber Growers Inc. For the two groups to "assist their members to better promote their products and use research to establish best practice in timber production and processing." more
Australian Paper waste to energy project $5 million Federal and Victoria governments  committed $2.5m each to Australian Paper for a total of $7.5 million in funding towards an" innovative waste to energy project" click
National Institute for Forest Products Innovation $12 - 14 million $4M from Commonwealth, Tasmanian 2017-18 State Budget for National Institute for Forest Products Innovation node, Launceston,  providing a total of $12 - 14 m. http://ausfpa.com.au/media-releases/tas-government-commits-2m-for-forest-products-innovation/
Biomass power station, Collie, WA $30 million Election promise by WA Labor Leader,   Mark McGowan January 2017   https://www.markmcgowan.com.au/news/mark-mcgowan-unveils-wa-labors-plan-for-collie-preston-1290
Forestry Marketing and Research and Development Services Act 2007, s. 9(1) – $60.914million 2016/7  - 2020/21 Payments and matching payments to an industry services body and Commonwealth administration expenses. Source: http://www.agriculture.gov.au/SiteCollectionDocuments/about/budget/2017-18/2017-18-pbs-dawr-01.pdf
National Institute for Forest Products Innovation $4million In 2017/18 Budget    http://ausfpa.com.au/media-releases/budget-honours-4m-pledge-for-forest-products-innovation/ 
National Partnership on mechanical fuel load reduction trials $500,000 http://www.agriculture.gov.au/SiteCollectionDocuments/about/budget/2017-18/2017-18-pbs-dawr-01.pdf
Forest and Wood Products Australia $900,000 Project "to apply Natural Capital Accounting on forestry, cotton and fisheries enterprises." http://www.camdencourier.com.au/story/4663179/big-forestry-project-launched-in-wauchope/
 
National Institute for Forest Products Innovation
 
$4m ($12m  when matched by State and industry funding) 2016 Coalition election promise for 2 nodes in Launceston and Mt Gambier. http://andrewnikolic.com/2016/05/launceston-hub-in-12-million-investment-in-forestry-rd
2016 coalition election promise: agroforestry R&D project $520,000 TREE-MENDOUS NEW R&D PROJECT http://www.darrenchester.com.au/media-room/1804-tree-mendous-new-r-d-project
Victorian State Government grant to Ryan and McNulty Saw Millers, Benalla $900,000
NSW Forestry Corporation - subsidy for log haulage to compensate for the creation of Flora reserves, Bermagui, Murrah, Mumbulla and Tanja, NSW far south coast $2.5 million This grant comes from the NSW Environmental Trust. Announced by NSW Environment Minister Speakman 1 March 2016 http://www.environment.nsw.gov.au/news/nsw-government-protects-south-coast-koalas-and-local-timber-industry
Forest and Wood Products Australia $4.7 million over 4 years Australian Government matching voluntary contributions to Forest and Wood Products Australia (FWPA) for "investment in innovation" December 16, 2015
Forestry and Forest Products Committee Dinner, 18/2/2015 Melbourne $110 (including $38 for drinks

http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;adv=yes;db=CHAMBER;id=chamber%2Fhansardr%2F3aef5f9d-aa5b-4d1d-98d0-fa5f25d3d3d7%2F0258;orderBy=_fragment_number,doc_date-rev;page=1;query=Dataset%3Ahansardr,hansardr80;rec=5;resCount=Default

Hub for forestry research University of Tasmania

$3.6 Million

"UTAS to become hub for forestry research" 20 May 2015 Senator Richard Colbeck, Parliamentary Secretary to the Minister for Agriculture, http://goo.gl/d53HP5
Govt funding via Australian Research Council 2015 round of Industrial Transformation Research Program (ITRP) total value to about $14 million. The project is a collaboration between industry partners including Greening Australia (Tasmania), SFM Environmental Solutions, Forico, Forestry Tasmania, Island Workshop, FWPA and Neville-Smith Forest Products.

Forest Stewardship Council. Auditors. (Tasmanian Government )

$113,000

http://www.themercury.com.au/news/politics/forestrys-480000-consultants-splurge/news-story/edc1d13caa9f04c213acc2021c3da506

Forest Stewardship Council (Tasmanian Government ) High Conservation Value assessment of forests.

$15,000

http://www.themercury.com.au/news/politics/forestrys-480000-consultants-splurge/news-story/edc1d13caa9f04c213acc2021c3da506

Transport subsidy for trucking woodchips from the southern forests to the Bell Bay port. Tasmania $6 million a year http://www.abc.net.au/news/2014-10-15/macquarie-point-named-as-preferred-southern-tas-woodchip-port/5815398
Trade Mission to China and Japan, April, 2015 $41 992.41 (including $10,918 for dinners and drinks   http://goo.gl/KpXs3g"Sustainable forestry highlighted during delegation to Japan and China", 29 April 2015 Senator Richard Colbeck, Parliamentary Secretary to the Minister for Agriculture. Delegates were Mr Ross Hampton—Chief Executive Officer, Australian Forest Products Association • Dr Bill Hurditch—Principal, Fifth Estate • Dr Alastair Woodard—Consultant, Forest and Wood Products Australia • Mr Simon Kang—Executive Director, Ta Ann Australia China  Source: http://www.aph.gov.au/Parliamentary_Business/Senate_Estimates/rratctte/estimates/index
Tasmania: Bio-fuels and bio-energy study, May 2015 $750,000 over four years  Tasmania Liberal Government. Forests to fuel the state http://www.themercury.com.au/news/tasmania/forests-to-fuel-the-state/story-fnj4f7k1-1227368946884
Bio-fuels in the Dorset and Huon municipalities, Tasmania May 2015 $200,000 Tasmania Liberal Government. Forests to fuel the state http://www.themercury.com.au/news/tasmania/forests-to-fuel-the-state/story-fnj4f7k1-1227368946884
$100 million rural research and development (R&D) grants program $100 Million Agriculture Minister Barnaby Joyce 16/10/2014 http://www.timberbiz.com.au/dtn/details.asp?ID=2693
Boral Wood Supply buy-back, June 2014 - north coast wood supply from NSW Forestry Corporation $8.55 million This should be viewed as a subsidy because Boral admitted in its 2014 annual report that it got $8.55M for doing something that was good for its bottom line anyway, with or without the buy-back.
Page13 makes it clear that Boral’s business was adversely affected by competition from imports and a drop in demand: Boral "Renegotiated hardwood timber supply from Forestry Corporation of NSW to better align with demand."
and further in:
"Boral has agreed to accept a 50,000 m3 per annum reduction in its timber allocation for the next nine years. This will support a more sustainable long-term outcome for Boral’s Hardwood timber business "
http://goo.gl/xYNvm2
 
Australian Sustainable Hardwoods Heyfield mill, Regional Development Victoria grant 2013 $650,000  Grant to help buy the high value equipment the mill owners will now take to Tasmania with them.

Forest Industry Structural Adjustment Program (FISAP) over past 10 years

$58.44 Million

Commonwealth Parliamentary Library

Dinner for national industry lobby group, National Association of Forest Industries, 21 March 2011

$10,000

 

 

Senate Question on Notice 221

Trip to China for Industry Promotion by National Association of Forest Industries 2010/11

$86,200

Timber Communities Australia, industry lobby group shop front

$94,000

Forest and Wood Products Australia research grants program 2009-11

$18.63 Million

Losses by State Government logging agencies in NSW, Victoria, WA and Tasmania on native forest logging

 

average of $14 Million EACH YEAR in NSW. Similar amounts in other States

NSW losses since 2010 see

Access to forest resource and underpriced log royalties.

This is partly covered by logging agency losses (above), but otherwise not calculated.

Grant for industry promotion to National Association of Forest Industries 2010/11

$16,740

 

 

Senate Question on Notice 221

 

Industry Development grant to National Association of Forest Industries 2010/11

$160,000

Exemption from local government rates for production forests owned by corporatized State Government logging agencies.

 

$15 Million EACH YEAR in NSW.

Based on estimate by Bega Valley Shire Council

Damage to federal/ state/ council roads by log trucks. License fees do not cover the cost to the roads of damage done.

 

A log truck pays only a few times the rego of a car, but does many times the damage to roads

http://www.harryrclarke.com/2009/04/19/road-maintenance-externalities/

Crucible Carbon. Grant to develop pyrolysis using native forest wood for burning in power stations, 2008 $250,000 Department of Industry "Commercial Ready" Grant scheme http://www.proteomics.com.au/wp-content/uploads/2014/03/CommercialReadyGrantAgreementssignedin07_08_July_0820080806031608.pdf Crucible Carbon now produces biochar to be burned in co-generation at the Vales Point Power Station.
2010 Crucible Carbon Pyrolysis federal grant for  "Taking the Crucible Carbon Pyrolysis technology to a ‘sales ready’ position. $685,099 Using native forest wood in a "production facility that demonstrates commercial scale operations for the conversion of timber industry biomass residues to gas suitable for generating on-site heat and power at wood processing plants. "http://www.industry.gov.au/AboutUs/LegalandLegislativeReporting/Grants/Grants2010/Pages/default.aspx
2011/12 Research support from the Tom Farrell Institute at the University of Newcastle. $2.7 million University of Newcastle. Annual-Report-2011-12.pdf "we were awarded a grant from the Biodiversity Fund: “Stepping .....pyrolysis technology for converting biomass residues into renewable energy ."

Nippon Paper. Victoria and Australian governments - grant for de-inked pulp plant at Australian Paper pulp and paper mill, Maryvale, Victoria. 11 October 2012

 

$9.5 million

http://www.manmonthly.com.au/news/government-grants-$9-5m for pulp plant construction

Nippon Paper, Maryvale Mill (Australian Paper). Victorian Government grant toward recycling plant project  March 2013

$3 million

http://www.russellnorthe.com.au/LiteratureRetrieve.aspx?ID=139007

Services, such as “education” undertaken on behalf of the industry as a whole by either State forestry agencies or the portfolio department, such as Primary Industries and Small Business in NSW

$1.5 Million EACH YEAR in NSW

Question on Notice NSW Parliament

ForestWorks, an industry body for its National Workforce Development Fund (NWDF) and  Enterprise Based Productivity Places Program (EBPPP) 2011/12

$5.2 Million

Commonwealth Parliamentary Library

Damage to waterways caused by erosion and siltation may be difficult to quantify

 

Impossible to quantify

No calculation available

Carbon costs avoided. Exemption of logging from the carbon pricing scheme.

 

$362 Million EACH YEAR for Eden chipmill logging alone

 

click

Loss of biodiversity/ environmental damage, including the death, injury and suffering of forest mammals, birds and reptiles.

 

What price can you put on a dead koala or Powerful Owl?

 

Impossible to quantify.

Greater bushfire risk due to drier, denser, even aged, even height regrowth forest.

 

Difficulty to quantify

 

No calculation available

 

Remediation  of marine environments due to introduction of exotic marine organisms  from ballast water of woodchip carriers

 

Exotic marine organisms are in all Australia’s woodchip ports

Diesel Fuel Rebate claimed by logging contractors 2007+

$60+ Million over the last 5 years

Commonwealth Parliamentary Library

2010 Government election commitment for a $20 million assistance package for Tasmanian forest contractors and their employees (not part of the Tasmanian Intergovernmental Agreement)

 

$20 Million

ALP election promise 2010

The Forest Industry Climate Change Research Fund and other grants for bio-energy research and/or development. 2008-11

 

$4.7 Million

 

 

 

 

 

 

 

Commonwealth Parliamentary Library

Biodiversity Fund grants to State Forest logging agencies 2012/13

 

$2.5 Million

Tasmanian Forest Intergovernmental Agreement funding from Federal and State Governments  2010-11

 

$338 Million (Commonwealth)

$56.4 Million (State)

Tasmania: additional Commonwealth funding May 2013

$7 Million

Tasmanian Forest Contractors Exit Assistance Program 2010-11

$17 Million

Tasmanian Forest Contractors Financial Support Program 2010-11

$5.4 million

 Climate change mitigation research, 2008 and 2011   

$1.4 million

Climate change adaptation research, 2008 and 2011

$3.6 million

National Bushfire Mitigation Programme to reduce the impact of bushfires, including fuel reduction programs and long-term bushfire mitigation strategies (2014-15 Budget). $15 million
$1.5M pilot projects announced March 2015
http://www.richardcolbeck.com.au/clients/richard/downloads/item
632/140514_committed_to_strong_and_
sustainable_forestry_industry_.pdf
Announcement of pilot  http://goo.gl/6FppKG
Victorian government grant, 2001 $1 million

Grant for a laser scanner to the then owner of the Heyfield mill, Neville Smith - http://www.eastgippsland.net.au/news/latest-%24%24%24%24%24%24%24%24%24%24%24-give-ways

This list is not comprehensive and some items are not quantified. Some are once only payments, some are every year. Some are national and some are for a particular State. The list illustrates the range, extent and magnitude of subsidies available to the native forest logging industry.

[back to top]