Peter McGauran (Gippsland, National Party, Deputy Leader of the House) Share this | Hansard source

I move:

That this bill be now read a second time.

The Forestry Marketing and Research and Development Services Bill 2007 (the bill) establishes the mechanism for the Commonwealth government to make payments to a new industry owned company which will replace and augment the functions of the Forest and Wood Products Research and Development Corporation (the corporation).

The Australian forest and wood products industry is facing some critical challenges in the years ahead.

These include: an undersupply of both softwood and hardwood sawlogs; increasing restrictions on resource harvesting in native forests; challenges in developing new plantations; competitive pressures from imports of international products and substitutes in traditional market sectors; a lack of domestic processing capacity; and a relatively flat per capita consumption trend for forest and wood products.

Consultation with industry confirms that there are some limits to our capacity to respond to these pressing challenges, and one important gap is the need for a more effective commercial structure to deliver industry-wide research and development and marketing and promotional programs.

The establishment of a new industry services body will enable the fine work and achievements of the corporation to continue under industry ownership and will deliver added flexibility to the body to undertake generic marketing and promotion, while still delivering the current benefits of the government matched funding for R&D.

Under these new arrangements, the R&D levy base, and therefore the funding available to the industry, will be broadened through regulations to be made under the Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999, so as to include a new forest grower/Managed Investment Scheme manager levy and to bring the hardwood sawlog levy in line with the current softwood sawlog levy. The existing import charge imposed on logs and certain classes of primary processed forest products imported into Australia will also now be eligible for Commonwealth government matching funding when spent on eligible research and development expenditure by the industry services body.

The new company will also receive equivalent contract payments from state and territory forest growers, which will be eligible for matching funding by the Commonwealth government when spent on eligible research and development, which is not currently the case. This arrangement assures equity between private and government owned forest growers.

One important new activity of the new entity will be to promote the sustainable nature of the timber industry in both domestic and international markets, by promoting wood products’ real environmental values.

This will be achieved through promotion of the inherent natural properties of wood products from managed forests, such as its recycling potential, sustainability, positive greenhouse impacts and potential to contribute to improved biodiversity as well as mitigation of environmental problems.

This legislation has the overwhelming support of the forest industry, including forest growers, wood processors and timber importers. It establishes arrangements for the continued funding of the new entity and so assists in providing certainty for R&D and marketing and promotional activities into the future.

The government’s intention in introducing this bill is to strengthen the forest industries capacity to maintain its competitiveness through ongoing research and development and adoption of innovative practices, as well as to enable the provision of industry-wide marketing and promotional programs. The bill and the associated regulations regarding the levies and charges will enable the new industry services body to generate additional revenue for these activities. The government’s intention is to ensure that funding for R&D is maintained at the current levels, as a minimum, under the new arrangements.

The bill is a demonstration of the partnership approach to forestry matters between the government and industry. It will further help maintain the competitiveness of Australia’s forest industries through the development of an enhanced industry led by R&D, marketing and promotional company.

Debate (on motion by Mr Edwards) adjourned.

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