Kerry O'Brien (Tasmania, Australian Labor Party) Share this | Hansard source

I want to talk about an industry that does not receive much recognition anywhere in the country, certainly not enough in the state of Tasmania, where it is probably stronger than it is in any other part of the country, and that is the special species timber woodcraft sector. A good friend of mine, George Harris, and his colleague Peter Bennett have worked for some time to get a proper evaluation of their industry so that, for the public record, there could be an understanding of the industry, its size, its issues and its potential for the future. As George said, if abalone divers, vegetable growers or rock lobster fishermen wanted to work out what their industry was worth, it would be pretty easy to find out by the volume of production. Those industries are important in my state, and they are very valuable ones.

The understanding in the community of the special species timber industry has not been there so George and his colleague Peter Bennett together with others in the woodcraft sector were able to obtain funding to generate the production of a report. They did so following the outcome of the 2004 federal election, an election in which forestry in Tasmania was the subject of a considerable amount of debate. The area of forest that generates the special species timber is the older section of forest, commonly known as old-growth forest. Within the areas of public forest identified and set out for particular purposes there exist so-called special timbers management units, managed by Forestry Tasmania. In the main they are areas which are harvested on a selective basis and on long-term rotation. This is not always the case: in some areas clear-felling leads to the felling of minor species, or special species, timber together with eucalypt and other species.

You can see the areas on maps provided by Forestry Tasmania—I am told they are marked in red to identify special timbers management units—and they include areas in the Weld, west of Huonville; southern forests, west of Dover; the Styx, due south of Maydena; and the Florentine, due west of Maydena. Those areas have been, as those who have been following news reports of environmental activity will have seen, the subject of significant protest over the last four years. In the 2004 election there was something of a Dutch auction of Tasmanian forest interests and ultimately Mr Howard, who won the election, proposed locking up a further 170,000 hectares of forest. As it turned out, the Community Forest Agreement took nearly six months to negotiate and less than the 170,000 hectares were locked up. Even so, those special timbers management units were reduced in area from 143,000 hectares to less than 70,000 hectares. As I indicated earlier, it is evident that anti-forestry groups have not been silent for long since that election and there is a push to lock up more of the area of special timbers available in the Tasmanian forests for this industry.

Under such pressure, people such as George, Peter and their colleagues were keen for the public to understand the consequences of such action. People do not identify this industry with some of the important and very well respected industries that are generated by it. For example, there are not many people who suggest that we should close down the highly valuable wooden boat industry in Tasmania, and yet the wooden boats are made from these special species timbers. There are not many people who would suggest that those who manufacture high-quality musical instruments from Tasmanian special timbers should have those timbers withdrawn, and yet those who want to lock up those areas of forest would, in effect, cause just such actions. Some very high quality pieces of furniture are manufactured from Tasmanian special species timber. These pieces attract very high prices and are valued all around the world.

So what is the industry worth to Tasmania? It is evident that Tasmania has a level of participation—at both a professional and a hobby level—at a rate above the rest of Australia. I am reliably informed that the cultural significance of woodcraft in Tasmania is reflected in the participation rate of 26 per 1,000 people. The national average is 19. But in terms of actual industry and jobs, you could look at this sector in three strata. Firstly, there are the people who mill and process the timbers. A report has been prepared by Creating Preferred Futures, a team of consultants, commissioned by a steering committee made up of woodworkers and Forestry Tasmania. It is entitled A review of the Tasmanian woodcraft sector for the Woodcraft Guild of Tasmania Inc. and Forestry Tasmania. It covers valuable timber, considered transformation and valuable objects. The report says that there are 31 identified milling and processing enterprises, employing approximately 160 people, the large majority of whom are full time. They are primarily employed in three large-scale mills which process 80 per cent of the state’s special species harvest by volume and 90 per cent of the blackwood. The estimated special species timber generated revenue for that sector is $17.25 million, and over 60 per cent of the milled product is sold nationally or overseas.

Secondly, there is the designing and production subsector. In Tasmania there are an estimated 250 enterprises, employing approximately 1,750 people, again mostly on a full-time basis. They are engaged in the production of furniture and joinery. There are large employers engaged in boatbuilding. There are also designers and small production object makers, some of whom may employ only one or two people. The estimated sales from this sector are of the order of $39 million. An estimated 30 per cent of the product based output is sold outside of Tasmania by the makers.

Then there is the retail subsector for the industry, which comprises galleries, retail outlets, tourist attractions, accommodation facilities and market stalls, with about 140 full-time equivalent positions, the majority being employed in galleries or retail facilities. The estimated turnover for that sector is $14 million. Visitors to Tasmania are the primary market for the sector.

With the reduction in available resource, the actual harvest in Tasmania has gone down from 1999-2000 levels, when it was about 22½ thousand cubic metres of these special species timbers, to 13,300 cubic metres in 2006-07, together with another 515 tonnes of craft wood. That means branches, stumps and material that is not able to be cut into conventional shapes and sizes for conventional production but is available for special turning, carving and craft work, generally speaking. So it is significant that the resource available to the sector has been reduced.

Paradoxically, the retail sector suggests that there is an opportunity to increase special species timber woodcraft sales. When you look at some of the issues surrounding it, it is clear that this is an important sector for not just the Tasmanian forestry industry but also tourism. For example, in 2007 Tasmania hosted 124,000 international visitors and 490,000 domestic overnight visitors. A significant number of those people visited museums or art galleries—about 50 per cent. It is higher or lower depending on the category. About 17 per cent of international visitors and eight per cent of domestic visitors visit art or craft galleries or workshops. Of the 83,000 cruise ship visitors who come to the state, about half browse to purchase in those sorts of craft shops. So there is a significant market opportunity. In 2007, international visitors spent an average of $470, while domestic overnight visitors spent $107, during their visit. In aggregate, that is a major opportunity for the Tasmanian woodcraft sector. It is significant that the retail sector believes that there is a great opportunity to increase the sales of product if the product is available. So here we have a vibrant sector, employing about 2,000 people and using a sustainable resource which is managed substantially on a long-term rotation, selective harvesting basis.

So is it worth it? What is the conversion rate of this product when we put it in the hands of the millers, the craftsmen and the retailers to, respectively, mill, create and sell it—after creating those jobs? The report gives some very interesting figures. For example, in the production of furniture, timber valued at about $800 can be transformed into $2,400 worth of shelving. Designer-makers can take timber valued at 2½ thousand dollars and transform it into a $20,000 table-and-chairs setting for eight; or an $800 flitch of high-quality special species timber can be transformed into a $28,000 table. Then there are the small products, and this is where there are some amazing rates of conversion. For example, timber valued at $13.50 can be transformed into a $225 pepper grinder. So, when you go down to Salamanca Place in Hobart, that is the sort of conversion rate; that is the value that is being added through the production chain to the sale of a product that is readily available on the shelves at those stores, creating a massive value-add by generating a lot of income out of a very small amount of product.

In terms of boatbuilding, where significant quantities of special species timbers, particularly Huon pine, are used, timber valued at $30,000 to $40,000 can be transformed into a $350,000 boat. I have seen some of those boats that are manufactured from that timber being built for purchase, in southern Tasmania. One that I saw was to be sailed in Sydney Harbour. It was a magnificent boat, for a person who especially wanted a classically designed timber yacht—handmade, crafted and built in Tasmania.

Wood can also be made into musical instruments: $200 worth of timber can be converted into a $3,000 guitar. Then you have got the little bits and pieces that probably have no value in any commercial sense that can be transformed into the wooden pens that you can buy down in Salamanca Place—100 timber pens with a retail value of $2,495. So making $2,495 from almost nothing is achievable.

All of that indicates that this is a sector employing a significant number of people and taking a resource that is sustainably managed in small quantities and converting those into very valuable products which not only enrich the lives of the people who make them but also add value to the tourism industry, providing visitors to Tasmania with unique mementos of their stay.

It is a great shame that some people are intent on restricting or closing down the opportunities for this industry by closing down access to resources. When people focus on those who want to close down logging in some areas, such as the Weld or Florentine valleys, no-one focuses on this sort of outcome and I think that is a great shame. I do not think that the people who are protesting have a full understanding of the consequences that their actions might have. Perhaps if they did, we would get a more rational approach to this subject.

I think that, as far as this sector is concerned, people such as George Harris and Peter Bennett ought to be congratulated for taking the necessary steps to drive the production of such a report. To the extent that people want to know the information, it is there, and people can start to make more rational decisions about issues affecting the Tasmanian economy and the Tasmanian environment.