Senate Rural and Regional Affairs and Transport Legislation Committee, , 2:33:08 to 2:40:00
Senators raise concerns about Australia's sovereign manufacturing capability for essential construction materials and the risks associated with concentrated import sources.
Topics: Forestry, Manufacturing, Infrastructure
Speakers: Speaker 14, Speaker 12, Speaker 4, Speaker 8, Speaker 24
>> And what about the the sovereign manufacturing uh piece around this ensuring that Australia has its own capability in producing these products that are clearly essential to our housing needs and other construction needs. uh is there has there been any consideration of the impact on uh reduced capacity for Australia to deliver >> particular you know if we see constraints in our ability to import from other countries other
jurisdictions. >> Yeah. So I think we certainly from a policy perspective uh and this was canvased in the timber fiber strategy that was um um developed by industry and presented to government um that we see it as a as an important sovereign industry um and um and and I think that that you see that with the government's um announcement around the forestry growth fund um the programs like um accelerate adoption of wood processing innovation. Those sorts of programs I think um are about continuing to support those industries and to invest in them to um increase their technological sophistication and drive drive up the value chain. Um I guess another element of it is the ability to for for though that um kind of innovation in wood processing to utilize I guess a greater amount of the resource that's available um for um for construction um purposes as well. So um the opportunity to use I guess more plantation resource, more native forest resource >> for engineered wood products um to go into things like modular housing senator as you mentioned um a really important market um for forest products. Um so we see that as as a really important opportunity as well.
>> It's becoming harder though for producers, isn't it? manufacturers to you when the actual estate has been diminished and reduced due to you restrictions around native logging. Um is there concern about the ability for Australia to continue to provide and
supply its home needs? >> So I think um so I think the the importance is just acknowledging that that that has happened in some jurisdictions. Um the important focus is as I said to kind of then ensure that that processing capacity can make most use of the resource that is available across the plant plantation and native forest estate.
>> Okay. and and m if I if I can s we released was last year u a wood volumes analysis that looked at projected kind of future supply of timber into Australia from Australia's plantations and other wood products and and that painted a fairly healthy picture on the supply side um but as you say the economics is still economics um I also do have an answer with the help of something better than my mental arithmetic for those percentages by value lvl for you >> um So, China 60%, >> Malaysia 6%, Indonesia 6%, and then to round out >> a long gap. >> Yeah, it's a big gap. And then New Zealand 4%. Um, it's the next one on the
list. >> Look, that that strikes me as a as a risk being so concentrated. It's a bit like with our solar panels, you know, all coming from one major supplier. Is the government concerned about that?
>> So, this is the import chair, but there is still the significant domestic production base that underpins.
>> Sure. becoming more and more reliable. We've had a a growth to 68% now of thereabouts. I think you might have you might come back to confirm if that's right. But um becoming more and more reliant on on imported products and we're 60 over 60% of coming from one jurisdiction. It's
>> it's a big risk. >> Yeah. I think the flexibility that we saw in other markets and this is talking a little bit broader than just the LVL in in co when we switched and we also switched a number of markets in terms of the import sources over time. So while there is a bit of concentration right at this point um there is a global market out there which we do have access to to diversify those imports as long as they meet the department's criteria um which is outlined by Mr. Bersil before. >> Um but then there's also as Mr. has pointed out like the investments that the department are making to increase the efficiency and productivity of our own domestic sector um to compete um and to fill those gaps. So obviously if there was an issue with with some of our major trading partners, we've got that diversified bundle which includes the the internal ability to supply but also access to other markets that that helps.
>> Um Senator Co. I just want to match up some of the data you would um you were
talking volumes. >> So I had values Mr. Gallion had values. You had volume. >> Yeah. Just the confusion. So
>> yeah, that's fine. So you were saying that's about 900 million roughly since about 2020. >> Yep. >> Um and Mr. Galliana, you said that 24 25
was 167 >> um 167 uh cubic meters. That's correct.
Yeah. >> And the year before was 124,000 cubic
meters.
>> 120
>> 120 >> and the year before was 96.
>> And the year before was 96. So >> there's a fall in price. >> So the price is falling in that sense. there's more volume coming through. >> Yeah. >> Enter in a price sense. Do >> those Can I look at those that data somewhere? Where's >> Yeah. So So >> are they in the same place?
>> Yeah. So I'm probably looking at the actual tables. I think Dr. Green was looking at a dashboard, but it should be the same data. It's on our on our website. So we can we can send you the
link to where all the >> Okay. Thank you. That'll be that'll be really interesting. I was just just interesting in the >> in the well apparent price reduction in product >> um considering what I'm hearing in the
market also. >> Yeah, it could be a compositional shift as well. So that' be the other thing. Yeah, >> because it's there's a spattering a range of different things we classify under that each each of those you know broader categories. So that could be part of it as well. But we'll we can endeavor to get back to you and have a look to see what there is but we'll
share the link as Mr. Okay, that'd be good. Um, in terms of the work that you're doing