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Meeting Future Market Demand: Australia’s Forest Products and Forest Industry

A Strategic Directions Issues Paper

June 2015

Executive summary The Victorian Association of Forest Industries (VAFI) appreciates the opportunity to provide comments on the strategic directions issues paper Meeting Future Market Demand: Australia’s Forest Products And Forest Industry. VAFI is the peak employer representative body for the Victorian forest and wood products industry. Our members include forest managers, harvest and haulage businesses, primary timber processors, pulp and paper processors, secondary processors and sellers, and associated businesses. VAFI is committed to ensuring an economically, environmentally and socially sustainable future for Victoria’s forest and wood products industry. We support and encourage innovation and adoption of leading practice in all sectors of the industry, from forest management through to manufactured timber products. The Victorian forest and wood products industry is an important economic contributor in Australia, and provides opportunities for encouraging growth, population diversity and maintaining a sustainable local industry. Notwithstanding its diversity and complexity, the forest and wood products industry needs to be seen and recognised as one supply chain, each component supporting and complementing the others both up and down the supply chain. A successful and sustainable industry requires an holistic supply chain strategy, together with a collaborative vision and business buy-in that covers strategic, tactical and operational drivers. In the past the industry has often been quite segmented by resource, product and geography. If the industry is going to be strong, viable and have a secure future, this thinking needs to change. There will need to be high level discussions to define the overall supply chain and any strategies to invest in, and enhance, the strategic supply chain. Closer integration between businesses, and clear and open paths and networks, are imperative to a successful industry and tactical supply chain, as well as cooperation, shared understanding and defined roles for each step along the operational supply chain. It requires a cooperative approach among industry, communities and government, with strong leadership and a far-reaching commitment to the industry from all parties. Our industry is diverse; consisting of growers, sawmillers, plantation owners and operators, processors and manufacturers, and wholesalers and retailers. Any change to legislation or regulation, to the way the industry is operated and run, will be felt across the whole supply chain. Each aspect of the supply chain cannot operate without the other. VAFI recognises that governments at all levels and industry will need to continue working together to create a strong, sustainable and viable future.

Vision and objectives

1. What should the vision be for the forest products sector in the coming decades? The overall vision for the forest and wood products industry in Australia is that of growth, stability and sustainability. The forest and wood products industry in Australia is a 21st century employer and wealth generator. It is a sunrise, not a sunset industry. What our industry needs from all levels of government – national, state and local - is clarity of public policy positions and decisions that impact the future of the forest and wood products industry in this country. Forward estimates and four year time horizons do not do sufficient justice to the investment, employment provided, and level of patience required to succeed and prosper in our industry. VAFI would like to see planned, ongoing, long term investment and support from governments so that the 21,000 direct and 40,000-50,000 indirect employees within Victoria can be assured of a strong, sustainable future for the industry.

2. What specific objectives should underpin this vision? As an industry, we need to focus on the design and development of sustainable and profitable business models within a broader framework that includes market diversification, product and productivity improvements, as well as climate change impacts. This will require the whole industry working with governments to help consumers and the broader community understand and value the benefits of wood and why its renewable, recyclable and carbon-storing properties make it the material of the 21st century. However, in order to attract the investment required, a secure resource base is needed. Currently resource security is not available to the level needed to encourage an adequate level of long term investment capital in a large number of new operations and new employment opportunities. Security of resource is paramount for a successful forest and wood products industry in future. Governments must recognise that resource security is required if the industry is to invest in new innovations and value-adding processes. VAFI looks forward to continuing to work with governments in ensuring adequate access and resource security for the ongoing viability of our industry. Efficient market opportunities should be encouraged, and government policy should aim to provide market incentives, reward industry investment to reduce regulatory inconsistencies where they exist, whilst seeking to minimise actions that create sovereign risk. There is a direct need to maintain and grow native forest harvesting, as well as grow the plantation resource, with government policy to support the continuation of harvesting throughout the state of Victoria.

Markets trends and pressures

3. What forest products does Australia have a local and/or international competitive advantage in producing?

Despite the breadth of the existing and potential forest resource, skills base and manufacturing capacity, at the current point of time limited on-shore processing facilities, distance to markets, and local production costs inhibit Australia’s competitive advantage in the production of forest and wood product at both the domestic and international level. The cost of processing here in Australia is becoming increasingly expensive in comparison to our neighbouring countries. One advantage, however, that we do have in Australia, and in Victoria particularly, is the proximity of forest and/or plantation to processor and/or market via transport nodes. We also have several species here in Australia that are attractive to markets and we are seeing an increase in demand for high quality ready-made products for use in the housing market, particularly in the apartment sector.

4. What is the potential demand for forest products in the coming decades? While recent statistics show that overall, consumption of wood products is down per person (currently 0.81m3 of log), we are seeing an emergence of engineered products (such as cross –laminated timber), which will only continue to grow in demand as business and consumers alike begin to see the benefits of working with the product. To efficiently meet the demand for the forest products there needs to be work on streamlining the efficiency of getting products to market quickly. This will mean the investigation of different processes and a closer integration of the whole supply chain (between manufacturer, processor, etc). There is also the opportunity to encourage private companies to grow and process the products the market demands. Providing tax incentives will help grow this demand. Demand for forest and wood products will also increase as Australia moves to meet low carbon economy targets, as forest and wood products make a significant contribution to meeting that target. A recent study by Yale University and the University of Washington1

found that wood-based construction consumes less energy than concrete or steel and has demonstrated benefits for carbon storage. This is further evidence that wood is becoming the material of the 21st century. A global demand for new housing, paired with the broader social expectation of sustainability, lends itself to the construction of more commercial and residential buildings with sustainable materials. The Victorian forest and wood products industry is well placed to assist with this global demand.

1 Kevin Dennehy (2014) Using more wood for construction can slash global reliance on fossil fuels

5. How can Australia best position itself for this demand, both nationally and internationally?

For Australia to best position itself for any future demand, both nationally and internationally, there is the immediate need to stablise policy settings. Forestry is a long term business and the industry needs the security of a long term vision in order to be a strong, viable and sustainable industry. Security of resource is paramount for a successful industry in future, both in Victoria and across Australia. Governments should overtly and actively recognise the forest and wood products industry as an important contributor to regional economies and the broader state and national economies. Australia also needs to look at the trade and investment policies it has in place. The focus of any trade and investment policies should be to:

o Ensure the ongoing security of supply of wood inputs; o Ensure equitable outcomes for domestic industries in international trade

agreements; o Prevent the importation of illegally harvested wood and paper products; o Continue to reform anti-dumping and countervailing system policies; o Incentivise commercial plantation expansion by recognising the environmental

and public goods they deliver; and o Facilitate further investment in domestic processing and internationally

competitive production facilities. In the past year and despite challenging economic conditions, VAFI members have continue to invest in their businesses, spending on average nearly $500,000 per year on the renewal of capital equipment alone2 . Despite this, the current investment environment is quite flat. Members reported that the major factors influencing further investments in their operations are resource security, the state of the wider economy, the market for forest and wood products, and business costs (including labour). Government support is needed to commit to the future manufacturing of timber in Victoria to support market development and innovation.

6. What are the other drivers or disruptions that will potentially affect supply and/or demand?

There are several drivers that have the potential to affect supply and demand of forest and wood products. These include:

o POLITICAL: government policies, community expectations, certification o ENVIRONMENTAL: fire and fire management, pests, climate change o ECONOMIC: transport and fuel costs, logistics, automation, skills and training o SOCIAL: support from communities, recognition of the value of the industry to

the economy and society, licence to operate

2 VAFI Member Survey 2013

Emerging uses and markets

7. Which emerging forest products have the greatest potential for Australia? With an expanding population, ageing stock and high forecast demand for new housing over the next few decades, the forest industry has the potential to provide a versatile range of building products for structural, commercial and high quality appearance uses. Wood and paper products involve lower energy inputs in production and provide a range of carbon mitigation and sequestration benefits relative to other building materials. Historically, forests have and can produce many different products to meet highly diverse society demands and evolving environmental consciousness. Some known opportunities for diversification, value-adding and product innovation with respect to wood and paper products include:

o energy and heat production; o pulp and biofuel production; o composite wood products and building systems; o new structural and panelling technologies to utilise small-wood and residues

and to use in timber construction in commercial and high-rise buildings; o log assessment and grading technologies; o higher product recovery from harvesting, processing and manufacturing

operations; o innovative tissue, paper and packaging products; and o bio-chemicals, textiles, solvents, plastics, lubricants, fragrances, and other

potential outputs from ‘bio-refineries’.

8. What are some of the barriers to the development and/or uptake of these emerging forest products in Australia?

There are several barriers that have the potential to affect development and/or uptake of these emerging forest and wood products in Australia. These include:

o Scale; o Research & development capacity; o Market demand and consumption; o Lack of knowledge by specifying groups; o Technical assistance; and o Training & skills.

9. What opportunities exist to better utilise wood resources? There are many opportunities to further diversify and grow the value chain whilst investing higher up across the forest and wood products chain. Although a viable and strong sector of the industry, woodchips are at the lower value end of the supply chain. Investing in more niche products that are of a higher value is an opportunity to use timber in different ways that add more value to the economy and can be processed and manufactured here in Australia. However, to be able to better utilise wood in this way, there needs to be investment and research into how, why and when to best situate resources so that the economic aspects are most efficient. VAFI notes that the issues paper does not mention domestic value-adding sectors, such as furniture making. These value-add businesses are prime examples of how wood is currently utilised and there is much potential to continue to expand these markets. VAFI supports the removal of impediments to investment in the industry. More opportunities for investment would boost economic activity and employment. These opportunities for further investment in both the native and plantation sectors of the industry should be a top priority of the government. Residues from Australia’s forest, wood and paper products industry hold great potential as a renewable energy source, substituting for the use of fossil fuels. In addition, this residue can be used to produce renewable heat and liquid fuels, which tend to be more efficient than electricity generation. The lack of incentives for the use of forest biomass in energy generation creates a serious imbalance in the renewable energy market, and misses some of the lowest cost opportunities for carbon emissions abatement. There is the clear need to develop incentives for renewable bio-energy, including renewable biomass for electricity, renewable heat capture and biofuels. Forest resources

10. What is required to ensure the plantation estate is able to meet future demand for forest products?

The plantation estate, in conjunction with the native forest sector, provides an opportunity to increase Australia’s long-term wood supply while contributing significant social, economic and environmental benefits to regional Australia. Australia’s total plantation estate was around 1,999,700 hectares in 2013‒14, down a total of 12,800 hectares (0.6%) from 2012–13. In 1997, the Plantations for Australia: The 2020 Vision was announced a strategic plan to increase the Australia’s plantation estate to reach 3 million hectares by the year 2020. The 2020 Vision and plantation establishment in Australia has stalled and there is no clear government plan or even a goal of getting plantation expansion back on track. In Victoria, plantations may be a minor land use in the western region (less than 8% of the total area), but the hardwood and softwood plantation estate and farm forestry operations are economically significant. Plantation forestry is a legitimate agricultural

land use, which provides additional economic diversification at the regional levels as well as environmental benefits including carbon sequestration. Despite generating a large economic benefit from minor land use, plantations have been known to be negatively regarded at times at the local government level by other farmers, irrigators and land users. This often provides major challenges for plantation owners, especially if they have to deal with multiple municipalities which all have inconsistent views on key policy processes. A new vision for plantation expansion for the sector is needed to address the impediments to investment and recognise the broader public good (environmental and social) benefits of plantations. This should involve a commitment to a new plantation target, addressing regulatory impediments, identifying specific actions to stimulate new investment in plantations, and supporting the re-establishment of existing plantations.

11. What is required to ensure the native forest estate is able to meet future demand for forest products?

Stable policy from government and security of resource is paramount for a successful forest and wood products industry in future. In recent decades governments have placed significant areas of native forest in conservation reserves without taking adequate steps to either review the area in reserve or source new production resource. Without a strong policy framework to assure business that further reductions in resource will not occur, it will prove difficult to attract new investment into the industry; reducing employment in communities reliant on forestry and further exacerbating Australia’s $2 billion deficit in wood and paper products.

Regional Forest Agreements The RFAs represent the cornerstone of native forest resource security policy, balancing the environmental and economic demands on naturally regenerated forests. As the RFAs approach the end of their 20 year life, it is necessary to renew the RFAs, extending their life for a further 20 years at a minimum, to underpin future investment by the sector. To achieve this, funding must be allocated to assist the States to complete the RFA reviews and initiate the renewal mechanism.

12. What opportunities are there to increase wood supply from farm forestry, private native forestry and Indigenous own and managed lands?

Agriculture and forestry are not mutually exclusive, but exist in a continuum of activities across the landscape. Well targeted forestry activities can be complementary to a broad range of farm level and landscape management objectives. There is approximately one million hectares of native forest across Victoria located on privately owned land. It is estimated that of this, around 350,000 hectares might be potentially available and suitable for commercial timber production. However, this is not certain as relatively little is known about the composition of these forests; and therefore privately owned native forests are currently not widely used for timber production. A review of private native forest available would assist in assessing what opportunities there are to increase wood supply from these avenues. Agroforestry has increased its share of forestry accounting at present for approximately 20% of all plantations and 90% of all new plantations.3 More awareness of the practical use of farm forestry timber would be beneficial to increase wood supply, as well as a stronger link with the National Farmers Federation and state counterparts. Farm forestry should be assessed by farmers as a means of diversifying revenue, and be encouraged in the areas where hubs are being planned and developed. With farm forestry, private native forestry and Indigenous owned and managed lands, Australia can have more diverse, productive, profitable, healthy, and sustainable land-use systems. The industry recognises that there is an existing national and state framework of principles for efficient and equitable policy for land use change and interception. They are:

o Equitable treatment of all land uses; o The impacts of interception from land use changes must be considered in

conjunction with their benefits to the community; o Management of new or additional land use change; o Technical decisions on management should be based on evidence and science; o Benefits of intervention must outweigh the costs; o Recognition of existing rights and entitlements; o Allow individuals to manage their own risk and exercise their choices; and o Policy must be adaptive and flexible, supported by investment in new science

and research. It is important to be clear that replanting a crop following harvesting (including a plantation) does not constitute a change in land use.

3 ForestWorks 2015 Industry Skills Scan

Innovation, research and development

13. What are the future research and development needs for Australia’s forest products sector and which of these needs are specific to strengths and opportunities in the Australian context?

Research and development (R&D) is critical for the innovation required to power the value-adding operations, productivity gains and international competitiveness of the forest industry into the future. Research into improving the quantity and quality of wood resources and value added processing will need to continue to be a high priority for the future of the industry.

14. What are the current inhibitors to private sector investment in research, development and extension and what role, if any, does the Australian Government potentially have in addressing these?

In the current climate the forest and wood products industry is highly regulated, however, there is a lack of clarity in government policy. The Australian Government needs to recognise that forestry is a long term business and provide clarity around policies, as well as long term policy commitment. The lack of a critical mass of researchers needs to be addressed, and greater incentives for R&D, and co-funding of priority R&D activities are needed. However, given the tough market conditions facing the industry at this time, there is under-investment in R&D that can provide long term benefits to the industry and economy. An effective way to promote much needed R&D is to increase the level of government co-funding that is facilitated through Forest and Wood Products Australia, as the relevant national R&D Corporation. Additionally the government has failed to move on voluntary matching legislation. Consumer and community engagement

15. How can domestic and international consumers be better engaged on the environmental, economic and social credentials of Australian forest products?

There is a need for the forest and wood products industry, as a whole, to conduct more research across the sector. This includes community attitudes towards the industry, awareness of the environmental benefits of timber, impact on communities etc. Research can look at:

o Seeking insight into the nature of community interest and concern around relevant economic, social and sustainability issues; and

o Seeking community attitudes research to assist in developing an informed communications strategy and framing a narrative and key messages.

With the aim to reach an outcome of:

o Understanding opposing community attitudes towards forestry; o Identifying key strengths and potential weaknesses in perception around

forestry; and o Defining target groups who are receptive to different messaging.

There is no doubt that people like timber and demand for the product is strong. According to a recent study by PlanetArk, when asked, 96% of Australians said they thought wood was ‘visually appealing' and had a ‘warm look and feel', however, less than one in every two people realised wood also has health and wellbeing benefits4. More consumer engagement and awareness can help bring the positive messages of the industry to the wider public. More funding options for businesses to conduct research and focus groups will help to engage domestic and international consumers.

16. How important are consumer awareness programs to the future prosperity of the sector?

The ‘social licence’ of the forest and wood products industry is vital to the future prosperity of the industry. This is the acceptance by the public or society at large that an industry has a right to exist and operate in the community, often utilising a community resource. The forest and wood products industry has many positive stories to tell. Programs like the ‘Wood. Naturally Better’ campaign are examples of how the industry can tell the ‘good news story’ of the sustainable, natural, beautiful and recyclable forest and wood products industry. Further to this campaign, there is the need for industry to be more confident in telling their story and helping to educate consumers about the whole supply chain. Research has shown that the majority of people are more neutral than positive or negative about the industry. Consumer awareness and education programs arising from the abovementioned research outcomes, along with targeted campaigns, should aim to reach this target market to help influence a positive mentality towards industry. We want people to see the good in the industry.

4 Wood - Housing, Health, Humanity – Planet Ark 2015

17. Can forest certification be better leveraged to achieve stronger demand and better prices for Australian forest products and, if so, how?

VAFI supports independent, third party forest certification as a pragmatic market-based instrument to indicate compliance with a standard of good forest management. VAFI acknowledges that there are a number of certification schemes and programs available to the industry and that each industry participant is best placed to determine the level and scheme of certification for their operation. It is important that all levels of government do not show a preference for a particular certification scheme over another. Furthermore, we recognise the role of forest certification as a market tool for assessing improvement of forest and organisational management and creating awareness among consumers of sustainable forest management. Nonetheless, Victoria’s public native forests are managed within a comprehensive policy and regulatory framework consisting of policies, agreements, laws, codes, plans and procedures devised and managed by the State Government.5 Given the high level of compliance and scrutiny already in place, certification should be viewed as an additional tool for marketing of products. According to an ITS Global study ‘Forest Certification – Sustainability, Governance and Risk’ there is little evidence that certified timber delivers a price premium, while end-consumer awareness of eco-labels on forest products is low6. Industry accounts report that an Australian survey found the two certification marks which connote compliance with the sustainability standards of two leading systems were recognised by only five and two per cent of buyers.7 Strengthened regional approaches

18. How could forestry hubs better utilise resources and promote greater efficiencies and innovation?

If there is one thing that we do well in Victoria, it is grow trees. We need to recognise our strength and the positives that it provides to the state, including jobs and economic growth. There are already existing forestry hubs across the state of Victoria, of which are currently operating with their own hierarchy of services and process. These are:

o Western Victoria (fibre, transport and processing); o Geelong (manufacturing capacity, transport and fibre); o Western, Central and East Gippsland (processing, fibre and transport); o North East (fibre, transport and processing) o Metropolitan Melbourne (manufacturing and value-adding [furniture, etc])

5 http://www.vicforests.com.au/files/aursynexbe/16481-VForest-ForestManagemtPlan.pdf 6 Patrick Durst, Philip McKenzie, Chris Brown, Simmathiri Appanah ‗Challenges facing certification and eco-labelling of forest products in developing countries‘ International Forestry Review Vol.8(2), (FAO, Thailand, 2006) 7Engineered Wood Products Association of Australasia Forest Management Schemes Gain Credit with Green Architects, 27 April 2010, accessed at: http://www.ewp.asn.au/newsandmedia/news_forrest.html

Any hubs need to serve industry needs for that area. Hubs need to accommodate flexibility for industry to respond to changing markets and financial conditions. The market demand will change with time and any design, targets and performance measures will have to account for these changes. To be viable any forestry hub established needs to have resource (forest growing and management), transport (harvesting and haulage), processing (sawmilling and processing), a form of manufacturing (pulp & paper, timber manufactured products or wood panel and board production) and merchandising (timber/product). It needs to be recognised that beyond providing jobs, businesses in the forest and wood products industry also play strong roles in the communities within these hubs, with nearly 80% of timber mills and other processing businesses, and 65% of harvest and haulage contractors providing cash or in-kind donations to community groups and charities. This includes assisting local schools and sporting clubs, providing staff time for the local Country Fire Authority and timber for community construction work. Around 65% of forest and wood products industry workers have been found to be involved in community groups and organisations in their local area, helping build better communities. The forestry industry also plays a significant role in fire management and suppression by providing access to forests through roads, fire tracks and trails suitable to enable passage for fire fighting and management equipment, skilled personnel and hundreds of vehicles and pieces of equipment.

19. What have been the barriers to the establishment of efficient operation of forestry hubs to date, and what might be the role of the Australian Government in addressing these?

There are several factors that can hinder the efficient operation of forestry hubs. As forest, wood and paper product industries have a significant regional footprint, an effective and integrated relationship between state and local governments is essential. Unfortunately, state and local government approval and regulatory processes vary widely, are often inconsistent and inefficient, burdening forest industries in regulatory red-tape and constraining the efficient operation of the forest industry. Reform of local government processes across all LGAs would greatly benefit the industry in Victoria, and nationally. An example of how this would help efficiency is plantation company HVP Plantations. In western Victoria, HVP deal with 12 different local councils, with each council requiring different documentation, fees and processes. One overarching process across all councils would not only streamline the process for HVP and the industry more broadly, but also be more time and cost efficient. Attracting and retaining skilled workers is another obstacle that would need to be overcome in establishing hubs. As more and more people move to the city, there is a need to entice skilled workers to either stay in their area, or attract workers to move to a regional area. Stable policy, strong investment and a thriving industry can help attract workers, knowing they have a secure job and future in the region.

20. If additional forestry hubs are to be established, where would they best be located? Forestry hubs would continue to be located in key areas like Green Triangle. However, to establish any additional hubs we need to strengthen existing hubs, and broaden the definition to include the whole supply chain – from plantation / regeneration through to manufacturer and even sales. The forest and wood products industry is a major generator of economic activity and jobs in Victoria, generating $6.7 billion of annual sales and service income annually. Much of the income generated by the industry remains in local communities, with $20 million per year going into towns such as Bairnsdale and Orbost from businesses that use native forest resources from East Gippsland. Infrastructure

21. What infrastructure will be required to respond to future demand for Australian forest products?

A key aspect of regional manufacturing businesses is ensuring that the associated infrastructure, such as roads, rail and port facilities, is maintained and developed in step with the growing needs of industry. Local municipalities often find it difficult to fund maintenance and upgrades of local roads utilised by the forest and wood products industry, which impacts on both the community and the industry alike. Maintenance of these roads is a concern for industry and local government, with the cost threatening to undermine future production. The established and growing plantations in the Green Triangle region of south western Victoria, and the state forest operations in East Gippsland are key areas where the industry is facing infrastructure constraints. These constraints, if not addressed, will detract from the realisation of the full range of benefits the industry can provide. Strategic and long term planning of freight infrastructure and efficient access from resource to market provides clear benefits to the whole community, including safety for all other users (e.g. school buses, tourists), regional job security, and improved access for other primary industries including local farmers.

22. What can be done to ensure better recognition and understanding of the sector’s infrastructure needs?

Strategic studies in key regions, in consultation with industry, are needed to identify the transport (i.e. road, rail and ports) and energy infrastructure requirements to underpin the development of the forest, wood and paper products industry. Following on from studies in the key regions there needs to be a level of education for government and key stakeholders as to what the infrastructure needs are. Without this education there will be no awareness of what these infrastructure needs are and the growing needs of the industry cannot be met.

Industry skills and training

23. What are the skills and training needs of the sector over the coming decades, and where are the current gaps?

The significant loss of workforce and their skills during recent years now requires increased skills development activities in specific industry areas and regions where demand for the timber industry products has improved through increased supply to sectors including the residential construction sector.8 ForestWorks have identified key competency areas that need attention in the short to medium term including: advanced process-oriented technical skills and digital literacy at high technology workplaces, licence compliance and inventory skills across most workplaces, skills for timber products supply chain and logistics solutions and analytics skills and innovation skills (leadership communication, critical thinking, strategic thinking). Skill shortages for traditional industry-specific occupations including forester, manual chainsaw harvester, wood machinist and timber drying kiln operator, have evolved as a skills gap in the industry. Further work must be undertaken collaboratively by the Government and industry to educate primary school children on the forest and wood products industry and provide the learning tools to ensure that there is a future of skilled workers that remain in regional areas and in the industry. VAFI encourages the Australian Government to work with industry in investing in the education and work experience of those working in the forest and wood products industry to address the skills and training needs of the sector. 63% of all jobs in Victoria’s forest industries are in the secondary processing of timber products.9 These are effectively manufacturing jobs; requiring high levels of vocational skill and utilise sophisticated equipment to produce building materials and other products used by all Australians. These employment opportunities often provided better pay and greater job security for workers with lower than average levels of education. With ongoing issues facing all industries in attracting adequately trained and experienced personnel, ensuring there is a workforce available with the required skills is essential if we are to provide a sustainable future for the forestry industry. VAFI encourages any efforts the Australian Government can make to support the provision of training of young Australians and the re-training of older workers; to ensure industry has access to adequate levels of skilled labour and that all Australians have the ability to pursue fulfilling careers.

8 ForestWorks 2015 Industry Skills Scan 9 Schirmer, J. And Dunn, C. (2010) Socio-economic characteristics of Victoria’s forestry industries, Part 1: Profile of forest industry businesses, employment and spending, and impacts of recent changes on businesses. pp. 15-6

24. Are Vocational Education and Training and University training providers well-positioned to meet future skills and training needs of the sector?

VAFI supports any efforts the Australian Government can make to provide assistance and support to increase the percentage of the forestry workforce with tertiary qualifications. Government should do what is within its power to ensure that those Australians with an interest in forestry are able to pursue this level of qualification if they wish, so as to provide the industry with the trained staff it requires in order to manage the forests it works with in a scientific and ecologically sustainable way. To further attract Australians to study forestry and other related course, VAFI believes there is more room for on the job the training and a move away from traditional classroom style teaching. In addition, there is the need to widen the scope of what is taught to beyond traditional forest science to include the social, political and environmental contexts that our industry operates in. Recent workshops undertaken by the University of Melbourne showed that companies spend time training graduates in the areas of stakeholder engagement, project management and facilitation. Due to the nature of the business there is often not enough time for proper training on the job. To address this gap there is the need to build leadership and other skills into any Vocational Education and Training, as well as University courses. These findings support competency areas identified by ForestWorks in their annual skills scan.