Small timber businesses are struggling to survive the wood famine imposed by the WA government. And despite being promised a continued wood supply for furniture manufacture, heritage restoration and firewood, from ecological thinning and mine site clearing, nothing is happening.
In June this year, the Minister for Forestry, Jackie Jarvis, was under the impression that wood was being delivered, saying:
… FPC is actually using that resource and making it a saleable commodity and making it available to our small timber mills, to our heritage furniture makers and to our heritage cabinet-makers and joiners so that we are making sure that the resource is utilised.
Yet, as of today (7 October), it seems that not a single sawlog log has been delivered to any sawmill.
The lack of urgency in establishing supply arrangements looks like gross inefficiency but could be part of a strategy of deliberate procrastination. It has been 11 months since the current management plan was signed off by the Minister for the Environment, and these businesses still wait.
The sloth-like speed of the administration indicates these small family businesses do not rank as a priority.
This treatment is in stark contrast to the service provided to some of the larger timber businesses.
A large veneer mill is getting gold-plate treatment by comparison. It was the first customer to receive logs under the new forest management regime from ecological thinning in the karri forest that started in March (7 months ago). It was not necessary to competitively tender this wood (unlike the small businesses), and it seems it is being supplied under private treaty arrangements.
The karri forest isn’t a climate protection priority according to the forest management plan yet it appears to be the priority area for thinning, supplying a big business.
The remaining small jarrah and karri sawmills have not been supplied for a 14-month period. In an unbelievable act of craziness, jarrah sawlogs were stockpiled or sold as firewood rather than supply these small sawmills.
If it is to be believed, firewood businesses face even greater difficulties.
Firstly, they are still awaiting contracts with tenders only recently being invited. The FPC has offered to supply firewood under a bizarre set of draconian terms:
- Contracts for up to three years, but no guarantee of supplying any wood
- Minimum quantity of 10,000 tonnes per year for 3-year contracts. Most businesses previously took in 500 to 3000 tonnes each year.
- Wood can come from anywhere at any price at unbounded cost-plus arrangements
- Wood down to twig size with no minimum size specified
- Must take any species, including karri which is renowned as a termite-attracting species
The Forest Products Commission states it will:
Continue to engage with stakeholders and ensure forestry activities are transparent and accountable through monitoring and reporting.
(Statement of Corporate Intent 2024/25)
However, it has failed to consult with or meet the firewood sector in introducing these very significant changes that will see many businesses walk away.
You would think there might have been some discussion before introducing such drastic changes to commercial terms. I doubt that big businesses being supplied with resources have been treated in such a draconian fashion. To survive, the small firewood operators will need to buy around $1.2 million worth of wood each year as well as providing a $200,000 security.
To store this wood, a much larger yard and significant processing costs will probably be required well before anything can be sold. Under the new tender terms, FPC has no obligation to deliver a single stick of wood.
The FPC is charged with “developing” the timber industry.
These tactics are clearly seeking the opposite. It is time the Minister, who is also the Minister for Small Business, required the FPC to produce a timber industry plan to engage with and inform all timber businesses on how to position themselves for the next ten years. In reality, we are more likely to hear a “Marie Antoinette-ism” such as:
If they have no wood (bread), then let them wait (eat cake)!.
