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Forestry welcomes $50m bushfire recovery package

Bushfire-impacted industries will welcome the $50 million bushfire recovery package announced this week by the Federal Government. Prime Minister Scott Morrison said the targeted grants would support primary producers hardest hit by the summer bushfires. Source: Timberbiz

“This is about helping communities build back better,” Mr Morrison said. “As our communities battle to overcome the effects of drought, bushfires and now COVID-19, it’s initiatives like these that will also help accelerate economic recovery and ultimately deliver more jobs to the regions.

“With more than $1.4 billion in recovery and relief already rolling out to bushfire-affected communities for everything from direct hardship payments and support to clear debris, through to wildlife rescue and financial counselling, these new programs will help our forestry industry, and apple and wine growers take the next step on their recovery.”

AFPA Chief Executive Officer Mr Ross Hampton said the support package would go a long way to helping forest product industries in NSW, Victoria and South Australia, devastated by the Black Summer bushfires and now facing unprecedented long-term resource shortages.

“We are pleased that the Federal Government has listened and responded to the crisis facing our industry as a result of the bushfires,” Mr Hampton said.

“The $40 million Forestry Recovery Fund will support timber processors facing significant, long-term reductions in log supply to retool and upgrade their mills, while the $10 million Salvage Log Storage Fund will boost mills’ capacity to process and store the short-term surplus in burnt logs, particularly in the NSW South West Slopes region where around 40% of the softwood plantations were fire-damaged.

“We are also very grateful to Assistant Minister for Forestry and Fisheries Jonno Duniam who has been working closely with our industry to understand the magnitude of the crisis as a result of the fires, and this package delivers some of the key initiatives we have identified to help forest industries navigate these challenges,” Mr Hampton said.

“I look forward to continuing to work with the Government to ensure Australia’s sustainable forest industries can continue to thrive and employ tens of thousands of people in fire-affected regional communities.”

Minister for Agriculture, Drought and Emergency Management David Littleproud said the agricultural and forestry sectors form the foundation of the country’s food and fibre security. They are also key to jobs and prosperity in many communities affected by the 2019-20 bushfires.

The funding adds to the Government’s commitment of $448.5 million for projects identified by communities as part of their local economic recovery plans, and the $15 million investment to help forestry industries transport and store the high volume of bushfire-affected trees.

The government is also working closely with the forestry industry to participate in the $2 billion Climate Solutions Fund to boost outcomes for the environment, spur investment and create jobs.

“Our government understands the importance of primary producers to regional economies and community recovery,” Mr Littleproud said.

“The devastating bushfires earlier this year impacted more than two million hectares of Australia’s productive forests and our forestry industries are faced with the prospect of wood shortages in major timber regions.

“This assistance acknowledges that the impact on wine grapes extends beyond the fire scar. In some cases, smoke taint from the bushfires has led to a loss of the harvest for the 2020 vintage, estimated to be around 60,000 tonnes lost.

“As we work to support individuals and businesses affected by COVID-19, we haven’t forgotten about communities and industries affected by the bushfires. Today’s announcement will bring some much-needed support to some specific industries.” Minister Littleproud said.

Assistant Minister for Forestry and Fisheries Jonno Duniam said the regional impacts of the bushfires on Australia’s forestry industry could be felt for decades, which was why the Morrison Government is taking action now.

“The $40 million Forestry Recovery Development Fund will secure and create jobs, especially in our regional communities that have been hardest hit by the bushfires,” Senator Duniam said.

“With this fund, the forestry industry will be able future-proof with innovative investments in new or existing facilities and technology, or assisting in transitioning to smarter, more efficient practices that value-add along the supply-chain.

“The fund will underpin a sustainable recovery that ensures Australia’s forestry industry is productive, profitable and internationally competitive into the future,” he said.

“On top of this, $10 million will be invested in the establishment of storage facilities for processed wood products, fire-affected salvage logs, and other forestry products in Victoria, New South Wales and South Australia.

“We’ll continue to work with industries as they navigate these challenging times.”

The additional bushfire relief measures form part of the economic recovery effort and include:

  • A $40 million Forestry Recovery Development Fund for competitive grants that support processors to navigate future wood supply shortages through innovation and product diversification.
  • $10 million for the establishment of storage facilities for processed timber products, fire-affected logs and other forestry products. The fund will produce additional certainty for mills and help businesses plan their long-term recovery.