Jobs lost with fears 'thousands' more could go as China widens Australian timber bans

Discussion in 'Economics' started by themickey, Dec 28, 2020.

  1. themickey

    themickey

    Timber harvesting jobs lost in SA and Tasmania as China widens ban on Australian forest products
    ABC Rural / By David Claughton and Tony Briscoe

    https://www.abc.net.au/news/rural/2020-12-28/china-ban-causes-job-losses/13017450
    Posted 1hhour ago
    [​IMG]
    The timber industry says 150 contractors have lost their jobs in the Green Triangle region in South Australia.(Supplied: OneFortyOne)

    Hundreds of jobs have been lost as China's uncompromising bans on Australia's timber exports get tougher, according to industry leaders.

    Key points:
    • 150 harvest contractors lose their jobs in South Australia's Green Triangle
    • Another 100 jobs have been lost in Tasmania
    • The timber industry is lobbying for assistance to process more logs in Australia
    Up to 150 contractors — timber workers and haulage-truck operators — are now out of work in South Australia's Green Triangle, one of the nation's major timber-producing areas, and 100 jobs have been lost in Tasmania.

    Confirmation of the job losses comes as China extended its Australian timber bans, with products from New South Wales and Western Australia being added to the list.

    Chinese authorities first imposed a ban on pulp logs coming out of Queensland, South Australia, Victoria and Tasmania after finding a pest called bark beetle in a shipment.

    And it fired its first shots at Australia's export market back in May, by introducing a massive 80 per cent tariff on Australian barley imports.

    Since then Australian coal, copper ore and concentrate, sugar, wine and lobster industries have suffered a similar fate.

    Ross Hampton, from the Australian Forest Products Association (AFPA), said 150 contractors had been thrown out of work in South Australia, and he warned that if the timber-ban issue was not resolved thousands of jobs would be at risk across the nation.

    "It's a $24 billion industry and much of it could be put at risk if this isn't resolved," Mr Hampton said.

    The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has also previously warned of heavy job losses.

    The industry fears up to 1,000 forestry jobs in the Green Triangle, which incorporates Western Victoria and South East South Australia, will be lost in that region alone by March 2021 if the bans continue.

    Mr Hampton said timber harvesting crews had stockpiled large volumes of pulp wood, but because none of it was moving it was hampering the entire operation of harvest and export.

    "They physically won't be able to get around it [the stockpiles] and they'll eventually have to slow down and potentially even stop operations," Mr Hampton said.

    Wendy Fennell, from the Green Triangle Forest Contractors Group, estimates that the 150 jobs lost so far come from harvest and haulage sector.

    100 jobs cut in Tasmania
    The Tasmanian timber industry is also heavily reliant on the Chinese market and is also feeling the pressure of China's tough stance on Australian timber.

    Bryan Haynes, from the Tasmanian Forest Products Association, said up to 100 jobs had been lost in Tasmania.

    "The stoppage is currently affecting about 100 jobs across the [Tasmanian] industry," he said.

    [​IMG]
    Most of Australia's low-value pulp logs exported from Australia go to China, much of it from Portland in Victoria.(Supplied: SA Timber Processors Association)

    Pulp wood is low-grade timber exported as logs. It is generally used in China to produce bio-energy, kitchen panels and to make paper and pulp.

    China had been taking 95 per cent of Australia's exports, much of it through Portland in south-west Victoria, but about 20 per cent of that timber could be processed in Australia if changes to processing equipment were made here.

    Rob de Fegely, a consultant at Marhules Groome Consulting, said if that happened, China's ban on Australian timber could backfire.

    "China needs to be careful because there's a shortage of timber for the Australian industry after the bushfires, and if the softwood logs are processed here in Australia, China will have to pay more," Mr de Fegely said.

    The Federal Government has provided $70 million to the timber industry to find new markets, but given China is the main buyer of pulp wood globally that is not likely to succeed, according to AFPA.

    Mr Hampton wants the Federal Government to focus instead on supporting more processing in Australia, either through a a new pulp mill or a plastic replacement plant.

    He said he understood the idea was being considered by the new minister for trade and investment, Dan Tehan.

    Mr Tehan's federal electorate of Wannon encompasses much of the Green Triangle, as well as the Port of Portland where much of the timber is exported.
     
  2. maxinger

    maxinger

    criteria for banning

    Australia exports most of that item to China.
    China has multiple sources besides Australia.
     
  3. This could be good for Canadian forestry companies. Check out Canfor.
     
  4. Mickey,

    What's your take on all this as Australian? Where do you stand in all this? I wanted to ask you anyway, is there any sort of limits on how many or what type of property Chinese can purchase in Australia nowadays?

     
  5. Canfor is one of the worst air polluters in Canada. Their sawmills stink up entire cities in BC, for example. Not sure whether more business for them is necessarily a good thing for Canadians. Perhaps the Chinese should begin to grow their own damn trees? Or use artificial woods or laminates. If they can fake eggs and all sorts of stuff I am sure finding a wood substitute should not be a problem.

     
  6. maxinger

    maxinger

    if Canada angers China,
    Canada timber will also be banned.
     
  7. themickey

    themickey

    My take, China is cutting off their nose to spite their face, but saying that, I'm not anti Chinese, in actual fact, like Chinese and Asians, but the CCP is leading China down a very dark road, they do their country a disservice and will shortly send themselves in the dark ages - then, once more, they will blame the West for all their fuckin' problems.
    Australia will EASILY find new markets and then China will screw themselves over when we drive up the price we do business with them.
    Australia is clamping down on allowing overseas Co's to buy into this country, especially non Western, you can thank China for that due to their unscrupulous business track record.
    If I see an ASX Co with a Chinese director on it, or substantial holding, or substantial business dealing/sales (it's one of the first checks I make), I blacklist that Co. from my buy list.
     
    Last edited: Dec 28, 2020
    yc47ib, JSOP, Cuddles and 1 other person like this.
  8. Who cares. Since when does whoring oneself out have ever been long term beneficial. If you are not careful all you end up with is stds. Same with China. Or your IP is gone overnight. Their culture and values are completely incompatible with western values.

     
  9. I wished Australia had that standing power but looking how the entire Australian educational sector whores itself out does not look promising. Lobby groups don't seem to be any less powerful in Aus than in North America.

     
    zdreg likes this.
  10. tsznecki

    tsznecki

    Oh hi volpunter/GRULSTRMN/JSOP. Well why don't you tell us how you as an ethnically Chinese person whored yourself out to Western values and who have now immigrated to live in Canada?
     
    #10     Dec 28, 2020