Making Australia's forest industries more competitive

by S. C.

A new processing facility, an upgrade of a plywood plant and an Indigenous housing project are among six forestry initiatives to share in more than $2.3 million from the Rudd Government.

Minister for Agriculture, Fisheries and Forestry Tony Burke today announced the first grants under the Forest Industries Development Fund.

The $9 million program is a key part of the Government’s election commitment to support sustainable forest industries.

It allows businesses in the forest industry to apply for up to 30% of funding for projects that add value to Australia’s forest and wood products industry.

The Rudd Government funding is expected to leverage more than $20 million worth of investment from the private sector and other sources.

Projects to be funded under this round include the expansion of an integrated processing plant in NSW, an automated timber grading system in Tasmania and a new system to value-add to radiata pine processing in Victoria.

Another project will progress the design and delivery of wood-based Indigenous housing for rapid deployment in remote areas.

Mr Burke said the funding will help to increase the international competitiveness of Australia’s forest products.

“Our forest industries underpin jobs and economic growth in regional communities,” Mr Burke said.

“The Rudd Government will continue working to support projects that add value to our forest and wood products industries, to boost our global competitiveness.

“As the 2008 State of the Forests report showed, Australia’s forestry and forest products industries are currently worth $19 billion annually.”

The first round of successful grants under the Forest Industries Development Fund are for projects in Wagga Wagga, Kempsey and Bathurst in NSW; Colac in Victoria; Bell Bay in Tasmania and the Australia-wide Indigenous housing project.