The Tasmanian Forest Contractors Association welcomes the announcement, by Federal Forest Minister Sen. Joe Ludwig and Tasmanian Forest Minister, Bryan Green, of the Tasmanian Forest Contractors Assistance package.

“While we have argued that the immediate need for funding should be for viable business assistance, rather than exit, the increase to $22.4 million, above the original promise of $20 million is most welcome” TFCA CEO Ed Vincent said. The $5.4 million earmarked for business assistance in three times the amount delivered by the Tasmanian state government, after their election in March.

Given the urgency of the situation, the package design period has seemed very long indeed.  “I guess this did allow the increase in available funding and some re-allocation from the Federal Government’s starting position of this being a participant exit process only. To that end, the extra time has had some value” Mr Vincent said.

“Our real concerns are that the total amount on offer is a fraction of that required and capping of the payment at $750,000 shows a misunderstanding of the size of both individual forest contractor businesses and the magnitude of the problems they face.” The narrow focus of the package, confined to native forest harvest and haul contractors, means that a number of other contracting businesses, equally adversely affected, have been ignored, which is another flaw according to TFCA.

While there is a tight timetable, with closure of applications for exit assistance on December 13^th, contractors have been aware of the prospect of the package for some time and should be able to meet the deadline.

Details of the business assistance component, for continuing contracting businesses, will be unveiled in the next few days.

Tasmanian Forest Contractors Association welcomes the opportunity to make a constructive role in the development of a strategic plan to guide the forest industry into the future.

The Association also welcomes the Premier’s announcement of an interim assistance package of $3.6 million. TFCA will liaise with DED over the next few days to ensure the most effective disbursement process of this assistance.

There is a mood for change, both within the overall industry and the community, and with goodwill on all sides, positive change can be achieved.

The Premier’s proposed approach makes good sense. Involvement of the stakeholders in the process enhances the probability of achieving a consensus that is good for both the industry and for the whole of Tasmania.

Tasmania’s forest contractors are major contributors to the state’s economy, with over 150 small businesses directly employing around 1000 staff and contributing millions of dollars to local suppliers, many in rural and regional parts of the state.

The hardship experienced by contractors, brought on by the Global Financial Crisis and the collapse of Managed Investment Schemes, will overhang the industry for some time, however industry can emerge stronger and more resilient, with the development of a well reasoned strategy for the future.

I look forward to being a participant in the process.

Ed Vincent

EO – TFCA

MEDIA RELEASE

1st April 2010

Protestors disrupt struggling workers. Tasmanian cost of living impacted.

Tasmanian Forest Contractors Association CEO Ed Vincent said the cost to the community of illegal forest protests, through relocation costs and lost production, had an adverse impact on the Tasmanian cost of living.  “All Tasmanians are paying for the costs associated with these illegal actions.”

“The sense of frustration at these sorts of interference in contractors’ lawful business, especially in the current economic climate, is very real. The irony of two illegal protests since the close of polls versus none during the summer leading up to the election, is not lost on our members, or the wider electorate.”

“During the election campaign, the Tasmanian Greens recognised the plight of the contracting sector in their policy document and were successful in influencing to prevent illegal protests in the lead up to the poll. Contractors, struggling with the timber industry downturn call on Greens leader Nick McKim to encourage radical green groups to again stop illegal protests.”
ENDS

APPOINTMENT OF NEW TFCA EXECUTIVE OFFICER

The TFCA is very pleased to announce that Ed Vincent has been appointed to the position of Executive Officer, replacing Ferdie Kroon.

Ed brings to the Association over twenty years experience in small to medium business management in Tasmania, primarily in timber industry associated roles. He also has several years experience in executive and board roles within not for profit organisations.

With his vast business experience behind him, Ed possesses specific skills in the areas of Human Resources and Industrial Relations, business management and organisational skills and project management capabilities. He has fostered good relationships within political and media circles which will be extremely useful given the current position of our industry.

Ed will move into the chair at time when contractors are in great need of a leader and he is acutely aware of the many challenges facing our industry at present. Over the coming weeks and months he will work to address the issues of Structural Adjustment and will endeavour to achieve the best possible outcome for our contractors.

He will also continue to foster the strong relationships with our industry partners that were formed by Ferdie over the past few years as their support is vital for our continued existence.

Ed will commence duties on Tuesday 9^th March and once he is settled into the role he intends to make contact with and obtain feedback from members on current issues facing our industry.

We look forward to his arrival with much anticipation and congratulate him on his appointment.

Last week the Greens, headed by Sen Bob Brown, passed a motion in Federal Parliament calling for a $20 million assistance package for Tasmanian Forestry Contractors.  On its own, this may not be a big concern for members, but unfortunately Bob Brown tied this request to a Forestry Tasmania and Gunns payback arrangement as well as a corresponding forest resource lockup. 

Therefore it was soundly defeated by the Government and Opposition. 

TFCA lobbied hard though for the recognition of contractor issues and suggested to both the Government and Opposition that outright rejection without some acknowledgment of contractor’s issues will not help anyone. 

That said, we all know that the previous forest lockups have significantly contributed to the problems and anything further in this area will not help our sector or the industry generally.

Furthermore, TFCA is extremely disappointed with the efforts of Senator Brown to exploit the problems of forest contractors for his own political gain.  If you consider that he has significantly contributed to the industry’s woes especially through his own overseas misinformation campaigning, which has contributed to market access issues,  it is certainly disgraceful for him to be taking this current stance.  Given his recent success at raising money to pay his own legal bills, maybe he can now raise money for the industry and the communities that he so readily kicks.

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On Wednesday 11 November 2009one of TFCA’s Industry Partners, Safety and Fire Equipment, will be demonstrating a new product called Thermo-Gel.  This is a concentrate that, when added to water, transforms water into a fire preventing and heat absorbing gel.

Thermo-Gel can be used to:

1. Protect any surface including:hrubs, trees, windows, cladding, vehicles, machinery, fuel & LPG tanks, fence lines and power poles etc

2. Make fire breaks, corridors and enhance defensible space from bushfires

3. Reduce or negate the effects of windborne sparks and embers on buildings and vegetation

4. Reduce radiant heat on buildings and halt or check direct flame attack

The location for the demonstration is the Tasmanian Fire Service Training Facility in Cambridge.

More information is available from Safety and Fire Equipment on 6272 9800.

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 The Tasmanian Forest Contracting Association, (TFCA) which represents approximately 80% of Tasmania’s forest contractors, has today expressed concerns about a proposed acquisition by Gunns Ltd of ITC Timber calling into question the impact such a merger will have on competition in the Tasmanian Forestry industry. 

“A delay in the ACCC’s review of this latest proposal, whilst they seek further information from Gunns, makes one start to wonder whether this merger is the right thing for the industry.” TFCA’s CEO Mr Ferdie Kroon said today.

“We urge the ACCC to be thorough in their evaluation of the issue, as any major change in the industry must be in the best interest, and to the benefit of the entire supply chain and the communities that depend on the industry for their livelihoods,” Mr Kroon said.

“The TFCA are looking at this proposed merger objectively, and while the ACCC review is still underway, we feel a duty to explore some of the questions our contractors have been raising, such as, will the 2000 or so private farm foresters in Tasmania still receive a competitive price for their wood?”

“Will Tasmania’s sawmillers, big and small, be able to fairly compete for logs and timber or will country sawmills be choked out of business? And what will be the impact on the hard working family businesses that rely on harvesting, carting and moving this wood to sawmills and wood fibre processors?”

“These are questions coming from the little guys who plainly fear a monopoly being created in their industry,” said Mr Kroon.

“Just like many Tasmanians, the TFCA has concerns regarding big corporations decreasing competition in primary industries in the state generally. We need only look at the recent high-profile issues in the dairy industry where big corporates are tragically driving down prices paid to suppliers to unsustainable levels.”

“All of Tasmanian industries need to be aware of the risk imposed on the ability for little guys to compete openly and fairly under big corporate dominance.”

“ We need to understand fully how the proposed Gunns acquisition might impact the entire supply chain including contractors, private growers, farm foresters sawmillers, fibre exporters, and also other forestry companies who currently provide some healthy competitive tension,” said Mr Kroon.

“The ACCC is currently investigating the possibility of the Gunns acquisition as imposing decreased competition in the Tasmanian forestry industry, and it is expected to release their findings some time soon.”

“It’s vital that all questions are now raised so as to bring to light any areas of concerns before it is too late,” said Mr Kroon.

- ENDS -

The Tasmanian Forest Contractors Association will conduct its Annual Members Meeting and Stakeholder Session in Launceston on 23 October 2009.  The emphasis is very much on helping members, their families and employees as well as other industry participants come to terms with the many health and financial impacts of this downturn.  Session presenters include the Rural and Financial Counselling Service as well as Rural Alive and Well.

There will also be an information session on the impacts of the Fair Work Act 2009 including a brief introduction to award modernisation and the National Employment Standards.  Participants will be provided with copies of TFCA’s appropriate Advisory Notes on these issues.

Of particular interest to the cartage employees will be a session on TruckSafe, which is an excellent industry accreditation system aimed at helping cartage members address all of their compliance requirements using tried and tested management systems.  The potential savings to carters, regardless of size, are significant and something to consider during this downturn when things are tight and it is important to save money and achieve great productivity and safety outcomes.

There will also be an update on the Industry’s Draft Strategy.

For more information, please use the contact form below.

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TFCA bids goodbye to one of its long-standing and hardworking staff members today and, at the same time, we welcome a new staff member. 

John Triffitt, TFCA’s Administration Manager, leaves today to take on a new and exciting role with another company.   John is certainly an excellent employee who worked extremely hard for TFCA’s members.  He will certainly be missed and we wish him well for the future.

John will be replaced Chris Rudland, TFCA’s new Administration Manager.  Chris, who possesses extensive financial and managerial experience, will work for TFCA on a part time basis.  This in turn will necessitate some changes in functions and even office hours, but membership services will not be affected.

So best wishes and thanks for a job well done to John and a big welcome to Chris.

The state of the forest contracting sector in Tasmania is getting worse by the day.  The issues confronting contractors include uncertain contractual arrangements, inability to obtain finance and, in some cases, re-finance.  Many who want to sell out can’t because of second hand equipment prices and debt levels.

The major principals in Tasmania are struggling to keep the quotas up to the majority of their contractors and continued low production scenarios, which have been in play now for almost 12 months, are causing serious grief.  The effects within many communities and amongst the many businesses that support forest contractors should not be underestimated.

Whilst TFCA applauds the State Government’s efforts to review the contractual arrangements, TFCA echos the calls by the State Liberals for industry restructure arrangements that may include low interest loans and even facilitated exit and consolidation arrangements.  TFCA has been arguing for this for many years and we urge both the Federal and State Governments to act urgently. 

It is obvious that there are too many contractors, especially in the current economic environment, but this situation will not change even when increased production returns because our forest resources are changing.  Letting these business simply ‘wither on the vine’ is not the answer though, especially when you consider the amount of investment involved, the numbers of employees affected and the numbers of supporting businesses left out of pocket.  It is also true that in many cases, the contractors are not too blame for the predicament that that they find themselves in.  Market, forest resource and even contractual arrangements are not something that contractors can control.