New plantation aiming to impact supply issues

With the building industry experiencing challenges from supply chain shortages, the Victorian Government has put $120 million into a new softwood plantation estate in Gippsland, which will see an extra 16 million trees planted at the site.

Although this will have little effect on current supply chain issues, it shows there is some forward planning to help secure the building industry’s future as current plantation resources are being exhausted.

It is expected the new plantation will help protect the timber supply for the building and construction industry and boost the state’s production of building products.

In welcoming the announcement, MBV’s CEO Rebecca Casson also acknowledged it was part of the Victorian Government’s adoption of a recommendation from a supply chain review conducted by Anna Cronin, the Red Tape and Better Regulation Commissioner.

The recommendation highlighted the need to consider opportunities to develop softwood plantation projects and other relevant initiatives to protect against future shocks over the medium to long term.

“Since early 2021, MBV has continually raised awareness of supply shortage impacts on the building and construction industry,” Ms Casson said.

“MBV is hopeful that this investment will provide support for our sector’s resilience into the future.”

Industry lobbyists have advocated for greater investment into local timber plantations, local manufacturing, and research and development into alternative building products that could help relieve pressure on the building and construction industry in the medium to long term.

As part of their broader advocacy, an MBV spokesperson said the organisation will continue to represent their members on the Victorian Government’s Residential Construction Costs Working Group, and explore further solutions to continue to support the building and construction industry.

A statement from the MBV said every $1 million invested in the residential building and construction industry generates $3 million worth of economic output and supports nine full-time jobs across the economy.

Forests Australia data indicates that Australia’s commercial plantations covered a total of 1.74 million hectares, declining since 2012.

This is around two per cent of Australia’s total forest area, including 1.02 million hectares of softwood species that are mostly exotic pines.

Although its primary purpose is commercial wood production, Forests Australia also recognise that commercial plantations provide a range of environmental services, such as salinity and erosion control, and support regional employment.