Government acts on recommendation from Supply Chain Review

With the building industry experiencing some disarray from supply chain shortages, the Victorian government has invested $120 million in a new softwood plantation estate in Gippsland, which will see an extra 16 million trees planted in a new location.

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

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

In welcoming the investment, Master Builders Victoria (MBV) chief executive officer Rebecca Casson also acknowledged it was part of the Victorian government’s adoption of Recommendation 6 from the Supply Chain Review conducted by Anna Cronin, the Red Tape Commissioner and Better Regulation Commissioner.

This 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.”

The industry has continued to advocate for greater investment into local timber plantations, local manufacturing, and research and development into alternative building products that will help relieve pressure on the building and construction industry in the medium to long term.

As part of their broader advocacy, MBV said they would 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.

MBV estimates 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 Australia’s commercial plantations covered a total of 1.74 million hectares, declining since 2012.

This is about 2 per cent of Australia’s total forest area, including 1.02 million hectares of softwood species that are mostly exotic pines.

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