THE SIGNIFICANCE OF FORESTRY

IN THE NATIONAL ECONOMY

Occasional Paper No. 19

BUREAU OF AGRICULTURAL ECONOMICS CANBERRA

1973

BUREAU OF AGRICULTURAL ECONOMICS, CANBERRA

THE S I G N I F I C A N C E OF FORESTRY I N

THE NATIONAL ECONOMY

G r a t e f u l acknowledgment i s made t o o f f i c e r s o f t h e F o r e s t r y and Timber Bureau f o r t h e i r s u g g e s t i o n s and comments, p a r t i c u l a r l y t o M r D. Wilson, S t a t i s t i c a l O f f i c e r , f o r h i s h e l p i n ~ r o v i d i n g much o f t h e d a t a used.

A s s i s t a n c e i n t h e p r e p a r a t - i o n o f t h i s paper was a l s o r e c e i v e d from M r P.H. Hodge, M r A . Amos and o t h e r o f f i c e r s o f t h e P r o j e c t A n a l y s i s s e c t i o n of t h e Bureau.

INTRODUCTION PART I : THE SIGNIFICANCE OF FORESTRY

1.1 L a n d A r e a s

1 . 2 O w n e r s h i p of Forest L a n d s

1 . 3 E m p l o y m e n t

1 . 4 V a l u e of P r o d u c t i o n

1 . 5 Commonwea l th and S t a t e F inanc ia l A i d

PART I I : WOOD - BASED INDUSTRIES 2 . 1 V o l u m e s

2 . 2 Volume T r e n d s

2 . 2 . 1 Sawnwood

2 .2 .2 Wood-Based P a n e l s

2 . 2 . 3 P a p e r a n d P a p e r P r o d u c t s

2 . 3 V a l u e s of Wood-Based P r o d u c t s

2 . 3 . 1 V a l u e s : D o m e s t i c P r o d u c t s

2 . 3 . 2 V a l u e s : Imports a n d E x p o r t s

2 . 4 E m p l o y m e n t

2 . 4 . 1 E m p l o y m e n t T r e n d s

2 . 5 P l a n t a n d M a c h i n e r y

2 .6 C a p i t a l - L a b o u r R a t i o s

SUMMARY AND CONCLUSIONS INDEX to T a b l e s

INDEX t o G r a p h s

D e f i n i t i o n s

Page

1

METRIC CONVERSION FACTORS

Area

1 h e c t a r e - - 2.47105 acres

1 s q u a r e m e t r e = 10.7639 s q u a r e f e e t

volume

1 c u b i c metre = 35.31467 c u b i c f e e t

= 423.72 s u p e r f i c i a l f e e t (sawnwood)

= 220.75 s u p e r £ i c i a l f e e t ( roundwood)

Mass

1 t o n n e - - 0.984207 l o n g t o n s

S o u r c e : ~ o o d a n d A s r i c u l t u r e O r q a n i s a t i o n o f The U n i t e d N a t i o n s , yea rbook o f F o r e s t Products ,Rome, 1 9 7 2 , pp. 221-22.

INTRODUCTION

The t e rm ' f o r e s t r y ' may be i n t e r p r e t e d i n d i f f e r e n t ways. I t may be used i n a narrow s e n s e t o deno te a l l t h e a c t i v i t i e s n e c e s s a r y t o produce roundwood which i s subsequen t ly t r ans fo rmed i n t o o t h e r wood p r o d u c t s beg inn ing wi th t h e sawmil l ing o p e r a t i o n ; o r it may be used i n a b road s e n s e t o deno te n o t o n l y t h e a c t i v i t i e s o f p roduc ing roundwood, b u t a l s o t h e a c t i v i t i e s o f t h e wood-based i n d u s t r i e s which commence w i t h t h e sawmil l ing o p e r a t i o n .

I n o r d e r t o i n d i c a t e t h e s i g n i f i c a n c e of f o r e s t r y i n t h e n a t i o n a l economy, t h e i n fo rma t ion provided i n t h i s paper i s d i v i d e d b r o a d l y i n t o two p a r t s . The f i r s t p a r t p r o v i d e s d a t a on t h e c u r r e n t s i t u a t i o n and p a s t t r e n d s i n f o r e s t r y d e f i n e d a s t h e p roduc t ion o f roundwood p r i o r t o p r o c e s s i n g . C e r t a i n compara t ive s t a t i s t i c s o f f o r e s t r y w i t h o t h e r p r imary i n d u s t r i e s a r e a l s o g iven . The second p a r t d e a l s w i t h t h e wood-based i n d u s t r i e s showing t h e c u r r e n t s i t u a t i o n and p a s t t r e n d s ; t h i s s e c t i o n al-so draws some comparisons w i t h o t h e r manufac tur ing i n d u s t r i e s .

The o b j e c t i v e s o f t h e paper a r e t o d e s c r i b e t h e c u r r e n t s i t u a t i o n and p a s t t r e n d s o f t h e A u s t r a l i a n f o r e s t r y i n d u s t r y , and secondly t o demons t ra te t h e s i g n i f i c a n c e o f f o r e s t r y i n t h e n a t i o n a l economy i n t e r m s o f s e l e c t e d c r i t e r i a u s i n g a g g r e g a t e d a t a .

PART I THE SIGNIFICANCE OF FORESTRY

1.1 Land A r e a s (1)

The e s t i m a t e d t o t a l l a n d a r e a o f A u s t r a l i a is 768.7m h e c t a r e s , o f which abou t 497.7m h e c t a r e s w e r e h e l d a s r u r a l h o l d i n g s i n 1970-71. The a r e a o f r u r a l h o l d i n g s compr ised app rox ima te ly 452m h e c t a r e s o f unimproved l a n d and 45.lm h e c t a r e s o f a r a b l e l a n d and sown p a s t u r e s .

The t o t a l f o r e s t e d a r e a i n A u s t r a l i a was e s t i m a t e d a t app rox ima te ly 39. Om h e c t a r e s i n 1971. The e x t e n t o f f o r e s t e d l a n d s depends on t h e c l a s s i f i c a t i o n used and a number o f d i f f e r e n t c l a s s i f i c a t i o n s may be found i n t h e f o r e s t r y l i t e r a t u r e . The f i r s t t h r e e t a b l e s demons t r a t e t h i s p o i n t a s t h e y show c o n s e c u t i v e l y , e s t i m a t e s o f f o r e s t areas under a broad c l a s s i f i c a t i o n , a c l a s s i f i c a t i o n o f f o r e s t reserves, and c o n i f e r o u s p l a n t a t i o n a r e a s .

Table No. 1 shows e s t i m a t e d f o r e s t a r e a s i n A u s t r a l i a i n t e rms o f e x p l o i t a b l e s t a n d s o f trees and t h o s e a r e a s c o n s i d e r e d t o be p o t e n t i a l l y e x p l o i t a b l e . ' E x p l o i t a b l e ' i s d e f i n e d by t h e Commonwealth S t a t i s t i c i a n i n r a t h e r b road te rms t o i n c l u d e f o r e s t s which a r e b e i n g used o r grown a t p r e s e n t and which a r e r e a d i l y a c c e s s i b l e by roads . 'Poten- t i a l l y e x p l o i t a b l e ' a r e a s are t h o s e which have been a s s e s s e d a s c o n t a i n i n g trees o f s u i t a b l e d e n s i t y and q u a l i t y for h a r v e s t i n g b u t which a r e n o t c u r r e n t l y a c c e s s i b l e .

The e s t i m a t e s shown i n Tab le No. 1 may n o t be s t r i c t l y comparable between t h e S t a t e s and T e r r i t o r i e s because of d i f f i c u l t i e s i n o b t a i n i n g e s t i m a t e s o f f o r e s t a r e a s which r e p r e s e n t a un i form a p p r a i s a l t h roughou t A u s t r a l i a . The f i g u r e s shou ld t h e r e f o r e be i n t e r p r e t e d a s a gu ide t o t h e r e l a t i v e e x t e n t o f f o r e s t t y p e s w i t h i n and between S t a t e s , r a t h e r t h a n a s a c c u r a t e measurements o f f o r e s t e d a r e a s .

(1) Refe rences used were:

(i) Commonwealth Bureau o f Census and S t a t i s t i c s , OfficiaZ Year ~ o o k o the CommonweaZth of AustraZia NO. 5 8 , Canber ra , 1 9 $ 2.

(ii) Commonwealth Bureau o f Census and S t a t i s t i c s , Rural Land Use and Crop Production, No. 28, Season 1970-71, Reference No. 10 ;30 , Canberra , 1972.

(iii) S t a t i s t i c a l R e g i s t e r s f o r t h e v a r i o u s S t a t e s .

( i v ) F o r e s t r y and Timber Bureau, Annual Report, 1 9 7 1 - 7 2 , , Canber ra , 1972.

Table No. 1

ESTIMATED FOREST AREAS : BY STATE AND AUSTRALIA ( a t 30 June, 1971)

( '000 Hectares)

N.S.W. Vic. Qld S.A. W.A. Tas. N.T. A.C.T. Aust.

Exploitable - Broadleaved Coniferous Mixed wood

Total 9 1 2 7 2252 7074 147 2077 1816 2861 24 25 378

Potent ia l ly Exploitable- Broadleaved Coniferous Mixed wood

Total 405 1269 810 4 63 3 12 3 133

Other fores t areas 3 582 3267 1942 748 708 192 93 10 532

Estimated t o t a l fo res t area

Source: Commonwealth Bureau of Census and S t a t i s t i c s , Forests and Forest Products, - Reference No. 10.47, Canberra, 1972, p. 5.

~ p p r o x i m a t e l y 25.4111 h e c t a r e s were c l a s s i f i e d a s e x p l o i t a b l e f o r e s t s , o f which o v e r 87% was o f b road leaved f o r e s t s . Con i f e rous f o r e s t s on t h e o t h e r hand, comprised abou t 5% o f e x p l o i t a b l e a r e a s o r abou t 3% o f t h e t o t a l f o r e s t a r e a .

N e w South Wales ( 3 4 % ) , Queensland (26%) and V i c t o r i a (17%) t o g e t h e r accounted f o r o v e r 75% o f t h e a r e a o f A u s t r a l i a ' s f o r e s t .

An a l t e r n a t i v e c l a s s i f i c a t i o n o f f o r e s t l a n d s i s shown i n Table No. 2 which p r o v i d e s t h e l o c a t i o n and a r e a s o f S t a t e and F e d e r a l f o r e s t r e s e r v e s . According t o t h e F o r e s t r > j a n d T i m b e r B u r e a u ' s Annual R e p o r t , 1 9 7 1 - 7 2 , f o r e s t r e s e r v e a r e a s a r e c l a s s i f i e d main ly a s p r o d u c t i o n r e s e r v e s o r p r o t e c t i o n r e s e r v e s . Produc t ion r e s e r v e s a r e t h o s e f o r e s t s which have been r e s e r v e d f o r t h e pr ime purpose o f t imber p r o d u c t i o n . P r o t e c t i o n r e s e r v e s a r e s e t a s i d e p r i n c i p a l l y f o r p r o t e c t i n g f a u n a , f l o r a o r s o i l , o r f o r s c e n i c o r r e c r e a t i o n a l v a l u e , o r f o r t h e p r o t e c t i o n o f wa te r ca tchments . The te rms ' p r o d u c t i v e ' and ' u n p r o d u c t i v e ' , used i n Tab le No. 2 , r e f e r t o t h e c a p a c i t y o f t h e f o r e s t s t o produce t imber economica l ly . Unproduct ive a r e a s a r e a r e a s which a r e unstocked o r t o o rocky o r s t e e p t o be economica l ly l ogged , o r catchment a r e a s on which t i m b e r - g e t t i n g has been p r o h i b i t e d . Unproductive a r e a s i n p r o t e c t i o n r e s e r v e s a l s o i n c l u d e a r e a s where c u t t i n g i s p r o h i b i t e d .

O f t h e t o t a l a r e a o f a l l r e s e r v e s (15.7m h e c t a r e s ) 83% has been c l a s s i f i e d a s p r o d u c t i o n r e s e r v e . Of t h i s , p r o d u c t i v e f o r e s t s t o t a l 10.9m h e c t a r e s , which i s 69% o f t h e a r e a o f a l l r e s e r v e s . A s might be a n t i c i p a t e d , p r o t e c t i o n r e s e r v e s have main ly been e s t a b l i s h e d o v e r unproduc t ive a r e a s . P r o t e c t i o n r e s e r v e s occupy o v e r 2m h e c t a r e s . The major p r o p o r t i o n s by S t a t e s o f t h e t o t a l a r e a o f r e s e r v e s a r e Queens land 30%, N e w South Wales 21%, V i c t o r i a 1 6 % , Tasmania 1 4 % and Western A u s t r a l i a 13%.

Tab le No. 3 shows a c l a s s i f i c a t i o n o f c o n i f e r o u s p l a n t a t i o n a r e a s . A s can be s een i n Tab le No. 1, c o n i f e r o u s f o r e s t s accoun t f o r o n l y a smal l p e r c e n t a g e o f A u s t r a l i a ' s f o r e s t a r e a . From an economic v i ewpo in t , however, softwood p r o d u c t i o n h a s been g a i n i n g i n impor tance . I n t h e 1971-72 p l a n t i n g season app rox ima te ly 38 000 h e c t a r e s o f new coni- f e r o u s p l a n t a t i o n s were e s t a b l i s h e d , which brought t h e t o t a l a r e a o f c o n i f e r o u s p l a n t a t i o n s t o a l m o s t 468 000 h e c t a r e s .

Tab le No. 3 cjives d e t a i l s o f c o n i f e r o u s p l a n t a t i o n a r e a s t h roughou t A u s t r a l i a a c c o r d i n g t o t y p e o f ownership and c o n i f e r s p e c i e s .

P i n u s r a d i a t a accoun ted f o r a b o u t 68% o f a l l con i - f e r o u s p l a n t a t i o n s . Approximately 72% o f P i n u s r a d i a t a plan- t a t i o n s were on Crown Land main ly i n N e w South Wales, South A u s t r a l i a and V i c t o r i a .

Table No. 2 STATE AND FEDERAL FOREST RESERVE AREllS

( a t 31 March 1971) ( '000 Hectares)

Reserve N.S.W. Vic. Qld S.A. W.A. Tas. A.C.T. N'T' Total ( e )

Production Reserves ( a ) - productive 2327 1696 3777 89 1649 1349 1 2 1 10 900 - unproductive 291 547 11 519 30 1 398 - unstocked 281 47 287 208 82 3

Total 2899 2290 3777 100 1936 2076 12 31 13 121 '

Protection reserves ( b ) - productive 1 13 172 5 193 - unproductive 12 208 1000 18 38 9 39 486 1 8 1 0 - unstocked 11 127 138

Total 12 208 1000 19 62 181 44 613 2 139

A l l other reserves ( c ) - productive 291 - unproductive 104 61 - unstocked 21

Total 416 61 ( d ) 477

Total area a l l reserves

. .- - - - - - - --

(a) Land permanently dedicated to timber production. ( b ) Includes f l o ra and fauna reserves, scenic reserves, S ta te and National Parks and water catchment areas. ( c ) Includes other timber reserves, land reserved f o r fue l supply and vacant forested Crown Land. ( d ) Excludes Aboriginal Reserves t o t a l l i ng some 11 850 000 hectares which are estimated to be 90 per cent fores t . ( e ) As a t 31 March 1970.

Source: Forestry and Timber Bureau, Annual Report, 2971-72. Canberra, 1972, p. 41.

Table No. 3

CONIFEROUS PLANTATION aWAS

( a t 31 iibarch 1971)

(Net Hectares)

Crown Land Private Prcperty

State Exotic Conifers o r Grand

Terri tory Native Other Total Pinus Other Tot a1 Total Conifers Pinus Pinus Other Conifers radiata Conifers Conifers Exotic

radiata Species Conifers

New South Wales Victoria Queensland South Australia Western Australia Tasmania Australian Capital

Terr i tory Northern Terri tory

Total 34 581 211 370 73 586 1677 321 214 82 364 26 794 109 158 430 372

- N i l or negligible. Source: Forestry and Timber Bureau, Animal Report, 1971-72, Canberra, 1972, p. 42.

I n V i c t o r i a p r i v a t e p l a n t a t i o n s a c c o u n t e d f o r 60% of t h e t o t a l area o f P i n u s r a d i a t a i n that S t a t e .

The g e n e r a l t r e n d s i n c o n i f e r o u s p l a n t a t i o n areas o v e r a 20-year p e r i o d are shown i n Graphs I a n d 11. Both g r a p h s show t r e n d s t o 1970-71.

Graph I shows t h a t s i n c e 1950-51 t h e r e h a s b e e n a t h r e e - f o l d i n c r e a s e i n t o t a l p l a n t a t i o n areas. A s h a r p i n c r e a s e i n p l a n t i n g s s i n c e 1 9 6 0 , more t h a n d o u b l e d p l a n t a t i o n area f rom a b o u t 1 9 5 000 h e c t a r e s i n 1960-61 t o o v e r 400 000 h e c t a r e s i n 1970-71. .

G R A P H I

AREA OF CONIFEROUS PLANTATIONS BY CROWN LAND A N D

PRIVATE PROPERTY

1945-46 50-51 55-56 60-61 65-66 70-71 Source : Forestry and Timber Bureau " ~ o r e r t Industry ~ r a ~ h s " D.Wilson p.35

Canberra 1970 'Annual Report 1971-72' p42. Canberra 1972

J Graph I1 shows f u r t h e r d e t a i l s of t h e a n n u a l p l a n - t i n q s o f c o n i f e r o u s s p e c i e s o n Crown and p r i v a t e l a n d s , p a r t i - c u l a r l y d u r i n g t h e l a s t d e c a d e . P r i v a t e c o n i f e r o u s p l a n t i n q s have i n c r e a s e d s i g n i f i c a n t l y o v e r t h e l a s t t h r e e y e a r s f rom 6000 h e c t a r e s i n 1969-70 t o over 11 700 h e c t a r e s i n 1971-72. Annual p l a n t i n q s o n Crown l a n d s have shown a s p e c t a c u l a r i n c r e a s e e a c h y e a r s i n c e 1960-61, when a b o u t 8000 h e c t a r e s were p l a n t e d . The ra te o f a n n u a l p l a n t i n g s i n c r e a s e d t o a b o u t 1 2 500 h e c t a r e s i n 1965-66, 2 3 000 h e c t a r e s i n 1969-70 a n d r e a c h e d a r e c o r d l eve l o f 3 8 000 h e c t a r e s i n t h e 1971-72 p l a n t i n g s e a s o n .

GRAPH ll

AREA OF ANNUAL PLANTINGS OF CONIFEROUS FORESTS

1950-51 55-56 60-61 65-66 7 0 -71 Source : Foreslry and Timber Bureau orest st Industry Graph."

D . W i l s o n p.36 Canberra 1970; Forest Resources Development

Branch. private communication.

1 .2 Ownership o f F o r e s t Lands

Ownership of f o r e s t l a n d s h a s been predominant ly i n t h e p u b l i c s e c t o r . P u b l i c l y owned l a n d amounted t o a b o u t 30.8m h e c t a r e s o f t h e t o t a l f o r e s t e d area o f 39.0m h e c t a r e s i n 1 9 7 1 . The b a l a n c e o f 8.2m h e c t a r e s was owned p r i v a t e l y . These f i g u r e s a r e p rov ided i n Table No. 4.

Tab le No. 4

OWNERSHIP OF FOREST LMIDS

(30 June 1971)

F o r e s t Land Type

Area P r o p o r t i o n o f T o t a l

A. Crown Land

E x p l o i t a b l e f o r e s t a r e a s 18 .9

P o t e n t i a l l y e x p l o i t a b l e and o t h e r f o r e s t a r e a s 11.9 30.8 79

B. p r i v a t e Land ( a )

E x p l o i t a b l e f o r e s t a r e a s 6 . 5

P o t e n t i a l l y e x p l o i t a b l e and o t h e r f o r e s t a r e a s 1 .7 8.2 2 1

T o t a l 39.0 100.0

( a ) ~ n c l u d e s 'communal' l a n d owned by Local Government A u t h o r i t i e s .

Source : Commonwealth Bureau o f Census. and S t a t i s t i c s , F o r e s t s and F o r e s t P roduc t s ,Re fe rence No. 10.47, Canberra , 1972, p. 6 .

1 . 3 Employment

Table No. 5 p r o v i d e s i n f o r m a t i o n , based on t h e 1971 Census, which shows t h e number o f p e o p l e employed i n f o r e s t r y and o t h e r pr imary i n d u s t r i e s . Rural i n d u s t r i e s accounted f o r 95% o f p e r s o n s employed i n p r imary p roduc t ion i n d u s t r i e s com- pa red w i t h 3% employed by t h e f o r e s t r y i n d u s t r y . The s t a t i s t i c s g iven i n t h e t a b l e i n c l u d e d employers , self-employed p e r s o n s , wage and s a l a r y e a r n e r s , and unpa id h e l p e r s .

Tab le No. 5

LABOUR FORCE : AGRICULTURE, FORESTRY, FISHING AND

HUNTING : AUSTRALIA

(Census 30 June 1971)

I n d u s t r y Sub-Divi s i o n

Males Females Persons

no. no. no

A g r i c u l t u r e 283 262 66 422 349 684

S e r v i c e s t o a g r i c u l t u r e 1 5 061 902 1 5 963

F o r e s t r y and l o g g i n g 11 909 4 1 9 12 328

F i s h i n g and h u n t i n g 7 950 439 8 388

T o t a l 318 218 68 189 386 407

Source : Commonwealth Bureau of Census and S t a t i s t i c s , Bulletin No. I , Summary of P o p u l a t i o n , Par t 9 Aus t r a l i a , Reference No. 2.83.9. , Canberra , 1972, p.5.

While it i s r ecogn ized t h a t d i s c r e p a n c i e s w i l l i n e v i t a b l y b e found i n such a g g r e g a t e s t a t i s t i c s , it i s d i f f i c u l t t o r e c o n c i l e t h e e s t i m a t e o f 12 328 p e r s o n s employed i n f o r e s t r y shown i n Table No. 5 w i t h t h e 1970-71 e s t i m a t e s shown i n T a b l e No. 6.

The g e n e r a l t r e n d s i n f o r e s t r y employment a r e i n d i c a t e d i n Tab le No. 6 . The t o t a l numbers employed reached a peak o f 28 000 pe r sons i n 1954-55 and t h e n d e c l i n e d , l e v e l l i n g o f f a t around 23 000 t o 21 000 between 1965-66 and 1970-71.

P r o f e s s i o n a l s t a f f have s t e a d i l y i n c r e a s e d from 313 i n 1950-51 t o 1094 i n 1970-71.

1 . 4 Value a f P roduc t ion

The Commonwealth Year Book p r o v i d e s d a t a on t h e v a l u a t i o n o f A u s t r a l i a n p roduc t ion . Three v a l u e s , namely g r o s s , l o c a l and n e t v a l u e s o f l p r o d u c t i o n a r e a v a i l a b l e . However, because marke t ing c o s t s are n o t on . a comple te ly comparable b a s i s between S t a t e s and t h e r e a r e d i f f i c u l t i e s i n o b t a i n i n g a c c u r a t e i n fo rma t ion f o r many i t e m s , o n l y i n f o r - mat ion r e l a t i n g t o g r o s s v a l u e o f p r o d u c t i o n i s inc luded he re .

T a b l e N o . 6

EMPLOYMENT S T A T I S T I C S FOR FORESTRY :

SELECTED YEARS

Employment 1950 1954 1959 1965 1969 1970 -51 -55 -60 -66 -70 -71

no. n o . no. no. no. no.

Employment i n f o r e s t r y (a )

P r o f e s s i o n a l s t a f f

- f o r e s t e r s 2 38 373 457 69 4 787 814 - o t h e r s 75 149 215 233 284 280

Non-prof e s s i o n a l s t a f f

- f i e l d 634 693 820 1 122 1 235 1 306 - c le r ica l 986 1 1 4 9 1 024 1 1 3 1 1 1 7 0 1 184 - e s t a b l i s h m e n t

and t e n d i n g 7 087 5 991 5 763 6 274 6 232 5 964 - f e l l i n g a n d

e x t r a c t i n g 17 737 1 9 705 1 5 2 4 1 1 2 871 1 3 011 11 252

T o t a l 26 757 28 060 2 3 520 22 325 22 719 2 0 800

( a ) E x c l u d e s employees o f t h e F o r e s t r y a n d Timber Bureau p r i o r t o 1964-65.

N o t e : Some d e g r e e o f e s t i m a t i o n h a s been n e c e s s a r y i n the ear l ie r y e a r s a n d , overa l l , t h e f i g u r e s r e p r e s e n t minima s i n c e c o m p l e t e c o v e r a g e o f p r i v a t e f o r e s t r y s t a t i s t i c s h a s n o t b e e n p o s s i b l e .

S o u r c e : F o r e s t r y a n d Timber Bureau , A n n u a l R e p o r t , 1 9 7 1 - 7 2 , C a n b e r r a , 1 9 7 2 , p. 69. D. Wi l son , Compendium o f Aus t r a l i a n F o r e s t P r o d u c t s S t a t i s t i c s , 1935-36 t o 1 9 6 6 - 6 7 , F o r e s t r y a n d Timber Bureau , C a n b e r r a , 1 9 6 9 , p. 149 .

G r o s s v a l u e of p r o d u c t i o n , as d e f i n e d by t h e Commonwealth Bureau o f Census a n d S t a t i s t i c s , i s t h e v a l u e p l a c e d o n r e c o r d e d p r o d u c t i o n a t t h e w h o l e s a l e p r i c e r e a l i s e d a t t h e p r i n c i p a l m a r k e t s . I n g e n e r a l , t h e p r i n c i p a l m a r k e t s a r e t h e M e t r o p o l i t a n m a r k e t s i n e a c h S t a t e . Where p r i m a r y p r o d u c t s are consumed a t t h e p l a c e o f p r o d u c t i o n or where t h e y

become raw material f o r a secondary i n d u s t r y , t h e s e p o i t s of consumption a r e presumed t o b e t h e p r i n c i p a l marke ts . (2f I n l i n e w i t h t h i s d e f i n i t i o n , v a l u e o f p r o d u c t i o n f o r raw f o r e s t p r o d u c t s w a s c a l c u l a t e d a t t h e sawmil l door o r t h e r e l e v a n t p l a c e o f f i r s t p roces s ing .

For t h e y e a r 1970-71, t h e g r o s s v a l u e o f p roduc t ion f o r f o r e s t p r o d u c t s was e s t i m a t e d a t $140.Om. T h i s amount r e p r e s e n t e d 3.6% of t h e t o t a l g r o s s v a l u e o f p roduc t ion ($3,848m) f o r a l l p r imary i n d u s t r i e s i n A u s t r a l i a . Detzails a r e shown i n Table No. 7.

Tab le No. 7

GROSS VALUE OF PRODUCTION : PRIMARY INDUSTRIES

(EXCLUDING MINING) : AUSTRALIA 1970-71

I n d u s t r y Gross P roduc t ion Valued P r o p o r t i o n o f a t P r i n c i p a l Markets T o t a l Value

A g r i c u l t u r e P a s t o r a l Da i ry ing P o u l t r y Bee-farming

T o t a l r u r a l 3,619,915

F o r e s t r y 139,955 3.6 F i s h i n g 78,395 2.0 Hunt ing 10,152 0.3

T o t a l f o r e s t r y , f i s h i n g , h u n t i n g 228,502 5.9

T o t a l a l l p r imary ( e x c l u d i n g min ing) 3,848,417

Source: Commonwealth Bureau o f Census and S t a t i s t i c s , O f f i c i a Z Yearbook o f t h e CornmonweaZth o f A u s t r a Z i a , No. 58, Canber ra , 1972, p. 1006.

(2 ) Commonwealth Bureau o f Census and S t a t i s t i c s , O f f i c i a Z Yearbook o f t h e ComrnonweaZth o f A u s t r a Z i a , No. 5 8 , Canber ra , 1972, p. 1005.

The p r o p o r t i o n o f annua l g r o s s v a l u e o f p roduc t ion c o n t r i b u t e d by f o r e s t r y t o t h e t o t a l v a l u e f o r a l l p r imary i n d u s t r i e s h a s changed l i t t l e s i n c e a b o u t 1965-66 f l u c t u a t i n g between a b o u t 2 % and 3.6%.

1 . 5 Commonwealth and S t a t e F i n a n c i a l Aid

On t h e fo rma t ion o f t h e Commonwealth of A u s t r a l i a i n 1901, r e s p o n s i b i l i t y f o r f o r e s t r y remained under t h e c o n t r o l o f t h e i n d i v i d u a l S t a t e s . Each S t a t e m a i n t a i n s i t s own f o r e s t s e r v i c e and h a s s o l e c o n t r o l and management r i g h t s ove r f o r e s t s w i t h i n i t s bounda r i e s . The f u n c t i o n s o f t h e s e f o r e s t s e r v i c e s i n c l u d e t h e r e s e r v a t i o n o f l a n d , t h e p r o t e c t i o n and c o n t r o l o f f o r e s t s , t h e marke t ing and u t i l i s a t i o n o f f o r e s t p r o d u c t s and t h e e s t a b l i s h m e n t and maintenance o f c o n i f e r o u s p l a n t a t i o n s . The Governments o f N e w South Wales and V i c t o r i a o p e r a t e f i n a n c i a l a s s i s t a n c e schemes f o r i n d i v i d u a l l andowners , p r i m a r i l y t o encourage t h e e s t a b l i s h m e n t and management o f c o n i f e r o u s p l a n t a t i o n s . During 1970-71, New South Wales advanced $ 50,132 and V i c t o r i a $ 22,164, under t h e i r r e s p e c t i v e l o a n schemes f o r p r i v a t e f o r e s t r y .

The l i m i t a t i o n s o f c o n s t i t u t i o n a l powers and t h e p re sence o f S e c t i o n 92 o f t h e C o n s t i t u t i o n have u s u a l l y meant t h e conf inement o f Commonwealth l aw t o t h e r e g u l a t i o n o f t h e e x p o r t t r a d e o f A u s t r a l i a n produced commodities. However, as impor t s o f t i m b e r s exceed e x p o r t s , t h e r o l e o f t h e A u s t r a l i a n Government i s r e l a t e d more t o development o f t h e r e s o u r c e t h a n t o e x p o r t marke t ing .

The f o l l o w i n g e x t r a c t h a s been t a k e n from t h e Commonwealth Year Book, 1972, p. 871:

' I n February 1965 t h e A u s t r a l i a n F o r e s t r y Counci l recommended t h a t t h e r a t e o f expans ion o f softwood t imber p l a n t i n g s i n A u s t r a l i a shou ld be i n c r e a s e d from t h e e x i s t i n g l e v e l o f a b o u t 40 000 a c r e s (16 000 h e c t a r e s ) ' a y e a r t o 75 000 a c r e s (30 500 h e c t a r e s ) a y e a r f o r t h e n e x t t h i r t y - f i v e y e a r s . The recommendations env i saged a phased i n c r e a s e i n t h e r a t e o f Government p l a n t i n g s by t h e v a r i o u s S t a t e Governments up t o a level o f some 63 000 a c r e s (25 500 h e c t a r e s ) p e r annum t o g e t h e r w i t h p l a n t i n g s by t h e Commonwealth i n t h e T e r r i t o r i e s o f 2000 a c r e s (800 h e c t a r e s ) p e r annum, and an a v e r a g e o f a t l e a s t 1 0 000 a c r e s (4000 h e c t a r e s ) p e r annum by p r i v a t e f o r e s t owners. The Counci l c o n s i d e r e d t h a t such a programme would make a major c o n t r i b u t i o n towards meet ing A u s t r a l i a ' s f u t u r e r e q u i r e m e n t s f o r softwood p roduc t s .

I n February 1966 t h e Commonwealth Government endorsed t h i s recommendation and a g r e e d , a s a f i rs t s t e p towards a c h i e v i n g t h e proposed annua l t a r g e t o f 75 000 a c r e s (30 500 h e c t a r e s ) t o p r o v i d e f i n a n c i a l a s s i s t a n c e t o e a c h S t a t e , o v e r a f i v e - y e a r p e r i o d commencing 1 J u l y 1966, t o e n a b l e them t o a c c e l e r a t e t h e i r r a t e o f softwood

p l a n t i n g s . The a s s i s t a n c e , which i s provided t o t h e S t a t e s under s e c t i o n 96 o f t h e C o n s t i t u t i o n , t ook t h e form o f long- term l o a n s r e p a y a b l e o v e r twenty-f ive y e a r s w i t h repayments o f p r i n c i p a l and t h e payment o f i n t e r e s t commencing t e n y e a r s a f t e r t h e d a t e o f e a c h advance. The S o f t w o o d F o r e s t r y A g r e e m e n t s A c t 1 9 6 7 a u t h o r i s e d t h e commonwealth t o e n t e r i n t o agreements w i t h e a c h o f t h e S t a t e s t o p r o v i d e f i n a n c i a l a s s i s t a n c e by way o f l o a n s d u r i n g t h e f i n a n c i a l y e a r s 1966-67 t o 1970-71 i n c l u s i v e . Payments under t h e A c t by t h e Commonwealth t o a l l S t a t e s i n 1966-67 amounted t o $ 291,000, i n 1967-68 t o $ 3,456,000, i n 1968-69 t o $ 3,872,000, i n 1969-70 t o $ 4,814,000, i n 1970-71 t o $ 4,784,000 and i n 1971-72 t o $ 389,338.

I n February 1969 t h e A u s t r a l i a n F o r e s t r y Counci l recommended a c o n t i n u a t i o n o f Commonwealth f i n a n c i a l a s s i s t a n c e t o t h e S t a t e s f o r softwood timber p l a n t i n g f o r a f u r t h e r f i v e y e a r pe r iod . The Commonwealth Government a g r e e d i n p r i n c i p l e t o t h e A u s t r a l i a n F o r e s t r y C o u n c i l ' s recommendations and f o l l o w i n g n e g o t i a t i o n s w i t h t h e S t a t e s it was ag reed t h a t t h e Commonwealth would assist towards a S t a t e p l a n t i n g programme o f 54 680 a c r e s (22 100 h e c t a r e s ) p e r annum on t h e same t e rms and condi- d i t i o n s a s t h e f i r s t f i v e - y e a r programme.'

F i n a n c i a l a s s i s t a n c e i s b e i n g c o n t i n u e d under t h e S o f t w o o d F o r e s t r y A g r e e m e n t s A c t 1 9 7 2 which t e r m i n a t e s on 30 J u n e 1976. During 1972-73, an i n i t i a l payment o f $9.3m was made t o t h e S t a t e s f o r t h e 1971-72 and 1972-73 p l a n t i n g y e a r s . An e s t i m a t e d f u r t h e r payment of $5.5m w i l l be made i n t h e 1973-74 p l a n t i n g yea r .

T a b l e N o . 8 i l l u s t r a t e s t h e r e l a t i v e importance o f t h e Commonwealth f i n a n c i a l a s s i s t a n c e under t h e S o f t w o o d F o r e s t r y A g r e e m e n t s A c t s 1 9 6 7 a n d 1 9 7 2 i n t e rms o f a s s i s t a n c e t o t h e r u r a l sector.

Table No. 8 CCMMDNWEALTH BUDGET PROVISIONS

FOR FINANCIAL ASSISTANCE TO THE RURAL SECTOR (Mil l ion Dollars )

Type of 1966-67 1967-68 1968-69 1969-70 1970-7l 1971-72 1972-73 Assistance Actual Actual Actual Actual Actual Actual Actual

Payments re la t ing t o output, exports and s t a b i l i s a t i o n -

Dairy product bounties 27.9 27.7 27.6 27.5 2 41.9 29.4 Devaluation compensation - 21.4 35.0 29.0 21.0 7.2 0.2 Wheat s t a b i l i s a t i o n 16.2 15.5 42.9 ( a ) 29.0 58.4 41.4 woo1 - deficiency payments - - - - - 52.8 - 1.5 - other ( b ) - - - - 4.2 4.1 2.5

Other ( c ) 2.8 27.4 4.6 3.5 9.1 3.6 5.9

Sub-total 46.9 92.0 110.1 60.0 107.6 168.4 77.9

Subsidies on inputs - F e r t i l i s e r s 33.0 33.9 42.7 55.7 50.5 55.5 69.8 Petroleum products (d ) 16.0 17.6 19.3 22.4 23.8 25.2 25.7

Sub-total 49.0 51.4 62.0 78.1 74.4 80.8 95.5

Taxation concessions ( e ) 14.0(f) 65.3 46.3 64.2 55.4 53.5 36.0( j ) Emergency ass is tance t o

woolgrowers - - - - 21.3 0.2 - Contribution to promotion

and research ( g ) 25.9 29.3 33.5 33.7 51.3 54.7 57.1 Rural reconstruction ( h ) - - - - 7.1 47.6 54.1 Other ass is tance ( i ) 38.7 41.9 48.3 46.1 57.7 46.3 35.0 Softwood f o r e s t r y

Agreements Acts . 3 3.5 3.9 4.8 4.8 .4 9.3 -

Total 174.8 283.4 3 . 1 286.9 379.6 451.5 364.9

( a ) Sales of the record 1968-69 crop were not f ina l i sed during 1969-70 and no s t a b i l i s a t i o n payment was made. ( b ) Includes wool marketing ass is tance, advances f o r poss ible losses by the Australian Wool Connnission and advances f o r t h e administrative expenses of t h e Conmission. ( c ) Raw cotton bounty. Includes i n 1967-68 $23.3111 i n loans made to the S ta te of Queensland under the provisions of t h e Sugar Marketing Assistance Act 1967*, i n 1970-7l ass is tance t o t h e canned f r ~ t s industry of $ 6 . a , i n 1971-72 $0.2m canned f r u i t s industry ass is tance and $3m f o r apple and pear s t ab i l i sa t ion . ( d ) It i s estimated t h a t l e s s than about 4096 of the subsidy shown d i r e c t l y benef i t s rural producers, who a l s o benefit ind i rec t ly from lower p r ices i n country areas. ( e ) Estimates of taxat ion revenue foregone. Includes &ought bonds, income averaging provisions, specia l depreciation allowances, and investment allowances. ( f ) Income averaging provisions only. ( g ) Includes the Commonwealth's contributions t o the CSIRO's r u r a l research p r o g r m e s . ( h ) Includes $@? and $%Om respect ively provided under t h e Rural Reconstruction Schem and $ 3 . 1 ~ and $11.5m provided under t h e Marginal Dairy Farms Reconstruction Scheme. ( i ) Assistance i n the form of loans and grants provided t o t h e S t a t e s f o r na tu ra l d i sas te r s , beef roads schem, the deve- lopment and control of water resources, e t c . , excluding softwood fores t ry . ( j ) Does not include cost of income averaging provision and drought bonds scheme. *Includes Sugar Industry Assistance A c t 1967. Note: Totals may not add because of rounding. Source: Commonwealth of Australia, Budget Speech and Statements Attached t o the Speech (various

issues) ; id. , CommonweaLtii Payments t o or for the States (various issues] ; i d . , Parlimentary Debates, House of Representatives, 3 day 1971, p. 2416; ib id , Senate, 29 October 1970, p. 1735; Department of t h e Treasury; CSIRO, Ilineteenth Annual Report for Year 1966-67 ParZimentary Paper No. 83 (1967), Commonwe?lth Bureau of Census and S t a t i s t i c s , o f f i i i a ~ Year Book o f the ComomeaZth o f Australza, No. 58, 1972.

PART I I WOOD - BASED INDUSTRIES

The aim o f t h i s p a r t of t h e paper i s t o demonstrate t h e r e l a t i v e importance of t h e va r ious wood-based i n d u s t r i e s . These have been c l a s s i f i e d according t o t h e fou r major groups o f f o r e s t products: sawlogs f o r sawnwood and s l eepe r s , pulp- wood f o r wood-based panels , pulpwood f o r paper and paper products and l o g s f o r o t h e r uses.

Table No. 9 shows e s t ima te s o f a l l f o r e s t products produced, t r aded and consumed i n 1970-71 i n t e r m s o f volumes. In o r d e r t o compare t h e major groups of f o r e s t products , a l l volumes have been converted from common s tandard measurements t o l o g equ iva l en t s expressed i n cub ic metres.

2 . 1 Volumes

Expressed a s percentages o f t h e t o t a l volume, l o g and l o g equ iva l en t s , o f f o r e s t products produced i n Aus t r a l i a i n 1970-71 (11.8m cub ic metres), t h e con t r i bu t i ons by each o f t h e fou r c l a s s e s w e r e a s fol lows:

Sawlogs f o r sawnwood and s l e e p e r s 75

Pulpwood f o r woodbased pane l s 7

Pulpwood f o r pulp, paper and paper p roduc t s 1 3

Logs f o r o t h e r uses 5

To ta l f o r e s t products 100

Sawnwood and paper products accounted f o r 96% by volume of a l l fores t -product impor ts whi le t h e remaining 4 % w e r e f o r wood-based panels . The g r e a t e s t percentage of imports was f o r paper and paper p roduc t s which accounted f o r 59% o f a l l imports .

With r e s p e c t t o volumes ( log and l o g e q u i v a l e n t s ) , of f o r e s t p roduc t s exported, paper and paper products , wood- based pane l s and sawlogs and sawnwood accounted f o r approxi- mately 4 6 % , 26% and 24% respec t ive ly .

The e s t i m a t e s f o r volumes of apparent consumption were dz r ived i n Table No. 9 , by adding domestic product ion and impor ts , and s u b t r a c t i n g expor t s i n t h e r e l e v a n t row. From t h e s e de r ived e s t i m a t e s apparent domestic consumption was 6 4 % of f o r e s t p roduc t s i n t h e form of sawnwood, 26% i n t h e form of

Table No. 9

LOG AND LOG EQUIVALENT OF FOREST PRODUCTS PRODUCED,

TRADED AND CONSUMED I N AUSTRALIA 1970-7l.

( '000 Cubic Metres)

Commodity Apparent Production Imports Exports Consumption

Sawlogs and s leeper logs

Sawlogs ( a ) ( b ) 8 291 1820 63 10 048 Sleeper logs 533 12 42 5 03

Total 8 824 1832 105 10 551

Pulpwood f o r woodbased panels a s

- hardboard 221 5 105 121 - softboard 7 - - 7 - p a r t i c l e board 384- 1 5 380

Peeler logs f o r p ly and veneer ( c ) (d) 275 185 5 415

Total 847 191 11 5 923

Pulpwood f o r pulp, paper and paper products 1 527 2958 20.3 4 282

Other uses ( e ) 613 18 12 619

Total 11 811 4999 435 16 375

( a ) Includes blockboard. ( b ) Includes logs plus log equivalent of sawnwood. ( c ) Includes peeler logs plus plywood and veneer. ( d ) Imports and exports include sawn equivalent of plywood and veneer. ( e ) Other uses include fencing, mining, poles and p i l e s .

Source.: D. Wilson, Forestry and Timber Bureau.

paper and paper products and about 6% a s wood- based pane l s i n 1970-71.

I n t h e same year , A u s t r a l i a exported 1% of domes t ica l ly produced sawlogs and sawnwood, 1 4 % o f wood- based pane l s products and 13% of domest ica l ly produced pulp, paper and paper products . However, t o meet domestic consumption, 17% of t h e demand f o r sawnwood and 21% of t h e demand f o r wood-based pane l s were m e t by imports , and 6 9 % of domestic demand f o r paper and paper products was m e t by imported goods.

2 - 2 Volume Trends

Long t e r m p a s t t r ends i n apparent consumption of sawnwood, wood-based pane l s and paper and paper products a r e shown i n Graphs 111, I V and V r e spec t i ve ly . Comments of t he t r e n d s w i l l be confined t o t h e pe r iod from 1945-46 t o t h e l a t e s t yea r o f d a t a a v a i l a b i l i t y .

2 .2 .1 Sawnwood

Exports o f sawnwood a s shown i n Graph I11 comprised a smal l propor t ion o f domestic product ion and have remained r e l a t i v e l y s t a b l e a t around 45 000 cub ic metres pe r year .

By c o n t r a s t however, impor ts , production and apparent consumption a l l showed marked i nc r ea se s from t h e i r r e s p e c t i v e 1 9 4 5 4 5 l e v e l s u n t i l 1951-52. These i nc r ea se s r e s u l t e d from a marked expansion i n t h e demand f o r sawnwood immediately a f t e r World War 11, t h e response by domestic producers , and T a r i f f Board a c t i o n t o al low concessional admission o f import sawnwood t o meet t h e domestic demand. The demand f o r sawnwood i s l a r g e l y a r e f l e c t i o n o f t h e demand f o r housing. I n about 1952, t h e concess ional t a r i f f r a t e s on imports w e r e removed and import l i c e n s i n g r e s t r i c t i o n s w e r e imposed. This a c t i o n was taken a t t h a t t i m e because l a r g e s t ocks o f l o c a l l y produced and imported sawnwood had accumulated. c 3 ) From 1954-55 onward, t h e genera l t r ends i n apparen t consumption and product ion have been f o r o v e r a l l s l i g h t i n c r e a s e s d e s p i t e t h e f l u c t u a t i o n s shown i n t h e graph. Imports remained f a i r l y s t a b l e a t around 825 000 cub ic metres p e r annum u n t i l 1966-67 and have s i n c e increased s t e a d i l y t o a peak l e v e l o f approximately 975 000 cubic metres i n 1970-71. Peak product ion and apparent consumption both occurred i n 1964-65 a t l e v e l s o f 3.63 and 4.48m cub ic metres respec t ive ly .

2.2.2 Wood-Based Panels

Graph I V shows t he p a s t t r e n d s i n apparent con- sumption of so f tboard , plywood, hardwood and p a r t i c l e board.

- -

( 3 ) Parl iament o f t h e Commonwealth o f A u s t r a l i a , T a r i f f B o a r d ' s R e p o r t o n T i m b e r , T a r i . f f R e v i s i o n , 1 6 December 1952, Canberra 1953.

GRAPH Ill

SAWNWOOD.APPARENT CONSUMPTION - 6ROADLEAVB)PLUS CONIFEROUS -AUSTRALIA

(Includes Sawn Equivalent of Plywood a n d Veneer and Sawn Sleepers) Mil cubic metres 5 1 1

Apparent Consumption

4 -

1 - - \'\

\ Imports, --A*---

\ / -.yL.! . ' G. Exports 0 / , . . ; , .- 1

1935-36 40-41 45-46 5051 55-56 60-61 65-66 70-71

SOURCE :Forestryand Timber Bureau "Forest Industry Graphs "D. Wilson, p16. Conberro 1970: 'Annual Report 1971-72: p4Z Canberro 1972

GRAPH IV WOOD-BASED PANEL PRODUCTS-APPARENT CONSUMPTION

Mil square metres N 30 1 , 1

5mm basis

Particle Board

20 I

'plywood 5mm basis

/ Particle Board 19mm basis

Softboord

1945-46 50-51 55-56 60-61 65-66 70-71

SOURCE : Forestry and Timber Burmu"Compendium of Australian Forest Products Statistics 1935-36 to1966-67" D.Wilson .Canberra 1969 'Annual Report 1971-72: p55-72 Conberro I972

The post-World War I1 t r e n d s f o r hardboard and plywood r e f l e c t e d t h e r a p i d expansion i n demand f o r wood produc t s f o r t h e cons t ruc t i on i n d u s t r i e s a l ready mentioned i n Sect ion 2 .2 .1 . Following t h e sharp d e c l i n e i n consumption dur ing 1952-53, consumption of these two products showed a marked recovery u n t i l about 1959. The fol lowing year , p a r t i c l e board en t e r ed t h e market f o r wood-based pane l s and achieved marked success i n t h e ensuing e i g h t yea rs a s shown by t h e t r e n d of i t s apparent consumption. The competi t ion from hardboard and p a r t i c l e board from 1960 caused a dec l i ne i n t h e demand f o r plywood, al though consumption o f plywood improved from 1965-66.

2.2.3 Paper and Paper Products

Graph V shows t h e p a s t long-term volume t r e n d s of apparen t consumption, product ion and imports f o r paper and paper products .

GRAPH V

PAPER A N D PAPER PRODUCTS - A P P A R E N T C O N S U M P T I O N

Tonnes (.ooo ) 1600

Apparent Consumption

SOURCE : Forestry and Timber Bureau "Compendium of Forest Products

Statistics 1935-36 to 1966-67 ': D . Wilson. Canberra l969.

"Annual Report 1971-72: ~ 5 9 . Canberra 1972

Except f o r marked d e c l i n e s i n demand i n 1952-53 and i n 1961-62, a p p a r e n t consumption expanded from abou t 300 thousand tonnes i n 1945-46 t o a b o u t 1550 thousand t o n n e s i n 1971-72. T h i s i n c r e a s e i n demand was m e t t o a l a r g e e x t e n t by a r a p i d expans ion o f domes t i c p roduc t ion from a b o u t 190 thousand t o n n e s i n 1952-53 t o l . l m t o n n e s i n 1971-72. Over t h e same p e r i o d , imported p a p e r and pape r p r o d u c t s showed a g e n e r a l b u t more g r a d u a l expans ion , a l t h o u g h s u b j e c t t o wide y e a r t o y e a r f l u c t u a t i o n s .

E x p o r t s o f pape r and pape r p r o d u c t s w e r e n e g l i g i b l e o v e r t h e p e r i o d shown i n t h e graph.

2.3 Values o f Wood-based P r o d u c t s

Th i s s e c t i o n i n d i c a t e s t h e r e l a t i v e importance o f wood-based f o r e s t p r o d u c t s i n v a l u e t e r m s , i n comparison w i t h o t h e r m ~ g ~ f a c t u r i n g i n d u s t r i e s i n A u s t r a l i a f o r t h e y e a r 1969-70.

Because o f t h e d i f f i c u l t i e s o f o b t a i n i n g d a t a on v a l u e s , p a r t i c u l a r l y f o r v a l u e s added i n d o m e s t i c a l l y produced p r o d u c t s , t r e n d s i n v a l u e s have n o t been p rov ided i n t h i s paper.

2.3.1 Values : Domestic P r o d u c t s

Value added i s d e f i n e d as t u r n o v e r p l u s t h e i n c r e a s e ( o r l e s s t h e d e c r e a s e ) i n t h e value o f s t o c k s , less t h e pu rchase o f m a t e r i a l s , f u e l and power, less t h e v a l u e o f goods t r a n s f e r r e d from o t h e r e s t a b l i s h m e n t s o f t h e e n t e r p r i s e , l e s s c h a r g e s f o r commission, sub -con t r ac t work, f r e i g h t , c a r t a g e and o t h e r o p e r a t i n g expenses . (5 ) I n more s imple t e rms , v a l u e added i s t h e t o t a l v a l u e o f o u t p u t less t h e v a l u e o f i n p u t s . The e s t i m a t e d t o t a l v a l u e added o f d o m e s t i c a l l y produced f i n i s h e d f o r e s t p r o d u c t s was $546.7m i n 1969-70. T h i s e s t i m a t e w a s t h e v a l u e added by t h e sawnwood, wood-based p a n e l s and t h e paper and pape r p r o d u c t s i n d u s t r i e s and exc luded t h e s m a l l c o n t r i b u t i o n from roundwood p r o d u c t s . The r e l a t i v e c o n t r i b u t i o n s t o t h e t o t a l v a l u e added i n p roduc t ion by t h e v a r i o u s p roduc t c l a s s e s i n pe rcen tage terms w e r e sawnwood 50%, pape r and p a p e r p r o d u c t s 42%, and wood-based p a n e l s 8 % . The t o t a l v a l u e added ($546.7m) o f f i n i s h e d f o r e s t p r o d u c t s r e p r e s e n t e d a b o u t 6.6% o f t h e t o t a l v a l u e added ($8,263.71111 o f t h e e n t i r e manufac tu r ing s e c t o r i n A u s t r a l i a i n

( 4 ) L a t e r d a t a w e r e n o t a v a i l a b l e a t t h e t i m e o f p u b l i c a t i o n a s t h e Annual Fac to ry Census was n o t conduc ted d u r i n g 1970-71.

( 5 ) Commonwealth 3ureau o f Census and S t a t i s t i c s , Eoonomic C e n s u s e s 1968-69 t o 1969 -70 , Manufac t u r z n g ~ s t a b 2 , i s h m e n t s and E i e c t r z c i t y and Gas E s t a b Z i s h m e n t s , summary of O p e r a t i o n b y I n d u s t r y C l a s s A u s t r a l i a , Canber ra , 1972, pp 6-7. ?

1969-70. Tab le No. 10 shows these f i g u r e s and t h e r e l a t i v e p o s i t i o n i n t e r m s o f v a l u e added o f t h e wood-based i n d u s t r i e s t o a l l o t h e r manufac tur ing i n d u s t r i e s . A s shown i n Table No. 1 0 , t o t a l f i n i s h e d f o r e s t p r o d u c t s r anked seven th i n t h e t h i r t e e n major manufac tur ing c l a s s i f i c a t i o n s i n t e r m s o f i t s c o n t r i b u t i o n t o t o t a l va lue added i n 1969-70.

Table No. 1 0

VALUE ADDED FOR A L L MANUFACTURING INDUSTRIES

I n d u s t r y C l a s s Value Added Pe rcen tage o f T o t a l

Food, beve rages and tobacco O t h e r machinery and equipment

( e x c l u d i n g t r a n s p o r t equipment) T r a n s p o r t equipment B a s i c m e t a l p r o d u c t s Chemical , pe t ro leum and c o a l

p r o d u c t s F a b r i c a t e d me ta l p r o d u c t s T o t a l wood, wood p r o d u c t s , pape r

and p a p e r p r o d u c t s P r i n t i n g and p u b l i s h i n g C l o t h i n g and foo twea r Non-metal l ic mine ra l p r o d u c t s Misce l l aneous manufac tur ing T e x t i l e s F u r n i t u r e and m a t t r e s s e s

-- - -

T o t a l manufac tu r ing 8,263,674 100 .O

Source: Commonwealth Bureau o f Census and S t a t i s t i c s , Economic C e n s u s e s : 1968-69 and 1969-70, Manu- f a c t u r i n g E s t a b l i s h m e n t s and E Z e c t r i c i t y and Gas E s t a b Z i s h m e n t s , Summary o f O p e r a t i o n s b y I n d u s t r y CZass: A u s t r a l i a , Reference No. 12 .23 , Canber ra , 1972, pp 8-27.

2.3.2 Values: Impor t s and E x p o r t s

The t o t a l v a l u e ( c . i . f . A u s t r a l i a n p o r t s ) o f impor t ed f o r e s t p r o d u c t s w a s $284.9m i n 1970-71. Es t ima ted f r e i g h t component w a s $55m.

I n 1970-71 impor t ed paper and paper p r o d u c t s accounted f o r 68% o f the t o t a l v a l u e o f imported f o r e s t p roduc t s ($229.9m, f .o. b. c o u n t r y o f o r i g i n ) w h i l e sawnwood accounted f o r 25% and wood-based p a n e l s 4%. The t o t a l v a l u e o f f o r e s t p r o d u c t s , ( f .o .b. c o u n t r y o f o r i g i n ) , r e p r e s e n t e d 5.5% o f A u s t r a l i a ' s t o t a l impor t e x p e n d i t u r e o f $ 4,150.1mr ( f .o.b. c o u n t r y o f o r i g i n ) , i n 1970-71.

With r e g a r d t o e x p o r t s o f f o r e s t p r o d u c t s from A u s t r a l i a , t h e f .o.b. ( A u s t r a l i a n p o r t s ) v a l u e i n 1970-71 was $ 24.5m. Paper and p a p e r p r o d u c t s c o n t r i b u t e d 49% o f t h a t va lue , sawnwood 22%, wood-based p a n e l s 16% and round- wood 2%. A u s t r a l i a ' s t o t a l e x p o r t e a r n i n g s i n t h e same y e a r w e r e $ 4,374.7m, ( f .o.b. A u s t r a l i a n p o r t s ) . F o r e s t p r o d u c t s e x p o r t s c o n t r i b u t e d o n l y 0.6% t o t o t a l e x p o r t e a r n i n g s .

2.4 Employment

A s p r e v i o u s l y mentioned i n t h e d i s c u s s i o n s o f employment i n f o r e s t r y i n S e c t i o n 1 . 3 , c o n s i s t e n t d a t a on t h e number o f p e r s o n s employed i n t h e i n d u s t r y a r e d i f f i c u l t t o o b t a i n . Table No. 11 shows e s t i m a t e s o f numbers o f employees i n t h e major wood-based i n d u s t r i e s f o r s e l e c t e d y e a r s . The employment s t a t i s t i c s i n Tab le No. 11 show t h a t t o t a l wood- based i n d u s t r i a l employees (88 420) were a l m o s t e q u a l l y d iv ided between t h e i n i t i a l c o n v e r s i o n i n d u s t r i e s ( 4 4 820) and t h e re- manufac tur ing i n d u s t r i e s (43 600) i n 1969-70.

Sawmills employed o v e r h a l f (58%) o f t h e i n i t i a l convers ion i n d u s t r y p e r s o n s and papermaking accounted f o r about 25%. The remain ing 1 7 % w e r e employed i n p l y , v e n e e r and bark m i l l s . Wi th in t h e re -manufac tur ing i n d u s t r y c l a s s i - f i c a t i o n , j o i n e r y , cooperage and o t h e r wooden manufac tures employed 58% o f t h e 43 600 workers , c a rdboa rd boxes and c o n t a i n e r manufacture employed 24% w h i l s t paper bags and o t h e r paper p r o d u c t s accounted f o r t h e remaining 1 8 % . I n t e r m s o f r e l a t i v e p r o p o r t i o n s o f t h e t o t a l wood-based i n d u s t r y employment (88 420) , sawmills accoun ted f o r 29%, j o i n e r y and o t h e r wooden manufac tures for 28%, papermaking f o r 1 3 % and cardboard boxes and c a r t a g e c o n t a i n e r s f o r 12%.

The f i g u r e s shown i n Tab le N o . 11 exc lude p e r s o n s

i employed i n t h e f u r n i t u r e and f i t t i n g s , p r i n t i n g bookbinding and photography i n d u s t r i e s . The t o t a l wood-based i n d u s t r i a l employment f i g u r e o f 88 420 r e p r e s e n t e d 7% o f t h e t o t a l number

I o f employees i n manufac tu r ing i n d u s t r y (1 318 537) i n 1969-70.

~ 2 . 4 . 1 Employment Trends

Trends i n employment i n t h e wood-based i n d u s t r i e s o v e r t h e p a s t t h i r t y y e a r s c a n be s een i n Tab le No. 11. The in format ion i n t h a t t a b l e shows t h a t t o t a l i n d u s t r i a l employees i n c r e a s e d markedly by a b o u t 26 000 o v e r t h e s i x y e a r p e r i o d 1944-45 t o 1950-51, main ly due t o t h e i n c r e a s e d employment i n t h e s awmi l l i ng and j o i n e r y i n d u s t r i e s .

Table No. ll EhlPLOYMENT STATISTICS FOR MAJOR WOOD-BASED INDUSTRIES SELECTED YEARS

Number of Persons

Employment i n industry

I n i t i a l conversion - sawmills - plymills ( c . veneers) - bark m i l l s - paper-making

Sub-total Re-manufacturing - joinery - cooperage - boxes and cases - woodturning, wood-

carving e tc . - wall and ce i l ing boards - cardboard boxes

cartage containers - paper bags

Sub-total 15 232 17 913 28 423 30 417 33 972 39 204 40 315 41 712 43 323 43 600

Total i ndus t r i a l 37 832 43 146 69 083 74 692 78 800 82 097 82 554 83 986 88 340 88 421

( a ) The c l a s s i f i ca t ion of employment f igures i n fores t industr ies changed with 1968-69 Economic Census. As a consequence, industry s t a t i s t i c s from tha t year are not d i r e c t l y comparable with the corresponding s t a t i s t i c s f o r e a r l i e r years. (1)) Includes other paper products.

Note: Sorre degree of estimation has been necessary i n the e a r l i e r years, and overal l the f igures represent minima since complete coverage of pr ivate fores t ry s t a t i s t i c s has not been possible.

Adapted from: D. Wilsqn, Conpeizdi:iwn of .lustraZim Forest Products S t a t i s t i c s , 1935-36 t o 1,OGG-67, Forestry and Tinber Bureau, Canberra, 1969, p. 143;and Forestry and Timber Bureau, Annual Report 1971-72, Canberra, 1972, p. 69.

Continued growth i n employment throughout t h e e n t i r e per iod was su s t a ined i n paper-making, jo inery , wall and c e i l i n g boards, cardboard boxes and ca r t age con t a ine r s , and paper bags. A much more r ap id growth r a t e i n employment occurred i n t h e re-manufacturing i n d u s t r i e s compared wi th t h e i n i t i a l conversion i n d u s t r i e s .

Graph V I demonstrates t h e t r ends shown i n Table NO. 11 f o r s e l e c t e d wwd-based i n d u s t r i e s .

GRAPH VI

EMPLOYMENT IN SELECTED WOOD- USING INDUSTRIES

Employees ('000)

60 0 40 - Sawmills -

20 - Paper Making - Plymills

------------ - 0 - r - 1 1 I * 1 1 1 1

. .-.-.- .-.-.--. _._. 1945-46 50-51 55-56 60-61 65-66

SOURCE : Forestry and Timber Bureau "Forestry Industry Graphsb

D.Wi lson, p .37 . Canberra 1970

'Annual Report 1971-72; p69. Canberra 1972

2.5 P l an t and Machinery

Another c r i t e r i o n which can be used t o demonstrate t h e s i gn i f i c ance of f o r e s t r y i n t h e n a t i o n a l economy is t h e amount o f c a p i t a l i nves t ed i n t h e wwd-based i n d u s t r i e s compared w i th o t h e r manufacturing s e c t o r s . S t a t i s t i c s showing deprec ia ted va lues f o r p l a n t and machinery can be used f o r t h i s purpose.

Depreciated book values a r e es t imated p r imar i l y f o r t axa t i on purposes. Various t a x dep rec i a t i on concessions, d i f f e r e n t methods f o r e s t ima t ing annual dep rec i a t i on r a t e s and continued use o f machinery which may have been w r i t t e n o f f i n

terms of book v a l u e , are a l l fac tors w h i c h detract from t h e u s e f u l n e s s of d e p r e c i a t e d v a l u e s as a r e f l e c t i o n of t h e capi ta l i n v e s t e d i n p l a n t a n d m a c h i n e r y .

Despite t h e s e l i m i t a t i o n s however , T a b l e N o . 1 2 i s p r e s e n t e d t o give a n i n d i c a t i o n o f t h e relat ive amoun t s of c a p i t a l employed i n t h e v a r i o u s wood-based i n d u s t r i e s i n 1967-68.

T a b l e N o . 1 2

VALUE OF PLANT AND MACHINERY IN THE

WOOD-BASED INDUSTRIES(a) :

AUSTRALIA, 1967-68

I n d u s t r y Value P e r c e n t a g e P e r c e n t a g e 0 f 0 f

S u b - T o t a l T o t a l

I n i t i a l c o n v e r s i o n i n d u s t r i e s

- s a w m i l l s 39 ,538 24 .2 1 6 . 5 - p l y and v e n e e r m i l l s 6 ,664 4 . 1 2.8 - b a r k m i l l s 3 - - - pape r -mak ing 1 1 7 , 0 2 0 71.7 48.9

S u b - k o t a l 1 6 3 , 2 2 5 100 .0 68.2

R e - m a n u f a c t u r i n g i n d u s t r i e s

- j o i n e r y 1 3 , 3 3 3 17 .6 5 .6 - c o o p e r a g e 5 5 - - - b o x e s a n d cases 1 , 5 8 5 2 . 1 0.7 - w o o d t u r n i n g etc. 1 , 9 6 9 2.6 0.8 - w a l l a n d c e i l i n g b o a r d s 21 ,112 27.8 8.8 - c a r d b o a r d b o x e s , c a r t o n s etc. 29 ,642 39 .0 12 .4 - p a p e r b a g s 8 , 2 9 3 1 0 . 9 3 .5

S u b - t o t a l 75 ,989 100 .0 31.8

T o t a l i n d u s t r i a l 239 ,214 - 100.00

(a) Depreciated book v a l u e .

Adapted from: Commonwealth B u r e a u o f C e n s u s a n d S t a t i s t i c s , M a n u f a c t u r i n g I n d u s t r y , 1 9 6 7 - 6 8 , BuZZe t in No. 5 C a n b e r r a , 1 9 6 9 , pp. 8 7 , 8 8 .

I t i s apparent from Table No. 12 t h a t t he i n i t i a l conversion i n d u s t r i e s have over t w i c e t h e c a p i t a l investment of t h e re-manufacturing i n d u s t r i e s , due mainly to t h e heavy investment i n paper making. Within t he re-manufacturing i ndus t ry c l a s s i f i c a t i o n , t he wa l l and c e i l i n g board i ndus t ry and t h e cardboard box and con ta ine r i ndus t ry toge ther accounted f o r a lmost 67% of t h e deprec ia ted value o f p l a n t and machinery.

The Manufacturing Indus t ry B u l l e t i n (11) l i s t s s ix t een manufacturing i ndus t ry groups, o f which t h e wood-based i n d u s t r i e s i s one. Table No . 1 3 shows t h e t o p f i v e indus t ry groups ranked i n o r d e r o f t h e amounts of deprec ia ted values of p l a n t and machinery f o r 1967-68. The wood-based i n d u s t r i e s w e r e ranked f i f t h wi th a t o t a l va lue of $ 239.2111 which w a s less than h a l f t h e deprec ia ted value of t he f o u r t h ranked group.

Table No. 1 3

VALUE OF PLANT AND MACHINERY, BY CLASS OF INDUSTRY(a) :

AUSTRALIA, 1967-68

Class o f I ndus t ry Value Percentage o f Tota l

I n d u s t r i a l metals , machines, conveyances 1,774,241 35.8 Heat, l i g h t and power 953,531 1 9 . 2 Chemicals, dyes, explos ives , p a i n t s ,

o i l s , g rease 613,373 12.4 Food, d r i nk and tobacco 561,607 11.3 Wood-based i n d u s t r i e s (b ) 239,214 4.8

Tota l Five Indus t ry Group 4,141,966 83.5

Total Manufacturing 4,962,203 100.0

( a ) Depreciated book value . (b ) A s shown i n Table No. 1 2

Adapted from: Commonwealth Bureau of Census and S t a t i s t i c s , Manufacturing Industry 1967-68, Bulletin No. 5 , Canberra, 1969, p. 84.

(11) Commonwealth Bureau o f Census and S t a t i s t i c s , Manufacturing Industry 196 7-68, Bulletin No. 5, Canberra, 1969, p. 84.

2.6 C a p i t a l - Labour Ratios

One o t h e r c r i t e r i o n f o r i n d i c a t i n g the s i g n i f i c a n c e o f f o r e s t r y i n t h e n a t i o n a l economy i s the c a p i t a l - l a b o u r r a t i o which is t h e c a p i t a l i n v e s t m e n t p e r p e r s o n employed i n e a c h i n d u s t r y . D e s p i t e t h e l i m i t a t i o n s o f u s i n g d e p r e c i a t e d book v a l u e to ref lec t t h e c a p i t a l i n v e s t e d i n p l a n t a n d mach ine ry , a n d t h e p rob lems o f o b t a i n i n g estimates o f employees w i t h i n e a c h sector of t h e i n d u s t r y , t h e f o l l o w i n g two tables g i v e a n i n d i c a t i o n o f t h e r e l a t i v e c a p i t a l i n t e n s i t i e s o f v a r i o u s i n d u s t r i e s .

B o t h T a b l e s No. 1 4 a n d N o . 1 5 have b e e n d e r i v e d f r o m p r e v i o u s t ab les i n t h i s p a p e r .

T a b l e No. 1 4

ESTIMATED CAPITAL-LABOUR RATIOS IN THE WOOD-BASED INDUSTRIES:

AUSTRALIA, 1967-68

I n d u s t r y P l a n t P e r s o n s C a p i t a l / a n d Employed Labour

Mach ine ry R a t i o ( a )

$'OOO no. $ p e r man

I n i t i a l c o n v e r s i o n i n d u s t r i e s

- s a w m i l l s 39 ,538 28 428 1 ,390.8 - p l y a n d v e n e e r m i l l s 6 ,664 3 883 1 ,716.2 - b a r k m i l l s 3 1 5 600.0 - paper-making 117 ,020 9 948 11 ,763.8

Sub-To ta l 1 6 3 , 2 2 5 42 274 3 ,861.1

Re-manufac tu r ing i n d u s t r i e s

- j o i n e r y - c o o p e r a g e - b o x e s a n d cases - w o o d t u r n i n g etc. - w a l l a n d c e i l i n g boards - c a r d b o a r d boxes, c a r t o n s - p a p e r b a g s

S u b - t o t a l

1 3 , 3 3 3 1 9 668 677.9 5 5 1 7 9 307.3

1 , 5 8 5 2 580 614.3 1 , 9 6 9 2 1 7 1 907.0

21 ,112 2 772 7,616.2 e t c . 29 ,642 1 0 754 2,756.4

8 , 2 9 3 3 588 2,311.3

T o t a l i n d u s t r i a l 239,214 8 3 986 2,848.3

( a ) D e p r e c i a t e d book v a l u e .

Adapted f r o m : Commonwealth Bureau o f C e n s u s a n d S t a t i s t i c s , Manufactur ing I n d u s t r y 1 9 6 7 - 6 8 , B u l l e t i n No. 5 , C a n b e r r a , 1 9 6 9 , pp. 27, 8 7 , 88.

T a b l e N o . 1 4 shows tha t i n 1967-68, t h e paper-making i n d u s t r y was by f a r t h e m o s t c a p i t a l i n t e n s i v e wood-based i n d u s t r y f o l l o w e d by t h e w a l l a n d c e i l i n g b o a r d i n d u s t r y . The m o s t l a b o u r i n t e n s i v e i n d u s t r i e s w e r e t h o s e c o n c e r n e d w i t h t i m b e r p r o d u c t s s u c h as j o i n e r y , c o o p e r a g e , boxes and cases, a n d wood- t u r n i n g , a l l o f wh ich h a d a d e p r e c i a t e d c a p i t a l i n v e s t m e n t p e r man o f less t h a n $ 1 , 0 0 0 .

A s i m i l a r c o m p a r i s o n , which shows d e p r e c i a t e d c a p i t a l p e r man f o r e a c h o f t h e s i x t e e n m a j o r i n d u s t r y g r o u p s a s d e f i n e d i n t h e M a n u f a c t u r i n g I n d u s t r y B u l l e t i n , i s g i v e n i n T a b l e No. 1 5 .

Table No. 1 5

CAPITAL-LABOUR RATIOS FOR A L L MANUFACTURING INDUSTRIES:

AUSTRALIA, 1 9 6 7 - 6 8

- p~~

N a t u r e o f I n d u s t r y P l a n t P e r s o n s C a p i t a l / a n d Employed Labour

Mach ine ry R a t i o (a)

$ ' 000 no . $ p e r man

H e a t , l i g h t a n d power 953 ,531 1 5 895 59 ,989 C h e m i c a l s , d y e s , e x p l o s i v e s ,

p a i n t s , o i l s , e tc. 613 ,373 55 200 1 1 , 1 1 2 T r e a t m e n t o f n o n - m e t a l l i f e r o u s

mine and q u a r r y p r o d u c t s 220,318 26 834 8 ,210 Food, d r i n k and t o b a c c o 561,607 1 4 6 468 3,834 B r i c k s , p o t t e r y , g l a s s , etc. 9 7 , 6 2 3 27 243 3 ,583 Wood-based i n d u s t r i e s 239,214 8 3 986 2 ,848 Rubber 5 9 , 7 6 5 2 1 1 4 2 2 ,827 I n d u s t r i a l m e t a l s , m a c h i n e s ,

c o n v e y a n c e s 1 , 7 7 4 , 2 4 1 268 953 2 , 8 2 1 S t a t i o n e r y , p r i n t i n g ,

b o o k b i n d i n g 1 4 5 , 6 8 3 66 488 2 , 1 9 1 M i s c e l l a n e o u s p r o d u c t s 71 ,713 35 692 2,009 T e x t i l e s , t e x t i l e g o o d s 1 2 9 , 7 0 6 74 231 1 , 7 4 7 M u s i c a l i n s t r u m e n t s 1 , 0 7 6 832 1 , 2 9 3 P r e c i o u s m e t a l s , j e w e l l e r y ,

p l a t e 7 ,870 6 1 6 3 1 , 2 7 7 S k i n s , l e a t h e r 1 0 , 8 8 0 11 498 946 F u r n i t u r e , b e d d i n g , e tc . (b) 1 5 , 2 0 3 26 716 569 C l o t h i n g 60 ,400 112 264 538

T o t a l m a n u f a c t u r i n g 4 ,962 ,203 1 339 605 3 ,704

( a ) D e p r e c i a t e d book v a l u e . ( b ) I n c l u d e s b a s k e t w a r e , w i c k e r - ware , bamboo a n d p e r a m b u l a t o r s .

Adapted from: Commonwealth B u r e a u o f Census and S t a t i s t i c s , M a n u f a c t u r i n g I n d u s t r y , 2967-68, B u Z Z e t i n Uo. 5 , C a n b e r r a , 1 9 6 9 , pp . 24-28, 85-88.

Table No. 15 shows t h a t i n t o t a l , t h e wood-based i n d u s t r i e s ranked s i x t h according t o t h e cap i t a l - l abour r a t i o s . However, t h e r e was very l i t t l e d i f f e r e n c e i n t h e r a t i o s between t h o s e i n d u s t r i e s ranked s i x t h t o e igh th .

SUMMARY AND CONCLUSIONS

The f i r s t ob j ec t i ve of t h i s paper was t o de sc r ibe t h e cu r r en t s i t u a t i o n and p a s t t r e n d s o f t h e Aus t ra l i an f o r e s t r y indus t ry . The second o b j e c t i v e was t o demonstrate t h e s i g n i f i c a n c e o f f o r e s t r y i n t h e n a t i o n a l economy i n t e r m s o f s e l e c t e d c r i t e r i a using aggregate d a t a .

An examination o f published s t a t i s t i c s determined t h a t t h e most app rop r i a t e way t o provide t h e information r equ i r ed t o achieve t h e o b j e c t i v e s w a s t o p r e sen t t h i s paper i n two p a r t s ; t h e f i r s t dea l i ng wi th f o r e s t r y which included a l l ope ra t i ons up t o t h e sawmill door; and t h e second p a r t d e a l i n g wi th wood-based i n d u s t r i e s cover ing a l l ope ra t i ons from t h e sawmill through subsequent p rocess ing u n t i l pro- duc t ion of t h e f i n i s h e d product.

The main r e s t r i c t i o n s which prevented complete a t t a inment o f both o b j e c t i v e s w e r e t h e u n a v a i l a b i l i t y of s u i t a b l e s t a t i s t i c s o r t h e complete l a c k of da t a i n some ca se s and s u b s t a n t i a l i ncons i s t enc i e s between e s t ima te s f o r some i t e m s g iven i n d i f f e r e n t s t a t i s t i c a l b u l l e t i n s .

The consequences o f t he se r e s t r i c t i o n s w e r e t h a t some i t e m s , which may have been regarded a s important by va r ious members o f t he f o r e s t r y i n d u s t r y , have no t been covered i n t h i s paper. A somewhat piece-meal approach had t o be adopted f o r s e l e c t i n g c r i t e r i a f o r which da t a were a v a i l a b l e t o compare f o r e s t r y and t h e wood-based i n d u s t r i e s r e s p e c t i v e l y w i th o t h e r primary i n d u s t r i e s and manufacturing i n d u s t r i e s . L i t t l e information was provided t o exp l a in t h e causes o f major f l u c t u a t i o n s i n t h e p a s t t r e n d s o f demand and supply o f va r ious f o r e s t products .

However, given t he se r e s t r i c t i o n s and t h e i r consequences, t h e main po in t s which emerge a r e :

1. The t o t a l f o r e s t ed a r e a i n Aus t r a l i a es t imated i n March 1971 i s about 39m hec t a r e s , o f which about 15.7m a r e c l a s s i f i e d a s r e se rva t i ons . About 10.9m hec ta res o f t h e r e s e r v a t i o n s a r e c l a s s i f i e d a s product ion r e se rves f o r t h e prime purpose of t imber production.

2 . Softwood (coniferous) p l a n t a t i o n s exceed 450 000 h e c t a r e s and a r e ga in ing i n economic importance. The main spec i e s is P i n u s r a d i a t a which comprises 6 8 % of a l l coni - f e rous p l a n t a t i o n s , l oca t ed mainly i n N e w South Wales, South A u s t r a l i a and Vic to r ia . Since 1960 t h e a r ea of softwood p l a n t i n g s has more than doubled. This r ap id expansion was

a s s i s t e d by Commonwealth f i n a n c i a l a i d t o t h e S t a t e s under t he S o f t w o o d F o r e s t r y A g r e e m e n t s Acts o f 1 9 6 7 a n d 1 9 7 2 which t o June 1973 had con t r ibu ted $ 26.9m.

3. Pub l i c ly owned l and comprised 30.8m hec ta res of t he t o t a l f o r e s t e d a r e a o f 39m hec t a r e s i n 1971. The balance w a s p r i v a t e l y owned.

4 . Fo re s t ry accounted f o r about 3% (or 12 328 persons) o f t h e t o t a l work fo r ce employed i n a l l primary product ion i n d u s t r i e s i n 1971. Xural i n d u s t r i e s employ about 35% of t he t o t a l primary labour force .

5. The g ross va lue o f product ion a t s a w m i l l door f o r f o r e s t products i n 1970-71, was $ 1 4 0 m which was 3.6% of t h e t o t a l g ross va lue of product ion f o r a l l primary i n d u s t r i e s i n Aus t ra l i a . This propor t ion o f t o t a l g ross value of production has f l u c t u a t e d between 2 % and 3.6% s ince 1965-66.

6 . Sawnwood and paper products together accounted f o r 96% by volume of a l l wood-based imports i n 1970-71. Paper and paper products i n d u s t r i e s accounted f o r 59% of a l l wood-based imports.

7. Tota l volume, i n cubic metres l o g and l og equ iva len t , o f domest ica l ly produced wood products i n 1970-71 was 11.8m cub ic m e t r e s ; volume o f imports was 5.0m cubic metres and volume of expo r t s 435 000 cub ic metres.

8. General t r e n d s o f product volumes i nd i ca t ed t h a t :

( a ) Sawnwood t o t a l expo r t s have remained f a i r l y cons tan t over t h e p a s t 10 years ; t o t a l imports, production and domestic demand rose sharp ly from 1945-46 t o 1951-52, and t h e r e a f t e r expanded a t a much slower r a t e .

(b) The t o t a l demand f o r sof tboard has remained r e l a t i v e l y s t a b l e s i n c e 1945-46. The t o t a l demand f o r hardboard and plywood f l u c t u a t e d somewhat, bu t gene ra l l y showed an o v e r a l l r ap id expansion up t o 1960, when t h e competi t ion from pa r t i c l eboa rd caused a temporary d e c l i n e i n t h e demand f o r plywood .

(c) The aggregate product ion , demand and imports o f paper and paper p roduc t s have a l l shown a genera l long- term expansion, a l though sub j ec t t o s eve ra l marked f l u c t u a t i o n s , p a r t i c u l a r l y i n 1951-52, 1954-1955 and 1960-61.

9. In terms o f va lue added t o t h e economy, the wood- based i n d u s t r i e s con t r i bu t ed about 6.6% of t h e t o t a l va lue added ($8,263.7m), o f t h e e n t i r e manufacturing s e c t o r i n ~ u s t r a l i a i n 1969-70.

10. The t o t a l va lue o f ' imported f o r e s t products w a s $ 229.9m o r 5.5% o f A u s t r a l i a ' s t o t a l import expendi ture of $ 4,150.lm, f.0.b. count ry of o r i g i n i n 1970-71. A u s t r a l i a ' s t o t a l e x p o r t e a r n i n g s i n t h e same yea r were $ 4,374.7m f.0.b. A u s t r a l i a n p o r t s ; of which $ 24.5m o r 0.6% was f o r e x p o r t s of f o r e s t products .

11. I n 1970, wood-based i n d u s t r i e s employed 88 420 people which was 7% o f t o t a l employees i n a l l manufacturing i n d u s t r i e s .

1 2 . Growth r a t e s i n employment i n t h e wood-based i n d u s t r i e s have been s u b s t a n t i a l l y more r a p i d i n t h e re- manufacturing i n d u s t r i e s compared w i t h t h e i n i t i a l convers ion i n d u s t r i e s .

13. Based on 1967-68 d e p r e c i a t e d c a p i t a l s t a t i s t i c s f o r p l a n t and machinery i n wood-based i n d u s t r i e s , i n i t i a l convers ion i n d u s t r i e s have a lmost twice t h e c a p i t a l investment o f t h e re-manufacturing i n d u s t r i e s due t o t h e heavy investment i n sawmil l ing and paper making o p e r a t i o n s .

1 4 . I n t e r m s o f d e p r e c i a t e d c a p i t a l , wood-based i n d u s t r i e s ranked f i f t h wi th t o t a l d e p r e c i a t e d c a p i t a l o f $ 239.2m, i n a group o f s i x t e e n major manufacturing groups t o t a l l i n g $ 4,962m f o r p l a n t and machinery i n 1967-68.

15. Of t h e wood-based i n d u s t r i e s , i n i t i a l convers ion i n d u s t r i e s had double t h e c a p i t a l / l a b o u r r a t i o o f t h e re- manufactur ing i n d u s t r i e s i n 1967-68.

1 6 . Wood-based i n d u s t r i e s ranked s i x t h i n a t o t a l of s i x t e e n major manufacturing groups i n terms of e s t ima ted c a p i t a l / l a b o u r r a t i o s .

I t i s concluded t h a t t h e f o r e s t r y i n d u s t r y i n A u s t r a l i a has a major r e source base a v a i l a b l e f o r commercial e x p l o i t a t i o n ; t h a t t h e i n d u s t r y i s a s u b s t a n t i a l impor ter o f wood-based p roduc t s and a minor e x p o r t e r r e s u l t i n g i n a n e t i n t e r n a t i o n a l t r a d e d e f i c i t of t h e o r d e r of $ 190 - $ 200m p e r annum; t h a t it i s t h e l a r g e s t employer of c a p i t a l and l a b o u r r e s o u r c e s a f t e r t h e f o u r l a r g e s t manufacturing i n d u s t r y groups , and t h a t compared wi th o t h e r r u r a l i n d u s t r i e s , pro- d u c t i o n f o r e s t r y has been a minor r e c i p i e n t of d i r e c t Commonwealth f i n a n c i a l a i d . Hence t h e o b j e c t i v e s s p e c i f i e d i n t h e i n t r o d u c t i o n o f t h i s paper have, t o a l a r g e e x t e n t , been a t t a i n e d d e s p i t e t h e major d a t a r e s t r i c t i o n s mentioned p r e v i o u s l y .

Ii4DEX TO TABLES

Tab le No. Page

1. Est imated F o r e s t A r e a s : By S t a t e and A u s t r a l i a

2. S t a t e and F e d e r a l F o r e s t Reserve A r e a s

3. Coni fe rous P l a n t a t i o n A r e a s

4 . Ownership o f F o r e s t Lands

5. Labour Force : A g r i c u l t u r e , F o r e s t r y , F i s h i n g and Hunting

6. Employment S t a t i s t i c s f o r F o r e s t r y : S e l e c t e d Years

7. Gross Value o f P r o d u c t i o n : Primary I n d u s t r y ( exc lud ing Mining) : A u s t r a l i a 1970-71

8. Commonwealth Budget P r o v i s i o n s f o r F i n a n c i a l A s s i s t a n c e t o t h e Rura l S e c t o r

9. Log and Log E q u i v a l e n t o f F o r e s t P roduc t s Produced, Traded and Consumed i n A u s t r a l i a , 1970-71

10 . Value Added f o r A l l Manufac tur ing I n d u s t r i e s 1969-70

11. Employment S t a t i s t i c s f o r Major Wood-Based I n d u s t r i e s : S e l e c t e d Years

12 . Value o f P l a n t And Machinery i n t h e - Wood-Based I n d u s t r i e s : A u s t r a l i a , 1967-6 8

13. Value o f P l a n t And Machinery : By C l a s s o f I n d u s t r y : A u s t r a l i a , 1967-68

1 4 . Es t imated Capi ta l -Labour R a t i o s i n t h e Wood- Based I n d u s t r i e s : A u s t r a l i a 1967-68

15 . Capi ta l -Labour R a t i o s f o r A l l Manufactur ing I n d u s t r i e s : A u s t r a l i a , 1967-68

-34-

INDEX TO GRAPHS

Graph f i g @

I Area o f Coniferous P l a n t a t i o n s : By Crown Land and P r i v a t e Property 7

11 Area o f Annual P lan t ings of Coniferous Fo re s t s 8

111 Sawnwood, Apparent Consumption - Broadleaved P lus Coniferous - A u s t r a l i a 1 9

I V Wood-Based Panel Products - Apparent Consumption 1 9

V Paper and Paper Products - Apparent Consumption 2 0

V I Employment i n Se lec ted Wood - Using I n d u s t r i e s 2 5

DEFINITIONS*

BZockboard (Corestock) A composite board b u i l t up o f a core composed o f s t r i p s o f wood of var ious dimensions bu t of uniform th ickness glued t oge the r between veneers.

BroadZeaved (Non-coniferous, hardwood) A l l woods derived from trees c l a s s i f i e d b o t a n i c a l l y a s 'Angiospermae' e .g . , spec i e s of Eucalyptus, Coachwood (Ceratopetalum apetalum), Queensland maple (F l i nde r s i a b ray leyana) , P a c i f i c maple (Shorea spp . ) , Ramin (Gonystylus spp . ) , Teak (Tectona g rand i s ) , etc.

Coni ferous (Softwood) A l l woods der ived from trees c l a s s i f i e d bo t an i ca l l y a s 'Gymnospermae' e -g . , Hoop p ine ( ~ r a u c a r i a cunninghamii) , Kauri p i n e (Agathis palmers t o n i ) , ~ o u g l a s f i r (Pseudo tsuga t a x i f o l i a ) , Redwood (Sequoia sempervirens) , Radiata p ine (Pinus r a d i a t a ) , Cypress p ine ( C a l l i t r i s spp.) , etc.

Crown Land Land t h a t i s t h e una l i ena ted p roper ty of t h e Crown, e.g. , S t a t e f o r e s t s , t imber rese rves and vacant Crown land.

Fibreboard A shee t ma te r i a l manufactured from f i b r e s o f wood o r o t h e r l i gno -ce l l u lo s i c m a t e r i a l s , wi th t h e primary bond de r iv ing from t h e arrangement o f t h e f i b r e s and t h e i r i nhe ren t adhesive p rope r t i e s . Bonding agen t s o r o t h e r m a t e r i a l s may be added dur ing manufacture t o inc rease s t r e n g t h o r r e s i s t a n c e t o mois ture , f i r e , i n s e c t s o r decay, o r t o improve some o t h e r p roper ty of t h e product. (Simi lar products made from p ieces of wood o r pieces. of o t h e r l i g n o - c e l l u l o s i c mate r ia l o r from wood f l o u r with added b inders a r e excluded, a s a r e boards o f gypsum o r o t h e r mineral m a t e r i a l ) .

Compressed Fibreboard (Hardfibreboard, hardboard) - f ibreboard wi th a d e n s i t y over 25 l b per cub ic foo t .

Non-compressed Fibreboard (Sof t f ib reboard , so f tboard , i n s u l a t i o n boards) - f ib reboard wi th a d e n s i t y o f 2 5 l b pe r cub ic f o o t o r less.

Log e q u i v a l e n t Estimated q u a n t i t y o f roundwood (raw m a t e r i a l ) r equ i red f o r t h e product ion of t h e f i n i shed wood product.

paperboard The t e r m u s u a l l y de s igna t e s a l l grades o f f i b r o u s mate r ia l which a r e 0.012 inch o r more i n th ickness made on a paperboard machine, e .g. , pu lp boards, f e l t boards, duplex, corrugated paperboard, etc.

par t i cZe board A shee t m a t e r i a l manufactured from small p i ece s o f wood o r o t h e r l i g n o - c e l l u l o s i c m a t e r i a l s (e.g. , ch ip s , f l a k e s , s p l i n t e r s , s t r a n d s , sh reds , sh ive s , e tc .) , agglomerated by use o f an organ ic binder t oge the r wi th

one o r more of t h e fol lowing agents : h e a t , p ressure , humidity, a c a t a l y s t , etc. (Wood wool o r o t h e r p a r t i c l e - boards, wi th inorganic b inders , a r e excluded).

p l a n t a t i o n A f o r e s t crop r a i s e d a r t i f i c i a l l y , e i t h e r by sowing o r p l an t i ng .

P r i v a t e p r o p e r t y (P r iva t e l and) Land n o t proper ty o f t h e Crown.

Pulpwood Wood c u t o r prepared p r i m a r i l y f o r manufacture i n t o wood pulp , inc lud ing wood used f o r t h e manufacture of pa r t i c l eboa rd .

~ o u g h sawn (Undressed timber) Timber i n t h e form i n which it comes from t h e saw, i . e . , none o f t h e su r f ace s has been smoothed b u t ends may have been squared, d e f e c t s may have been c u t o u t , and timber may have been seasoned, e.g., s c a n t l i n g s , j o i s t s , p lanks , e tc .

Sawnwood Wood sawn lengthwise ( f o r example, p lanks , beams, j o i s t s , boards, r a f t e r s , s c a n t l i n g s , l a t h s , e t c . ) ; wood planed, tongued o r grooved; wood chamfered, rabbeted, V- jo in t , beaded, etc. Sawn ra i lway s l e e p e r s are excluded.

S Z e e p e r s (Railway c r o s s - t i e s )

(a) Sawn S leepers are s l e e p e r s c u t i n sawmills.

(b) Hewn S leepers a r e s l e e p e r s c u t i n t h e f o r e s t by hand us ing an adze, an axe, o r a swing-saw.

Woodpulp Fibrous ma te r i a l prepared from wood by mechanical and/or chemical processes f o r f u r t h e r manufacture i n t o paper , paperboard, f ib reboard , o r o t h e r c e l l u l o s i c products .

*Source: D. Wilson, Compendium o f A u s t r a l i a n F o r e ~ t p r o d u c t s S t a t i s t i c s , 1935-36 t o 1966-67, Fores t ry and Timber Bureau, Canberra, 1 9 6 9 , p. 155.