Plantation industry performanceThe forest and timber industry...

Plantation industry performance
The forest and timber industry provides economic, social and environmental benefit to Australia, and
particularly for rural communities. Over the last five years, the retail forest projects sector has injected
over $2.0 billion into rural communities for plantation expansion.
Industry profile
• A large proportion of the $18 billion turnover in the industry is produced by plantations in
regional areas of Australia.
• Plantations provide jobs for many of the 135,000 people employed in the timber growing,
harvesting and processing sectors of the forest and timber industry.
• Retail forestry projects are currently establishing most of Australia’s new plantation resource.
• The sector has developed significant export markets and links to domestic processing.
Australian Plantation Timber Industry - Submission on the Australian Government’s proposed taxation arrangements for plantation forestry
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• The forest and timber industry is on the verge of realising a $4 billion increase in domestic
value-added processing capacity, underpinned by an expanding plantation resource,
increasingly provided by retail forestry projects. This investment in increased domestic
processing capacity is highly dependent upon the continuation of consistent ongoing
planting levels.
• Current and proposed industry developments could deliver an additional 4,600 jobs to
regional Australia.

Benefits for rural communities
Plantation development has helped stem the underlying decline of many rural communities, providing
diversity and long-term stability to local economies.
• Research shows that continued development of the resource and further processing can result
in positive population and employment growth in these communities.
• Plantation development is assisting to offset some of the regional impacts of removing areas
of native forests from timber production.
Positive environmental benefits
Plantations provide positive environmental benefits through biodiversity, erosion control and salinity
control, land rehabilitation, water quality and carbon sequestration.
• Private sector investment and commercial tree planting – the essential elements of retail
forestry projects – make a vital contribution to more sustainable land management.
• Although trees do use water, research has shown that in the general range of rainfall
(500–800mm/yr), this use is similar to water use by pasture.
• Climate change, irrigation and farm dams have been identified as greater risks to water
availability than broadscale plantation development.
• Plantations established by retail forestry projects have made and continue to make a
significant contribution to Australia’s ability to meet the Kyoto emissions target.

http://www.a3p.asn.au/admin/assets/pdf/Submissions%20and%20Reports/2007%20Submission%20-%20Plantation%20Tax.pdf