ANNUAL REPORT 09/10 - Forest and Wood Products Australia

4 | EXECUTIVE SUMMARY
CHAIRMAN’S REPORT
For someone not involved in the industry, the
Australian forest and wood products sector can
appear somewhat bewildering and complex. This
complexity is in part driven by the fact that it is
not one industry, but rather an interlocking set of
industries that are at times complementary but
can also be highly competitive.
As the industry services company, FWPA must rise
above this intra-sector competitiveness and develop
programs that deliver outcomes for the benefi t of
company members and levy payers. It must also consider
the needs of its single largest funder, the Australian
Government, and ensure that FWPA activities deliver
benefi ts to the broader Australian community.
The outcomes desired by industry and the Australian
Government are not mutually exclusive. For example, the
industry wants to increase the use of sustainably sourced
wood products in the built environment. The Australian
Government wants to reduce our carbon footprint and
the increased use of sustainably sourced wood products
can help achieve this outcome.
Likewise, the Australian Government would like
to increase the productivity and international
competitiveness of rural industries. Australia’s forest
growing and wood processing industries also seek
this outcome.
In November 2009, the rural research and development
corporations celebrated the 20-year anniversary of the
Act of Parliament that was the genesis of the sector
– the Primary Industries and Energy Research and
Development (PIERD) Act.
In our modern society, 20 years is a long time for many
institutional arrangements. Quite appropriately, the
Australian Government considered it timely to undertake
a comprehensive review of the rural research and
development corporations (RDC) sector to determine
whether the current arrangements are still relevant and
whether there are opportunities for improvement.
FWPA ANNUAL REPORT 09/10
CHAIRMAN
Mr Ron Adams
This review by the Productivity Commission is still under
way. FWPA has welcomed the review and is working
proactively with the Commission to ensure that it has a
full understanding of how the RDC model works in the
forest and wood products sector.
While all RDCs have their own unique features, FWPA
is the only RDC that is funded from the full supply chain
(including imports but excluding pulp and paper) and thus
ensures that its activities are truly pre-competitive and for
the benefi t of the whole sector.
FWPA (and its predecessor) have invested in R&D and
capacity building along the full value chain, from forest
growing, processing and market access. The direction
of this investment is assisted by the four R&D advisory
groups, each focused on a particular segment of the
value chain.
Over the past 12 months, FWPA has expanded its
activities in two key areas to meet the needs of its
stakeholders. In the area of building codes and timber
standards, FWPA has established a new industry service
to ensure that there is a coordinated response to this
critical area. This service has not previously existed within
the sector and Standards Australia has acknowledged
that this proactive step sets a new benchmark in the
Australian standards arena.
The second new strategic initiative is in the area of
education. FWPA has always undertaken key investments
in education activities such as postgraduate scholarships,
market development and mid-career awards. However,
like all RDCs, FWPA received a request from Federal
Minister Tony Burke to become more actively involved
in promoting primary industries as a career opportunity
and encouraging diversity within the sector. Following
a strategic review of existing education activities in the
sector, the FWPA Board endorsed a comprehensive
investment plan to respond to the identifi ed gaps and the
Minister’s priorities.