17 December 2021

New report shows timber contributes $1.4B to Victoria’s economy

Mixed Species

A new report commissioned by Timber Towns Victoria shows the significant domestic value add of the native (mixed species) timber industry to Victoria.

“This report shows the native timber industry contributes $1.4B annually to Victoria and underpins the economic viability of many regional towns across our state,” said Timber Towns Victoria President Cr Karen Stephens.

“The Government has offered only $120M as compensation for shutting down the industry, which will not be enough to stop regional towns from being devastated.”

“We now have a benchmark of what the domestic value add is of the industry, and it’s substantial. We know from research that rural areas are hurt more by job losses than cities. Put simply, one job loss in Melbourne is equivalent to five jobs lost in small rural communities.”

“Timber Towns Victoria believes the phase out of the industry must be postponed to protect regional jobs and maintain local investment confidence.

“We want the Victorian Government to understand how much the phase out and eventual ban will hurt communities across Victoria, beyond the direct impact on the timber industry, and how it will undermine business and community confidence at a very difficult time,” said Cr Stephens.

Key highlights from the report: Specialised analysis for the Timber Towns Victoria council areas

  • In 2019/20, the industry was estimated to directly support almost 6,000 jobs or 2.3% of all jobs in the combined TTV areas.
  • In 2019/20, the industry generated $1.4B in sales/output of which $432M was direct value added.
  • The estimated contribution of native forests to logging, processing and other timber-related activities in the TTV areas has been modelled. It is approximate to a situation where native logging ceased immediately.
  • The impacts resulting from the State Government decision to cease logging in native forests is more likely to fall on the local government areas to the east of Melbourne which are home to the large majority of native forests that are allowed to be logged.
  • It is acknowledged there are a number of issues that need to be considered with the transition to zero native forest logging. These include potential undersupply of plantation timber; a rise in imports (especially appearance grade timber) which have a higher carbon footprint and may come from forests where industry does not follow sustainable practices; loss of fire management expertise; and a loss of specialised manufacturing skills and equipment.

Victoria has previously called on the State Government to reconsider its plan to shut down the State’s native timber industry by 2030.

About Timber Towns Victoria

Timber Towns Victoria is the peak local government body for Victoria on forestry policy. It represents Victorian Local Government areas with forestry industries on public or private land. In representing these local councils and the communities that work within the forestry and timber industries, TTV is committed to maintaining sustainable practices to ensure the industry continues.

Quick links

Contact: Timber Towns Victoria President, Cr Karen Stephens 0488 900 645 or email secretary@timbertownsvictoria.com.au

Share this post