The Federal Government’s decision to deem forest product industries “essential” meant the drop in industry sales was around $2.5 billion less than if the industry was closed down, according to a new report. Source: Timberbiz
Research by industry and market consultants IndustryEdge, commissioned by the Australian Forest Products Association, indicates that the $2.5 billion had flowed through the economy over the last month fuelled by a demand for home construction products, pallets for moving food and groceries, toilet paper and sanitary products and other wood fibre based packaging materials.
“It is also hard to imagine the community despair should these items have really been unavailable, instead of just temporarily absent from shelves due to hoarding in the early days of the lockdown,” AFPA CEO Ross Hampton said.
The AFPA commissioned IndustryEdge to assess the benefit to the national economy of the decision to allow forest product industries, which directly employ some 80,000 Australians in regional communities, to keep operating; noting that New Zealand had chosen to close the bulk of its forest industries for a month.
Federal Treasurer the Hon Josh Frydenberg confirmed that the partial lock down which it has used to successfully control the CoVid-19 pandemic, has wiped $50 billion from the Australian economy in the June quarter and is continuing to cost $4 billion each week.
The Treasurer also revealed that Treasury estimated that if the Government had followed the European approach of closing their economy completely, the estimated hit to Australia would have been some $120 Billion for the June quarter.
Forest product industries, as a vital contributor to the grocery supply chain through packaging and pallets products, and to the construction industry through timber framing and native hardwood building products, was one of those industries which the Government allowed to continue to operate – as long as strict hygiene and health protocols were implemented.
“Every one of those sales of paper, packaging, or other timber products over the last quarter has helped a great many Australians remain in meaningful employment, and helped enable the economy to continue to run, even at a slower pace,” Mr Hampton said.
“The Treasurer and governments are to be congratulated for resisting some strident calls some weeks ago to completely turn off business in Australia.
“The Government is to be commended for working hard to find a measured road back to full economic activity and utilising the CoVidSAFE app is a vital part of that approach. The forest product industries will continue to do its part in making Australia resilient,” Mr Hampton said.
