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Productivity Commission Waste generation & resource efficiency Michael Kennedy Brisbane Public Hearing 27 th February 2006 27 th February 2006 www.kennedysagedtimbers.com.au.

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Presentation on theme: "Productivity Commission Waste generation & resource efficiency Michael Kennedy Brisbane Public Hearing 27 th February 2006 27 th February 2006 www.kennedysagedtimbers.com.au."— Presentation transcript:

1 Productivity Commission Waste generation & resource efficiency Michael Kennedy Brisbane Public Hearing 27 th February th February 2006

2 “He holds the destiny of these remarkable timbers in his hands, and posterity will measure his degree of efficiency by the amount of success attending his efforts to protect such a magnificent and valuable national asset from passing into the limbo of oblivion.” (Baker, 1919)

3 Aussie timbers World class engineering timbers World class engineering timbers wharves wharves warehouses warehouses bridges bridges poles poles Sleepers Sleepers General construction General construction Throughout Australia and the world Throughout Australia and the world

4 80-year involvement in timber industry 80-year involvement in timber industry 3 rd generation family company 3 rd generation family company evolved from boatbuilding, cabinetmaking and sawmilling evolved from boatbuilding, cabinetmaking and sawmilling Kennedy’s Classic Aged Timbers

5 Specialist ‘timber recycler’ since 1995

6 Nature of business Value-adding + reclaimed ‘waste’ Value-adding + reclaimed ‘waste’ Milton showroom and design service Milton showroom and design service Banyo timber yard and admin centre Banyo timber yard and admin centre Narangba 2006 EPA approved processing facility including waste transfer station under construction Narangba 2006 EPA approved processing facility including waste transfer station under construction

7 remove impediments remove impediments improve efficiencies improve efficiencies greater resource recoveries greater resource recoveries implement incentives/disincentives implement incentives/disincentives Innovative and composite wood products Innovative and composite wood productsBENEFITS sustainable, long-term employment sustainable, long-term employment improved environmental outcomes improved environmental outcomes triple bottom line resource efficiency triple bottom line resource efficiency Zero “wood waste” into landfill Zero “wood waste” into landfill Kennedy’s vision

8 Kennedy’s Projects “waste wood” Old Parliament House Canberra Old Parliament House Canberra Suncorp Stadium Sydney Suncorp Stadium Sydney Federation Square Melbourne Federation Square Melbourne Millennium Arts Brisbane (under construction) Millennium Arts Brisbane (under construction) Old Parliament House, Canberra

9 Timber Resource Recovery Timber Resource Recovery Traditional native hardwood logging Traditional native hardwood logging Only 30-40% recovery (Timber Qld, 2005) Only 30-40% recovery (Timber Qld, 2005) 60-70% of a sawlog is lost as bark, sawdust and non-useable off cuts 60-70% of a sawlog is lost as bark, sawdust and non-useable off cuts Reclaimed timber Reclaimed timber % recovery (DPI&F, 2005) % recovery (DPI&F, 2005) 0-20% non-useable off cuts 0-20% non-useable off cuts

10 Current situation ONLY 30% of redundant timbers are salvaged ONLY 30% of redundant timbers are salvaged (Qld DSDTI Industry Report, 2005) 70% into a black hole (>200,000M 3 /Year) 70% into a black hole (>200,000M 3 /Year)

11 Future situation volumes set to quadruple volumes set to quadruple 3,000,000 m 3 over next 10 years 3,000,000 m 3 over next 10 years 70-year-old plus infrastructure 70-year-old plus infrastructure warehouse, wharf, bridge, pole and sleeper simultaneously reaching ‘end-of-life’ design warehouse, wharf, bridge, pole and sleeper simultaneously reaching ‘end-of-life’ design

12 And… urban real estate values urban real estate values Qld experiencing highest population growth in Aust. Qld experiencing highest population growth in Aust. unprecedented boom in demolitions unprecedented boom in demolitions majority of structures find their way to landfill majority of structures find their way to landfill $$$ cost factor $$$ cost factor time factor time factor

13 At the same time… Native hardwood forest Native hardwood forest reduced access (RFA’s) reduced access (RFA’s) 2022 cessation of Crown native hardwood 2022 cessation of Crown native hardwood Hardwood plantations Hardwood plantations lack of private sector interest (Long ROIC) lack of private sector interest (Long ROIC) scarce public funds for establishment scarce public funds for establishment strong competition for other land use strong competition for other land use

14 Heavy reliance on imports approaching 50,000 m 3 /yr in Qld alone approaching 50,000 m 3 /yr in Qld alone (Timber Queensland, 2005) traditional- SE Asia, Pacific, N. America traditional- SE Asia, Pacific, N. America expanding - Africa, S. America and Russia expanding - Africa, S. America and Russia

15 Offshore examples USA - Regulated “wood waste” including reusing preservative treated timbers and “wood waste” not allowed in landfill sites USA - Regulated “wood waste” including reusing preservative treated timbers and “wood waste” not allowed in landfill sitesV Australia- Little or no guidelines for re-use therefore authorities prefer to bury it despite these timbers being able to be re- used and almost irreplaceable Australia- Little or no guidelines for re-use therefore authorities prefer to bury it despite these timbers being able to be re- used and almost irreplaceable

16 Offshore examples European Union- zero wood waste policies successfully implemented 1990’s European Union- zero wood waste policies successfully implemented 1990’s 4 class system for ‘wood waste resource’ 4 class system for ‘wood waste resource’ Fibre feedstock for board production Fibre feedstock for board production UK- online waste resource trading solution UK- online waste resource trading solution one man’s waste is another’s resource one man’s waste is another’s resource

17 irreplaceable, world class timbers..buried in a hole in the ground!!! unsustainable, waste of valuable resources!

18 Impediments Absence of reliable data- Absence of reliable data- Volumes, types, wood waste Volumes, types, wood waste Nervous asset managers- no tools to help with decision making at end-of-life Nervous asset managers- no tools to help with decision making at end-of-life If it can be measured, it can be managed If it can be measured, it can be managed

19 Impediments Poor planning creates time pressure Poor planning creates time pressure Landfill – cheapest in Australia Landfill – cheapest in Australia

20 Impediments No requirement for recyclable materials’ audit prior to demolition No requirement for recyclable materials’ audit prior to demolition No training for contractors to identify recyclable materials No training for contractors to identify recyclable materials Lack of clear incentives/disincentives for demolishers and re-users of recycled timber Lack of clear incentives/disincentives for demolishers and re-users of recycled timber

21 Impediments Poor Local Government administration of demolition permits Poor Local Government administration of demolition permits Doesn’t allow for logistical processing of demolition projects Doesn’t allow for logistical processing of demolition projects State Government inaction and procrastination for recycled timber (Last 5 years over $50M spent on native hardwood logging restructuring NIL on recycled timber) State Government inaction and procrastination for recycled timber (Last 5 years over $50M spent on native hardwood logging restructuring NIL on recycled timber)

22 Impediments Lack of research into structural, engineered, composite and panel products from ‘wood waste’ Lack of research into structural, engineered, composite and panel products from ‘wood waste’ Ignorance of potential value of wood fibre Ignorance of potential value of wood fibre Lack of industry standards for recycled timber products Lack of industry standards for recycled timber products potential for poor quality products potential for poor quality products to destroy industry reputation to destroy industry reputation

23 Must be addressed at all levels Industry Industry Local Govt Local Govt State Govt State Govt Federal Govt Federal Govt

24 To maximise resource recovery A well-equipped recycling sector with consistent supply A well-equipped recycling sector with consistent supply relieve pressure on domestic native forests relieve pressure on domestic native forests reduce the reliance on imports reduce the reliance on imports consumer confidence- sustainable products consumer confidence- sustainable products

25 Huge potential for export of value- added, certified, recycled Aussie timbers Huge potential for export of value- added, certified, recycled Aussie timbers Trade generates employment = 4 x multiplier effect Trade generates employment = 4 x multiplier effect (Austrade, 2004) (Austrade, 2004)

26 Triple bottom line outcomes Long-term employment Sustainable environmental outcomes Exponential resource recovery

27 “For these to be allowed to pass away without any attempt at their recovery would be almost bordering on criminality, for not many countries can boast such a wonderful heritage as our marvellous hardwoods.” (Baker 1919; Kennedy 2006)

28 Thanks for listening


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