Review of pulp and paper industry announced

Industry minister, Senator Kim Carr, has announced plans for a new Pulp and Paper Industry Strategy Group to be formed to undertake a review of the industry and develop a plan to encourage innovation and attract investment in pulp and paper manufacturing in Australia.

Members of the Strategy Group will include senior representatives from the leading pulp and paper companies, unions, and all levels of government.

The group will be overseen by key industry figures, Jim Henneberry, Executive General Manager of Australian Paper and Michael O’Connor, National Assistant Secretary of the CFMEU’s Forestry and Furnishing Products Division.

“The pulp and paper manufacturing sector employs some 19,000 people and contributes around $1.3 billion a year to the Australian economy,” Senator Carr said.

“It is an important industry, particularly in regional areas, so it is vital we get the balance right between environmental concerns and economic activity in order to take Australia forward on a sustainable basis.

“The industry is undergoing a period of rationalisation, particularly in meeting the challenges of the current global recession.

“We need a full and frank assessment of the challenges and opportunities facing the sector, which is what this Review will provide.

“Industry and Government need to work together to create an operating environment where it makes good business sense for international firms to invest in Australia.

“Innovation and investment are the keys to achieving a world-class pulp and paper industry.”

The Strategy Group will be chaired by Stephen Payne, Head of the Manufacturing Division in the Department of Innovation, Industry, Science and Research, with Mr Henneberry and Mr O’Connor as Deputy Co-Chairs.

The Strategy Group will report its findings by November 2009.

Terms of Reference for Pulp and Paper Industry Strategy Group (PPISG) are:

In conducting the Review of the Pulp and Paper Manufacturing Industry, the PPISG will:

1. Assess the strengths and weaknesses of the industry, and examine the drivers and impediments to attracting sustainable investment in pulp and paper manufacturing in Australia. In doing so, the PPISG can take into account the impact of, but is not required to report on, current policy settings.

2. Identify existing and future sustainable and internationally competitive opportunities for enhancement and expansion of pulp and paper manufacturing in Australia, with reference to:

a. The regional focus of the industry;

b. Opportunities for new or expanded capacity;

c. Opportunities for climate change mitigation and for new or expanded renewable energy sources for manufacturing facilities, including co-generation associated with pulp and paper manufacturing facilities; and

d. New technologies, processes, products and markets.

3. Identify strategies to overcome impediments and capitalise on the opportunities to attract innovation and investment in pulp and paper manufacturing in Australia that:

a. Builds on Australia’s competitive strengths; and

b. Identifies actions that industry and Government should take to:

i. increase investment and manufacturing activity in pulp and paper manufacturing in Australia;

ii. increase R&D activity and encourage innovation; and

iii. enhance the skills of the Australian workforce across all areas of pulp and paper manufacturing activity.

4. Explain how the strategies would make a net economic and/or social contribution to Australia by 2020.

5. Report to the Minister for Innovation, Industry, Science and Research with:

a. an Issues Paper by 31 July 2009;

b. a Draft Report by 28 September 2009; and

c. a Final Report by 28 October 2009.

Membership of pulp and paper industry strATegy group (PPISG)

Chair ·