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Primary Industries and Energy Research and Development Act - Forest and Wood Products Research and Development - Corporation Selection Committee - Report - 1994-95


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ANNUAL REPORT

1994-95

RESEARCH & DEVELOPMENT CORPORATION PO Box 157 Bond University Qld 4229 Ph: (07) 5578 7900 Fax: (07) 5578 7911

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The Hon David Beddall MR Minister for Resources Parliament House C anberra

Dear Minister

The Forest a n d W ood Products Research and D evelopm ent C orporation (FWPRDC) is pleased to present its Annual Report for 1994-95, in a c c o rd a n c e w ith Section 28 o f the Primary Industries and Energy Research and Development A c t 1989,

This first full year of o p eration for FWPRDC has established a firm base for the future.

Individual com panies, industry associations an d research organisations have been quick to take a d v a n ta g e of the new opportunities for c o o p e ra tive research provided by the C orporation and w e look forw ard to consolidating this a p p ro a c h to

increase the benefits w hich ca n flow from e ffe ctive research for the forest a n d w ood products industry in Australia.

Yours sincerely

Denis Cullity AO C M C C hairm an

C o n t e n t s

OVERVIEW 3

PURPOSE AND OBJECTIVES 5

ACTIVITIES IN 1994-95 6

Major Outcomes 6

Research Programs 7

• Program 1 - Sustainability and Environmental Management 8

• Program 2 - Better Structural/Building Systems 1 1

• Program 3 - Process and New Product Development 15

• Program 4 - Juvenile Wood - from forest to market 19

Post-Graduate Scholarships/Fellowships 19

Communication 20

Future Directions 20

MANAGEMENT 20

REPRESENTATIVE ORGANISATION 22

FINANCIAL STATEMENTS 22

Independent Audit Report 23

Certification of Financial Statemenfs 25

Financial Statements 26

APPENDICES 34

Appendix 1 - FWPRDC Board 34

Appendix 2 - Board Meetings and Audit Committee 36

Appendix 3 - Projects approved in 1994-95 37

Appendix 4 - Performance Targets Summary 41

Appendix 5 - Reporting Requirements 42

• Freedom of Information 42

• Energy Use 42

• Fraud Control 43

• Consultants 43

Appendix 6 - Selection Committee Annual Report 44

FWPRDC ANNUAL REPORT 1994-95

O v e r v i e w

The Forest and Wood Products Research and Development Corporation (FWPRDC) was established on 1 January, 1994 under the Primary Industries and Energy Research and Development A ct 1989 (the Act) and the inaugural Board (except the Executive Director) was appointed on 5 May 1994, for a term of three years (Appendix 1 lists the Board members). FWPRDC is one of a number of industry

based Research and Development Corporations established to assist industries to become and remain competitive in Australia and overseas.

The forest and wood products industry includes the following sectors which are contributing to the FWPRDC by way of a levy which came into effect on 1 July, 1994 (see "Finance" section):

• Hardwood sawlogs • Softwood sawlogs • Cypress sawlogs • Timber importers • Export hardwood woodchip • Plywood and veneer • Wood panels

The Commonwealth contributes $1 for every $2 of income from the domestic levy spent by the Corporation, but does not contribute to the levy paid by importers. In most other Research and Development Corporations, the Commonwealth contribution is dollar for dollar.

The paper pulp log sector is also part of the industry but at this stage has set its levy at zero as it is currently investing in two Cooperative Research Centres (CRCs). The softwood woodchip export sector has also set its levy at zero. In the future, these sectors may elect to contribute to FWPRDC, consolidating the Corporation as the industry's research investment arm.

In 1992-93 (the most recent figures released by the Australian Bureau of Statistics), gross expenditure on R&D in Australia increased from 1.36% of Gross Domestic Product (GDP) to 1.56%, bringing it from 18th to 15th amongst OECD countries. This is still well below the level that would be expected of a country in Australia's position as a

developed nation.

Research expenditure by the forest and wood products industry is lower than the OECD average. Of the $35-40 million spent annually on research in the forest and wood products industry (excluding pulp and paper), over $30 million is from CSIRO and State forest agencies, concentrating on the growing end of the continuum from forest to

market. Expenditure by companies in the forest, wood products and furniture sectors is reportedly about 25% of the total research effort,

One of the objectives of the Corporation is to increase the benefits of innovation and research and to encourage industry investment to improve its competitiveness nationally and internationally.

FWPRDC ANNUAL REPORT 1994-95

The Corporation's first Five-year Research and Development Plan (R & D Plan) and Annual Operational Plan (AOP) were approved by the Minister for Resources in October 1994, providing the framework for future operations.

As a result, FWPRDC has established four key Research Programs during the year which reflect priorities identified with the assistance of the industry, particularly the National Association of Forest Industries (NAFI) which has been appointed as the Corporation's Representative Organisation under the Act. These programs are:

1. Sustainability and Environmental Management 2. Better Structural/Building Systems 3. Process and New Product Development 4. Juvenile Wood - from forest to market (renamed as

Plantation and Regrowth Timber to better reflect the intent of the Program)

There is a fifth Program which includes projects of relevance to all Programs. Examples include the production of a Compendium of Forest and Wood Products Research in Progress, and a database of

research expertise.

Applications have been sought from industry associations, companies, research organisations and other relevant bodies to invest jointly with FWPRDC in research projects in these Programs. The outcomes from all projects must have the potential to benefit the industry in Australia.

The challenge for the FWPRDC is to identify effective research which can demonstrate to industry the value of such investment. As a means of increasing the level of industry participation in innovation and research, FWPRDC will generally only invest up to 50% of the cost of projects. The remainder must be provided by other parties and, in general, preference is give to projects which have industry participation either by individual companies or industry associations. This "ownership" of projects by the potential end users of the results is designed to increase the level of adoption of research outcomes.

At 30 June 1995, 30 projects had been approved in the first three Programs and another 14 in Program 4 had been short listed. FWPRDC also contributed $100,000 to new projects approved in the joint Agroforestry Program with the Rural Industries R&D Corporation

(RIRDC) and the Land’and Water Resources R&D Corporation (LWRRDC). The total cost of the approved projects in all Programs is in excess of $10 million with the FWPRDC contribution being $3.56 million (Appendix 3), highlighting the leverage that can be obtained through joint ventures and collaborative research.

The Corporation has a major role to play in improving the level and relevance of research in the industry and ensuring effective communication of research results. The outcomes will be for the benefit and growth of this industry in a sustainable and environmentally responsible way.

FWPRDC ANNUAL REPORT 1994-95 1

FWPRDC's purpose is:

to promote effective Research and Development which advances an internationally competitive, sustainable and environmentally responsible forest and wood products industry in Australia.

To assist industry achieve this vision, FWPRDC's objectives are to invest in effective, coordinated research which has potential to:

• Develop and enhance resource sustainability • Maintain and promote environmental responsibility throughout the industry • Stimulate profitable value adding • Enhance market opportunities and product marketability

for wood products • Stimulate effective and profitable utilisation of by-products and residues • Promote international best practice throughout the industry • Improve processing technology to reduce production costs

and enhance product quality.

These objectives also reflect the Commonwealth's priorities outlined in the R&D Plan, particularly in relation to enhancement of competitiveness, developing processing capacity and orientation to market demand.

FWPRDC Board m eeting, Queensland, M ay 1995

/ P u r p o s e a n d o b j e c t iv e s

FWPRDC ANNUAL REPORT 1994-95 a

A c t iv it ie s in i 9 9 4 -9 5

MAJOR OUTCOMES

As its first full year of operation, 1994-95 was a year of development for FWPRDC.

Major outcomes include:

• Completing and obtaining Ministerial approval for the R&D Plan and AOP • Implementing the Research Programs identified in the AOP • Approving and progressing 30 projects under these Programs • Participating in the joint Agroforestry Program with RIRDC and

LWRRDC e Facilitating greater involvement of indusfry in research projects through direct participation in joint ventures with FWPRDC and research organisations • Increasing cooperation between research agencies and

industry through joint venture projects • Publishing a brief quarterly newsletter to all industry levy payers and other parties • Publishing the first edition of the Compendium of Forest and

Wood Products Research in Progress • Meeting regularly with NAFI and other industry associations and companies • Raising the profile of research in the industry, resulting in the

formation of a NAFI Research and Development Committee and in the consolidation of the various importer groups in Australia • Examining the feasibility of certification under ISO 9000 for

FWPRDC as a first step to encouraging research providers to do the same • Establishing a postgraduate scholarship/fellowship scheme to encourage meritorious people to undertake research to benefit

the forest and wood products industry in Australia.

Progress towards the targets outlined in the R &D Plan and the AOP is summarised in the last column of Appendix 4.

In developing its Research Programs, FWPRDC identified four key areas which are relevqnt to all industry sectors:

• Resource and Harvesting • Process and Product Development • Markets • Workplace Management

These areas are encompassed in the four Research Programs outlined in the next section. The Corporation is committed to investing in research in each Program to link the key areas as much as possible. There is close interaction and interdependence between them, highlighting the need to develop research activities in a planned and integrated way. There is no value in having a resource

FWPRDC ANNUAL REPORT 1994-95 a

without a market and likewise no gain is made if there is a market but no resource. Processes and products help link the resource and the market and effective workplace management is essential to maximise the benefits of the linkages between these areas.

Workplace health and safety issues are particularly important to industry and FWPRDC has encouraged relevant applications in each Program. The first successful project is in Program 3, examining the impact of wood dust on nasal health.

The need for the industry to develop in a sustainable and environmentally responsible manner is also highlighted and projects in Programs on Sustainability and Environmental Management a nd Plantation and Regrowth Timber are particularly relevant to the implementation of ecologically sustainable development in the forest industries,

RESEARCH PROGRAMS

In 1994-95, FWPRDC implemented four Research Programs, after extensive consultation with the industry. These Programs reflect the objectives of the Corporation and emphasise key issues currently facing the industry. These Programs are:

1. Sustainability and Environmental Management 2. Better Structural/Building Systems 3. Process and New Product Development 4. Juvenile Wood - from forest to market (renamed as Plantation

and Regrowth Timber to better reflect the intent of the Program).

Over 120 research proposals were received by FWPRDC, seeking a total investment from the Corporation of more than $20 million. The total cost of these projects was in excess of $50 million.

In 1994-95, the Corporation approved investment of approximately $3.56 million (about 18% of the total sought) in these Programs for expenditure over the next few years, with an additional $950,000 awaiting final approval for Projects in Program 4 (Figure 1). Projects in the joint Agroforestry Program with RIRDC and LWRRDC form a part of FWPRDC's Program 4 and are managed on behalf of the Corporations by RIRDC.

Significant leverage has been obtained by FWPRDC, with approximately $2 coming from non FWPRDC sources for every $1 invested by the Corporation. This highlights FWPRDC's role as a catalyst, providing seed funding to get projects started and bringing

parties together into cooperative joint ventures.

FWPRDC has only invested about 18% of the total amount sought in its four Programs, indicating the strong demand for additional research in the industry.

FWPRDC ANNUAL REPORT 1994-95 8

FWPRDC - Commitment to Research Programs 1994-95

/

PROGRAM 3 Process and New Product Development

X

PROGRAM 2 Better Structural/ Building Systems

PROGRAM 4

Plantation and Regrowth Timber

FWPRDC Program (subject to final approval)

PROGRAM 5 General

Joint Agroforestry

PROGRAM 1 Sustainability and Environmental Management

/

Figure I

Preference is given to projects which will benefit a number of sectors of the industry. Of the total project investment, approximately 20% of FWPRDC's funds have been allocated to projects of relevance to imported products.

Of the 30 projects approved by FWPRDC in 1994-95, research agreements are in place for 20. The remainder are still under negotiation and will begin early in 1995-96. A brief summary of the key projects approved in Programs 1 to 3 is given below. A full list of approved projects is given at Appendix 3. Projects in Program 4 are still subject to final approval and will be reported in the 1995-96 Annual Report.

PROGRAM 1 - Sustainability & Environmental M anagem ent

This program recognises the significance o f the resource to the successful development of a competitive forest and wood products industry. The pressure is now on the industry in Australia to demonstrate that its wood products come from a resource which is managed in a sustainable and environmentally responsible manner. FWPRDC has invested in projects which will assist the process.

Development of Sustainability Indicators for Managed Forests

Applicant

State Forests NSW

Other Participants

State Forest Agencies CSIRO

FWPRDC ANNUAL REPORT 1994-95 3

Project Objectives and Benefits

One of the key investments being made by FWPRDC is in a project to develop sustainability indicators at the forest management level and link these to criteria and indicators being considered internationally. The future of the industry depends on the sustainable management of our forests and FWPRDC is able to play a major role in coordinating necessary research nationally, to standardise the methodology. The results from this project will

be applicable internationally and contribute to the development of recognised certification systems.

This project is so critical that it is being supported financially by all the major State Forest Agencies in Australia and CSIRO Division of Forestry. The Chair of the Standing Committee on Forestry Research Priorities & Coordination Committee is the Project Leader.

Progress

A Research Agreement is in place and field work is underway in at least two sites.

Independent Certification

Applicant

NAFI

Project Objectives and Benefits

The ability to demonstrate that forests are managed in an environmental and sustainable manner is likely to be acknowledged through an independent certification system in a similar way to the recognition of good management practices

through ISO 9000.

This project is being undertaken jointly with NAFI to examine criteria which members of the community see as important in any certification scheme for sustainable forest management. The project complements the Corporation's major project on sustainability described above.

Progress

A preliminary survey has been undertaken to test consumer attitudes to certification; preliminary results are being analysed. This will be followed by focus group analysis in early 1995-96.

FWPRDC ANNUAL REPORT 1994-95

Life-Cycle Analysis of Managed Forests and Timber Products

Applicant

Tasmanian Forest Research Council

Other Participants

University of Tasmania

Project Objectives and Benefits

Life-cycle analysis of managed forests is an important aspect of the environmental management equation, particularly in terms of energy balances, greenhouse gases and sustainability. This project will link into the sustainability indicators project by examining life cycle criteria, and identify areas where there might be gaps in our management practices in Australia. The Tasmanian Forest Research Council is supporting this project jointly with FWPRDC.

Progress

A comprehensive database is being developed and a draft report is being prepared.

Increased and Sustainable Production of Pinus radiata and the Impact on Groundwater in S.E. South Australia and Western Victoria

Applicant

CSIRO

Other Participants

Companies

Project Objectives and Benefits

This Project is of key importance to one of the major softwood producing regions of Australia. It is a joint venture between FWPRDC, CSIRO Division of Forestry and the major softwood companies in the region.

The objective of the project is to assess the extent to which Pinus radiata plantations rely on groundwater, and to develop management methods to enhance productivity and the sustainable use of water. This knowledge is essential to ensure that

the plantations are managed at a sustainable level and that existing productivity does not drop, causing major dislocation to the industry.

Progress

A Research Agreement is in place and the project is due to commence on 1 July, 1995.

FWPRDC ANNUAL REPORT 1994-95 11

Heat pulse velocity probes used to estimate whole-tree transpiration

PROGRAM 2 - Better Structural/Building Systems

This program is designed to increase the use o f timber in building and construction, by developing better systems and providing data to support changes in the codes and standards. FWPRDC is investing in a number of key projects to speed up work which is already in progress and to develop more innovative processes.

Building Code Changes

Applicants/Project Managers

NAFI Fire Code Reform Centre

Other Participants

National Market Development Committee

Project Objectives and Benefits

Three of the projects relate to changes in the Building Code: 1. Use of timber framing in multistorey construction - this project will identify market opportunities for this type of construction and further develop knowledge of the

performance of timber framing systems, providing greater opportunities for the use of timber, particularly in the construction of residential dwellings.

FWPRDC ANNUAL REPORT 1994-95

2. Revision o f the Timber Framing Code to reflect modern building technologies - this project will complete the development of computer programs to improve design criteria and relevant span tables. 3. Fire risk assessment modelling and validation - this project

will allow more accurate assessment of building fire safety, providing the necessary data for performance based design of buildings in the future. This should provide greater opportunities for the use of timber in buildings and should

result in major change to existing prescriptive methods used in the Building Code.

These projects are joint ventures between FWPRDC and the National Market Development Committee, coordinated by NAFI; the fire risk project is part of a major program being undertaken through the Fire Code Reform Centre.

Progress

These projects are underway with seminars being conducted for builders, engineers and archifects to demonstrate the impact of changes to the Building Code. A range of technical and consumer oriented publications are also being prepared outlining the changes necessary to use timber framing in multi-residential structures.

Multi-residential timber fram ed housing

Stress Loading of MDF and Particleboard

Applicant

Australian Wood Panels Association

Other Participants

Monash University

Project Objectives and Benefits

A project is being undertaken jointly with the Australian Wood Panels Association to research shear stress of MDF and particleboard, so that markets for these products may be

expanded.

Progress

Initial testing is underway and preliminary results are being analysed.

FWPRDC ANNUAL REPORT 1994-95

Applicant

NZ Timber Importers Group Timber Preservers Association of Australia

Project Objectives and Benefits

The New Zealand Timber Importers Group and the Timber Preservers Association of Australia are jointly implementing, in Australia, the Woodmark™ scheme for quality assurance of treated timbers. The aim is to enhance the marketability of Australasian softwood, nationally and internationally, by

establishing a recognised quality standard.

Progress

The Australian Timber Preservation Board has been established and an Agreement signed. Preliminary market analysis is underway.

Development of a Simple, Adaptable Flooring System

Applicant

Timber Development Association of NSW

Other Participants

State Associations

Project Objectives and Benefits

The use of timber in flooring has declined significantly since the advent of concrete slabs. This is partly due to the lack of easily installed timber flooring systems. However, recent developments may see this change. Use of organochlorines for protection of

building sites will be banned in all parts of Australia except the Northern Territory from 1 July 1995, making an off-ground, easily installed timber flooring system more suitable for inspection purposes, as part of a whole building protection system.

In addition, a decrease in the availability of flat building sites, restrictions on the degree of land cut and fill to lay a concrete slab, and environmental controls for drainage and retaining walls increase the potential for a simply installed timber flooring system. This project is being managed and jointly funded by the Timber

Development Association of NSW, with input from industry groups in other States. It is also strongly supported by timber importers.

Progress

A Research Agreement has been signed and preliminary design work is underway.

FWPRDC ANNUAL REPORT 1994-95 0

Termite Protection

Applicants

Australian National University QDPI Timber Research

Other Participants

Company

Project Objectives and Benefits

Two projects are looking at commercialising non-conventional methods for increasing termite protection: 1. Developing natural compounds from heartwood of certain species to be used in the treatment process

2. Assessing whether particleboard manufactured from a blend of radiata pine and cypress shows enhanced durability and termite resistance.

Both these projects have potential to enhance the durability of timber, if successful commercially, and are being undertaken in joint ventures with individual companies and research organisations.

Progress

Assays are underway using the cypress/radiata blend for particleboard. The v

photograph on the right highlights some preliminary findings.

Bioassay on particleboard - Left: 0% Cypress, Right: 90% Cypress

CD-Rom Teaching Modules

Applicant

University of NSW Building Research Centre

Project Objectives and Benefits

The University of NSW Building Research Centre is developing teaching modules on CD-Rom, to help encourage the use of timber in engineering and architecture courses throughout the country.

Progress

The project is underway and the first images have been put onto photo CD.

FWPRDC ANNUAL REPORT 1994-95

PROGRAM 3 - Process and New Product Development

Investment in this Program is to contribute towards the Corporation's objectives by: • Identifying, developing and using commercially, new processes to increase the effectiveness of conversion from resource to

market • identifying, developing and commercialising new products for identified markets to increase the growth and competitiveness of forest and wood products.

Development of Codes & Standards for Appearance Wood Products

Applicant

Timber Promotion Council, Victoria CSIRO Division of Forest Products

Other Participants

National and Victorian Furnishing Industry Training Board Sawmillers Furniture Manufacturers

Project Objectives and Benefits

The project's objectives are to develop appearance grading criteria, including drying quality and moisture content of timber used for high value products, leading to an industry standard

within one year, to help develop market confidence in product specification. It has the potential to increase value adding by allowing precise definition of timber quality for specific end products and expanding the use of timber (particularly

hardwood), currently used for low value products, into furniture and other high value appearance products.

Progress

A Research Agreement has been signed and the project is in its early stages.

Reconstituted Hardwood Products

Applicant

Timber Promotion Council, Victoria CSIRO Division of Forest Products

Other Participants

Sawmillers Chemical Company Department of Conservation and Natural Resources, Victoria

FWPRDC ANNUAL REPORT 1994-95

Project Objectives and Benefits

The objective of the project is to assess the feasibility of adding value to low grade and residue hardwood resource in SE Australia in the production of higher value reconstituted hardwood products such as laminated veneer lumber (LVL), medium density fibreboard (MDF) and oriented strand board (OSB).

Markets for reconstituted timber products are growing rapidly in Australia and overseas. New expanded processing activities in this area will enable Australia to increase its production of value added products and improve employment prospects in regional areas.

The 7-T“ (Industrial Timbers) Sawmilling System

Applicant

Industrial Timbers Pty Ltd

Other Participants

Company

Project Objectives and Benefits

The aim is to improve the efficiency of timber recovery and production by further developing the Ί-Τ" (Industrial Timbers) system by redesigning the saws, upgrading the hydraulic and electronic components, and incorporating a head rig reducing

chipper.

This system is applicable to small and large mills, as it can be installed as modules. Major benefits include increased production (up to 20% on existing systems in small mills), improved safety and

better recovery rates of low grade timber.

Progress

A Research Agreement is in place and preliminary design work has been completed.

Quality Certification for Hardwood Timber

Applicant

Timber Promotion Council, Victoria

Other Participants

Department of Primary Industries and Energy Sawmillers National Market Development Committee

FWPRDC ANNUAL REPORT 1994-95 0

Project Objectives and Benefits

This project is designed to increase the value of hardwood in the market by: • Establishing an accredited, voluntary, process-based product certification scheme

• Developing or upgrading the standards and grading methods required to support the scheme • Establishing a model framework for other timber product certification schemes and facilitating the national

harmonisation of these sPhemes through a common, accredited certification mark • Assisting and encouraging the adoption of process controls and quality systems in hardwood processing.

The Victorian hardwood industry has implemented a major program to increase the quality and value of its products, to increase domestic and export markets.

Nasal Health of People Exposed to Wood Dust

Applicant

NAFI Occupational Health and Safety Committee

Other Participants

Douglas Consulting (Occupational and Environmental Health) University of Newcastle Occupational and Environmental Health

Project Objectives and Benefits

The objectives of this project are to: • Determine, by nasal examination and nasal cytology, the prevalence of nasal cancer or its precursors • Determine the prevalence of nasal and other respiratory

system symptoms • Determine the relationships between 1 and 2 above, and exposure to wood dust.

The International Agency for Research on Cancer (IARC) has classified wood dust in Group 1. This project will assist in quantifying the risk and controls, particularly in the wood panels

sector. If this project is successful, the methods may be extended to other sectors of the industry.

Progress

A Research Agreement is in place and preliminary work is under way.

Dielectric Vacuum Drying of Timber

Applicants

CSIRO Division of Forest Products Company University of Melbourne

FWPRDC ANNUAL REPORT 1994-95

Project Objectives and Benefits

The value and quality of hardwood and softwood can be improved by establishing the basic parameters needed for rapid drying of hardwood and softwood using dielectric (microwave and radio frequency) heating at reduced pressure. This project has the potential to increase the value of Australian species

by increasing the rate of drying and reducing damage to the timber during the process.

E.regnans dried to 30% moisture: Left, air dried 30°C, 12 weeks; right, vacuum dried 30°C 12 hrs Microwave vacuum small scale testing

Activated Carbon from Wood Residues

Applicant

CSIRO Division of Forest Products

Other Participants

Company

Project Objectives and Benefits

The aim of this project is to develop a pilot plant within 2 years to produce high value activated carbon from wood residues for local and export market evaluation.

Wood residues are often burnt or disposed of at minimum price. The activated carbon process will result in the development of a market for a high value product, used extensively in mining industries.

Progress

The Research Agreement is being finalised.

FWPRDC ANNUAL REPORT 1994-95 0

Production of an Australian Best Practices Saw Doctoring Manual

Applicant

Tasmanian Forest Research Council

Project Objectives and Benefits

To provide Australian saw doctors with a manual written specifically for domestic and imported species used in this country, drawing on the experience of Australia's top saw doctors.

The saw doctor manuals currently used in Australia have been written in other countries. The new manual will be used in Australia's only saw doctor course at the South East Institute, Mount Gambler

Progress

The project is underway and preliminary data is being collected.

PROGRAM 4 - Juvenile Wood - from forest to market

Fourteen projects had been shortlisted in this Program a t 30 June, 1995. Approval will be finalised in August 1995. In addition, a number of projects to commence in 1995 have been approved as part o f the joint Agro forestry Program with RIRDC and LWRRDC. FWPRDC

contributes about 10% ($ 100,000) to the cost of this Progam, which is managed by RIRDC on behalf o f the other Corporations.

POST-GRADUATE SCHOLARSHIPS/FELLOWSHIPS

To encourage students of high academic merit and established researchers (usually from overseas), to become more involved in forest and wood products research, FWPRDC has implemented a post-graduate scholarship/fellowship scheme in conjunction with its Research Programs.

In 1994-95, three such awards were granted to highly qualified people. One student from ANU was unable to proceed.

Mr Terry Walshe will be undertaking a project for his PhD to describe natural disturbance regimes for use in a forest management model; Dr Grigori Torgovnikov, a world expert in microwave technology, will be looking at heating, conditioning and drying of

hardwoods and softwoods.

Mr Terry Walshe, FWPRDC's first post-graduate scholar

FWPRDC ANNUAL REPORT 1994-95

CO M M UNICATIO N

The results of research projects are of little value if nobody knows about them. Each FWPRDC project has an adoption strategy to identify the end users and, where possible, include them in the project

from the beginning.

Similarly, to invest in research which has the greatest potential for return to the industry, FWPRDC must know what the end users want.

To increase its awareness, FWPRDC has: • Met regularly with national and State industry bodies, companies, research organisations, government and financial investors to assess research priorities and needs • Involved the industry and other end users in research projects to

increase the interest in adoption of results • Included an adoption strategy as part of each project to ensure the end user is identified and involved early • Published a newsletter and articles in industry publications to

promote the research activities • Completed and distributed the first Compendium of Australian Forest and Wood Products Research in Progress • Developed close linkages with other research funding

organisations including the Research & Development Corporations e.g. by participating in activities such as the joint Agroforestry Program with RIRDC and LWRRDC, a joint stand at the Outlook Conference, the Research Calendar, and joint submissions to relevant government and other inquiries. • Promoted the Corporation's activities at a range of industry,

government and community conferences and seminars.

FUTURE DIRECTIONS

In 1995-96, WPRDC plans to build on the firm base established in its first year, and increase the level of industry participation in development and implementation of research. A new Program of company fellowships for small companies will be introduced.

/ / a n a o e m e n t

The Corporation has a Board of Directors with 8 external, non-executive Directors and one full time Executive Director. Details of the Directors are given in Appendix 1. The Directors were selected in accordance with the Act, with 6 being chosen by an independent selection committee (see Appendix 6). The Chairman and Government Director were appointed by the Minister, and the Executive Director was appointed by the other Directors,

The Directors come from a wide cross-section of the industry, bringing an extremely high level of expertise and skill to the innovation process. As a result, the Corporation has been able to implement an effective evaluation process for the selection of research priorities, programs and projects.

FWPRDC ANNUAL REPORT 1994-95

In 1994-95, the Corporation established an Audit Committee to provide an effective point of liaison between the Australian National Audit Office and the Board. The intention is to provide the Board with a transparent, publicly accountable system of self appraisal to ensure that in all its activities it operates according to the highest practical standards.

Details of Board meetings and the Audit Committee are at Appendix 2.

The Corporation employs a full-time Program Coordinator and a part-time Accountant.

The Corporation takes an active role in the development, assessment and ongoing performance of the projects in which it invests. It is also developing its role in promoting and facilitating coordination of research across a range of organisations to maximise the effectiveness of the available research expertise for the benefit of the industry.

In addition, it has addressed specific areas of Commonwealth policy, such as Freedom of Information, energy use, fraud control and the use of consultants. Reports on these issues are given in Appendix 5.

The Corporation's aim is to minimise overheads and use existing infrastructure (e.g. industry associations) wherever possible.

In 1994-95, management of the implementation of the four main Research Programs was undertaken in a systematic and organised way, to ensure that the Corporation's research investment could begin as quickly as possible.

Preliminary Applications were sought by public advertisement for Programs 1 and 2 simultaneously in October 1994, immediately after approval of the R&D Plan and Annual Operational Plan.

These were evaluated against a range of defined criteria including potential to meet FWPRDC objectives, potential benefit to the industry, technical merit and feasibility, time to commercial availability, and contribution towards sustainability and efficiency.

A short list of proposals was prepared and Detailed Applications were sought, These were again evaluated using the set criteria and a final list of projects was approved by the Board in February 1995. Research Agreements were finalised thereafter.

A similar process was implemented for Program 3 (advertised in

February 1995; approved in May 1995) and initiated for Program 4 (advertised in April 1995). AnneC oom be, Barry Jones,

Program Coordinator A ccountant

FWPRDC ANNUAL REPORT 1994-95

R EPRESENTATIUE ORGANISATION

The National Association of Forest Industries (NAFI) is the Corporation's industry Representative Organisation under Section 7 of the Act.

The Representative Organisation provides a formal channel between FWPRDC and the forest and wood products industry. The Corporation has consulted with its Representative Organisation in the preparation of the R&D Plan and the Annual Operational Plan. This

does not preclude the Corporation consulting with other organisations as part of the planning process, and FWPRDC has consulted widely during 1994-95 with industry associations, companies, research organisations, government and other relevant parties. However, the Representative Organisation is the formal body for such consultation and also the conduit for accountability back to industry for the activities of the Corporation.

f mH C Ifll STATEMENTS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

The Corporation's main income is provided by the forest and wood products industry via a levy on logs at the processing plant and on log equivalents imported into Australia. The Commonwealth

provides one dollar for every two dollars expended from the domestic levy. The levy commenced on 1 July 1994,

In summary, at 30 June 1995, FWPRDC's financial position on an accrual basis was as follows:

• Operating revenue $2,381,254

• Operating expenses $816,008

• Accumulated surplus (Note 16) $1,490,227

As noted in the Financial Statements, income shown for domestic levy is only for 9 months as it is collected quarterly and does not become payable until 28 days after the end of the quarter. Therefore, the June 1995 quarter levy is not due until 28 July 1995 and

will be reported in the 1995-96 financial year. By contrast, the importer levy is collected monthly and these accounts include receipts for a full year.

The Commonwealth contribution can only be claimed once expenditure has been made. As this was the Corporation's first full year of operation, and the first research projects did not begin until March 1995, expenditure was not at full level. As a result, the Commonwealth contribution is below that expected in a normal year of operation.

Expenditure on research projects was $306,886 in 1994-95 and is anticipated to be about $2,800,000 in 1995-96.

The surplus at the end of the year is earmarked towards commitments made to ongoing support of projects in 1994-95, as outlined in Note 16 to the accounts.

a

AUSTRALIAN NATIONAL AUDIT OFFICE

Address all mail to: GPO Box 707 CANBERRA ACT 2601

/ NDEPENDENT AUDIT REPORT

To the Minister for Primary Industries and Energy

Scope

l have audited the financial statements of the Forest and Wood Products Research and Development Corporation for the year ended 30 June 1995. The statements comprise:

Statement of Directors Statement of Revenues and Expenses Statement of Financial Position Statement of Cash Flow, and

Notes to and forming part of the Financial Statements

The Directors of the Corporation are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the

Minister for Primary Industries and Energy.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been

undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Concepts and Standards, other mandatory professional reporting requirements and statutory requirements so as to present a view which is consistent with my understanding of the

Corporation's financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

/ HDEPENPENT AUDIT REPORT con.

Audit Opinion

In accordance with Section 63H(2) of the Audit A ct 1901, 1 now report that the statements are in agreement with the accounts and records of the Corporation, and in my opinion:

(i) the statements are based on proper accounts and records;

(ii) the statements show fairly in accordance with Statements of Accounting Concepts, applicable Accounting Standards, and other mandatory professional reporting requirements, the financial transactions and results, and cash flows for the year ended 30 June 1995 and the state of affairs of the Corporation as at that date;

(iii) the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Corporation during the period have been in accordance with the Primary Industries and Energy Research and Development A ct 1989, and

(iv) the statements are in accordance with the Guidelines for Financial Statements o f Commonwealth Authorities.

D.S. Lennie Executive Director Australian National Audit Office

Canberra

2 August 1995

m

C e r t if ic a t io n o f f in a n c ia l s t a t e m e n t s The Financial Statements and notes thereon for the period 1 July 1994 to 30 June 1995 have been prepared in accordance with the Guidelines for Financial Statements of Commonwealth Authorities,

approved by the Minister for Finance in 1995, which incorporate applicable accounting standards and concepts.

In our opinion, the accompanying statements of the Forest and Wood Products Research and Development Corporation for the period 1 July 1994 to 30 June 1995, consisting of:

• Statement of Revenues and Expenses • Statement of Financial Position • Statement of Cash Flow, and • Notes to and forming part of the Financial Statements

which have been made out in accordance with the Guidelines for Financial Statements of Commonwealth Authorities and with applicable accounting standards and concepts:

1. show fairly the operating results of the Corporation for the period 1 July 1994 to 30 June 1995; 2. show fairly the state of affairs of the Corporation as at 30 June 1995; 3. show fairly the statement of cash flow for the period ending

30 June 1995; 4. at the date of this certificate, there are reasonable grounds to believe that the Corporation will be able to pay its debts as and when they fall due.

Signed this 2nd day of August 1995 in accordance with a resolution of the Corporation.

Denis Cullity AO CMG Chairman

Kathryn Adams Executive Director

FWPRDC ANNUAL REPORT 1994-95 m

FOREST & W O O D PRODUCTS RESEARCH & DEVELOPMENT CORPORATION

Statement of Revenues and Expenses for the period ending 30 June 1995

1994 $

0

0

75,019

75,019

Notes 1995 $

Operating Revenue 2

Industry contribution -Domestic Levy 1,301,915'

Importer Levy 635,800

Commonwealth contribution 397,488

Other Revenue 46,051

TOTAL OPERATING REVENUES 2,381,254

Operating Expenses Research & Development Projects 306,886

Research support and management 3 509,122

TOTAL OPERATING EXPENSES 816,008

(75,019) Surplus of Operating Revenues over Expenses 1,565,246

Accumulated Surplus/CDeficit) at Beginning 0 of Reporting Period (75,019)

------------ ACCUMULATED SURPLUS/(DEFICIT) AT END ________

(75,019) OF REPORTING PERIOD 1,490,227

* As noted in the Annual Report and in NOTE 2 to these accounts, the domestic levy is for the 9 months from 1 July 1994 to 31 March 1995 whereas the importer levy is for the full 12 months of the financial year.

The accompanying notes form part of these financial statements

FWPRDC ANNUAL REPORT 1994-95

FOREST & W O O D PRODUCTS RESEARCH & DEVELOPMENT CORPORATION

Statement of Financial Position for the period ending 30 June 1995

1994 $

Current Assets Cash Investments Prepayments

Receivable

Notes 1995$

15 101,850 1,265,333 1,323 4 166,065

Total Current Assets 1,534,571

Non-Current Assets 18,979 Property, Plant & Equipment 5 39,506

51,762 Other 6 34,508

70,741 Total Non-Current Assets 74,014

70,741 TOTAL ASSETS 1,608,585

Current Liabilities

145,599 Creditors 160 Provisions

145,760 Total Current Liabilities

145,760 TOTAL LIABILITIES

(75,019) NET ASSETS

Equity

(75,019) Accumulated Surplus/(Deficit)

(75,019) TOTAL EQUITY

104,790 13,568

118,358

118,358

1,490,227

1,490,227

1,490,227

The accom panying notes form part of these financial statements

FWPRDC ANNUAL REPORT 1994-95 m

FOREST & W O O D PRODUCTS RESEARCH & DEVELOPMENT CORPORATION

Statement of Cash Flow for the period ending 30 June 1995

1994 $ Notes 1995 $

Cash Flows from Operating Activities

Inflows Domestic Levies Importer Levies Commonwealth Contribution Interest Received

1,301,915 635,800 232,136 46,051

Total Inflows from Operating Activities 2,215,902

Outflows Research and Development Research Support and Management (306,886)

(509,068)

Total Outflows from Operating Activities (815,954)

NET CASH PROVIDED BY OPERATING ACTIVITIES 14 1,399,948

Cash Flows from Investing Activities

Inflows

Outflows Payments for Property, Plant & Equipment (32,765)

NET CASH USED BY INVESTING ACTIVITIES (32,765)

Net lncrease/(Decrease) in Cash Held 1,367,183

Cash at Beginning of Reporting Period 0

0 CASH AT END OF REPORTING PERIOD 15 1,367,183

The accom panying notes form part of these financial statements

FWPRDC ANNUAL REPORT 1994-95

Note 1 STATEMENT OF ACCOUNTING POLICIES

(a) Statutory requirements

The Forest and Wood Products Research & Development Corporation was established on 1 January 1994. The Corporation is required by Division 2 of Part XI of the Audit A ct 1901 to maintain proper accounts and records of the transactions and affairs of the Corporation in

accordance with accepted accounting principles generally applied in commercial practice.

(b) Historical cost

The financial statements are prepared on an accrual basis and are in accordance with historical cost principles. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position of the Corporation. The financial statements are

presented in compliance with the Guidelines for Financial Statements of Commonwealth Authorities.

(c) Employee Entitlements

Provision is made for the liability for employee entitlements arising from services rendered by employees to balance date, Employee entitlements arising from annual leave and sick leave have been measured at their nominal amount.

(d) Cash

For the purposes of statements of cash flows, cash includes cash at bank and investments.

(e) Segment Reporting

The Corporation's activities relate predominantly to a single industry and geographical segment - namely an R & D Corporation in respect of the forest and wood products industry in Australia.

(f) Income Tax

The Corporation is exempt from income tax under s46 (1) of the Primary Industries and Energy Research and Development A ct 1989.

(g) Depreciation

Non-current assets are valued at cost with depreciation calculated so as to write off each asset over its useful economic life at the following annual rates:

• Furniture & fittings: 20% pa straight line basis

• Computers & office equipment: 33 V3% pa straight line basis • Software is written off at 100% and items under $300 are depreciated at 100%.

(h) Recognition of Revenue

Revenue is predominantly derived from levies collected on domestic and imported products, Commonwealth contributions in

a

Notes to & forming part of the Financial Statements for the period 1 July 1994 to 30 June 1995

FWPRDC ANNUAL REPORT 1994-95

Notes to & forming part of the Financial Statements for the period 1 July 1994 to 30 June 1995

accordance with the requirements of the Primary Industries and Energy Research and Development A ct and interest earned on funds invested. In order to satisfy the criteria of the inflow being reliably measured, revenue from levies is recognised when received rather than when earned.

(I) Comparatives

The Corporation was established on 1 January 1994 under the Primary Industries and Energy Research and Development A ct 1989. The Board of Directors was appointed on the 5 May 1994. Accordingly, the figures shown in the financial statements for the prior period represent only the period from 5 May to balance date.

Note 2 PARLIAMENTARY APPROPRIATIONS, LEVIES AND OTHER INCOME

Commonwealth contributions are amounts payable to 30 June 1995 under Section 30( 1 )(b) of the Primary Industries ά Energy Research and Development A ct 1989. Domestic levies are payable quarterly, 28 days after the end of the quarter, therefore, the amounts shown are for the period 1 July 1994 to 31 March 1995. Importer levies are payable

monthly and the amount shown is for the full year from 1 July 1994 to 30 June 1995. These levies did not commence until 1 July 1994. The Corporation did not receive any revenue in the period ended 30 June 1994. Other Revenue is interest earned on short term investments to 30 June 1995.

Note 3 RESEARCH SUPPORT AND MANAGEMENT EXPENSES

1994 1995

$2,000 Audit Fees $8,400

$4 Building & Related Expenses $16,373

Consultants $15,099

Depreciation $29,491

Levy Collection $70,000

Office & Related Expenses $18,696

$579 Postage, Telephone & Communications $31,146 $59,313 Salaries & Related Expenses $233,835 $13,123 Travel $86,082

$75,019 Total Research Support & Management $509,122

Note 4 RECEIVABLES

$0 Accrued Commonwealth Contributions $165,353

$0 Sundry Debtors $713

$0 Total Receivables $166,065

FWPRDC ANNUAL REPORT 1994-95

Notes to & forming part of the Financial Statements for the period 1 July 1994 to 30 June 1995

Note 5 PROPERTY PLANT AND EQUIPMENT

1994 1995

$9,761 $0

Computer Equipment Less Provision for Depreciation $25,226 $6,298 $18,928

$0 $0

Furniture & Fittings Less Provision for Depreciation $11,678 $1,513 $10,165

$9,218 $0

Office Equipment Less Provision for Depreciation $14,839 $4,426 $10,413

$18,979 Total Plant and Equipment $39,506

Note 6 OTHER

(Setup costs were incurred in 1993-94 for the development of a computerised levy collection system by the Australian Customs Service to be amortised over 3 years)

$51,762 Setup Costs $51,762

$0 Less Provision for Amortisation $17,254 $34,508

$51,762 Total Other Costs $34,508

Note 7 PROVISIONS

$160 Provision for Annual Leave $8,410

$0 Provision for Sick Leave $5,158

$160 Total Provisions $13,568

Note 8 SUPERANNUATION The Corporation makes a contribution to the Commonwealth Superannuation Scheme on account of the Executive Director. Contributions are made for part time directors and employees to comply with Superannuation Guarantee requirements. The total amount in respect of the 1994-95 reporting period is $20,148

Note 9 REMUNERATION OF DIRECTORS AND EXECUTIVES

The following persons were Directors of the Forest and Wood Products Research & Development Corporation for the period ending 30 June 1995.

Mr Denis Cullity (Chairman) Dr Gary Bacon (Deputy Chairman) Dr Michael Brown Mr Norman Cleland

Dr Douglas Head Mrs Judith Tilling

Professor Peter Vinden Ms Kathryn Adams Mr William Handke (Government Director resigned 2/12/94) Mr Geoffrey Gorrie (Government Director appointed 2/12/94)

FWPRDC ANNUAL REPORT 1994-95

Notes to & forming port of the Financial Statements for the period 1 July 1994 to 30 June 1995

1994 1995

$14,761 The aggregate remuneration paid to $173,432 Directors from the Corporation for 1994-1995

The number of Directors included in these figures are shown within the following bands:

No. Range No.

8 Less than $ 10,000

$10,000- $19,999 6

$20,000 - $29,999 1

$100,000-$110,000 1

Note 10 RELATED PARTY TRANSACTIONS

There were no Director related transactions during the period.

Note 11 REMUNERATION OF AUDITORS

The Australian National Audit Office has advised the Corporation that the audit fees for 1994-95 financial year will be a maximum of $8,400. No other services were provided by the Australian National Audit Office.

Note 12 POST BALANCE DATE EVENTS

There are no post balance date events which have arisen that significantly affect the operation or the results of those operations or state of affairs of the Corporation.

Note 13 AGREEMENTS EQUALLY PROPORTIONATELY UNPERFORMED

Amounts payable under agreements equally proportionately unperformed which have not been recognised in the Statement of Financial Position:

Not later than one year: $16,708

Later than one year and not later than two years: $ 17,209 Later than two years and not later than five years: $7,284

Note 14 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING SURPLUS

Surplus (deficit) of operating revenues over expenses Gain (loss) on extraordinary items Depreciation of non-current assets

$ 1,565,246 $0 $29,491

FWPRDC ANNUAL REPORT 1994-95 33

Notes to & forming part of the Financial Statements for the period 1 July 1994 to 30 June 1995

Changes in net assets and liabilities Increase in current provisions $ 13,408

Decrease (Increase) in other current receivables ($167,388)

Increase (Decrease) in current creditors ($40,809)

____ Net Cash Inflow from Operating ________

$0 Activities $1,399,948

Note 15 CASH

Petty Cash $100

Cash at Bank $19,442

At Call Deposit $82,308

$0 Total Cash $101,850

Cash at the end of the reporting period as shown in the Statement of Cash Flow is reconciled to items in the Balance Sheet as follows:

Cash $101,850

Investments - Bank Bills $ 1,265,333

$0 Total Cash and Investments $1,367,183

As at 30 June 1994, there was no bank account operating. Expenses during that period were paid by the Department of Primary Industries and Energy and by the National Association of Forest Industries. The amounts owing to these organisations have been paid when funds become available,

Stand-by arrangements with banks to provide funds and support facilities: a bank overdraft facility was in place to 30 June 1995. As at 30 June 1995, the facility available was $300,000.

Note 16 ESTIMATED FUTURE COMMITMENTS

The FWPRDC estimated forward commitments for research and development expenditure as below. These estimated commitments are dependent upon progress in the individual research projects and the level of Commonwealth and Industry contributions.

The current year amounts noted below have not been recorded as liabilities as they are unable to be reliably measured:

Not later than 1 year: $1,925,681

Later than 1 year but not later than 2 years: $1,041,364 Later than 2 years but not later than 5 years: $266,938 Later than 5 years: $0

FWPRDC ANNUAL REPORT 1994-95

JJPPENDIX 1 - FWPRDC BOARD 1 9 9 4 -9 5

Gary Bacon

Norman Cleland

Bill Handke

Denis Cullity

MR DENIS CULLITY AO. CMG. B Sc. FAIM, FAICD CHAIR Chairman and CEO Westralian Forest Industries Ltd; Trustee, Joseph William Gottstein Memorial Trust; Director, Bank of Western Australia Ltd

DR GARY BACON BSc(For) Hons. PhD. FIFA DEPUTY CHAIR General M anager (Production) QDPI Forestry

MS KATHRYN ADAMS EXECUTIVE DIRECTOR B Sc Ag (Hons). M Env Stud. M Bus, Dip Law, Grad Dip Leg Practice Director, Grains R&D Corporation (to 7 Sept 1994)

DR MICHAEL BROWN B Sc (Hons). PhD DIRECTOR Assistant Chief Division of Silvicultural R&D, Forestry Tasmania; Chair Ecology sub-com mittee Tasmanian Forest Research Council; Standing Com m ittee on Forestry Representative on National Biodiversity Taskforce, Endangered Species Taskforce and Commonwealth-State Committee on Access to Genetic Resources

MR NORMAN CLELAND BA DIRECTOR

General M anager Carter Holt Harvey Wood Products Australia Ltd; President Pine Australia; President Plywood Assoc of Australia; Councillor Victorian Timber Promotion Council; Chairman NAFI National Market Developm ent Committee

Judith Tilling

FWPRDC ANNUAL REPORT 1994-95

I

Kathryn Adams

MR GEOFFREY GORRIE B Sc. B Ec. BA. DipEd GOVERNMENT First Assistant Secretary Land Resources Division DPIE; Commissioner, Murray-Darling Basin Commission; Director Landcare Australia Ltd; M em ber of Standing C om m ittee on Forestry of the MCFFA; Chair Joint ANZECC/MCFFA National

Forest Policy Statement Im plem entation Sub-committee (JANIS)

MR WILLIAM HANDKE BA (Hons) Assistant Secretary, Petroleum Industry Branch DPIE; Board M em ber Pulp & Paper Research Program of Tasmanian W oodchip

Research Committee

DR DOUGLAS HEAD MB. BS (Syd). MHP M anaging Director Kempsey Timbers Pty Ltd; Executive Councillor NSW Forest Products Association; Councillor Timber Trade Industrial Assoc

MRS JUDITH TILLING DIRECTOR

Director Tilling Timber Pty Ltd; President Tilling Timber USA Inc; Past Chair Melbourne Timber Importers Association

PROFESSOR PETER VINDEN DIRECTOR

B Sc (Hons). M Sc (Eng), DIC. PhD (Lon). F.I.W.Sc Professor Forest Industries, Director University Studies, Creswick School of Forestry, University of Melbourne

DIRECTOR (from 2 Dec 94)

GOVERNMENT DIRECTOR (to 2 Dec 94)

DIRECTOR

Mick Brown

*

Peter V'tnden

G eoff Gorrie

FWPRDC ANNUAL REPORT 1994-95

f l PPENDIX 2 - BOARD MEETINGS & AUDIT COMMITTEE

FWPRDC BOARD MEETINGS 1994-95

Date Place Site Visits

No.

Directors Attending

19-20 July 1994 Canberra Nil 9

5 Sept 1994 Brisbane Gympie 5

25 Oct 1994 Melbourne Austis Conference 9

8 Feb 1995 Canberra Outlook Conference 8

2 May 1995 FWPRDC Office Bond University Queensland

Nil 9

FWPRDC BOARD MEETINGS PLANNED FOR 1995-96

Date Place

1 Aug 1995 Mt Gambier, SA

30 Oct 1995 Canberra

12 March 1996 Hobart

7 May 1996 Perth

FWPRDC AUDIT COMMITTEE

The Audit Committee met on 1 August 1994, 29 August 1994, 13 January 1995 and 27 April 1995. The Members of the Audit Committee were: Mr Norm Cleland (Chair to 8/2/95)

Mrs Judith Tilling (Member to 8/2/95; Chair from 8/2/95) Dr Douglas Head (Member from 8/2/95)

FWPRDC ANNUAL REPORT 1994-95

X CO

CD

CO

CO CO

do cn o o D

1

FWPRDC ANNUAL REPORT 1994-95

PPENDIX 3 - PROJECTS APPROVED IN 1 9 9 4 9 5

η

co

c o co do cn o o 3

FWPRDC ANNUAL REPORT 1994-95

FIVE-YEAR TARGETS ESTIMATED PROGRESS 1994-5 ACTUAL PROGRESS 1994-5 Com pleted a life cycle assessment (including environmental and energy aspects) for forest and w ood products

Information audit com pleted Project underway; database being developed

Provided the industry with more comprehensive indicators of sustainability which are internationally recognised

Implemented as part of Programs 1 & 4 Investment in major project with key State Forest Agencies and CSIRO to identify indicators and

develop standard methods for measurement, as basis for certification at forest level; certification project with industry

Introduced improved systems for managing, processing and use of timber, particularly juvenile w ood

Implemented as part of Programs 1, 2.3 & 4 Relevant projects in Programs 1.2 and 3 underway; Program 4 projects shortlisted

Identified and increased the use of world best practice in the industry Included as part of all new programs started in 1994-95

Projects on sustainability indicators, certification, building code reform and new processes and products underway

Demonstrated the value of investment in research as part of the innovation process, to the extent that the levy will have at least doubled

Began communication program to demonstrate this; com pleted Compendium of Research in Progress

Extensive communication in each State and with industry associations and companies; Compendium published and distributed

Increased the participation of small to medium firms in R&D Implemented program seeking projects from these firms

"l-T" sawmilling project underway; others shortlisted in Program 4

Successfully prom oted improved workplace m anagem ent practices Included in relevant programs Snig track management, "l-T" sawmilling and nasal health projects underway; these relate to

improved workplace m anagem ent practices

Successfully implemented the operating principles a dopted by FWPRDC in the R&D Plan

Included in all programs In general, FWPRDC contributes up to 50% project cost. Leverage of $2 from others for every $1 from FWPRDC

Moved towards international best practice or certification for internal management performance

Complete assessment of ISO 9002 & register for certification if appropriate Initial assessment com pleted but follow up work on value to small business

Contributed towards achieving the Commonwealth's priorities outlined in the R & D Plan

All projects to contribute to FWPRDC objectives which reflect Commonwealth priorities

Project evaluation system implemented based on ability of projects to m eet FWPRDC objectives and reflect Commonwealth priorities

FWPRDC ANNUAL REPORT 1994-95

FWPRDC ANNUAL REPORT 1994-95

Λ PPENOIX S - REPORTING REQUIREMENTS In addition to the matters reported in the body of this Report, the Corporation is required by the Act and other legislation to report on a number of matters outlined below:

FREEDOM OF INFORMATION (FOI) At 30 June 1995, FWPRDC had not received any inquiries pursuant to the Freedom of Information A ct 1982. General inquiries about access to documents and other matters relating to FOI should be made to the Executive Director, PO Box 157, Bond University 4229. Facilities for access to documents are available at the FWPRDC offices.

To 30 June 1995, the categories of documents held were: • Documents supplied free or sold to industry and the public while stocks last

• General administrative documents including project, administrative and personnel files.

Documents produced by the Corporation in 1994-95 and supplied free while stocks are available include:

• Annual Operational Plan • Five-year Research and Development Plan • Annual Report • LEAUMCj £D£?£ Newsletter (direct mailed to current levy payers and

other interested parties) • Compendium of Australian Forest and Wood Products Research in Progress, 1st edition • Project summary sheets

Contact: Executive Director FWPRDC POBox 157 Bond University Qld 4229 Telephone: (07) 5578 7900 Fax: (07) 5578 7911

ENERGY USE

Vehicles

FWPRDC leased one vehicle in 1994-95 as part of the remuneration package for the Executive Director. The Corporation's policy is to make staff aware of energy management criteria for vehicles and to encourage the use of fuel efficient vehicles.

Building

FWPRDC leases 91 square metres of office space in a commercial building. The Corporation has no control over the energy usage in the building. FWPRDC policy is to make all personnel aware of energy management criteria and to ensure that best practice is adopted wherever possible, Advice is also provided to the landlord if it is perceived that energy could be used more effectively.

FWPRDC ANNUAL REPORT 1994-95 a

Appliances

FWPRDC has few appliances, but has a policy of purchasing those with high energy efficiency.

Recycling

FWPRDC recycles materials, principally paper, to the maximum extent practicable.

FRAUD CONTROL

FWPRDC has established an Audit Committee and fraud control is an integral part of the committee's charter.

CONSULTANTS The FWPRDC has contributed $ 15,000 to the cost of a consultant from Fortech Pty Ltd to provide a report on industry research priorities for its R&D Plan and Annual Operational Plan.

The Executive Director elect was engaged as a consultant until the formal appointment was made on 11 July 1995.

In some cases consultants undertake research projects on behalf of the Corporation and these are included in the project list at Appendix 3.

FWPRDC ANNUAL REPORT 1994-95 44

Λ PPENDIX 6 - SELECTION COMMITTEE ANNUAL REPORT

18 August 1995

The Hon. David Beddall MR Minister for Resources Parliament House CANBERRA ACT 2600

Dear Minister

Forest and Wood Products Research and Development Corporation Selection Committee Annual Report

In accordance with the provisions of the Primary Industries and Energy Research and Development A ct 1989,1 am writing to report to you that there were no Selection Committees established in 1994-95 for the Forest and Wood Products Research and Development Corporation.

Yours sincerely

— --------- _

Megan Alexander Cornelius (Ms) Presiding Member Forest and Wood Products Research and Development Corporation Selection Committee

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No 354 of 1995 ORDERED TO BE PRINTED

ISSN 0727-4181