Dwyer urges partnership to secure timber jobs and manufacturing

PORT Macquarie MP Robert Dwyer has urged the NSW Government to back a “new future” for the North Coast timber industry after the announcement of the Great Koala National Park (GKNP) boundaries in September.

The announcement included an immediate temporary moratorium on timber harvesting within the proposed 476,000 hectare boundary, which includes 176,000 hectares of state forest.

Despite the GKNP being between Kempsey and Grafton, the decision has had significant effects further south, impacting the long-term Wood Supply Agreement at the Pentarch mill at Herons Creek – putting local jobs at risk.

About 80 locals work at the Herons Creek mill.

The full extent of job losses is yet to be confirmed.

“The mill at Herons Creek, which is the largest mill in NSW, is 150 kilometres from the Great Koala National Park,” Mr Dwyer said.

“Ninety percent of their timber is not sourced from the GKNP yet has lost its contract. It just doesn’t make sense.”

Last month the NSW Government finalised a worker support package for employees at timber mills directly impacted by the recent moratorium.

The package included top up redundancy payments, specific support for employees over 45 years of age, education and training payments, relocation payments, free access to mental health support, and financial and legal guidance.

A month prior, the Government announced the Forestry Industry Supply Chain Program, which will offer support worth up to $100,000 to downstream businesses that relied on impacted timber mills, so they can meet increased operating costs.

Mr Dwyer however believes the focus must shift from redundancies and compensation to a “North Coast Timber

Manufacturing Revival Plan”, described as a “strategy that delivers on the Government’s environmental commitments while ensuring no net job losses across the region”.

“Pentarch is one of the North Coast’s largest manufacturing employers,” Mr Dywer said.

“Our priority must be protecting their workforce and strengthening the region’s industrial base.”

Pentarch has put forward four major investment projects designed to safeguard long-term employment and drive economic growth:

– A new 40,000m³ hardwood supply contract to enable retooling of the Herons Creek mill for high-value decorative timber products.

– A new plantation-based softwood mill at Koolkhan, ensuring mature local plantation resources are processed locally and providing essential materials for the housing sector.

– A biochar and bioenergy facility at Koolkhan, developed with BlueScope, to replace coal in steelmaking and reduce heavy vehicle traffic through expanded rail freight.

– A prefabricated housing manufacturing plant at Herons Creek, modelled on Pentarch’s new 2,000-homes-per-year facility in Orange, to address critical housing needs across the Mid Coast.

“The revival plan would protect existing jobs, strengthen local engineering capability – including firms such as AE Gibson and Sons – reduce the export of unprocessed timber, and lower the Government’s costs associated with industry contraction,” a statement from Mr Dwyer read.

Mr Dwyer said he is working closely with Pentarch to try and secure government cooperation, including new supply arrangements, transitional support for regional engineering businesses, streamlined approvals, and coordinated engagement with Forestry Corporation and relevant agencies.

“Pentarch is ready to invest, ready to innovate and ready to secure long-term employment on the North Coast.

“This is an opportunity to build – not dismantle – regional industry,” Mr Dwyer said.