PM to announce huge investment in Victorian forestry sector

Scott Morrison is set to announce a grants program for Victoria’s forestry sector that he hopes will lead to 150 million trees being planted nationwide.

Scott Morrison will announce a new grants program for the Victorian forestry sector. Picture: Dannika Bonser

Victoria’s forestry sector will be turbocharged under a $86m federal scheme to plant millions of trees nationwide in the hope of preventing timber shortages.

Scott Morrison will announce the grants program, which requires co-funding from states and industry bodies, ­during a trip to Tasmania on Monday.

The Prime Minister hopes the initiative will lead to 150 million trees being planted throughout the next five years.

“This program is about getting more trees in the ground and securing an Australian supply of timber for future generations,” Mr Morrison said.

“Getting more trees in the right places will help to meet future demand for wood products, which at a global scale is expected to quadruple by 2050.

“Australia has 1.77 million hectares of plantations and we want that to grow further.”

Mr Morrison said the $86m investment was the largest from any Australian government in this space for more than 30 years.

Foresters and farmers in regional forestry hub areas such as Victoria’s green triangle, Gippsland and Murray region, who are seeking to grow new plantations of both softwood and hardwood would be eligible for the grants.

Victoria’s forestry sector is set to be turbocharged under a new $86m federal investment.

Businesses will be required to match the funding being provided through the program, while the federal and state governments will split the government contribution 40/60.

The move is expected to drive at least $300m worth of investment into new plantations, with the funding to be divided across participating states. Historical forestry production and the size of the plantation estate will also be taken into account.

Timber shortages have wreaked havoc across the construction industry during the pandemic, leading to massive cost blowouts and critical ­delays.

Agriculture Minister David Littleproud said the grants would have long-lasting benefits for rural and regional ­communities.

“This program will create jobs in regional Australia, not just in the planting phase, but in 25 or 30 years’ time when that wood is harvested and processed into a truss, a timber frame or an engineered wood product,” Mr Littleproud said.

“We want to partner with states and territories who own and manage forestry resources to plan for the future and ­turbocharge this industry.

“Forestry is a renewable, sustainable industry that continues to create jobs in the regions and delivers quality, Australian-made products for this country.”

Originally published as PM to announce huge investment in Victorian forestry sector