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3.1 Firewood
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FIREWOOD FACT BOX (Read
Sturgess and Assoc.[RSA] 1995)
- c.1.85 million M³ of firewood
is consumed in Victoria each year (M³ = a trailer load).
This compares with c. 1.9 million M³ of sawlogs and
pulpwood consumed each year in forestry operations.
- c. 55% of firewood comes from private
land.
- c. 55% of firewood is collected by
individuals, not bought from wood suppliers.
- There are c. 1.475 million households
in Victoria of av. 2.5 people each. The percentage of households
using wood for heating/cooking varies from 18% (Melbourne),
to 33% (regional Victoria), to 75% (farms).
- Average household usage of firewood
is 6.7 M³/year (Melb. households use less, regional
and farm households more).
- Red Gum is the most common species
sold.
- Public land royalties (licence fees)are
c. $9/M³ for Red Gum.
- Firewood prices vary between $50 M³
retail in regional Victoria, and $75 M³ wholesale in
Melbourne.
- Retail market value of all firewood
consumed each year would be in the vicinity of $92.5 million.
- In 1993/4, 11,000 M³ of firewood
was recorded as harvested from public land in Dept. Conservation
and Natural Resources regions Portland and Horsham (c. RTBC
areas), out of a total of 181,800 M³ recorded as harvested
from all Victorias public land.
Additional information:
- Firewood cut in Victoria and SA is
also consumed in South Australia (figures not available).
Firewood is also brought into both states from NSW, further
complicating the picture.
- South Australias population
is c. 1.469 million (1995).
- 8M³ of firewood is a reasonable
estimate of average yield/tree from the large, old, dead
Red Gums within the RTBC range (figure will vary greatly,
depending on tree size, previous loss of limbs etc.).
Removal of Red Gum trees with hollows for firewood has been
identified as a possible cause of decline of the RTBC, due
to elimination of nest sites. Firewood is cut in the area
for local markets, and for consumption as far away as Adelaide
and Melbourne. In order to ascertain the importance of this
threat, it is necessary to attempt to gauge the magnitude
of wood removed, of what species, and from where.
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Q.15 Using
information from the Fact Box, calculate the approx.
volume and percentage of firewood produced each year from the Victorian
RTBC region. (Assumption: Portland and Horsham DCNR regions represent
Vic RTBC range).
Note: Add 4% to the final figure to allow for the large volume of
Red Gum available on private land in the area, thereby increasing
the regions contribution to Victorias firewood supply
above the proportion indicated by the public land figures.
Q.16 If
South Australia had identical patterns of consumption and household
size to Victorias, and the SA RTBC region accounted for 10%
of total State firewood supply (S-E SA is well forested compared
to the rest of SA), then how much firewood would be produced by
this area? 
Q.17 What
would be total firewood volume produced in the RTBCs range
each year (Vic and SA)? 
Q.18 What
species is likely to have provided most of this wood (say 75%)?
Q.19 From
what land tenure would most of this timber be harvested? 
Q.20 How
many trees/year would this represent? What proportion of the total,
potential, Red Gum nesting resource might this represent? How many
hollows may be required by RTBCs for breeding each year? Do the
overall figures warrant concern? 
Q.21 Given
points 3 and 10 in the Fact Box, does the retail market value presented
in point 9 represent actual financial return? If not, what $ figure
would be a truer representation of retail sales plus royalties?
Conservation actions?
If you have decided that loss of nest hollows
through firewood collection is a significant threat, then there
are three, fundamental responses to the problem: reducing demand,
altering supply, and/or applying controls and restrictions. We will
evaluate each approach in turn.
3.1.1 REDUCING DEMAND
Firewood for cooking, and particularly heating
and ambience, is an increasingly popular fuel. Its domestic use
increased by 50% in the 70s and 80s in Victoria alone (Read Sturgess
Assoc. 1995). There are many advocates and detractors of the use
of firewood, some of whose arguments are presented in Firewood Resource
Materials (3.1).
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Firewood Resource Materials
(3.1).

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(dead trees used)
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Q.22 Your
job, preferably in groups, is to prepare a brochure (A4 three-fold)
either advocating the use of firewood, or arguing for its replacement
with gas or other fuels. Be prepared to present your case to the
class. 
Points which you may wish to elaborate on in your
brochure/presentation could include:
| For |
Against
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Cheap
Accessible/equitable
Renewable
Recreational
Aesthetic
Reduces bushfires
Clears/cleans agricultural land
Value-adds to logging operations
Value-adds to revegetation projects
Generates rural employment and
cash flow |
Expensive
Inefficient
Polluting - CO2/particulates
Destructive of habitat
Unsustainable
Uncontrolled
Fewer $ returns than alternative sources
Less employment
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3.1.2
ALTERNATIVE SUPPLIES
Even if demand for wood decreases as a result of campaigns aimed
at reducing the use of wood appliances, there is still every likelihood
of substantial requirements persisting into the near future. Various
alternative sources of timber and wood-like fuel have
been suggested from time to time, including building wastes and
reconstituted newspapers, but it is perhaps woodlots that hold the
most promise for the area in question.
Q.23 You
have a one-hectare paddock in the corner of your property near Naracoorte,
SA. You cant decide whether to devote the paddock to sheep
grazing or to a woodlot. You decide to experiment and place one
ha under woodlot, and your neighbour says shell keep records
on a similar ha under sheep (unirrigated). You agree to compare
the return after 15 years. 
Using the economic data on woodlots
and sheep grazing provided, calculate who made the better economic
decision*.
| Sheep data |
Stocking rate: 10 dse (dry sheep
equivalents) per ha
Gross margin ($/dse): $15 |
| Woodlot
data |
Trees:Eucalypts
Growth: 15 M³/ha/year (mean annual
increment)
Rotation: 15 years
Establishment costs ($/ha):
-Ploughing $36
-Fencing $380
-Plants $500 (1000 at 50 cents)
-Fertilising $84
-Weed control $108
Harvest costs ($/M³): $16
Transport distance: 0 km |
| Price received: $50/M³
(Read Sturgess and Assoc. 1995) |
| Additional
Information |
Comparisons
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Return 1992-96
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Average Return Last 25 Years
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Wool/Beef
Prime Lambs
Dairying |
$87/ha/year
$188/ha/year
$430/ha/year |
$160/ha/year
$250/ha/year
- |
| (P.R. Bird in Fortech and Geddes
Management 1997) |
| Note |
(a) comparison should be made at
both year 1 and year 15, when the first return from the woodlot
is achieved (sheep produce a return for each of the 15 years).
(b) assume that all establishment costs for the woodlot are
accrued in year 1 and that there are no additional costs for
the woodlot (e.g. weeding) post this year, except for harvesting
costs in year 15. |
* Initial figures will give only a crude measure
of return because they do not allow for our preference for money
now, rather than later (ie there is a penalty for having capital
tied up and interest foregone). The distortions caused by these
factors can partly be reduced by applying a Discount Rate to future
returns to make them more closely align with our current time preference.
If a discount rate of 8% is applied to the sheep and woodlot returns
at year 15, then the result is reduced considerably, e.g. by 8%/year
for years 14, 13 etc, back until year 1. Applying such a discount
rate to the figures subtracts $5,150 from the raw return figure
for the woodlot (Year 15), and $966 from the sheep figure (Year
15).

Q.24 How
much is the return for the woodlot and sheep now? (This value is
called Net Present Value, NPV). 
Q.25 If
the case presented is roughly a break-even scenario between sheep
and wood, how could you improve woods profitability? 
Q.26 Find out
your local retail cost of firewood. How would this price affect
the NPV calculated above? 
Q.27 The
case study presents a severe limitation on market access for wood;
what is it? 
Q.28 Transport
costs would be c.$1.15/km return/load(23M³)
if wood were carted more than 50 kms. If the wood from our one ha
at Naracoorte had to be trucked a round trip to Adelaide, how much
would this add to costs? 
Q.29 Using your
figures for the number and M³ of
Red Gums possibly removed each year from the RTBC range, and woodlot
M³ yield/year, how big a woodlot
would be required to meet this demand? Is this feasible? (To help
answer this question it may be required to consider not just total
demand, but also localised demand; e.g. how big a woodlot would
Naracoorte require [pop. c. 5,000]?). 
Q.30 What additional
benefits, other than fuel, may woodlots provide? 

3.1.3 CONTROLS AND
RESTRICTIONS
As well as addressing issues of demand and supply,
it will probably be necessary to assess and implement some form
of control over firewood cutting if pressure is to be relieved on
nest sites. Possible controls can be divided into those currently
in operation and those that are available, but have rarely been
implemented.
3.1.3.1 Public Land Licences
Commercial and domestic consumers must obtain
a licence and pay a royalty to collect firewood from public land.
Licence controls can include:
- Duration of operation
- Number of licences
- Quantity cut
- Location of cut
- Type of wood to be cut
- Coupe and harvesting prescriptions as per
the relevant Forest Management Area
- Royalty and tender charges
(There are no licences for private land.)
Q.31 Which
of these mechanisms do you think would be more effective? Less effective?
Justify your assessment. 
Q.32 Which
group of licence holders, commercial or domestic, would be easier
to police? Why? 
Q.33 If licensing
does at least direct collection to areas of less sensitive habitat,
what proportion of the total firewood take is likely
to be controlled in this manner? 
(Refer to section 3.1.1).

3.1.3.2 Available Controls - Private Land
Read Sturgess and Assoc.(1995) assessed legislation in Victoria
relevant to firewood collection on private land and identified three
Acts of potential importance.
(a) Flora and Fauna Guarantee Act 1988
The FFG Act provides mechanisms to conserve habitat
if taxa or ecological communities are threatened by firewood collection.
Direct controls are available, e.g. Conservation Orders, to prohibit
actions in or impinging upon Critical Habitat (habitat essential
to the survival of the taxa). At this stage, however, there
appears to be greater emphasis on assistance, education and encouragement
to achieve these purposes than using the powers of coercion provided
by the Act (RSA 1995).
(b) Conservation, Forests and Lands Act 1987
Allows the Government to enter into Land Management
Co-operative Agreements with landholders as regards the use and
management of the land in question. Agreements can require that
flora and fauna be preserved, be managed for conservation, or protected
in a sanctuary, amongst other possibilities. Compensation can be
paid to ensure that a landowner is not worse off.
The protection of individual dead trees or
groups of dead trees, ...along with the provisions for regeneration
(including financial incentives) would be feasible under this Act
(RSA 1995). In effect, the landholder sells off some of their rights
to a parcel of land to the government. (Agreements could conceivably
be developed between the landholder and private parties, e.g. a
bird club, to pay the landholder not to use a piece of land for
firewood, or with bodies such as the Trust for Nature, to establish
a Conservation Covenant).
Q.34 What agreement
and covenant mechanisms are available in your State? 
(c) Planning and Environment
Act 1987
Empowers municipalities to establish planning schemes and controls
which may include provision for overlays for areas of conservation
significance in general, or live or dead trees in particular. The
shires of Glenelg and West Wimmera have overlays that require a
permit to remove large dead trees with hollows from within the RTBC's
breeding range.
Amendment S16 established controls
for living native vegetation in Victoria, following SAs lead
in 1985. These policies have met with both criticism and acclaim
since.
Q.35 Why
do you think controls on the clearing of dead trees are rarely introduced?
As well as legislative controls, there is considerable
scope for education programs to bring about desired alterations
in behaviour. The Land for Wildlife scheme is one example that encourages
sympathetic management of farms. (See RTBC poster, Res. 2.1).
Q.36 Can you think
of other educational programs in your area that could convey messages
about the wildlife values of dead trees? 
Q.37 In
a group of two-four, draw up a strategy of controls/agreements/pricing
for firewood collection on private land in RTBC nesting areas. Make
sure you address the consequences of your actions on: (1) firewood
collection on adjacent land, private and public (2) firewood demand
(3) firewood price and (4) landholder participation in future RTBC
revegetation and other projects. 
Q.38 RSA state
(1995): The optimal mix of policies (firewood policies)...is
a complex exercise...outcomes are many and imperfectly understood,
therefore policy makers must feel their way slowly and carefully.
Discuss. 
Firewood Overview
Q.39 Which
measure, alternative supply, reduced demand or legislative control
is likely to be most effective in dealing with the threat posed
by firewood collection? 
Q.40 Do you think
educational or economic tools will be more effective in assisting
this change? 

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