The North East NSW Forestry Hub has posted a report prepared by Ernst & Young into the economic significance of the NSW hardwood industry to the NSW and Commonwealth economies, “Economic Contribution Study of the NSW hardwood timber industry”.
This new report shows that North East New South Wales supplies two thirds of the State’s nation-building hardwood timber, which makes an important contribution to the New South Wales economy.
Ernst & Young’s Report, commissioned by the Commonwealth- funded North East NSW and South East NSW Regional Forestry Hubs, tracks the hardwood timber industry’s direct and indirect economic impact. It shows (see Table 1 below) the critical importance of the industry to the Northern NSW economy, contributing $1.8 billion in revenue, adding $700 million to NSW GDP and employing 5,700 people in the region.
The New South Wales timber industry undertakes highly selective native forestry that is certified to the highest forest management standard. Hardwood timber in the State is supplied from a mix of native forestry1 (80 per cent) (conducted primarily in NSW State Forests) and plantations2 (20 per cent), in line with strict timber harvesting and environmental regulations.
Of the 20 million hectares of native forest in New South Wales, less than five per cent is being used for timber production and only a very small fraction of this is harvested in a given year. In contrast, 30 per cent of New South Wales forests are designated as National Parks and conservation reserves.
Table 1
Ernst & Young was engaged to conduct an economic impact assessment of direct and indirect effects of the hardwood timber industry for 2021-2022 on four different NSW regions: the North East, Southern, Western and Greater Sydney.
| NSW Region | Gross Revenue ($m) | Gross Value Add ($m) | Employment (FTE) |
| North East | $1,840 | $700 | 5,700 |
| Southern | $720 | $270 | 2,230 |
| Western | $260 | $100 | 820 |
| Greater Sydney | $80 | $30 | 240 |
| Total NSW | $2.9 billion | $1.1 billion | 8,990 |
1. What is Native Forestry? Native forestry on public land happens mostly in state forests, and includes timber harvesting and thinning, constructing access roads, burning, grazing and other activities.
2. What is a Timber Plantation? Timber plantations are only grown on previously cleared land. This means new trees are only replanted within the same plantation footprint again and again. Once a plantation reaches maturity, the trees are removed for timber and then the area is replanted by hand.
