Walk out your front door and look down the street. If you are in the regions or in suburbia, then you will look at a tall wooden pole that carries the cables that gives you electricity.
Have you taken much notice of them? Probably not, but the pole is native hardwood harvested from a native forest where, through the application of science, it was encouraged to grow that straight. Timber power poles are selectively harvested from regrowth or working forests.
On 7 March 2024, the NSW ALP Minister for the Environment in NSW Budget Estimates had the following exchange with the Hon Wes Fang, National Party.
The exchange reveals how uninformed the Minister is who is a strong environmentalist. In the same Budget Estimates hearing, the Minister was boasting about the Great Koala National Park process she commenced. A process that is like that of a kangaroo court with a pre-determined outcome (but that is for another day). The Minister for the Environment is also the Minister for Energy. The Chair of the Committee is The Hon Sue Higginson, Greens MLC.
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The Hon. WES FANG: Minister, how many hardwood utility poles will be needed as part of the new network infrastructure for the transition to renewable energy in New South Wales?
The Hon. PENNY SHARPE: Good question. I don’t know. I’ll take it on notice.
The Hon. WES FANG: Have you done any planning around how many poles you’ll need for the next 20 years?
The Hon. PENNY SHARPE: There will have been some. There’s obviously different types of poles. We’re also looking at non-wooden poles. There are steel poles. There’s a whole range. There’s concrete poles. Some of that work’s being undertaken. I’ll take it on notice and I’m happy to provide it to you.
The Hon. WES FANG: I note you’ve talked about the other sorts of poles. Do you know why we use hardwood poles over some of the other poles, such as steel and concrete?
The Hon. PENNY SHARPE: Different uses for different applications.
The Hon. WES FANG: Minister, do you agree that there are environmental and practical benefits to using hardwood poles over those other types of poles, such as concrete, steel, softwood poles and composite poles?
The Hon. PENNY SHARPE: I wouldn’t pretend to be an expert in the types of poles and the ways in which they’re best used, but I’m happy to accept on value that they’ve been chosen for a reason and there’s probably some benefits — sure.
The Hon. WES FANG: Do you know where we source the majority of our poles in New South Wales?
The Hon. PENNY SHARPE: Yes, in the State forest.
The Hon. WES FANG: Minister, given the majority of the poles do come from the New South Wales mid-coast and are processed on the mid-coast, would you agree that the public native forestry industry is critical to the electrical supply industry and the renewable energy transition of your Government?
The Hon. PENNY SHARPE: First, I’d say I have taken a lot on notice in terms of the assessment of the need for poles, where they’re coming from and how they need to be used. If this is a question around the impact on pole supply as a result of the creation of the Great Koala National Park, which is what I think you’re trying to get to—
The Hon. WES FANG: It’s very much where I’m going to, yes.
The CHAIR: They come from plantations.
The Hon. PENNY SHARPE: Yes, fantastic. The process is currently underway around the creation of the Great Koala National Park and all of those issues are being worked through.
The Hon. WES FANG: Have you put any safeguards in place to make sure that we continue to have a private native forestry industry in New South Wales whilst the Great Koala National Park is implemented?
The CHAIR: Private? Public? Plantation?
The Hon. PENNY SHARPE: I’m not quite sure where you’re trying to get to there. I’m not the forestry Minister.
The Hon. WES FANG: You’re the environment Minister.
The Hon. PENNY SHARPE: Yes, I’m aware, and I’m very pleased to be.
The Hon. WES FANG: Are you putting some safeguards in to make sure that your Great Koala National Park isn’t going to shut down our forestry industry?
The Hon. PENNY SHARPE: You should know better than most about this. The Great Koala National Park has been talked about for a long time. It’s this Government’s most significant national park that I believe we’ll create, although I do think that all national parks are important, just to be clear. It is a big area that we’re assessing. That’s why we’re doing the environmental, economic and social assessment in relation to the impact of the creation of the park. It is why we have three different panels, including an industry panel. They’re examining all of that work. We have done two things. One is obviously create the koala hubs in the area, which is about 5 per cent of the park. The rest of the work is being assessed. That is what we’re doing and that’s the way we’re managing it, in a mature and thoughtful way.
The Hon. WES FANG: But you would agree that the hardwood timber industry is a key stakeholder for you as the energy Minister, particularly around that issue of—
The Hon. PENNY SHARPE: Yes. It’s why I’ve met with people, it’s why I’ve been on people’s farms. It’s why there is an industry panel in relation to the Great Koala National Park. As I said, one of the things that I think is extremely important in the work that we do, particularly in the environment, is that we misunderstand a lot of stakeholders concern and their desire to be part of the solution, and we have them at the table, and that has been a priority for me, as well as having others.
The Hon. WES FANG: Prior to the election your colleague, who was the then shadow Minister for Natural Resources, Courtney Houssos, told the timber industry:
I note that the Victorian and Western Australian Labor Governments have announced policies to end native forest logging, and we have already seen the loss of jobs and the closure of mills as a result of this announcement. This is not NSW Labor’s policy.
Have you sought a briefing on the use of hardwoods in, for example, the Renewable Energy portfolio, and do you agree with the now Minister, Courtney Houssos, that there is no policy around shutting down the forestry industry; that you support it?
The Hon. PENNY SHARPE: Okay, there was a lot in that.
The Hon. WES FANG: There is.
The Hon. PENNY SHARPE: Did you ask Minister Houssos, who’s just in a room down there?
The Hon. WES FANG: I’m in here. I’m asking you, Minister. I’m here to ask you.
The Hon. SCOTT FARLOW: She’s the former shadow.
The Hon. PENNY SHARPE: Sure. That’s totally fine, I’m very happy to answer.
The Hon. WES FANG: She spoke on behalf of your Government.
The Hon. PENNY SHARPE: Yes, and I worked extremely closely with Minister Houssos, who I’m very pleased to have as a colleague and who is a great person to work for, who is very professional and did great work as the shadow Minister in this portfolio. I’ve got no problem with that. I would just refer to my previous answer, which is we have industry at the table about the creation of the Great Koala National Park. I take on notice the planning in relation to renewable energy zones and the types of poles that we need. You would also be aware from Minister Moriarty’s estimates that there is work being undertaken on the Future of Forestry action plan that we’ll be talking about. All of that is extremely important. This Government supports a sustainable timber industry—that includes softwoods, that includes plantations and that includes talking about what happens with hardwoods—and that is what is being undertaken.
The Hon. WES FANG: Minister, since coming to government, have you had any conversations to look into or provide options for a possible transition out of public native forestry?
The Hon. PENNY SHARPE: I’ve been asked to get out of public native forestry almost every second day since I’ve been here—thank you, Ms Higginson—
The CHAIR: And I’ll keep asking every minute of the day.
The Hon. PENNY SHARPE: —and a variety of groups. We’re constantly having to respond to those issues. You would be aware—and I’ve just indicated—that we’re talking about the future of the industry action plan and that information will come out sooner rather than later.
It should be noted that the Minister who has seen legislation pass for a net zero future does not know the impact of concrete and/or steel power poles.
Concrete poles come at a cost 2x to 3x greater than timber whilst steel is 3x to 5x higher. This does not consider the issue of carbon sequestration as timber poles are carbon affixing sustainable units. (This data can be found in Reports prepared by the NSW DPI1 and the Commonwealth equivalent2). The alternative utility steel, fibreglass, and concrete poles are not carbon affixing sustainable units like timber.
It is estimated the Australian the network includes an estimated 86% of the poles are hardwood poles.
Timber poles have a price advantage over alternate materials as well as advantages of flexibility in use, natural insulation, compatibility with the existing infrastructure, carbon cycling and sustainability over other materials like concrete, steel and fibreglass.
The Australian Energy Regulator’s on-line 2021 Report acknowledges that:
‘Electricity network charges make up 40 – 50% of a residential customers energy bill in 2020-21. Distribution networks account for the majority of costs (73-78 %) with transmission network costs (up to 21%) and metering cost making up the balance.3
The Australian Energy Regulator in its on-line 2021 report does not appear to take the cessation of the native forestry industry into consideration.
This cost will form an uplift in the operating expenditure of the network operators.4
This operating expense is a direct cost and does not consider the climate or energy costs to produce concrete poles or steel poles. This is a cost-of-living issue for every Australian.
1. Fabiano Ximenes, Carbon dynamics in native forests – a brief review, NSW Department of Primary Industries, September 2021.
2. Fabiano Ximenes, Michael Robinson, Bruce Wright, Forests, Wood and Australia’s carbon Balance, Australian Government, Forest and Wood Products Research and Development Corporation and Cooperative Research Centre for Greenhouse Accounting.
3. ‘State of the energy market 2021’, Chapter 3, Electricity Markets P. 147 https://www.aer.gov.au/publications/reports/performance/state-energy-market-2021
4. ‘State of the energy market 2021’, Chapter 3, Electricity Markets P. 134 https://www.aer.gov.au/publications/reports/performance/state-energy-market-2021
