Australian Government to Provide $15.1 Million Freight Subsidy to Transport Logs off of Kangaroo Island

The Australian government is set to provide a $15.1 million (A$) freight subsidy to companies transporting logs off of Kangaroo Island. The subsidy will aid in the movement of salvaged logs from bushfire-affected plantations on Kangaroo Island to sawmills, on the South Australian mainland, that currently have immediate capacity to process logs into structural timbers.

David Basham, Minister for Primary Industries and Regional Development said the state government had pledged up to $3 million to bring additional timber to the local housing industry and welcomed the federal government’s new support package. Basham added, “This will be a game changer for South Australia’s housing construction industry and will significantly increase the amount of structural timber currently available.”

David Littleproud, Federal Minister for Agriculture and northern Australia said the government had listened to industry’s concerns to keep product moving. Adding, “This will provide vital assistance to businesses impacted by increased demand, global supply chain delays due to COVID-19, and the lasting impacts of the 2019-20 Black Summer bushfires. It expands our successful $15 million Forestry Salvage Transport Measure, to allow for both intrastate and interstate transport of remaining bushfire-salvaged construction grade softwood to mills in any state with capacity to process it.”

The Australian Forest Products Association (AFPA) and South Australian Forest Products Association (SAFPA) also welcomed the funding subsidy to the company.