Australia: hard times for the sawn timber industry

The sawn timber industry is highly dependent on building construction, which in Australia is subject to significant cyclical fluctuations. Government interventions, such as the introduction of the goods and services tax (Gst) and the first home buyers grant scheme (Fhbgs), have in the past amplified the building cycle and led to wide fluctuations in demand for sawn timber. More recently the global financial and economic crisis has cut short an upturn in the building cycle. This instability has had a disruptive impact on both producers and consumers.