A KEY industry advisory body has urged the Brumby Government to create a single forestry authority to drive development of Victoria’s $6 billion timber industry.

The Sustainable Timber Industry Council has also called on the Government to set a clear, long-term policy plan for the sector.

The STIC report makes recommendations on Victorian forestry’s role in fighting climate change, covering issues such as biofuels, biomass energy, investment security, skills training and the need for research and development.

STIC, which consists of representatives from industry native forestry, plantation and farm forestry and senior public servants, advises the Minister for Agriculture, Joe Helper.

STIC uses figures from a URS study that shows Victoria’s native forest and plantation industry has an output valued at $6 billion and directly employs 25,000 people.

Specific proposals include:

PImproving plantation viability through environmental services markets, such as carbon or salt abatement, as an additional income stream.

PInvestigating the potential role of privately owned native forests in helping augment log supplies.

PEncouraging greater use of timber through government procurement policies and building codes.

PUsing timber’s carbon abatement benefits in climate change policy.

PEnhancing the role of VicForests, the Government’s commercial forestry arm.

STIC chairman, Christian Zahra, said departmental responsibilities for the timber industry had become fragmented.

Mr Zahra said a single forestry authority should be created with policy, operational and wood allocation roles.

“This would provide a ‘one-stop shop’ to address public and private native forestry and plantation issues, including facilitating long rotation sawlog plantations,” he said.

Mr Zahra said every sector of the industry and its processors strongly backed a long-term government plan.

The action plan “should provide adequate consideration of the length of the native forest and sawlog plantation investment and harvesting cycles”.

Mr Zahra, the former Labor member for the federal seat of McMillan, said the native forestry sector needed resource security. Also, the Government’s “long-term policy for plantation development in Victoria still needs to be outlined”.

Mr Zahra said forestry could deliver sustainable social, economic and environmental benefits for Victoria. “However, the industry is complex and not well understood in the broader community,” he said.

“These benefits can be overshadowed by the negative perceptions of recently harvested logging coupes and log trucks on roads.” The report recommends a major public education and information program.

The STIC report will be incorporated into the Government’s proposed timber industry strategy that is being co-ordinated by the Department of Primary Industries.

«www.vicforests.com.au»

«www.vafi.org.au»

«www.a3p.asn.au»

(10-08) 13:50 PDT MOUNTAIN VIEW — Can anything slow Google Inc.’s shares?

The Mountain View Internet titan’s stock climbed past $600 for the first time Monday, continuing a phenomenal winning streak for the company since it went public three years ago.

Google’s shares closed at $609.62, up $15.57, or 2.62 percent.

By passing the $600 threshold, Google has reaffirmed its status as a technology industry superstar. Few companies have risen so high so fast on Wall Street.

Google’s shares sold for $85 in its high profile initial public offering in 2004, valuing the company at $23.1 billion, bigger than General Motors, at the time. Now Google’s market capitalization stands at $190.3 billion, more than established business giants Wal-Mart, Wells Fargo or IBM.

Everyone who invested in Google’s initial public offering and held on to their shares have seen the value of their holdings increase seven-fold, at least on paper.

Investors are betting that Google will continue to grow its online advertising business aimed at search engines but also new initiatives in banner and video advertising. Google also is expanding into television, radio and print advertising, as part of a strategy to become a broker for all kinds of marketing messages.

Expecting an outstanding third quarter earnings report Oct. 18, some analysts have raised their price targets for Google’s shares. Robert Peck, an analyst for Bear Stearns, said in a research note last week that he believes the company’s shares will reach $700 by year’s end.

However, Google’s stock rise has been marked by temporary blips, such as when it reported disappointing second quarter earnings. In each case where its shares have tumbled, the company’s stock has recovered.

E-mail Verne Kopytoff at vkopytoff@sfchronicle.com.

(08-20) 13:45 PDT Los Angeles (AP) —

Countrywide Financial Corp., the nation’s largest mortgage lender, sought to reassure customers Monday that the liquidity problems dogging its mortgage operations were not affecting its banking unit.

The assurance came amid a report that Countrywide has started laying off an undisclosed number of employees as it tries to ride out the credit crunch that has rocked the home loan industry.

The job cuts occurred in Countrywide’s Full Spectrum Lending unit, which handles mortgages given to customers with minor credit problems or who can’t provide full income documentation required for traditional prime loans, The Wall Street Journal reported, citing an internal e-mail sent Friday to employees of that division.

Countrywide Financial spokesman Daniel Weidman did not immediately respond to a phone message from The Associated Press seeking comment.

The Calabasas-based company ran full-page ads on Monday in U.S. newspapers, including the Los Angeles Times and Detroit Free Press, in which it asserted “the future is bright” at Countrywide Bank FSB.

The ads noted the bank has more than $100 billion in assets, investment-grade ratings from three major credit agencies, and that the credit woes rocking its mortgage lending business don’t affect federally insured deposits at its 105 financial centers around the nation.

It’s a message Countrywide has tried to get across since last week, when a Wall Street analyst suggested the company could end up in bankruptcy if the liquidity crunch sparked by rising mortgage defaults worsens.

Countrywide said last Thursday it had borrowed $11.5 billion so it could keep making home loans.

The developments left many Countrywide Bank customers frazzled over the security of their deposits. Many have converged on bank branches in search of answers.

The lobby of a branch in West Los Angeles was packed Monday with nervous people waiting to speak with bank officers to make sure their assets were safe.

“It is worse for people who are senior citizens,” said customer Ruben Krakauer, 68. “If something should go wrong … they don’t have enough time to make up for their losses. How many people would hire me?”

Some customers came away feeling confident about leaving their money at Countrywide Bank.

“Everything I’ve got is federally insured,” said Jim Maurer, 59. “I don’t think there’s going to be any problem with Countrywide.”

Countrywide employs a total of about 61,000 people.

Its shares fell $1.62, or 7.6 percent, to finish at $19.81 after rising 13 percent on Friday.

The shares have traded in a 52-week range of $15 to $45.26.

Countrywide is the largest mortgage lender by volume, accounting for more than 13 percent of the loan servicing market as of June 30, according to the mortgage industry publication Inside Mortgage Finance.

The mortgage lending industry has been grappling with a spike in mortgage defaults and foreclosures as the housing market has cooled.

Many homebuyers have been forced into default or foreclosure because they haven’t been able to sell their homes or end up owing more than their home is worth.

Like other lenders, Countrywide has also tightened its credit guidelines and stopped selling some types of adjustable rate loans.

_ Associated Press Writer Noaki Schwartz contributed to this report.

___

On the Net:

«www.Countrywide.com»