SUMMARY The arguments used to justify the rapid expansion of Australia's softwood plantations are based largely on a deficiency of softwoods and the size of the forest products import bill. Australia is deficient in softwoods, but while the forest products import bill is large, it is not excessive compared with that of other net importing countries either on a per capita or per $1000 GNP basis. The comparatively unfavourable export performance of the Australian forest products industry (although partially caused by the defectiveness of the raw material and the low availability of softwood) strongly suggests organisational difficulties within the growing and processing industries. Considerably more attention should be directed towards defining and removing these difficulties because their presence after the year 2000, when Australia is likely to be a net exporter could cause major problems. More reliable and continuously updated econometric studies and projections of consumption and production, and studies...