The Eastland Wood Council (EWS)—which represents New Zealand’s forest-rich Tairawhiti region—has given the government a “reserved thumbs up” over its plans to reform the industry after the area, ravaged by Cyclone Gabrielle, struggles to attract investment in wood processing.
It comes as Wood Central last week revealed that the NZ government has made a firm commitment to introduce new reforms that will “restore certainty and confidence” in the NZ $2.8 billion log and timber industry. These reforms include overhauling the Legal Harvest Assurance System as part of a comprehensive plan focused on four key areas.
“This includes working with the industry to increase onshore wood processing, opening new and improving access to existing trading markets, supporting sensible planting, easing burdensome regulations, enabling and supporting the development of new and innovative wood products, adjusting investment settings, and supporting New Zealand’s climate change goals,” Todd McClay, NZ’s Forestry Minister said.
In a statement, Julian Kohn, the chair of the EWS, welcomed the policy reset, “however, we expect the repealing of the log traders legislation will do little to reduce costs of doing business for the majority of the industry as it only affects a small proportion.”
According to Mr Kohn, potential wood processors have eyed the region for decades, but “most have left again despite an abundance of logs (being) available. “For example, we see limited benefits in spending millions on a processing plant if the logs cannot be removed from the forest in a safe yet cost-effective way to get to the plant.
Since ascending to the premiership, the Chris Luxon government vows to cut red tape, with Minister Mcclay warning that “the current system is failing to deliver outcomes and placing unnecessary costs on forest businesses.”
“This government will drive investment to unlock the industry’s economic potential for growth,” Minister McClay said, stressing that “forestry’s success is critical to rebuilding New Zealand’s economy, boosting our GDP, and providing regional jobs in a highly productive sector.”
Mr Kohn estimates that local logging and trucking operations have reduced by up to 200 roles over the past 18 months: “The closure of the Juken mill has also resulted in further job losses,” adding that these job losses “are a result of various factors, but not limited to the market, the constrained roading and harvesting rules.”
“We need to come together with iwi, mana, whenua, local and central government, as well as farmers and many more to develop plans supported by evidence and science,” he said.
- Visit Wood Central’s special report to learn more about New Zealand’s new policy to stamp out red tape and boost the country’s forest products industry.
