﻿Mr SPEAKER: Question No 5, Fletcher Tabuteau.
FLETCHER TABUTEAU (NZ First) to the Associate Minister
for Primary Industries: What is the Government doing
to increase log processing in NZ to maximise wealth
for the regions that produce them?
Hon JO GOODHEW (Associate Minister for Primary Industries):
The Government has a wide range of measures under way
designed to support the growth of log processing
and the wider forestry industry.
It is worth noting that domestic processing of
logs has actually been increasing.
In 2014 the share of total harvest processed domestically was 49%;
in 2015 this rose to 51.2%;
and domestic processing is expected to continue to increase in 2016.
Of the timber exported, 42% goes out as logs; 58% of it is processed in NZ.
I will give the member just a couple of examples to support this.
We are working as part of the Engineered Timber Stakeholder
Working Group to identify and develop export markets
for those processed wood products.
We are ensuring a supportive regulatory environment—
case in point, the Ministry for Primary Industries has recently approved
the new Rotorua log processing company Lumbercube to undertake
quite a sanitary inspection as a Ministry for Primary Industries-approved organisation.
And, lastly, the Ministry for Primary Industries
is also undertaking analysis— this is NZ Trade and Enterprise
and the Ministry for Primary Industries—have co-funded analysis
on wood availability and processing capacity for a new processing facility
located in Ngāwhā in Northland.
There is plenty to say about what we are doing—
Mr SPEAKER: Order! The Minister is taking too long to say it.
Fletcher Tabuteau: Why is she allowing foreign corporates
to buy up large regional forests, such as Northland, Southland,
Taranaki, and Rotorua, which are then exporting two-thirds of logs
directly overseas, bypassing local NZ sawmills and processors?
Mr SPEAKER: In so far as there is ministerial responsibility,
the Hon Jo Goodhew.
Hon JO GOODHEW: Yes, I will stick to my ministerial responsibility.
What we currently have in NZ are some companies
that have changed hands and, yes, there has been foreign investment.
So, although the member was on his feet a couple of years ago
decrying the loss of jobs in Rotorua when Tachikawa Forest Products
lost more than 200 jobs, now we see Lumbercube investing here in NZ
in many jobs and new processing capability. That is but one example.
There are many other examples around the country
where overseas investment—which is not a dirty thing in NZ—
is creating jobs for NZers whose jobs have disappeared. The Government—
Mr SPEAKER: Order! [Interruption ]
Order! The answers have to be shorter than the Minister is giving.
Fletcher Tabuteau: If she does not agree with me,
does she agree with Dr Jon Tanner, Chief Executive of the Wood Processors
and Manufacturers Association, that the current trend
is threatening the longevity of the wood processing sector;
if not, why not?
Hon JO GOODHEW: I am able to advise that we are in constant engagement
with Dr Tanner and that we are working together with him.
So, although there is always more economic gain to be strived for
in the wood processing sector, that, in fact, has been encouraged
and supported by this Government.
That is why there has been more processing happening each year
for the last 3 years as this Government supports the businesses
in NZ that are processing, and the member would do well
to remember the statistics I gave him at the beginning
about the numbers of logs—
Mr SPEAKER: Order! [Interruption ] Order!
[MEMBERS INTERJECT]
Fletcher Tabuteau: Has she even considered options
such as those in Canada that require logs to be supplied
first to local processors and that the best logs
cannot be exported; if not, why not?
Hon JO GOODHEW: It will not surprise this side of the House
that we are not market interventionists
trying to screw the scrum.
We are enabling businesses to get on and do what they do best.
So while the engineered timber frameworks in NZ are being developed,
we will use the best logs and get the best possible price
back to NZ’s economy, instead of trying to advantage one part
of the sector over another.
Fletcher Tabuteau: Would she concede, or does she agree,
that NZ wood processors—or, in fact, the whole NZ economy—
are missing out as foreign corporates take the value
and the wealth of unprocessed NZ timber directly overseas?
Hon JO GOODHEW: I do not accept the premise of the member’s statement.
Fletcher Tabuteau: What will she do to ensure foreign corporates
from Canada, Malaysia, Japan, China, and America work first
with our local wood processors, or is she willing to see
regional industry go bust?
Hon JO GOODHEW: This Government is focusing many, many actions
on regional economies—for instance, I will give examples from up in Northland.
These examples show that we are analysing the wood availability
and the processing capacity up in Northland currently.
What that will mean is more jobs for the people of Northland.
That is but one example. However, we understand that this country
also needs foreign investment, and the member would do well
not to forget the jobs that have been created by foreign investment.
Mr SPEAKER: Question No 6.
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