East Coast forestry industry facing the axe

“Absolutely impossible” consent conditions are causing some East Coast forestry companies to “bleed money” and this could force them to move offshore.
Forestry harvesting has already ground to a halt in some areas of Tairāwhiti, part of the fallout after the district was hit by devastating cyclones Hale and Gabrielle last year.
The Detail looked at what impact this will have on the forestry industry and East Coast communities.
“This issue is a gnarly one, I don’t think it is going to be solved overnight,” says Newsroom senior business journalist Tina Morrison, who has been investigating the story.
“I think there are a lot of interest groups who are keen to find a solution, but it’s not going to be simple because I think it’s obvious that forestry in that area can’t continue the way it’s used to.
“You have got to feel for people who have invested millions in the area and were encouraged by the government to do so. They will be feeling aggrieved as well… and wondering what they will do with the sunk investment.”
Coming into effect last November, the new National Environmental Standards for Commerical Forestry means forestry slash – the waste product from commercial forestry – longer than two metres and with a large-end diameter of more than 10 centimetres must be removed from erosion-prone land after harvesting.
Further proposed local regulations will be considered.
At a Gisborne District Council Sustainable Tairāwhiti committee meeting this month, forestry industry chief Julian Kohn said resource consents conditions were “absolutely impossible” to comply with. He said companies were “bleeding money” and could move offshore.
The 65-year-old has worked in the forestry industry for 45 years.
“If I was a board member for these companies, I’d be seriously asking myself why are we still in Gisborne, what are we doing here?” he said to the committee.
“We’re not making any money.
“Capital is very mobile. Those companies could very easily decide to cut their losses and they will go to Australia or South Africa or wherever they can make better money.
“Forestry in New Zealand is extremely difficult… forestry in Gisborne is worst than extremely difficult. Every person I talk to in the industry at the moment says they won’t invest in Gisborne.”
The Detail also delves into why pine was planted in the area, the impact of climate change on forestry and the fallout of log prices.
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