Forestry Minister Todd McClay, today announced the start of the Government’s plan to restore certainty and confidence in
the forestry and wood processing sector.
“This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay says.
“Forestry’s success is critical to rebuilding New Zealand’s economy, boosting our GDP and providing regional jobs in a
highly productive sector.
The Government’s vision to grow the forestry sector includes:Spurring economic growth through jobs and exports;Delivering low emission solutions and products;Supporting land use resilience, adaptation, biodiversity & social benefits; andProviding carbon removals to support climate goals.
The Government will be introducing a package of initiatives during the course of this parliamentary term to support
industry growth and to deliver positive outcomes across the forestry and wood processing value chain.
“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.
“Nearly 60 per cent of New Zealand’s harvest is exported. Increasing our domestic processing, will grow the economy,
create more regional jobs and help us double our exports by value in 10 years.
“Alongside domestic reforms, the Government is working to expand access to overseas markets for producers to export
high-quality wood products, also by addressing non-tariff barriers. This will provide the market certainty wood
processors need to expand and innovate.”
The Government is also considering how to get the balance right for New Zealand’s wider forestry system.
“It is important to ensure there is sufficient pipeline of logs to support domestic wood processing as well as
encouraging the planting of new trees on suitable land to meet our international climate change commitments,” says Mr
McClay.
An independent review of the operational costs of the forestry component in the ETS was launched earlier this year and
will be followed up with a separate assessment of cost recovery fees to be considered for the 2024/25 financial year.
“We want to ensure the ETS is cost-effective and efficient for participants.
“We are also working swiftly to remove unnecessary regulatory burden on forest businesses, recently announcing the
repeal of legislation requiring the registration of log traders and forestry advisers. This will remove the pressures of
unnecessary costs on forest businesses.”