In a world seeing an increasing shift to onshoring or ‘friend-shoring’, which risks creating new trade barriers for New Zealand, the forestry sector should be putting more focus on local processing, production and carbon revenue, former Minister for Forestry and New Zealand First candidate Hon Shane Jones told the National Māori Foresters Hui, Ngā Kōrero Rangatira mō Ngā Hua Ngahere. Source: Timberbiz
Reflecting on the vital importance of forestry to the Māori community, Mr Jones, who oversaw the investment of more than NZ$450M into the sector as Minister, says he has never been comfortable with local logs being sold laissez faire internationally if it undermines local processing and manufacturing.
“As other nations are becoming more protectionist, we need to accept that our primary duty is to the resilience of our own nation and people,” Mr Jones said.
“Of course, this might be unnecessary if the sector delivers sustainable contracts and guarantees New Zealand first manufacturing outcomes.”
The sustainability of the sector and its marketing practices have come to the fore =as log prices have fallen 14% between March and April, making it uneconomic for many to harvest their forests, as demand slows from major markets, particularly China.
“Given that we export 23 million cubic metres of unprocessed logs annually there is enormous scope to improve our industry returns,” Mr Jones said.
Despite the uncertainties in international markets, Mr Jones says the establishment of a local carbon market has improved the position of many forestry owners, and in particular Māori.
“The position of Māori landowners in forestry has changed dramatically with the advent of the ETS and the rising price of carbon” Mr Jones said. “Much of the land still in our ownership is not particularly productive and permanent forestry is a viable alternative.”
Alongside the further development of exotic trees, both as a resource to support local manufacturing, wood processing and even bio-fuel, Mr Jones says planting native trees does have a role in the forestry industry.
“Planting native trees has captured the imagination of many in the community. However, it needs to be tempered with realism. DOC already have about six million ha of forest estate – much of it mismanaged, where pests roam at will. A regime that involves local communities and pest control will achieve just as much as planting new groves of miro.”
However, the former Minister warns that uncertainty around policy is a major risk for ‘multiply-owned whenua Māori’.
“In the run up to the election it is essential that owners remain vigilant and challenge the current thinking which comes from the Climate Commission,” Mr Jones said.
“One option which was suggested to Māori was the nationalisation of the carbon market, which would see the Crown as the exclusive buyer of forestry credits from owners.
“A further change which Māori should pay attention to is the possibility of reducing the ability of industrial emitters to offset their emissions against forestry carbon credits. This appears to be the preference of the Commission. Such a change would have an enormous impact across the economy.”
Mr Jones says it is essential that Māori asset owners guard their rights vigorously and that communities are able to understand the potential costs of any policy decisions.
“I for one am totally disinterested in sending billions overseas to buy hot air credits,” he said of the Government’s proposal to offshore a large proportion of New Zealand’s offset commitments, estimated to cost the local economy NZ$64 billion.
“Mitigation gains have to be tempered by societal costs, which have to be honestly disclosed and faced,” Mr Jones said.
