$120m call for logging roads

By CHRIS DANIELS forestry writer

Investment of up to $120 million will be needed if maturing logs on the East Cape are to find buyers, says a Government-sponsored report.

With millions of tonnes of trees about to mature in areas poorly served by roads, consultancy GHD has studied what is needed in the Tairawhiti area, covering the Gisborne and Wairoa districts.

It found that as much as $120 million must be invested in East Cape roads in the next 20 years, with most of it needed in the next 10.

"Of this, around $30 million is likely to be eligible for financial support through Transfund and local government," said Deputy Prime Minister Jim Anderton. However, the source of the other $90 million is yet to be determined.

Peter Clark, chief executive of forestry contracting company PF Olsen and co-chair of the Transport Working Group, said the bulk of the $90 million shortfall ought to be funded by the Government.

"Infrastructure and roading is a legitimate encouragement to investment in New Zealand," he said. "It's not a tax handout - spending on public infrastructure and transport is a legitimate spend by Government to make their country more competitive for offshore investment."

Over the next few weeks, Ministry of Economic Development officials will set up discussions with local councils, Transit, Transfund and industry players to find out where the money will come from.

Referred to as "woodflow" by the industry, the volume of logs and wood products coming from the Tairawhiti area is expected to increase fivefold in the next 20 years.

It is predicted to increase from its present annual level of less than 800,000 tonnes to an average of around four million tonnes.

Similar increases are expected in Northland, Marlborough and parts of the lower North Island. The industry expects a fourfold increase in woodflow from Northland during the next six years.

Heralded by both politicians and the forestry industry, the report is the product of an initiative designed to unite central Government, local government and business interests.

And forestry industry leaders are giving credit to Mr Anderton for encouraging disparate Government departments to come together for a common goal.

The latest transport report was commissioned by the Wood Processing Industry Steering Group, set up to look at areas such as transport, skills shortages and how the Resource Management Act could be used to ensure the best use of New Zealand forests.

Devon McLean, Carter Holt Harvey chief operating officer and a member of the steering committee, said "real progress" was made in sorting out Resource Management Act (RMA) issues between the forest industry and local councils.

Mr McLean said forestry leaders and councils had agreed on some of the "frustrations" encountered during RMA applications and had agreed in principle on a code of practice.

This would help to bring some consistency to the way consent applications were dealt with in different parts of the country, he said, applauding Mr Anderton's commitment.