Foresters play down 'headmaster' fracas

By PAM GRAHAM

Forestry industry representatives who have been to see "headmaster" Jim Anderton are playing down a fracas precipitating the meeting.

Anderton's "in my office now" call came after Timber Industry Federation chief Wayne Coffey criticised the Government's industry development policy when Carter Holt Harvey signalled the closure of its Tokoroa sawmill.

That closure, with the loss of 90 jobs, was confirmed on Monday as industry representatives met the Economic Development Minister, Forestry Minister Jim Sutton and Energy Minister Pete Hodgson for two hours.

Coffey did not attend what he had labelled a kangaroo court or summons to the headmaster's office. He is still waiting for Anderton to reply to an invitation to come to his office.

Executives from Thames Sawmill, Ahead Lumber, Craigpine Timber, Westco Lagan, Juken Nissho, Ernslaw One, Weyerhaeuser and Panpac were invited along with forest owners, contractors, union, and pine manufacturer representatives.

Stephen Jacobi of the New Zealand Forest Industries Council said it did not end up being a discussion about "who said what to whom".

The talk was of ways of invigorating the Wood Processing Strategy and finishing a Forest Industry Framework Agreement. The latter had potential to deliver Government funding in recognition of contribution to carbon credits.

The ministers were also updated on an industry proposal for a levy.

The council, Farm Forestry Association and Forest Owners Association are commissioning an independent study in the first three months of next year to look at a levy.

Under the Commodity Levies Act industries can recommend a compulsory levy, if supported by more than 50 per cent of producers, to finance research and international market development.

Coffey, who criticised big companies in the industry for not paying tax, has called the levy absurd.

The levy is most likely to apply to logs leaving the forest, or standing forests, and there is no indication yet on who will administer the funds.

Jacobi said meat, wool and horticulture industries had levies and some sawmillers supported the idea.

The group that met Anderton also agreed to hold a workshop in the new year.

"There was pretty direct talking around the table about the current investment climate in New Zealand and how New Zealand stacks up against other countries. The three ministers listened to that," said Jacobi.

Coffey's view was that the industry is facing a very difficult new year. As well as the high exchange rate and high shipping charges, exporters were now facing a flood of wood from the Australian domestic market.

He said Anderton was talking to the wrong people.