Funding announced for forestry industry

Government and industry have reached an agreement on a forestry and wood industry development package after setting aside the contentious issue of carbon credits.

Forestry Minister Jim Anderton recently unveiled a new $23 million development package which has been welcomed by industry leaders.

The Forest Industry Development Agenda, (Fida) provides $18.1m of government funding and $3.8m of industry money for development of the sector. It will fund initiatives in skills and training, market access and development, wood design and bio energy.

"It's good to see the Government recognising that forestry has an important role in New Zealand's future," Forest Industries Council Chairman Lees Seymour said.

The funding initiative includes most of the development proposals from the earlier Forestry Industry Framework Agreement but sets aside the issue of carbon credits which government and the industry had not reached agreement on.

Fida funding will be in the hands of a Steering Group comprised of industry and government representatives.

The largest chunk of the funding -- $8m -- will be spent on market development. That and $1.2m for market access and $2m on wood design is conditional on the industry supplying its $3.8m contribution.

The forest and wood processing industry is currently New Zealand's third largest export earner. It directly employs 26,000 people, accounts for 4 per cent of GDP with annual sales of more than $5 billion. It is hoped Fida will help more than double the number of jobs and increase turnover to $20 billion annually by 2025.

- NZPA