Wolfgang Leitner's application was approved under a special forestry test, brought in more than a year ago, to smooth the way for more forestry investment. Photo / Paul Taylor
Wolfgang Leitner's application was approved under a special forestry test, brought in more than a year ago, to smooth the way for more forestry investment. Photo / Paul Taylor
Wairoa's mayor has vowed he will not let his own 480ha of land be converted to forestry as part of what he says is a negative chain effect eroding his district's economy.
Craig LIttle has made the pledge after Austrian billionaire Wolfgang Leitner received Overseas Investment Office (OIO) consent to buy the 800ha Ponui Station at Kotemaori, Wairoa.
The station currently has 713ha in grazing for sheep and beef stock and 14ha of commercial forestry.
Leitner plans to convert 640ha of the grazing into commercial forestry according to the OIO consent release.
Leitner's application was approved under a special forestry test, brought in more than a year ago, to smooth the way for more forestry investment.
"I have 480 odd hectares myself and my wife and I can sell most of it off, keep a small block and live pretty comfortably but I won't do that because I know the chain effect it will have on the community and how many people it will affect if I do."
Little said he didn't see the point in the OIO getting involved in forestry purchases when "they aren't doing anything" to slow the amount of farmland going to forestry.
"They have a lot more rules for overseas farmers buying farmland and far less rules for forestry companies buying farms," he said.
Little said that over the last six months the Wairoa region had lost 10,000ha of land to forestry adding up to 7 per cent of the region's farmland.
"At that rate in roughly 13 years, that's it, no more farm land, and, while it might look good on the Government's GDP and their record, it will be the little communities like us in Wairoa that will feel the true impact of it," he said.
"It will affect the entire region and lead to a string of job cuts that are provided by the farming industry in Wairoa."
Wolfgang Leitner is one of the world's richest people.
Who is Wolfgang Leitner?
Who is Wolfgang Leitner and what does he want with potential forestry land in Hawke's Bay?
The 66-year-old heads an Austrian plant and equipment manufacturer called Andritz as the company's CEO and largest shareholder.
With an estimated net worth of US$1.5billion according to Forbes, ranking 1349 on its rich list, Leitner is a chemist by training but joined Andritz in 1987, was made CEO in 1994 and later bought a 26 per cent stake in the company in 1999.
He eventually turned Andritz into one of Austria's largest companies and a global giant.
The interest in forestry comes as Andritz is a global leading supplier of plants, equipment, and other industry manufacturing materials and products, but more importantly a global leader in the pulp and paper industry, which could be the reason behind the purchase.
Leitner comes from a somewhat modest background with his father also having worked for Andritz, serving the company for three decades as a metal worker.
His wealth stems from the sale of Pharmavit, part of pharmaceutical outfit Genericon he founded, for $110 million in 1995 helping towards his buy in to Andritz.
