Mr Baigent-Mercer said the Forest Act set out to protect both local jobs and the environment, which in terms of swamp kauri extraction across Northland had been systematically undermined over recent years. The habitat of endangered birds, lizards and plants had been wiped out, and a native orchid had likely become extinct.
The report to the Auditor-General stated: "Based on our experience and investigations we believe problems with the performance of MPI and Customs are wide-ranging and systemic. Of particular concern are reports and evidence suggesting that MPI and Customs officers are 'turning a blind eye' to illegal activity and/or assisting private companies and individuals to exploit loopholes in the law."
Meanwhile Green MP Eugenie Sage has labelled the exporting of ancient swamp kauri as state-sponsored negligence. A stop had to be put to illegal exporting, and a ministerial inquiry was needed to prevent more environmental destruction and the loss of New Zealand taonga.
"It's clear that the MPI is allowing ancient swamp kauri logs to be exported to China, despite this being illegal under the Forests Act 1949," Ms Sage said.
"MPI's failure to uphold and enforce the law means that ancient wetlands are being plundered and swamp kauri logs that are tens of thousands of years old are being carted off overseas. There are only a finite number of these ancient logs in Northland, and once they are mined and exported, they are gone forever.
"Exporters are getting around the regulations by failing to provide clear documentation about the source of the logs, and passing off these ancient logs as finished, manufactured timber products if they have superficial carvings on them, or have been milled into 'table top' slabs. The minister and MPI are allowing kauri miners to make a mockery of our law, our environmental protections and our taonga."
Evidence that government claims that exports were legal were entirely inaccurate was mounting, she added, with rough-sawn slabs of kauri openly for sale on Chinese, American and Polish websites."
"We need to know how this situation has been allowed to happen," Ms Sage said.
"The National government's policy of regarding nature as a resource to be mined, drilled or logged has got to end."
Meanwhile Northland MP Winston Peters said everyone but the MPI said kauri was being sent to China.
"Is there some sort of massive cover-up by the ministry and the sellers going on here? A ministry spokesperson is categorically denying these logs are being exported. She says we are confused, but all the evidence from interest groups and advertising overseas shows ancient kauri logs are for sale, and they are leaving New Zealand," he said.
"The ministry spokesperson maintains that the logs are still in New Zealand awaiting 'artwork', but to be told the ministry works closely with exporters and inspects all notified exports is plain nonsense, given that we are told that many export documents are never completed."
