Stephen Jacobi: Proposed timber rules bad for forest industry

COMMENT

Times are tough for the forestry industry but are going to get even tougher if proposed changes to building regulations promoted by the Building Industry Authority see the light of day.

Public submissions on the authority's proposals close tomorrow. At issue is how to respond to the problem of weathertightness or leaky buildings - a problem undoubtedly serious for those homeowners directly affected but which Forest Industries Council analysis shows concerns less than 1 per cent of new homes built since 1992.

The authority proposes that all timber used for timber-frame construction should be treated. Thus far it has ignored the industry's argument that this is an over-reaction and will not solve the problem.

Where is the sense in requiring all framing timber to be treated when much of that - more than 80 per cent produced each year, according to the Building Industry Federation - is used in low-risk applications such as roof trusses and internal walls?

Why force consumers to pay the extra cost of mandatory treatment when cladding systems such as brick veneer, which accounted for 59 per cent of homes last year, have no history of problems.

The forestry industry has no doubt that the consequences of the authority's extreme response would reverberate through the economy for years to come.

About 70 per cent of our forest products are exported. It is essential for the industry's growth that radiata pine achieves greater international market recognition. The risk is that the new regulations, which mark an astonishing departure from accepted practice, will send negative signals about the quality and durability of radiata and its suitability for use in higher-value market segments.

Forestry has huge potential to make a significant contribution to economic growth as a substantial foreign exchange earner and a major employer. The industry is our third-largest exporter with $5 billion turnover, $3.7 billion in exports and 23,000 direct employees.

But our ambition is to become a $20 billion sector, directly employing 60,000 New Zealanders, by 2025. Many of those employees will come from regions where unemployment is high.

Forestry is up against significant challenges in the form of high trade barriers, an appreciating exchange rate and escalating power prices. This potential threat to our reputation in a competitive export market is a real concern.

Take China, for example. Imagine if the Chinese came to use radiata as we do; the viability of our industry would be secure. As a first step, the industry has been working with the Government to ensure New Zealand pine receives adequate recognition in the new Chinese building code.

Last November a visiting Chinese delegation received extensive briefings about radiata pine. Members left with a high level of confidence in its durability and suitability in construction.

Whether that will survive the incorrect implication arising from the mandatory timber treatment that radiata is susceptible to decay is yet to be seen.

But it's a significant risk when we're talking about a weathertightness problem that relates only to about 14 per cent of the timber used in construction here. That's the proportion of timber used in the types of building systems and in applications that have been found to be most at risk of damage from leaks.

The industry is not opposed to timber treatment in all situations. Our recommendation to the Building Industry Authority has been to require treatment where the risk is highest. In these cases, the use is to limit damage to structural elements. The risk is highest with specific design, construction and cladding styles that have been clearly established as creating the problem in the first place.

Beyond this, rather than requiring treatment in all situations, the focus should be on keeping water out of houses through changes to external moisture standards and to building practices generally. Successful implementation of these measures would render unnecessary the use of treated timber in the vast majority of situations.

Finally, the authority's proposals are a direct threat to the continuing production of douglas fir. This species cannot be treated easily but has a long history of use in wall and roof framing.

Experience over 50 years here and over longer periods in other countries shows there is no justification for discontinuing its use.

Douglas fir makes up about 6 per cent of our planted forest area (about 103,000ha); about 10 per cent of structural timber used in residential applications; and over 70 per cent of production is found in the South Island.

The industry is deeply disappointed that the authority is advocating an extreme approach. This is an organisation with which we have worked well but which now seems intent on using a sledgehammer to crack a nut.

The authority has emphasised that it still has an open mind. New Zealanders, from exporters who may have to rebuild radiata pine's reputation overseas to homeowners who face paying up to $5000 more to build with treated timber, have a direct interest in seeing it changes its mind.

* Stephen Jacobi is the chief executive of the Forest Industries Council.