A DISPUTE over user charges has prompted Kaingaroa Timberlands to close a main forestry road.
The wrangle has left trucking companies short of work and facing the prospect of having to lay off drivers.
The road, which links three major forestry blocks with Kawerau's Norske Skog mill and other smaller operations, is part of a 2005 Waitangi Treaty settlement deal between the Crown and Ngati Awa.
The two parties have been unable to agree on how much should be paid for the lease of the road and Ngati Awa wants assurances from the Government that it will discuss the issue.
Trucks that use the Bonisch Rd link to Kawerau can carry up to 100 tonnes and are unable to use public roads due to their size.
Logs are now being transported by smaller 30 tonne highway trucks via public roads. That means companies running the larger purpose-built trucks have lost a big chunk of their business.
Bonisch Rd is the only link road for off road trucks carrying wood from Kaingaroa, Wainui and Tauhara forests from Taupo through to Kawerau.
General manager of Smartt Transport Ltd, Mike Macdonald, says the closure could force companies to lay off drivers.
His business has already seen a 45 per cent drop in income since the road was closed two weeks ago.
"It will be a matter of weeks, not months before we will have to let some drivers go. It's time the Government got their priorities right, got up from sitting on their hands and dealt with an issue that had serious consequences on businesses and people in regional New Zealand." Mr Macdonald said four other large transport companies and up to 22 drivers and their families were directly affected by the closure. "Some drivers will have to take unplanned annual leave or leave without pay depending on their contracts."
The road closure also had a huge flow-on effect for businesses like tyre companies and service providers who were also losing work, he said.
Mr Macdonald said his company had no dispute with Ngati Awa as he believed the Government had ignored the attempts of Ngati Awa to negotiate a settlement. Bonisch Rd was closed by Kaingaroa Timberlands Ltd on September 18 at the request of Ngati Awa and the company says it will remain closed until the Crown and iwi settle their dispute.
Kaingaroa Timberlands Ltd technical manager, Ian Hinton, said the company was asked to close the road by Ngati Awa representatives and it would not be re-opened until "the two parties get together and sort it out".
"We have to respect the Ngati Awa position as owners of the land under the road and regret any problems this has caused," Mr Hinton said.
Jeremy Gardiner, Chief executive of Te Runanga o Ngati Awa, said the dispute was over a two-year-old commercial deal to lease the road.
"Unfortunately the drivers are the meat in the sandwich.
"We are happy to open the road again when the Government agree to a fair settlement on its lease. We are not asking for a complete settlement right away, just a commitment to sit down and work a deal out," he said.
Dispute closes forest road
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