Minister Peeni Henare addressing the Wood Processors and Manufacturers Association (WPMA) conference, and announcing a large-scale Wood Processing Growth Fund to increase New Zealand's domestic processing of wood
A $57 million fund to support more onshore wood processing has been announced in Rotorua.
Minister of Forestry Peeni Henare announced the fund yesterday at the 2023 Wood Processors and Manufacturers Association conference in Rotorua.
In his announcement, Henare said last year’s Budget allocated $384m of investment to forestry and wood processing as part of the Government’s emissions reduction plan.
“Today I’m announcing around $57m of that budget in a wood processing growth fund.”
He said the Government recognised wood processing investment in New Zealand has been “flat” with many processing facilities “ageing and dilapidated”.
Investments can also be made into exploratory and innovative activities within the forestry industry, such as feasibility studies or business cases.
“I grew up in a small town in the Far North … we had a timber mill. We don’t have those any more and everyone is scratching their heads as to why we don’t have them any more,” Henare told the Rotorua Daily Post.
“The aim of this fund is to look towards those opportunities in places like this [Rotorua].”
When Henare was asked about jobs in the Rotorua region, he said continuing to send 60 per cent of logs overseas meant missed opportunities for New Zealand’s employment circle.
“That’s important for places like this, in particular places like Rotorua.”
He said despite the industry facing labour challenges, “if we can show that there’s security, there’s a future and there’s career pathways in the sector of forestry and wood processing, I think people can look towards it as a viable career”.
Henare said women also have an important role to play in the forestry sector, “broadly speaking”.
“They’re capable, they’re smart, they’re strong. If given the opportunity, I’m sure they would thrive.”
In his announcement, Henare said the fund will lead to the additional production of wood products, supporting Aotearoa with near-future climate change transitions.
“It’s become evident that the forestry practice needs to improve and adapt to the increased pressures of climate change.
“We know that across the board, we can do so much more. This government is committed and focused on enabling this to happen.”
Henare said New Zealand being the world’s largest softwood exporter should not be seen as a badge of honour.
About 40 per cent of New Zealand’s annual forest harvest is processed onshore.
“If we can find higher value uses for the 60 per cent [of timber] we currently export, we will grow our prosperity and help our country transition to a low-carbon future.”
Minister Peeni Henare announces a new $57 million growth fund at the Wood Processors and Manufacturers Association conference, to increase New Zealand’s domestic processing of wood. Photo / Andrew Warner
“Scientists have shown that wood fibre can be used in biofuels, bioplastics and biopharmaceuticals.
“Over time, it will be commercially viable to use wood and wood-based products to replace almost all products and fuels traditionally made from petrochemicals.
“Countries across the world are seeking to reduce emissions and our comparative advantage of turning sunlight into wood products that are low carbon by their very nature is almost unsurpassed.”
He said Māori have a key role in leading the change to make better use of Aotearoa’s forests, as well as ensuring resources are used sustainably to support present and future generations.
Minister Peeni Henare at the Wood Processors and Manufacturers Association conference. Photo / Andrew Warner
Wood Processors and Manufacturers Association chairman John Eastwood said the minister’s announcement was “a really positive step”.
He said investing in lifting productivity in the sector was really important.
“[It’s about considering] how we can maximise every fibre we have in our forestry profile.
“It’s not just about finding more-efficient sources. It’s about making sure that we’re using every aspect of the tree in our economy.”
Techlam New Zealand managing director Brett Hamilton said it was encouraging to see the Government listening.
Hamilton had been involved in new building projects nationwide and said it had been positive to see the Government mandating using timber in the construction process.
He said he thought the future of New Zealand’s forestry and building sectors was “bright”.
