As diesel mechanics in the forestry industry, Tamanui Hill and David Hayes fix and service the machines in forests around Tairāwhiti.
As diesel mechanics in the forestry industry, Tamanui Hill and David Hayes fix and service the machines in forests around Tairāwhiti.
Forestry is at a crossroads in Tairāwhiti as declining contractors, economic challenges and environmental scrutiny threaten the industry.
Five years ago, 22 towers — 23-metre machines that get logs up hills — were active in the region. Today, eight are left.
Three years ago, 118 forestry contractors (who employ teams) were working in the region. Today, 36 remain.
The Covid-19 pandemic, followed by extreme weather events, means the rainy-day money in forestry is gone, companies are losing money to stay in the region, and the contractors who are left are living week to week.
Erika Herries and husband Dan started Lumberjack Logging 12 years ago and employ a crew of 10. She’s also a member of the Eastland Wood Council and Women in Forestry boards.
Infometrics’ 2024 economic profile for Tairāwhiti shows 18.6% of the region’s employment is in forestry, agriculture and fishing as opposed to 5.4% nationwide.
Forestry, logging and wood product manufacturing account for 32% of tradeable GDP (Gross Domestic Product) for Tairāwhiti. Tradeable GDP refers to what can be sold outside the region — internationally and in New Zealand.
It supports the overall economy by generating jobs and economic activity. This, in turn, creates demand for non-tradeable industries such as construction, retail, education and healthcare.
Infometrics’ July 2024 Assessment of Tairāwhiti’s Tradable Sector, created for Trust Tairāwhiti, showed the region was more reliant on the tradeable sector than the national average. This means when forestry suffers, it has a wider impact on the region’s economy.
The flow-on effect is felt not only by those directly employed and their families but related businesses — diesel mechanics, tyre fitters, hospitality and retail.
The Truck Stop on Awapuni Rd is a popular food and drink spot for forestry crews and truck drivers.
Owner Reid Halliwell said it was noticeable when they were not all going to work.
“We’re not getting a lot at the moment — a few truck drivers but nowhere what it used to be to like. We’re doing okay, but we’d be doing quite a bit better if they were around.”
Ashley Fisher is an accountant and president of the Gisborne Chamber of Commerce.
“When forestry has a downturn, everyone feels it because we’re heavily invested in it as part of our region,” he said.
Fisher said all discussions around forestry ultimately led to compliance, and this must be taken into an economic context.
“If you make something financially unsustainable, it won’t continue. Delays through compliance mean people lose their jobs.”
Fisher said the downside to losing the industry in Tairāwhiti would be the flow-on effect from people leaving their Gisborne to find other opportunities.
The forestry industry is a big player in the Tairāwhiti economy and for employment. The recent decline in the industry has seen the region struggle, and open dialogue between the main players is happening as they decide how to move forward.
Over recent years, Eastland Port has invested about $140 million into upgrading and enhancing its infrastructure. It relies hugely on the forestry industry, as it makes up 88% of its income.
Eastland Tyres owner Jason Jones said the recent decline in forestry had been “huge”.
“Business is nowhere near where what it was like three years ago.”
Staff levels have downsized, and when someone leaves, they’re not replaced.
“Like it or hate it, forestry has a huge impact on how our circle of business goes around in Gisborne. It’s not just the logging trucks, it’s the mechanics, the metal trucks, just everything, really.
“Hopefully, with this mill opening, it will make a big difference in this area.”
Earlier this year, Millari NZ bought the former JNL sawmill. Some jobs are already being advertised, although no opening date has been confirmed.
Millari NZ chief executive Ryan Yari said the mill would provide 150 jobs, and 300 to 500 indirect jobs would be created.
“We are hoping to hire directly from the Gisborne community... but we are sure people who have left Gisborne to find work would love the opportunity to come back if there were more opportunities available.”
The first year’s projected output is around 80,000 cu m, with the goal to triple that within five years.
Another Gisborne business reliant on forestry is a company that sells equipment to the industry and employs diesel mechanics to service that equipment.
The branch manager (who didn’t want to be named) has been in the industry since 1998 and is a former forester. Over those years, he’s seen “massive changes environmentally”.
But when forestry went through a downturn, work slowed down, money owing grew faster, and two years ago, they had to cut back on staff, he said.
The multi-decade nature of forestry has meant bad practices of the past are now showing environmental impacts.
Since 2018, the industry has been under increased scrutiny in Tairāwhiti after more than 10 extreme rain events mobilised large quantities of woody debris down hills and into waterways, ultimately ending up along the coastline.
Forestry companies have been prosecuted and fined as a result, and there is a heavier enforcement presence from Gisborne District Council (GDC).
Eastland Wood Council deputy chair and regional manager for Forest Enterprises, Warren Rance, says a benefit of forestry is land protection and keeping soil on the hills.
Eastland Wood Council (EWC) and forestry companies are working towards better relationships and communication with GDC’s forestry compliance team.
Warren Rance, EWC deputy chair and regional manager of Forest Enterprises, said a strategic priority of EWC was to use their combined decades of experience to help educate.
“There’s also been seven years of damage control and changes to the way things are done in forestry since 2018. It can take years for these changes to filter through and be visible to the public, but we’re on the cusp of that right now.
“Since cyclones Hale and Gabrielle in 2023, every wood count on the town beaches after heavy rain events has shown a steady reduction in the amount of ‘poor practice’ pine among the woody debris. This will continue to fall.”
Rance’s environmental focus comes from a forestry career spanning 30 years, including managing erosion control projects in other countries.
“A real benefit of forestry is protection of the land and keeping the soil on the hills. If we get this right, forestry can continue to contribute to the economy, community and environment.”
GDC chief executive Nedine Thatcher Swann believes progress is being made.
“Open conversation and collaboration are essential to addressing land use challenges, and the Transition Advisory Group (TAG) is an excellent example of this kind of cross-sector collaboration. TAG is developing guidelines to transition erosion-prone land to permanent vegetation cover.
“We’ve been engaging in important conversations with key industries... and as we near the completion of the transition guidelines, this is just the beginning of laying the foundation to future-proof our region’s land.”
Forestry Industry Contractors Association (Fica) chief executive Rowan Struthers agrees.
“Progress is being made in this region because there are more open conversations between council, as the regulators, and those who work in the forestry industry.”
Forestry would continue in Tairāwhiti, with some land staying commercial for pine while other land transitioned into more permanent forest cover, he said.
“It’s about balance between the environment, health and safety, the productivity to profitability ratio, and it’s about long-term sustainability.”
- Sophie Rishworth is a freelance writer for Eastland Wood Council
