Jones seeks China forestry cash input
New Zealand forestry minister Shane Jones has made a plea for more Chinese investment in the country’s forestry and timber processing.
Jones, part of the largest Kiwi delegation ever to attend the Global Wood Trade Conference in Chongqing, China, said New Zealand’s timber industry was heavily reliant on access to foreign capital and needed to substantially increase its forest reserves.
It comes after the Productivity Commission’s call for up to 2.8 million hectares of land to be turned into forests as a carbon sink. This would require implementing the most ambitious land-use change project a New Zealand government had ever set itself.
Jones said the Government had created a more streamlined process for investment in forestry using foreign capital and that had opened up a special opportunity for those interested in working with New Zealand.
Forest Owners Association president Peter Weir told delegates more timber processing in New Zealand before export would help reduce the overall energy and carbon emissions required to produce and transport the finished product.
‘‘There is also a particular opportunity for primary processing of pruned logs in New Zealand rather than the current approach of mixing quality logs with sapdegraded logs and a subsequent loss of value by both parties,’’ Weir said.
Jones’ invitation for Chinese investment came at a time when there was an increasing concern in China about United States’ tariffs.
Potential Chinese investors acknowledged the US trade problems were a chance to strengthen other trading partnerships and welcomed the invitation.