More local wood use could ease Chinese market pressure

THE FOREST OWNERS ASSOCIATION says it’s time the government turned the negative log market situation in China into a positive one for New Zealand.

The Association President, Peter Weir, says the government should be looking at more wood use in New Zealand, which would have environmental and trade benefits.

Lack of space in Chinese ports, due to cheap insect-damaged logs flooding in from Europe on top of the Coronavirus-induced construction downturn, should be seen as an opportunity, he says.

“All the government needs to do is introduce the wood preference policy that the Labour Party promised in the last election and at the same time it should target the worst fossil fuel users in New Zealand to encourage a transition to renewable biofuels,” says Mr Weir.

“It’s been promised for nearly three years now. All it requires is for wood to be considered first in all government contracts. Such a policy has worked well for Rotorua Lakes District Council in particular and it should be rolled out nationally. It would increase the consumption of New Zealand grown wood and would lead to less steel and concrete use,” he says.

He adds that the other measure the government could take is to put a tax on coal consumption.

“Coal is the worst fuel for emitting carbon dioxide. The government could put a carbon tax on coal of say $200 per tonne, and use the income to assist industries, schools and hospitals convert to biofuels, including wood chips.

“That would reduce New Zealand fossil fuel emissions and at the same time soak up some of the lower grade timber being produced at the moment that can’t find a home in China,” says Mr Weir. NZL