Government funding packages need to be flexible

THE FOREST INDUSTRY CONTRACTORS ASSOCIATION (FICA) is appealing to Government to offer some flexibility in the funding packages announced as the industry remains in an unstable and complex environment.

Despite gearing up to work again, a steady stream of contracting businesses have closed since the crisis began. FICA Chief Executive, Prue Younger, says the Government response, although criticised for being slow initially, has been generous to the forestry sector in most areas that were identified as hot spots for support, but add: “businesses without contracts and without a future ahead of them are left with high debt and little confidence in the industry and little support for the funding packages albeit to register on the benefit”.

The media and Government have singled out the East Coast region as the epicentre of crisis for forestry, but the extent is much broader, she says.

“I applaud the work that collaboration has achieved in the East Coast with the regional council, economic development agency and the regional wood council taking on the responsibility of advocating for a very important industry in their community, where one in four are associated with forestry,” says Ms Younger.

“We have been at the forefront of this crisis and the rest of the country is catching up,” Ms Younger says, adding, “we need to have further discussions with Government about the $100M funding that has been offered for redeployment for forestry workers, as there are many exceptional cases in different areas. Firstly, we need to ensure those contracting business owners are relieved of their excessive debts before moving into other work.”

Ms Younger also says that Nelson was in a crisis this time last year with fires and so reporting on income at that same time is irrelevant.

“As responsible taxpayers, we also have a desire to make sure the funding is spent appropriately and where it is truly necessary. Our industry is telling us that financial support and tax relief is more a priority than redeployment, so we urge the Government to be flexible,” confirms Younger.

“We are still not out of the woods and could see more contractors out of work as domestic processing yards fill up and the alerts around COVID-19 put workplaces under pressure to close,” says Younger.

If the market starts correcting itself in the coming months as indications have predicted, there is a strong message from the contractors represented by FICA, to forest owners, export traders and forest management investment companies: There needs to be a supported strategy not to oversupply, as has been seen in the past, as a sustainable industry that values the “whole of supply chain” is what is being asked for by FICA.