For once farmers and foresters agree
FEDERATED FARMERS AND THE FOREST Owners Association (FOA) have joined forces to condemn the new Bill as a means to potentially force farmers and foresters to subsidise local processing industries from reduced export earnings.
Federated Farmers forestry spokesperson, Andrew Hoggard, says: “The unwarranted rush over the Bill risks unintended consequences, including retaliatory action by nations we trade with.
“The period for consultation is tighter than even the emergency actions on highpowered automatic firearms spurred by the Christchurch mosque attacks. The Bill has come from nowhere and should be sent back to the drawing board for proper consultation,” says Mr Hoggard.
The FOA’s Phil Taylor, says both organisations are united on this issue: “It seems the Bill is designed to use local processing as an instrument to provide employment, and instead of the government paying for it, they want to introduce a forestry cross-subsidy. That’s never happened before in NZ.
“That amounts to another tax, which is introduced with no idea of whether it would produce more jobs or not. The government has dreamt this up under urgency and done no research.”
Mr Hoggard says it is understandable why Forestry Minister, Shane Jones, is keen to see steady supplies of competitively priced timber available to the domestic processing industry but a raft of new regulations, costs and extra red tape won’t help achieve this.
“Federated Farmers is against any government moves to instruct primary producers on how much of the food and fibre they grow will be processed here in NZ. These are commercial considerations. We need to have the right to buy and sell, and take our own risks in the marketplace. It’s not a decision for government to make,” he says,
He adds that there are many farm foresters among Federated Farmers members: “Those farm foresters want the option to choose to sell to an exporter or to a local sawmill at a time they choose – whoever offers the best terms. That’s the same for our meat or dairy production.”
Mr Hoggard says the Log Traders Bill has arrived with very little advance warning or analysis: “This ridiculously short time frame has meant there has been no ability for affected parties to consult with the Ministry for Primary Industries and amongst the sector to consider implications, gather thoughts and ideas, and to ensure that where there are concerns we can arrive at solutions.
“Proposals include regulations that could be arbitrarily applied to various forestry sector participants in such a way as to favour domestic wood processors over log exporters and forest owners. That could well contravene NZ’s obligations in free trade agreements with key markets and our staunch support of free trade under the World Trade Organization.”
NZL