Resource Management Act is killing investment in New Zealand wood processing

Aug 05, 2005. /Lesprom Network/. The Resource Management Act is killing investment in wood processing, say forest industry organisations.

The NZ Forest Industries Council, NZ Forest Owners Association and NZ Pine Manufacturers Association joined in urging politicians to follow through on undertakings to reform the RMA.

“We all know that new investment in wood processing is urgently required if we are going to process more logs onshore. However, the simple fact is that the RMA is killing legitimate investment opportunity in this country,” said Stephen Jacobi, NZ Forest Industries Council chief executive, speaking on behalf of the three organisations.

Mr. Jacobi said the industry had spent considerable time preparing a submission to government on amendments to the RMA,  but was dismayed to see the bill bogged down in the legislative process.

“The forest industry is not opposed to sensible environmental regulation. However last week’s Environment Court decision to decline a consent for a new, badly needed saw mill in the Coromandel is yet another clear sign the balance is wrong,” he said. “The purposes and principles section of the Act needs to be revisited to ensure that minor adverse effects cannot outweigh the substantial economic benefits that these proposed and existing projects deliver.”

Mr. Jacobi said associate environment minister David Benson-Pope’s list of mill projects planned in  New Zealand over the next five years, released last week, was misleading.

“This list is a mish-mash of press speculation and projects for which resource consent has not even been sought. Most are for expansions of existing facilities or simply ongoing capital injections needed just to keep mills up to date. What is urgently needed in this country are new investments for which new resource consents are required. These are highly unlikely to see the light of day if the precedents set by the Whangapoua decision are followed”.

Mr. Jacobi said the industry welcomed expressions of support from political parties committed to reforming essential elements of the RMA.

NZFIC represents and promotes the interests of all sectors involved in the New Zealand forest and wood processing industry. Membership comprises forestry companies and industry associations who collectively own, manage and process wood and paper products from a sustainable, planted production forest resource of 1.8 million hectares.

New Zealand forestry directly employs 26,000 people, accounts for just under 4% of GDP, has annual sales of more than $5 billion and is the country’s third largest export earner at $3.5 billion annually. Through its Vision 2025, the industry aims to become New Zealand’s largest export sector, directly employ 60,000 people, contribute 14% of GDP and record an annual turnover of $20 billion.