THE PRESS THURSDAY, JUNE 19, 1980. Export of forest products

Press, 19 June 1980, Page 16

THE PRESS THURSDAY, JUNE 19, 1980. Export of forest products

Forest products are New Zealand’s fourth biggest export in value, after meat, wool, and dairy products. A 49 per cent rise in the value of forestry exports last year was brought about partly by greater export production and partly by higher- prices: Both causes must lend an air of optimism to any view of the future of timber exports. New Zealand’s climate and soils enable the country to grow radiata pine more quickly than most, and it is reassuring to know that the country is growing a product that is sought after. There is ■little chance that timber- exports will ever run into the kind of problems of domestic protection in other countries that bedevil New Zealand’s exports of. farm produce. :

The most dramatic increase in exports came from sawn timber and it is a reasonable assumption that the demand for sawn timber will be strongest. The development of the forest resources will mean that the other industries, producing newsprint, other paper, manufactured board, pulp, and wood chips, will continue to be active. They use material which would otherwise be wasted. The export with the least value added from New Zealand is logs. Added value not only means that there is a higher return to New Zealand, but that far more jobs are created in this country. Many a country would like to import the logs and to create the jobs and export opportunities itself; so long as the quality of New Zealand exports of timber products remains high New Zealand should be able to reap the benefits of the basic advantages it enjoys. Some of the great forests of the Pacific and South-East Asia have been sorely depleted. Few extensive areas of forest are left. The biggest areas are in Brazil and in the east of the Soviet Union. Substantial export production from either of these two areas would undoubtedly affect, even swamp, the world market for timber and timber products. One assessment of the forests in the Soviet Union was given recently in Christchurch by the Minister of Forests,'; ; Mr V. S.. Young. He was addressing a meeting of the Canterbury branch of the Economic Society of Australia and New. Zealand. Mr Young argued that these forests could be harvested but it was unlikely that they could be developed into managed forests and replanted in the way that New Zealand forests are managed. Even

if Mr Young is right, there will always be some uncertainty about future demand for forest products but a reasonable, future seems assured.

During the 1980 s the rate of increase in cropping forests is likely to slow because fewer forests were planted in New Zealand in the 19505. To keep up the growth in exports, it will be tempting to export trees which have not matured fully. Careful monitoring of world supplies and careful economic calculations will be needed to determine how long to allow certain trees to grow before they are felled and the products exported. By itself New Zealand cannot control world markets for wood, but it is in New Zealand’s interest to see that sufficient wood is available so that replacements for wood are not sought.

To some extent forestry and farming are in competition for the same land. Yet that does not seem a very serious problem. Land that is marginal for farming may be in dispute, but economic forces should be allowed to work themselves out No-one has sufficient foreknowledge of demand for forest products to justify the compulsory acquisition of land for forestry if a farmer can make a profitable use of the land to grow produce for which a market is assured.

Because demand for forest products seems so secure, a number of foreign interests have shown a keenness to acquire forest land in New Zealand. They are generally prevented from doing so by legislation. Such legislation . has provisions for Ministerial exemption. According to Mr Young that discretion will be used sparingly. He also mentioned that another: aspect of the Government’s thinking was that some of the firms interested in establishing industries based on forestry should have some responsibility for the forests themselves. Some already control the forests from which they draw timber. It . was obvious that Mr Young thought more should have that interest. He also argued that, some of the larger New Zealand firms would need overseas capital. Overseas companies would then share in the ownership or leasing of large areas of land for forestry. No thought need be given to selling any State forests. New investors should be required to concentrate on producing new forests for so long as the demand can be sustained.