Log dispute will hit Tauranga

Press, 23 September 1980, Page 2

Log dispute will hit Tauranga

PA Tauranga Log shipments from Tauranga will cease temporarily from October 13, because of a breakdown in negotiations between Japanese buyers and the Forest Service. The director of the Forest Service’s Commercial Division (Mr A. Webby) and the service’s director of marketing (Mr B. H. Childs),, met port business representatives at the week-end to inform them about the suspension of the log trade with Japan. The trade, worth about $49 million a year to New Zealand, was suspended on Friday after a breakdown in the negotiations. The Japanese had sought a much lower price. The last ship to take logs from the port before the suspension applies will be the Evergreen, which is due in Tauranga on October 13.

I The meeting was told that the Japanese had approached all of their world-wide log suppliers with new low offers.

Both Mr Webby and Mr Childs said that the employment of men at New Zealand Forest Products’ Kinleith mill and the Forest Service’s Waipa mill would not be affected. “The sawn timber order books are still fairly strong, though the mills may have to adjust their production, that is, cut different lines of timber,” Mr Webby said. The suspension of the log trade would not seriously affect Nelson, said Mr L. Hunter, export marketing director for H. Baigent and Son, Ltd, yesterday. A two-year contract with Japan secured in April was for 25 million Haakondahl (about 85,000 tonnes) a year, Mr Hunter said.