Uncertainties in wood—Minister

Press, 1 May 1989, Page 3

Uncertainties in wood — Minister

By

OLIVER RIDDELL

in Wellington

The forestry sector has been stalled by its uncertainties, according to the Minister of Forestry, Mr Tapsell. He said this had been disguised by the high returns for forest products. Export earnings had passed the $lOOO million mark for the first time last year. The main factor affecting the industry was uncertainty brought about by economic restructuring and uncertainty on the sale of the State’s forest assets. The private sector’s attention had been devoted to the sale process, Mr Tapsell said. There had been little enough thought about future planning and an unwillingness to invest in the capital equipment that was needed. It was important that the sales process be completed quickly to allow strategic planning to proceed. Returns from forestry in the next 25 years might not be as glowing as many commentators had predicted, he said.

Until recently New Zealand had been able to produce and market radiata pine in the northern hemisphere without regard for competitors. That was now changing rapidly, Mr Tapsell said. Chile was now a big competitor in New Zealand’s markets and Australia would soon join in. New Zealand ought to be meeting its competitors and discussing the ways their industries might co-operate to develop orderly markets abroad and to obtain the maximum return for the product.