Portfolio: Forestry

Hirini Street port access opening

beehive.govt.nz — Fri, 25 Jul 2008 12:43:08 +1200

My colleague Transport Minister Annette King is unable to be with us today to share this celebration, and she asked me to pass on to you her congratulations and very best wishes for a successful day.

Introduction

It is a great pleasure to be here in Tairawhiti once again to celebrate another milestone in the journey we began together back in 1999.

Soon after I became Minister for Economic Development, it was obvious to me that forestry and the wood industries would have a central place in New Zealand’s economic development.

The wood industry offered then – as it does now – great potential for substantial returns, both economic and social.
We joined forces to establish the Tairawhiti Development Taskforce. We recognised that if we want to increase the living standards of Tairawhiti, and of New Zealand, we have to sell more of what we can efficiently produce to the rest of the world.
The East Coast Forestry Industry Group came to the Taskforce and presented a picture of the economic potential of forestry to the region and to New Zealand, which gave birth to the Wood Processing Strategy.
The openness of the industry to work closely with government enabled the development of effective policy solutions.

Future Developments

Without understating some of the challenges facing the industry in this region there appears to be a unified resolve amongst the major forest growers that forestry has a healthy future on the East Coast.
To reach its full potential, the industry will need to continue to work collectively through the Eastland Wood Council, with Gisborne District Council, local stakeholders like Eastland Port Limited and with Central Government.

Projects such as the one we celebrate today show how well things go when we all work together.

Transport overarching principles

This realignment project stands in a wider transport context. Since 1999, after years of neglect, annual investment in land transport has gone from $1 billion to $2.75 billion.

This realignment project is an embodiment of this spending at work at the local level.

It integrates a roading and a port project that ticks all the boxes of economic development, transport integration, environmental sustainability, and international competitiveness.

The Tairawhiti region is about three-quarters of the way through a major upgrading of local authority access roads to all forests to provide reliable all-weather access.

This work is part-funded by central government from the Regional Development Roading Fund, which was established in 2002 as part of the Government’s regional economic transformation agenda.

I am confident that through the continuing partnership between central and local government, and the forestry industry, the Regional Development Roading initiative will provide ongoing economic returns to the regions – and to the country as a whole – for years to come.

The new port access road

Which brings me to the reason we are gathered here today. A little over eighteen-months ago, along with my colleague Annette King, I announced that the Regional Roading Fund had agreed to stump up $2.5 million towards the $4.3 million cost of the Hirini Street port bypass road, the rest coming from Eastland Port and the Gisborne District Council.
The completion of the Hirini St port access road project provides a solution to a complex problem that has been causing a lot of grief to a lot of people for a long time. It solves a port problem with a roading solution.
As well as increasing the operational area of the port, and catering for the future increase in timber products, this project has removed conflict with traffic cutting through the port, and makes access to State Highway 35 easier and safer. Currently logging truck traffic accounts for 80 to 100 movements a day around the port, and, with export volumes of logs and wood products on the increase, that number will double.
As with many ports, land use patterns here have evolved over a period of time, and its unique shape has presented challenges. But by working with the stakeholders, port customers and service providers, I understand the process and flow of the project has been relatively smooth. You have constructed a new gateway to the port, which you can be proud of.

Conclusion

The progress we have made together in Tairawhiti, in forestry, in transport, in economic transformation and development, bears witness to the power of sharing a common purpose.
The focus, resolve and commitment of you all, to staying the course, despite the occasional ‘bump-and-grind’ around the edges, is a tribute to your vision for Tairawhiti and for its people.
The commitment that I made, and the government made, to you back in 1999 is as strong and real today as it was back then.
The milestone we are celebrating here today is a collaborative effort. Let’s keep it that way as we move on to the next challenge.

ENDS

"Chainsaw massacre" refuted by evidence

beehive.govt.nz — Fri, 04 Jul 2008 16:15:20 +1200

New Zealand’s forest cover is largely unchanged because deforestation caused by land use changes, such as clearing forests to create more dairy farms, has been matched by replanting and new forest plantings, Forestry Minister Jim Anderton said today.

“While our total forest estate stopped expanding in 2003 and has contracted slightly, the total change in New Zealand’s exotic forest cover since 2003 is just under 1% - so this is not, as some suggest, a disaster for the environment or for the forestry industry.

“Of the 40,800 hectares of forest harvested last year, 33,000 hectares were replanted and a further 2,600 hectares of new forest were also planted, which clearly reflects a degree of confidence in the future for forestry. These figures have come down from historically high levels of planting in the 1990s when plantings were subsidised, but with the current economic conditions this is still a high level of continued investment in forestry.

“Hysterical scaremongering reports of “chainsaw massacres” and “mass deforestation” are just that – election year spin that is not based on reality. The evidence shows that reality is quite different – replanting and new planting continues.”

As noted in a recent report from the Agriculture and Forestry Ministry, published last week, recent deforestation was land management change – people shifting productive land from forestry into something more profitable, such as dairying. The overwhelming majority of this land use change occurred on land in Canterbury and the North Island’s Central Plateau that is demonstrably more suitable for pastoral farming but for historical reasons (soil quality and financial incentives) had been planted in pine trees.

“This land use change picked up in 2004, matching the time when forestry returns slid to record lows and dairying really started to take off. This has a positive outcome for landowners personally, the region in terms of employment, and the country in terms of a vibrant economy.”

Jim Anderton said that what deforestation had been occurring slowed right down at the beginning of this year as a new control regime came into effect and the future of forestry in the era of climate change is looking brighter.

He said that the proposed Emissions Trading Scheme legislation would help new investment in carbon forestry take off, and there were already examples of significant investment being planned in carbon sink forests.

“Deforestation will mainly occur where the economic returns can pay for the carbon liabilities and still be profitable. The Government elected to introduce an Emissions Trading Scheme, rather than regulation to stop deforestation, precisely because it allows flexibility of land use. ”

Jim Anderton said that, despite difficult market conditions for forestry, it would continue to be an important industry in New Zealand and investors shouldn’t be intimated by the reckless scaremongering of politicians and those with narrow financial interests trying to talk up an election year ‘crisis’.

This graph shows the exotic forestry cover in New Zealand from 1920 till last year.

Deforestation statistics as expected

beehive.govt.nz — Tue, 17 Jun 2008 09:47:04 +1200

The deforestation statistics as contained in a MAF report published today are as expected, Forestry Minister Jim Anderton said.

He said that, as the report from the Agriculture and Forestry Ministry noted, a lot of the deforestation was land management change – people shifting productive land from forestry into something more profitable, such as dairying.

“This picked up in 2004, matching about the time when dairying really started to take off. This is good for landowners personally, the region in terms of employment, and the country in terms of a vibrant economy.

“Does Nick Smith intend to stop people using their resources in the best way? Perhaps he better check with head office first, after all they may have a different policy?”

Jim Anderton said the Government’s policy on sustainable land management was quite clear, and landowners had been given a transition period to make changes before the new controls were introduced.

“An increase in deforestation was anticipated, and it is not a surprise that some landowners deforested their land before January 1 this year.

“Forecasts show that deforestation is down sharply now the new policy is in place, and increased planting is expected. The Government’s policy is clear and it is having a substantial impact.”

Government to take action on illegal logging

beehive.govt.nz — Tue, 27 May 2008 17:48:09 +1200

The Labour-Progressive Government is to adopt a comprehensive package of measures to address the issue of illegally-logged wood products, Forestry Minister Jim Anderton announced today.

The suite of international and domestic actions is part of a wider push for New Zealand to take a global leadership position in sustainable forest management.

"We will be promoting international cooperation to reduce global rates of deforestation and illegal logging to support action on climate change, biodiversity and sustainable development," said Jim Anderton.

International action will include the development of financial mechanisms to assist developing countries to reduce deforestation; commissioning research on further steps to address international trade in illegally-logged wood and Ministerial-level engagement with key consumer countries and those countries from which there is a risk of export to New Zealand of illegally-logged wood.

"We will also be supporting efforts to have the threatened and commonly illegally logged timber, kwila, listed under the Convention on International Trade in Endangered Species (CITES). A listing would allow trade in this type of timber to be effectively monitored and controlled internationally."

Jim Anderton said that verifying the legality of wood products at the border was not straightforward and even if documentation is supplied, verifying its authenticity is not easy. "Imposing a ban on illegal timber would be impractical and ineffective if it was not backed up by reliable traceability and verification systems involving exporting countries."

"For this reason we need to develop cooperative mechanisms with our trading partners to prevent illegally-logged wood being exported to New Zealand. Bilateral agreements offer the best prospect, in the short term, of providing practicable mechanisms to effectively identify and prevent illegal wood from entering New Zealand. It is precisely these sorts of bilateral mechanisms that I plan to discuss with counterparts in the Asia-Pacific region over the next two months.

Jim Anderton said that while New Zealand was a relatively small importer of wood products, we did have kwila imports, which has been identified as the main species associated with illegally sourced wood and wood product imports. Kwila is used for decking and outdoor furniture products.

"On Monday 2 June I am meeting with the Malaysian Minister of Plantation Industries and Commodities in Kuala Lumpur to discuss what our two countries can do to address this issue together." Jim Anderton said he also planned to meet with ministers from other major kwila-exporting countries in the region shortly.

"I have recently had discussions with Tony Burke, the Australian Commonwealth Minister of Forestry, and we have agreed to work together to tackle this issue. I am hopeful that New Zealand and Australia can engage with exporting countries so that together we have a common and united approach.

Jim Anderton said that in the meantime while measures are developed to address illegal timber products coming onto the market it is crucial to ensure that consumers in New Zealand know what they are buying and are encouraged to ask questions of retailers.

"Consumers should be seeking information from importers and retailers to ensure that the timber products they are buying, particularly outdoor furniture, are made from legally sourced timber. I am keen to work with industry to enhance information sharing and to increase the information available."

"The Cabinet has agreed in principle to mandatory labelling of all kwila products sold in New Zealand at point of sale to indicate whether the supplier has verification of the legality of the wood. The Australian Government has proposed similar measures and I will be reporting back to Cabinet in July on the feasibility and practicality of implementing such labelling, with a view to developing a trans-Tasman regime.

In announcing the Labour-Progressive Government’s strategy to combat illegal logging Jim Anderton released two reports commissioned by the Ministry of Agriculture and Forestry on the impacts of illegal logging and options for addressing the problem, and the recent Cabinet paper outlining the strategy. These can be found at: http://www.maf.govt.nz/forestry/illegal-logging/index.htm

Grant scheme for more small forests

beehive.govt.nz — Tue, 22 Apr 2008 15:27:11 +1200

The Afforestation Grant Scheme is designed to encourage more planting of trees in small forests and on farms.

Increasing the area of new forest that complies with Kyoto protocol rules will lead to more climate changing greenhouse gases being absorbed.

The government announced the scheme last year in a package of initiatives to reduce the impact of climate change. It offers an alternative to the proposed New Zealand Emissions Trading Scheme.

“The first round of public tenders is now open,” Jim Anderton said.

“I hope farmers and small forest owners will be attracted by the low compliance costs of the scheme.”

Foresters can receive a government grant for planting new forests on land that was unforested at 31 December 1989.

Those who receive grants under the scheme will own the new forests and earn income from the timber when harvested. The government will retain the Kyoto Protocol carbon sink credits and take responsibility for meeting harvesting and deforestation liabilities.

Half the funding in the Afforestation Grant Scheme will be available to Regional Councils to help meet their sustainable land management objectives. The other half will be available directly to the general public through a public tender pool.

Seventy per cent of the public tender pool will go to species that have high carbon sequestration rates. These will be usual exotic plantation species such as pinus radiata and Douglas fir.

The remaining thirty per cent will be reserved for species with low carbon sequestration rates.

The government expects most of the 2008 tenders will be for 2009 planting. The 2008 closing date will be 30 June.

The Ministry of Agriculture and Forestry (MAF), which administers the Afforestation Grant Scheme, has produced a guidelines booklet to explain the scheme and assist applicants.

Further details of the Regional Council component of the scheme will be announce shortly.

Copies of the Afforestation Grant Scheme Guidelines and application form can be downloaded from the MAF website, www.maf.govt.nz/climatechange , by emailing climatechange@maf.govt.nz or by calling 0800 CLIMATE (254 628)

Minister to open NZT&E office in Mumbai

beehive.govt.nz — Thu, 03 Apr 2008 13:18:59 +1200

Forestry Minister Jim Anderton today opened a new NZ Trade and Enterprise office in the world’s most populous city, Mumbai.

Jim Anderton said the new office for NZTE in Mumbai reflects the city’s importance as a hub for Western India. “It acknowledges increased focus on opportunities in the region, and growing interest in this vast market from New Zealand companies.”

The new India Beachhead Board will be supported from Mumbai. The new office will also be the primary support for Investment New Zealand programmes in India.

New Zealand Trade and Enterprise already has an office in New Delhi, and the expansion highlights the growing importance of the India/New Zealand trade relationship.

Jim Anderton is in India leading a trade mission for the wood and building industry. The New Zealand wood industry currently generates $3.1 billion in exports (or 3.15% of GDP). India is New Zealand’s fifth-largest export market for wood products, worth $65 million in 2007. While only 3% of New Zealand’s total wood products are exported to India, it is an important and fast-growing market.

“Emphasis on protecting its native forest means India needs to import timber to meet growing demand in construction and other industries. This provides an opportunity for New Zealand companies to develop new markets for value-added timber solutions.”

Jim Anderton is meeting ministerial counterparts and construction industry representatives during the seven day visit. He returns to New Zealand on Saturday March 29.

Minister to lead wood mission to India

beehive.govt.nz — Thu, 20 Mar 2008 14:40:30 +1200

Forestry Minister Jim Anderton leaves New Zealand on Saturday to lead a trade mission to India.

Jim Anderton said today that India’s growing importance as a market for New Zealand products and services will be in focus during the trade mission.

He said that India was New Zealand’s second-fastest growing export destination and high level visits between the two countries have increased in recent times, reflecting the importance placed on the relationship.

The wood and building industry, and in particular solutions for India’s burgeoning housing industry, are the trade focus of the mission.

“The New Zealand wood industry currently generates $3.1 billion in exports (or 3.15% of GDP). India is New Zealand’s fifth-largest export market for wood products, worth $65 million in 2007. While only 3% of New Zealand’s total wood products are exported to India, it is an important and fast-growing market.

“Emphasis on protecting its native forest means India needs to import timber to meet growing demand in construction and other industries.

Jim Anderton will meet ministerial counterparts and construction industry representatives during the seven-day visit.

“Demand from India for sustainable timber for use in construction, interiors, furniture and packaging is growing – and New Zealand is well placed to meet this need. Developing new markets for timber solutions will maximize the value of our large, sustainably managed pine plantation resource.

“So I am delighted to be joined on this mission by representatives from Arbor Resources, Eurocell Sawmilling, Juken Nissho, Lockwood International, Lumberlink, Pacific Forest Products Ltd, Timberbond, TPT Forests, Winstone Pulp International, and Zindia,” he said.

Timber has been a key export to India historically, but a new focus on product made from our quality clear sawn lumber has the potential to increase the return to New Zealand companies.

Jim Anderton will meet with India’s trade and agriculture ministers to discuss multilateral and bilateral trade issues, as well as greater technical co-operation between our two countries. He is expected to sign a memorandum of understanding with the Indian minister of science and technology, Shri Kapil Sibal, to enhance co-operation between New Zealand and Indian research institutes.

He will also meet the new India Beachheads Board members, which are made up of representatives from key Indian companies willing to act as allies for New Zealand companies keen to enter the Indian market.

Jim Anderton leaves for India on Saturday March 22, and returns to New Zealand on Saturday March 29.

Survey shows deforestation reducing

beehive.govt.nz — Tue, 18 Mar 2008 13:36:58 +1200

The latest survey of deforestation intentions shows that forest owners intend to dramatically reduce deforestation as a result of the proposed emissions trading scheme, Forestry Minister Jim Anderton said today.

When the survey was done last year, the amount of planned deforestation over the Kyoto Protocol’s first commitment period (2008 to 2012) was expected to be around 50,000 hectares. That’s dropped to just 12,000 hectares over the same period in this latest survey.

Jim Anderton said that in terms of greenhouse gas emissions, that meant a reduction in emissions from around 40 million tonnes to around 10 million tonnes of CO2 equivalent over the Kyoto Protocol period.

“That’s a saving in emission liabilities of $760 million for the New Zealand economy assuming a carbon price of $25 per tonne CO2.”

The survey also shows that a number of landowners have taken advantage of the transitional period prior to 2008 when deforestation could be undertaken without liabilities under the Kyoto Protocol. In the 2006 survey, expected deforestation for 2007 was 13,000 hectares. However, actual deforestation was 19,000 hectares in 2007.

The survey also shows that overall the introduction of the ETS will save many millions of tonnes of greenhouse gas emissions, even taking into account last year’s rise in deforestation.

Reducing deforestation also reduces nutrient loads and possibly erosion and flood risks in some of New Zealand’s most important waterways.

Jim Anderton said the Government recognised that placing controls on greenhouse gas emissions from deforestation would affect some forest owners’ land values.

“That is why the government clearly signalled such controls in 2002, providing the industry a six-year transitional period.

“The government is also working with stakeholders on the best way to allocate an additional adjustment package worth some $825 million,” Jim Anderton said.

The survey report is available on the MAF website at http://www.maf.govt.nz/climatechange/forestry/ets/deforestation/index.ht...

Deforestation policy not as simple as it appears

beehive.govt.nz — Thu, 28 Feb 2008 16:10:29 +1300

The Labour-Progressive Government today welcomed the contribution to the climate change policy debate from the ‘Flexible Land Use Alliance’ but warned that the issues are not as straightforward as the group portrays.

Forestry Minister Jim Anderton said that it may seem pretty simple to cut down one forest and plant another one somewhere else, but, in climate terms, there is a period when we have lost carbon and it will take several decades to get it back.

“This matters because while we are slowly recouping the carbon the lost carbon is having a warming effect on the planet. Furthermore, because agricultural emissions would increase as a result of this proposal, New Zealand would be increasing as opposed to decreasing its overall carbon footprint.”

Jim Anderton said the Flexible Land Use Alliance’s ‘first preference’ of all pre-1990 forests being exempt from the Emissions Trading Scheme was a non-starter.

“This is inconsistent with the Kyoto Protocol’s rules, it would create a huge liability for the taxpayer with no benefit for the environment, and would destroy any credibility for New Zealand in taking a leadership position on global deforestation.”

Climate Change Minister David Parker said: “It is not true that the Government can give effect to Kyoto by any means it choose, we have to live within the rules. Rules negotiated by over 100 countries will always involve compromise and if every country refused to make commitments that didn’t suit them then we would never reach agreement on anything.

“It is an inescapable fact that our plantation forests hold carbon that will be lost to the atmosphere if the land is deforested so at the very least we need to do something to remedy this. As such we reject the view that any controls on deforestation are retrospective and therefore unfair – the controls are not on the past practice of planting a forest, they are on future practice of changing land use. There is no liability for foresters who replant the same land after harvest,” David Parker said.

Jim Anderton said the Government acknowledged that the Kyoto’s Protocol’s rules created an anomaly between the replanting of existing forest land and the planting of new land and looked at an offset scheme, such as that proposed by the Flexible Land Use Alliance, when developing policy last year. At the time the Government concluded that the disadvantages outweighed the benefits.

“We are happy to relook at the issue, have the proposal evaluated and discuss it with stakeholders. However, today’s proposal lacks detail and there are some difficulties that need to be considered, such as how to ensure the new land use, which will usually be agriculture, pays the full emission costs of the new activity. No one can argue that the taxpayer should subsidise the felling of forests and also the new emitting activity on the land as well,” Jim Anderton said.

He also said the Alliance were silent about the Government’s allocation of 55 million free units for deforestation, worth $825 million to $2.75 billion, to landowners.

David Parker noted that some members of the Flexible Land Use Alliance had made different proposals regarding deforestation policy through the Climate Change Leadership Forum. These proposals are currently being independently analysed by the University of Waikato and Covec, and the results of this work are due shortly.

Jim Anderton also noted, “The Government is heavily engaged with Maori over forestry policy under the Emissions Trading Scheme and making good progress on addressing their concerns.”

Govt releases draft regulations for emissions trading

beehive.govt.nz — Thu, 14 Feb 2008 10:00:04 +1300

A draft of the emissions trading regulations for forestry and liquid fossil fuels was released today by Climate Change Minister David Parker and Forestry Minister Jim Anderton.

The draft regulations have been released to provide more certainty for potential participants from the forestry and transport sectors about their obligations once they are required to take part in the emissions trading scheme.

“Once the Climate Change (Emissions Trading and Renewable Preference) Bill has been enacted, those participating in the scheme from the transport sector will be expected to collect data and information to calculate their greenhouse gas emissions.

“The regulations cover the details of these reporting obligations and we welcome feedback from the transport sector about the proposed regulations to help us develop them further and make them work for the industry,” David Parker said.

The proposed regulations for the forestry sector cover obligations under the emissions trading scheme for owners of forests planted before 1990.

Jim Anderton said: “Officials are still developing the regulations for forests planted after 1989, but the guidance being published with the draft regulations for pre-1990 forests details the planned approach.

“I urge forest owners to study the proposed regulations for pre-1990 forests carefully and let us know what they think. We’re keen to help forest owners understand how to measure and report their emissions and we value their input on the ‘look-up table’ methodologies we’ve proposed.”

The final content of the regulations is dependent on the provisions of the Climate Change (Emissions Trading and Renewable Preference) Bill once passed into law .

The draft regulations and accompanying guidance can be found at www.climatechange.govt.nz

Timberlands future announced

beehive.govt.nz — Fri, 08 Feb 2008 10:47:36 +1300

State Owned Enterprises Minister Trevor Mallard today announced that the assets of Timberlands West Coast Ltd are to transfer to Crown Forestry as the SOE can no longer operate as a successful business.

"The recent audit of the forestry estate, which was completed in late 2007, shows that future annual harvest yields are significantly below earlier estimates due to difficult growing conditions on the West Coast and severe losses due to wind damage," Trevor Mallard said.

"Timberlands has had poor financial results for a number of years, and the revised harvest forecasts mean that Timberlands would continue to operate at a deficit for at least 10 years. As a result, Timberlands is no longer able to fulfil its obligations under the State Owned Enterprises Act 1986 to operate as a successful business and will be wound up once the transfer to Crown Forestry is complete. Due diligence will be undertaken before the transfer is done.

"The transfer of the assets will not stop supply to the industry in the short to medium term, and it will be business as usual for Timberland's sawmill customers. The maintenance, harvesting and replanting of trees will continue and Crown Forestry will continue to meet Timberlands contractual supply obligations.

"Cabinet has asked Crown Forestry to undertake its own assessment of the forestry estate over the next two years, and report back to Cabinet in mid 2009 with recommendations regarding future supply and replanting."

Forestry Minister Jim Anderton said transferring the assets to Crown Forestry would take advantage of some of the management efficiencies and systems Crown Forestry already has in place.

"Crown Forestry intends to negotiate commercially sustainable supply contracts with West Coast timber mills once the current contracts have expired. Crown Forestry will look to address issues as quickly as possible. The long-term replanting future will be determined over the next two years as part of its audit process," Jim Anderton said.

Biochar professorships set up

beehive.govt.nz — Thu, 20 Dec 2007 12:13:09 +1300

The establishment of two bio-char professorships at Massey University is another important step on the path towards New Zealand becoming a low-carbon nation, Forestry Minister Jim Anderton said today.

“This initiative will fund two professorships, one focused on biochar and its behaviour in New Zealand soils, and one on processing of biomass feedstock into biochar, known as pyrolysis.” Jim Anderton said.

Pyrolysis is combustion in the absence of oxygen – the process used to make charcoal.

“Biochar is a stable form of carbon that can be incorporated in soil as permanent carbon store. This would potentially create a major carbon sink that removes carbon dioxide from the atmosphere through plant growth and stores it as inert carbon in soils,” Jim Anderton said.

Biochar also has potential to suppress nitrous oxide emissions and reduce nitrate leaching into waterways. It can also be used to make a bioenergy co-product that can be used to produce heating, electricity generation and other applications.

Massey University was successful in securing the professorship positions in the face of high quality competition from Auckland, Canterbury, Lincoln, and Waikato universities. Funding for the initiative comes for the Government’s investment initiatives under the Sustainable Land Management and Climate Change Plan of Action, and is administered by the Ministry of Agriculture and Forestry.

Jim Anderton said a key outcome the Government was seeking was for these positions to attract high calibre individuals who can develop a world-class centre of excellence in biochar research and use.

While there are significant opportunities for soil carbon sequestration using biochar, further research is needed on a number of issues, including:

how long the biochar stays fixed in the soil
the ability to quantify its effects in order to create a reliable product for farmers
assurance of biochar’s carbon-fixing capacity for the carbon trading market
evaluation of how the use of biochar would fit within the framework of New Zealand’s inventory and the Kyoto Protocol

As well as climate change mitigation opportunities, biochar applications in soil can lift agricultural productivity. The effectiveness of biochar in soils is dependent on matching different types of biochar to specific soil types and plant growth regimes.

“It will take extensive applied research and trialling to optimise biochar performance in New Zealand soils, and these professorships will provide the catalyst for this work,” Jim Anderton said.

Wood award recipient commended

beehive.govt.nz — Fri, 30 Nov 2007 01:00:00 +1300

Forestry Minister Jim Anderton today applauded the awarding of a Canadian Wood Council “Wood Advocate – Wood Champion” award to Auckland University professor Pierre Quenneville.
The Canadian Wood Council, through its Wood Works! programme, has honoured Dr Pierre Quenneville of The University of Auckland’s Faculty of Engineering for his long-time advocacy of timber in construction. Dr Quenneville lived in Canada before moving to New Zealand in July this year to become Auckland University’s first Chair in Timber Design.
The award recognises more than two decades of work by Dr Quenneville in Canada to advance wood engineering, education and research. He has also campaigned for the use of timber in more construction projects, and his research into efficient bolted connections is helping to set international building standards.
Jim Anderton congratulated Dr Quenneville on his award.

“We are honoured to have a professor of his calibre now working in New Zealand.”

Jim Anderton said the New Zealand Government was doing its bit to promote more use of wood in government-funded building projects by government departments and agencies.

From the third quarter of 2008, all government-funded project proposals for new buildings up to four storeys high shall require a build-in-wood option at the initial concept / request-for-proposals stage (with indicative sketches and price estimates). This will not prevent options using alternative materials.

This requirement will be a tendering rule (tendering rules are administered by the Ministry of Economic Development) that all government departments must apply. To comply with the requirement, departments have to seek at least one timber option to consider per project, unless it is manifestly obvious that a timber building would be inappropriate (e.g. for storing explosives).

The decision of which option to accept will be based on normal criteria such as fitness-for-purpose and value for money, with all options standing on their own merits.

Jim Anderton said Dr Quenneville had reported that Canadian government agencies and forestry representatives have expressed interest in this New Zealand government initiative.

“Requiring departments to consider building in wood opens a door for the New Zealand wood industry to promote its wares,” Jim Anderton said.

Another Government initiative is a project to demonstrate how commercial-style buildings can be constructed with wood. It will provide partial funding to construct in wood up to two government buildings that would ordinarily be built in other materials. The buildings will be used as demonstration and education models.

The future of forestry is strong

beehive.govt.nz — Thu, 22 Nov 2007 14:00:00 +1300

“When we look at the potential role wood can play in our future − New Zealand’s future and the planet’s future − there is every reason to feel confident,” Forestry Minister Jim Anderton said today.

He was speaking at the second annual conference of the Wood Processors Association in Wellington and talked of how the environmental market place is changing. “All over the world right now − and particularly in high value markets − consumers and regulators are growing more aware of environmental issues.

“I feel positive about the future for wood because it has to be part of the solution,” Jim Anderton said. “I’d like to talk about some of the achievements we have been able to record through a strong partnership between government and the wood sector:
•The RADA centre in Rotorua was established as a centre of excellence for wood processing education and training with $6.4 million dollars of government assistance.
•The government-backed the FIDA wood processing market development projects to the tune of $1.5 million dollars.
•We’ve already spent another $1.5 million dollars in the NZWood campaign, with a further $3.3 million dollars to be spent.
•Another $1.2 million dollars has been spent on a special fund related to improved market access for wood products.
•The government contributed $2 million dollars towards two professorial positions to teach and research the use of timber in commercial building design.
•$2.5 million dollars is available to part-fund up to two government buildings that would ordinarily be built in other materials. They will be demonstration projects to show how multi-story buildings can be constructed with wood.
•And by late next year all government-funded project proposals for new buildings up to four storeys high will require a build-in-wood option at the initial concept stage (with sketches and price estimates). Departments will have to at least consider a build-in-wood option. That will provide a platform for the Wood Processing Association’s members when decisions are being made.

“That is a convincing list of examples of the government’s commitment to play its part in ensuring the industry can take advantage of its own strengths,” Jim Anderton said.

He acknowledged the difficulties faced by wood exporters but also urged the industry to speak out. “When I read our political opponents’ pledges to cut taxes and spend more, I am very clear about what I am hearing: Higher inflationary pressure, higher interest rates, a higher exchange rate for longer, and yet more pressure on exporters.

“If exporters don’t want an even higher exchange rate, it’s time for them to start speaking out about the opposition’s statements that the government should hand out more cash. If you don’t say something about it, you’re not really serious about the exchange rate.”

Jim Anderton concluded by congratulating the Wood Processing Association for the proactive approach it has taken over the last year to the issues the industry faces. “And I congratulate the Association also for engaging positively with me and with the government.”

The future of forestry is strong

beehive.govt.nz — Thu, 22 Nov 2007 14:00:00 +1300

Address to Wood Processors’ Association Annual Conference,
Wellington Convention Centre

Chief Executive Peter Bodeker and distinguished guests, thank you for the invitation to talk to you about the forestry sector over the next five years.

In some ways, Peter is a symbol that the future of forestry is strong, because he is a recruit from dairying. We know the strength of dairying at the moment − but there are also real reasons to see potential in the future of forestry.

Today I want to talk a little about how I see that potential, and what the government is doing in partnership with the industry to unleash it. And I want to mention some of the near term issues that are confronting the sector, along with my take on what we need to do to seize opportunities and overcome the barriers to development.

I’m under no illusions that there are issues ahead for the sector that are difficult and even daunting. But when we look at the potential role wood can play in our future − New Zealand’s future and the planet’s future − there is every reason to feel confident.

I’m fond of quoting Wink Sutton’s observation that wood is such a remarkable material, that if it were discovered for the very first time today, it would be hailed around the world. It would be the answer to environment problems and development problems the world over.

No other product can claim to store carbon dioxide, reduce the use of energy intensive substitute materials, and displace fossil fuel by burning waste materials.

The carbon dioxide produced from using wood is recycled back into more wood by regenerating forests within a few decades. In contrast, the carbon dioxide from fossil fuels is added to the atmosphere.

Wood is environmentally friendly because it is energy efficient. Compared to wood substitutes like steel and concrete, it needs less than a tenth of the energy.

Recent research in New Zealand shows that building in wood can be eight percent cheaper than concrete and five percent cheaper than steel over the fifty year life of a building.

Let me set out the context in which wood production and processing will take place in the coming few years. First and foremost, the environmental market place is changing. All over the world right now − and particularly in high value markets − consumers and regulators are growing more aware of environmental issues. They are demanding higher standards. And in many cases, they are setting barriers to market access based on environmental measures.

The climate is changing. You only need to glimpse the increasing frequency and severity of dramatic weather events to see the risks of climate change. This is a commercial issue for us because we can achieve a premium in global markets for products that are produced more responsibly.

It's also a commercial issue for New Zealand because our primary production is exposed to climate change. No developed economy is as dependent on primary industries as ours, so the state of our climate is a crucial issue for us.

It's not only a commercial issue. It's also a moral responsibility we have to our children to do our bit to preserve the health of our habitat. When we look around at the tools we have to mitigate the effects of climate change, forestry stands out.

Trees sequester carbon from the atmosphere. There is increasing acceptance of the benefits of using trees to off-set carbon emissions. Trees have important environmental benefits beyond their role in sequestering carbon. They help to stabilise soil on erosion-prone hillsides and enhance water quality.

And forests make an important contribution to bio-diversity, too. Not just indigenous forests − our plantation forests are home to many indigenous species, including plants, insects, bats and kiwi, and other iconic birds.

So I feel positive about the future for wood because it has to be part of the solution.

And it’s for this reason that I have worked closely with the industry. I want to take the opportunity, once again, to thank the industry for the constructive way it has engaged with me and with the government.

To recap, I’d like to talk about some of the achievements we have been able to record through a strong partnership between government and the wood sector:
•The RADA centre in Rotorua was established as a centre of excellence for wood processing education and training with $6.4 million dollars of government assistance.
•The government-backed the FIDA wood processing market development projects to the tune of $1.5 million dollars.
•We’ve already spent another $1.5 million dollars in the NZWood campaign, with a further $3.3 million dollars to be spent.
•Another $1.2 million dollars has been spent on a special fund related to improved market access for wood products.
•The government contributed $2 million dollars towards two professorial positions to teach and research the use of timber in commercial building design.
•$2.5 million dollars is available to part-fund up to two government buildings that would ordinarily be built in other materials. They will be demonstration projects to show how multi-story buildings can be constructed with wood.
•And by late next year all government-funded project proposals for new buildings up to four storeys high will require a build-in-wood option at the initial concept stage (with sketches and price estimates). Departments will have to at least consider a build-in-wood option. That will provide a platform for the Wood Processing Association’s members when decisions are being made.

That is a convincing list of examples of the government’s commitment to play its part in ensuring the industry can take advantage of its own strengths. As we look to the future, however, I am certainly concerned about some of the issues ahead.

The latest statistics show that for the year to June, volumes for products exported by Association members were fairly stable, compared with the year before, to June 2006.

But prices on average were up by ten percent. That suggests members were achieving higher returns for the same product. Then if we look more closely at the quarterly figures, a different story emerges. Volumes on average went up by sixteen percent on the previous quarter, whereas average prices fell by thirteen percent.

So what might be behind those figures? Markets were still fairly buoyant in the June 2007 quarter, which might account for the rise in volumes against the March quarter.

But the average exchange rate for the June quarter was US74 cents against US70 cents for March. So the exchange rate isn’t exactly helpful.

I know you’ve heard a bit about the exchange rate today from Dr Michael Cullen, and you are asking Bill English to talk about it, too. In that context I can observe we face some choices. I anticipate Mr English will say he strongly supports the current monetary policy framework and he will say he would take pressure off the exchange rate through a different fiscal policy.

Let’s be frank, there is no voodoo answer to this. The government is already leaning against domestic demand. We are pulling more cash out of the economy than we are putting in, and the resulting surplus comes at a real political price. But it is fiscally prudent and that fiscal policy supports monetary policy. If anyone − Mr English or anyone else − says they will take more pressure off interest rates through fiscal policy than the government is already planning, then they can only be talking about reducing spending or increasing taxes.

Anything else is a fiscal impulse, which strengthens inflationary pressure and therefore leads to interest rate rises, which have been behind the high exchange rate.

To put it another way, when I read our political opponents’ pledges to cut taxes and spend more, I am very clear about what I am hearing: Higher inflationary pressure, higher interest rates, a higher exchange rate for longer, and yet more pressure on exporters.

If exporters don’t want a high exchange rate, it’s time for them to start speaking out about the opposition’s statements that the government should hand out more cash. If you don’t say something about it, you’re not really serious about the exchange rate.
The only alternative is to change the monetary policy framework, so that − one way or another − interest rates didn’t have to rise, and the exchange rate didn’t have to move as high every time there was some growth in the economy.

This might conceivably be done, for example, by widening the considerations the Reserve Bank takes into account. You could require it to maintain reasonable exchange rate stability. The exchange rate reflects the price for our money, and we maintain price stability for everything else in the economy! I’m simply pointing out that there are options. The Finance and Expenditure Select Committee is currently investigating monetary policy, and I am looking forward to seeing what useful recommendations it comes up with.

But I also want to add this: It’s no secret that I was an opponent of the current monetary policy when it was introduced. When I campaigned hard on the issue in the nineties, I pointed out the effect the exchange rate has on our productive sector, and on our exporters in particular. And I was absolutely demonised by the business sector for that heresy.

Other politicians watched what happened to me and learned the lesson that there isn’t much for them to gain from calling for an export friendly monetary policy.

Therefore, you will not find much political support for changing the Reserve Bank Act. It isn’t going to happen, at least not without a very substantial reversal in business opinion.

Exporters have got what business representatives wished for.

I recognise this is hurting a lot of exporters. I’ve been in regions of New Zealand recently where tens of millions of dollars are at risk from the pressure the exchange rate is placing on export businesses.

One of the major factors in the level of the exchange rate is the weakness of the US dollar. The Canadian wood sector is facing the same problems as us. The Canadian dollar is now worth more than one US dollar. A couple of years ago, a US dollar cost $1.60 Canadian. So other countries are in the same boat as we are. I hope that makes you feel better!

The only way to cope with exchange rate fluctuations is by being in the market to sell high value, highly niched products that command a price differential. The more we are exposed to commodities markets, where we are simply price takers, then the more we are exposed to exchange rate (and freight rate) fluctuations.

And the truth is, if we are successful in lifting our standing relative to other developed countries, then it is inevitable that we will have a higher exchange rate.

The effort to shift to higher value production and more innovation is behind the government’s work with your sector. From the Design Taskforce to the NZ Wood campaign, we have been supporting innovative New Zealand companies to find a way to create value from New Zealand’s unique creative advantages.

Another way of achieving a premium in our markets will be by positioning New Zealand as the source of environmentally responsible production.

That’s one reason why the emissions scheme is such an important issue for New Zealand. Climate change is not only a problem for us − it is also an enormous opportunity.

I know some members here have called for the government to go more slowly on implementing the Emissions Trading Scheme. There are other business interests saying, “let’s get on with it – the sooner the better”. Maybe we have got our approach about right by coming in the middle of the two points of view.

The government’s decision in principle is that forestry will enter the Emissions Trading Scheme from 1 January next year. The government will meet the cost of 21 million tonnes of deforestation emissions from pre-1990 exotic forest from 2008 to 2012.

Owners of pre-1990 forest land will only face obligations if they remove the trees and introduce a new land use. There won’t be any emission obligations if they temporarily remove trees for harvest and then replant.

Owners of all post-1989 forest land will have the choice to enter the ETS and receive all of the sink credits and future liabilities associated with this land. Owners who enter the scheme will be obliged to take responsibility for the ongoing changes in the carbon stocks of their forests.

There are some further issues beyond the decisions in principle that I think can be cleared up through the process of engagement in the coming months.
But I want to urge you to focus on making the scheme work in the best way − not on trying to get out of our climate commitments.

There are two more issues I will touch on. One is the Green Building Council’s Green Star Rating for office buildings.

I want to start out by noting the Green Building Council is not a government agency and so the government cannot dictate to it. The wood industry made its own decision not to join when the council was set up. It’s not for me to review that decision or wonder what difference it might have made. But we are now in a catch-up situation.

The Green Star system is currently the only building rating tool available in New Zealand. The system says you have to be certified by the Forest Stewardship Council to gain ratings points. There are other schemes, and the government has − in its procurement policy − taken the view that there should not be a monopoly by a single certification system.

I’m discussing the issue with the Minister for the Environment, and we are cooperating on steps which we can take to help resolve the situation, and I know you are talking to the Green Building Council. So we will see.

There’s also an issue that ratings systems, including Green Star, don’t account for life-cycle or embodied energy attributes of construction materials.

Wood can have superior ‘whole of life’ attributes compared to substitute products. I can tell you MAF is looking at this issue.

The other issue I want to mention is your Association’s call for an inquiry into the health and environmental risks of tin-based timber treatment chemicals, in response to widespread complaints from builders.

There is an issue of the industry’s reputation here, especially during times of high demand for product. The industry needs to ensure that comprehensive quality assurance programmes are in place and are being properly policed.

The alternative to self-regulation is regulation being imposed − as recently happened in the building industry − and the real estate industry!

I know you will have questions for me about further issues in the industry. So I want to first congratulate the Wood Processing Association for taking a proactive approach to issues over the last twelve months, such as the support for the pan-industry NZ Wood promotion. And I congratulate the Association also for engaging positively with me and with the government.

This is only the second annual conference of the Association, but it has quickly made its mark − not only for its members, but also on pan-industry matters.

As I have noted today, there is a lot of ground to cover, but we have some considerable opportunities ahead.

I wish you all the best for a continuing partnership across the industry and government to unlock those opportunities.

Forestry a vital part of New Zealand’s future

beehive.govt.nz — Thu, 20 Sep 2007 11:00:00 +1200

Forestry will be the first sector to join the Government’s newly-announced emissions trading scheme, Forestry Minister Jim Anderton said today.

The scheme was the most important development for the forestry sector in generations, he said. Many of the proposals were world-firsts, and would have huge impact.

Jim Anderton said the proposed scheme, announced today by Prime Minister Helen Clark, could provide owners with a new stream of income and would encourage new plantings.

The most significant parts of the inclusion of forestry in the proposed emissions trading scheme include:

Enabling post-1990 forest owners to opt into the emissions trading scheme, accruing both credits and associated liabilities;
The Government will retain the credits and liabilities of those post-1990 forest owners who do not opt into the scheme;
Giving free emissions credits to owners of pre-1990 forests, who are not currently eligible for credits under the Kyoto Protocol;
Bringing deforestation and subsequent conversion to alternate land use into the Emissions Trading Scheme, and
Exempting pre-1990 forest owners from deforestation liabilities where they had less than 50 hectares of pre-1990 forest land on 1 September 2007 or are deforesting less than 2 hectares.

Wood a wonder material

beehive.govt.nz — Thu, 13 Sep 2007 18:00:00 +1200

Address to launch the NZ Wood project and website, West Foyer, Beehive

A little over a year ago I spoke at a forestry industry workshop about a wood promotional campaign. And I recalled an observation by the renowned forestry visionary Wink Sutton. He used to say wood is such a remarkable material that, if it were discovered for the very first time today, it would be hailed around the world. It would be the answer to environmental problems and development problems the world over.

Wood is a wonder material. And its properties are summed up in the tagline for the NZ Wood project we are here to launch: "For a better world."

No other product can claim to store carbon dioxide, reduce the use of energy-intensive substitute materials, and displace fossil fuel by burning waste materials.
Wood makes the world better, because it is an environmentally friendly product. The carbon dioxide produced from using wood is recycled back into more wood by regenerating forests within a few decades. In contrast, the carbon dioxide from fossil fuels is added to the atmosphere.

Wood is environmentally friendly because it is energy efficient. Compared to wood substitutes like steel and concrete, it needs less than a tenth of the energy.
Recent research in New Zealand shows that building in wood can be eight percent cheaper than concrete and five percent cheaper than steel over the fifty year life of a building.

So why isn’t wood used more? What’s the problem?

Researchers can't find any technical or financial reason preventing greater use of wood in commercial buildings.

The major barrier seems to be that we get used to doing things a certain way. Building owners, quantity surveyors and building designers probably get used to things being done a certain way. We often say to ourselves, "if it's such a good idea, why doesn't everyone do it?" And there are few examples of commercial or public buildings constructed predominately from wood. So there is a Catch-22: the fewer wood buildings we have, the fewer people want to be the first.

The NZWood campaign is going to set out to break the Catch-22 by providing high-quality information about wood and its advantages.
The budget for this wood promotion campaign will be $4.8 million through to June 2009. Three quarters of that funding is from the government through the Forest Industry Development Agenda.

It's a good example of the advantages of the government working in partnership with the private sector.

And I look forward to hearing all the critics of 'picking winners' say that the government should not be supporting this campaign. Wood is a winner, and I am happy to pick it.

It's funny how all those critics of so-called 'picking winners' go very quiet when the actual specifics are announced and people have to say whether they line up behind our Kiwi industries or not.

But, of course, it is not about 'picking' a winner at all. It's about identifying where we have a strength and where we can accelerate success through a partnership approach.

We can achieve more results, faster, with widespread spillover benefits, by working together. It's better than individual wood and forestry businesses trying to promote wood on their own.

In any case, this is a kick-start. Most of the industry recognises the project will need a much longer timeframe. At least ten years is talked about often, which would take the project out to 2016.

I hope the industry commits itself to this campaign for the long haul and maintains its enthusiasm. One reason we need this campaign is that there have often been problems sustaining significant initiatives in the past with adequate funding.

So it's a highlight of this project that it is a focal point for co-operation across the industry under the Woodco umbrella.

This campaign will help forestry develop as a vibrant, commercially sustainable and internationally competitive sector.

A vibrant forestry sector is more likely to attract renewed investment in planting trees.

Over the last decade or two, wood has been losing market share to substitute products, most of which are less sustainable.

There are alternatives to wood. Every use of wood you can think of has a competitive substitute.

But substitutes also have features that economists call 'externalities'. Many wood substitutes are made using fossil fuels, or they involve environmentally damaging processes. They might pollute or they might pump carbon dioxide from fossil sources into our atmosphere.

The world now knows about climate change and we have to start taking seriously the damage we are doing to our atmosphere. If we are serious about cutting down the amount of carbon dioxide we're putting in our atmosphere, then wood is part of the solution.

The NZ Wood campaign will result in more wood being used in commercial buildings.

I went to Finland, where using wood is second nature, and looked at a similar campaign that they ran. The use of wood there is widespread, and still there was room for a successful promotional campaign to increase that use even further.

The government is supporting the wood industry because it will result in more trees being planted.

More trees help to reduce the impact of climate change, and that's vital for New Zealand, because we are more exposed to the effects of climate change than any other developed country.

More trees will help to achieve our goal of becoming the world's first truly sustainable country. If we can achieve that goal alone there will be spin-off benefits to other industries, as consumers increasingly demand higher standards of environmental responsibility.

Sophisticated consumers with awareness of environmental concerns often have a higher disposable income. Imagine those sophisticated consumers walking into a shop and seeing products with a NZWood brand mark. Imagine a designer or architect in an environmentally-aware market seeing our brand as they browse through a catalogue. Imagine the power of the brand mark if it can differentiate our products from others with less of an environmental claim to make.

At the other end of the scale from a brand mark, the NZWood project will also provide detailed information about wood. Designers and engineers will be able to find technical information on the internet on topics like span tables and loading data.

This will be more important from late next year when new requirements take effect requiring new government projects to consider building in wood.

NZWood stands to be a very valuable campaign for our environment, our economy and our lifestyles. I wish it every success, and I have much pleasure in formally launching the NZWood campaign.

Wood a wonder material

beehive.govt.nz — Thu, 13 Sep 2007 18:00:00 +1200

Forestry Minister Jim Anderton today extolled the virtues of wood as a building material. “Wood is environmentally friendly because it is energy efficient. Compared to wood substitutes like steel and concrete, it needs less than a tenth of the energy. Recent research in New Zealand shows that building in wood can be eight percent cheaper than concrete and five percent cheaper than steel over the fifty year life of a building.”

In Wellington, Jim Anderton was launching the NZ Wood project, a promotional campaign being launched by the industry. He went on to ask why wood isn’t used more, when researchers can find no technical or financial reason preventing its greater use in commercial buildings.

“The major barrier seems to be that we get used to doing things a certain way. And there are few examples of commercial or public buildings constructed predominately from wood,” Jim Anderton said. “The NZWood campaign is going to set out to break this Catch-22 by providing high-quality information about wood and its advantages.”

Three quarters of the $4.8 million for the wood promotion campaign is government funded through the Forest Industry Development Agenda. “It's a good example of the advantages of the government working in partnership with the private sector,” Jim Anderton said. “I hope the industry commits itself to this campaign for the long haul and maintains its enthusiasm. This campaign will help forestry develop as a vibrant, commercially sustainable and internationally competitive sector.”

The government is supporting the wood industry because it will result in more trees being planted. “More trees help to reduce the impact of climate change, and that's vital for New Zealand,” Jim Anderton said. “NZWood stands to be a very valuable campaign for our environment, our economy and our lifestyles.”

Illegal logging costs NZ producers millions

beehive.govt.nz — Tue, 21 Aug 2007 01:00:00 +1200

Illegal logging is costing New Zealand wood producers hundreds of millions of dollars in the global marketplace, Forestry Minister Jim Anderton said today.

The Government is to consult industry, importers, and retailers on a proposal to introduce rules ensuring wood products sold within New Zealand are produced from legally harvested timber.

It is also working internationally to back proposals to tackle global deforestation.

Jim Anderton said a study, Implications for the New Zealand Wood Products Sector of Trade Distortions due to Illegal Logging, indicated that trade distortions, due to illegal logging, cost the New Zealand forest industry NZ$266 million a year in lost revenue. Of this cost, forest owners lose $41 million, sawmillers $22 million, and collectively the panel, pulp and paper industries $203 million.

He said the Russian Government had indicated it would impose a higher tax on log exports and if that went ahead, it might restrict supply of logs on the global market, meaning higher prices for New Zealand log exports – a potential increase of at least 14 per cent.

However, New Zealand wouldn’t be the only beneficiary, and illegal logging would still continue. The higher prices for logs, whether legal or not, still impacts on New Zealand, and the cost of illegal logging to New Zealand would increase to NZ$390 million per year. Of this forest owners would lose $117 million, sawmillers $68 million, and collectively the panel, pulp and paper industries $205 million.

The study, carried out by researchers from Crown Research Institute Scion for the Ministry of Agriculture and Forestry, shows that the supply of illegal wood in world markets depressed all wood product prices, distorting global production and trade.

It says that New Zealand export log prices are 10.6 percent lower than they would otherwise be.

Exports of New Zealand wood products (wood panels to mouldings) are up to 15 percent lower. Furniture prices are 2.8 percent lower. It also says there is lower demand for New Zealand furniture because of illegal logging, but the overall effect is very small.

Jim Anderton said the trade distortions not only affected the prices that New Zealand wood producers got in the international marketplace, but they flowed on to the price of forestry land here and the rate of tree plantings.

“So, not only does illegal logging increase greenhouse gas emissions, but also discourages sustainable forestry that helps slow climate change.”

He said combating illegal logging was a priority for the Government, both domestically and internationally.

“I have pressed officials to advance our policy programme, and New Zealand will be taking an active stance internationally to work with all countries serious about reducing illegal logging and avoiding deforestation.”

Forestry aims to be a leader in environmental practice

beehive.govt.nz — Thu, 16 Aug 2007 08:00:00 +1200

Forestry Minister Jim Anderton has congratulated the Forest Owners Association on a new Environmental Code of Practice. “I'm proud to be here for the launch of this Code, and its contribution to ensuring our forestry takes its place among our primary industries as the leader in environmental practice.”

At a function held at Parliament last evening, Jim Anderton said that consumers and regulators are growing more aware of environmental issues. “There is a great opportunity for New Zealand if the focus switches to how well we care for our natural surroundings, because we have some of the best practices in the world.

“From the quality of our fisheries management in our oceans, to the steadily improving practice on farms, New Zealand is setting a bench-mark of excellence in environmental practice.”

Jim Anderton spoke of how, along with the demand for higher standards, in some instances countries are setting up barriers to access based on environmental measures. “A vibrant, commercially sustainable and internationally competitive forestry sector can help us to achieve the government's environmental objectives.

“Not only that, but these initiatives will lead to more wood being used − and so more wood being harvested and more replanting of harvested sites. An economically strong industry is also more likely to attract new investment and new planting.”

Concluding his speech, Jim Anderton acknowledged that recent times have not been easy for forestry, which is one reason he welcomes the Code. “It is a time of adjustment. One of the most important challenges the industry has been facing has been to grow the use of higher value products. And value stems partly from environmental reassurance. “

Forestry Code of Practice launched

beehive.govt.nz — Thu, 16 Aug 2007 08:00:00 +1200

Launch of Forestry Owners Association's Forest Environmental Code of Practice, Beehive

All over the world right now − and particularly in high value markets − consumers and regulators are growing more aware of environmental issues.

They are asking more questions. They are demanding higher standards. And in many cases, they are setting barriers to access based on environmental measures.

The climate is changing. No single weather event can be traced to climate change, but you only need to glimpse the increasing frequency and severity of dramatic weather events to see the risks of climate change. We should take care in order to minimise the contribution people make to climate change.

In UK supermarkets, there are stickers going on food showing how far it has travelled to market. Cooking shows and newspapers make wild claims about the carbon used in transporting products to market.

As awareness grows, we can hope that attention will move from the irrelevant issue of carbon used in transport − to the genuinely important issues such as:
The total carbon used in production, and the overall environmental responsibility of producers.

There is a great opportunity for New Zealand if the focus switches to how well we care for our natural surroundings, because we have some of the best practices in the world.

From the quality of our fisheries management in our oceans, to the steadily improving practice on farms, New Zealand is setting a bench-mark of excellence in environmental practice.

I'm proud to be here for the launch of this Code, and its contribution to ensuring our forestry takes its place among our primary industries as the leader in environmental practice.

This is a commercial issue for us because we can achieve a premium in global markets for products that are produced more responsibly.

However, it is not only a commercial issue. We also have a moral responsibility we have to our children to do our bit to preserve the health of our habitat.

When we look around at the tools we have to mitigate the effects of climate change, forestry stands out. Trees sequester carbon from the atmosphere.

There is increasing acceptance of the benefits of using trees to off-set carbon emissions. You don't immediately think of trees when you think of airlines. But airlines are getting interested in trees because they want to reduce their carbon footprint − or 'wing print' as the case may be.

Trees have important environmental benefits beyond their role in sequestering carbon. They help to stabilise soil on erosion-prone hillsides and to enhance water quality.

What a lot of people don't realise is that plantation forests often contain substantial pockets of indigenous forest. Under the Forest Accord, and through forestry company initiatives, these remnant forests are protected from damage. The Accord has stood the test of time. It was signed sixteen years ago yesterday. (14 August 1991). The industry and environmental groups are to be congratulated for the Accord. It is a landmark agreement.

It has enabled plantation forests to be combined with indigenous vegetation along the sides of stream and in wetlands and to play a full role in providing habitats for much of our indigenous bio-diversity.

Foresters consider biodiversity when planning, growing and harvesting a commercial crop of trees. This is where the Environmental Code of Practice comes in. It provides a valuable set of guidelines to help forest managers, contractors and workers plan and carry out their tasks, while keeping the environment, and themselves, safe.

As Peter Berg is reported as saying, there should be a well-thumbed copy of the Code in the cab of every vehicle in the industry. Following the practices described in the Code will not just benefit the environment but will also help the industry to be more economically and socially sustainable. Public support for the industry will be stronger when it is seen to operate responsibly, and compliance costs will be lower.

This is the national launch of the Code. It is also being launched regionally at events around New Zealand, in conjunction with presentations on the NZWood campaign.

NZWood used to be called ForWood. It is a campaign to increase the use of wood in New Zealand. It spreads understanding among builders and consumers about the advantages of wood: Wood is truly a wonder product. It's versatile, cost-competitive, natural, strong, beautiful − and available. The Code we are launching today helps to reassure consumers of end products that have wood components, that those products are produced responsibly throughout the whole production chain.

That's why NZWood is, like the Code of Practice, supported by the Government through the Forest Industry Development Agenda (FIDA). Over four-and-a-half million dollars of FIDA funds is budgeted for NZWood through to June 2009. That's three-quarters of the budgeted costs.

The Government is also supporting forestry through FIDA’s Excellence in Wood Design initiative. This $2 million fund provides support for two professorial positions at the Universities of Auckland and Canterbury.

Those positions will help to increase awareness about the ways timber can be used, and therefore to increase the use of timber. For example: teaching building professionals about designing buildings using wood. More awareness among these professionals will see timber used more often in commercial buildings and lead to the increased overall use of timber.

The government is setting an example. Within 12 months new government-funded building projects for buildings up to four floors will have to commission designs and consider options for using wood or wood-based products as the main structural materials.

The government is promoting these initiatives because we're committed to a partnership with the forestry industry. Climate change and soil and water protection are important issues for New Zealand, and priorities for the government. Forestry is a key part of the solution.

A vibrant, commercially sustainable and internationally competitive forestry sector can help us to achieve the government's environmental objectives.

Not only that, but these initiatives will lead to more wood being used − and so more wood being harvested and more replanting of harvested sites. An economically strong industry is also more likely to attract new investment and new planting.

That's good for one of our most important industries. Forestry is a major export earner for New Zealand. It directly employs around 25-thousand people, mostly in regional centres and rural communities. It supports another two to three times as many people in downstream industries.

This is a crucial industry for New Zealand’s successful economic development and the Code will help to assist forestry to grow and develop in an environmentally responsible way.

I’m pleased to note that the Code was developed with assistance from the Government’s Sustainable Farming Fund. Despite the ‘Farming’ Fund’s title, it does assist many forestry-related projects such as this one.

It’s also good to hear that the Code has the endorsement of the Farm Forestry Association and the Forest Industry Contractors’ Association. Most major forestry companies have detailed Environmental Management Systems. I understand most will now review these to ensure they are aligned with the new Code.

Smaller forest owners and companies now have a robust and defensible Code to work from. Best Environmental Practices in the Code are an excellent decision-making and audit tool − and they will help reassure regulators and consumers − here, as well as overseas. They'll make the job easier for local authorities, too, in setting a consistent, low compliance-cost set of environmental standards.

This Code is a positive development. Recent years haven't been the easiest of times for forestry. It is a time of adjustment. One of the most important challenges it has been facing has been to grow the use of higher value products. And value stems partly from environmental reassurance.

So I am very pleased to welcome this Code, to formally launch it, and to wish the forestry sector well in reaping the gains from this investment in their own and New Zealand’s future.

Making wood part of a sustainable future

beehive.govt.nz — Tue, 03 Jul 2007 01:00:00 +1200

Forestry Minister Jim Anderton today announced a new programme that will help put New Zealand at the forefront of building truly sustainable buildings.

Mr Anderton said the Government has taken another key step in its promotion of a carbon-neutral public service. Within a year, new government-funded building projects for buildings up to four floors (including the ground floor) will have to commission designs and at least consider options for using wood or wood-based products as the main structural materials.

He said more than 90 percent of New Zealanders’ homes were built in wood.

“But very few commercial buildings are built in wood, despite research showing wood is cheaper, produces less greenhouse gas emissions and - with the right design and technology - can meet all other sustainability measures, such as energy efficiency.

“With the latest technology in timber engineering and global concerns about greenhouse gas emissions and energy use, it is time for wood to play a much important role as an efficient building material. Wood locks up carbon dioxide, uses much less energy to produce than alternatives, and by-products can be used to produce renewable energy.”

Encouraging the use of wood also helped support a growing forest industry, Mr Anderton said, which in turn helped New Zealand address climate change and sustainable land management.

He said there would be three new initiatives to encourage far greater use of wood in non-traditional applications:
•establishing two key professorships in wood design at our engineering schools in Canterbury and Auckland;
•co- funding the development of web-based technical information for engineers and architects; and
•requiring that where government-funded buildings of up to four floors are proposed, consideration is given to a build-in-wood design along with other proposals.

“I am delighted with the announcement today by the University of Auckland that the second professorship position in wood design has been filled by Canadian expert, Professor Pierre Quenneville.”

He joins Professor Andy Buchanan, who has been the Professor of Wood Design in Canterbury for some months.

Mr Anderton said there was already world-leading research underway in Canterbury University, led by Professor Buchanan and his international team of experts. This research should soon make it possible to replace greenhouse gas-intensive concrete and steel in buildings up to 10 stories high with wooden construction.

“While we are used to having timber framing in our houses, there are few examples of commercial-style wooden buildings. Yet research indicates there are no technical or financial reasons why wood should not be used. It seems that wooden buildings aren’t considered because there are few examples to demonstrate the possibilities, and there aren’t many examples because they aren’t considered – a classic Catch-22 situation. So we have taken this move to show some leadership in breaking the cycle.”

Mr Anderton said today’s announcement tied into the recent announcement that all new A-grade office buildings being constructed to house government staff in central business districts must now have a minimum five-star Green Star New Zealand rating, which represents "excellence". A four-star rating is required for other grades of office building, signifying "best practice". A further series of green building rating tools is being investigated for schools, housing and commercial office building fit-outs.

“Rating a building's performance in use is very important. But we believe it is also important to consider the sustainability of materials used in construction as part to the overall sustainability mix. That's why we are also requiring government departments to at least consider a build in wood option.”

Mr Anderton said wood was a material of the future. “Globally, humanity needs to move away from unsustainable and energy-intensive materials. We see wood growing and growing in importance. New Zealand can and should be at the forefront of the global wood revolution. There are fantastic opportunities for our wood processors, engineers, designers and construction companies to provide further engineered wood solutions for commercial-style wood-based building solutions, both within New Zealand and internationally.”

Simplified grant process to help combat erosion

beehive.govt.nz — Fri, 22 Jun 2007 11:00:00 +1200

“Gisborne district landowners will now find it easier to address severe erosion under changes to the East Coast Forestry Project,” Forestry Minister Jim Anderton said today. “What was a tender process has been changed to a direct grant. This should increase the uptake of the ECFP funding because the new process makes it easier for landowners by removing the uncertainty of the tender system.”

Jim Anderton said that the Government sees a critical need for partnership with Councils to achieve best practice.” I am pleased that the Gisborne District Council (the GDC) has notified a Plan Variation to assist commitment from landowners to bring about the land use changes and to also ensure their durability into the future. This variation complements the ECFP.”

ECFP will now pay 70 percent of the actual and reasonable cost of pole planting for soil erosion control. For forestry treatment, the rate for the 2007 grant round is $1,342/ha with an additional top-up, if the grant area is over 80 km from the Gisborne Port and/or includes high priority gullies. For the reversion treatment, the grant rate is $1,375/ha with an additional top-up, if the grant area includes high-priority land.

Jim Anderton planted a tree, after announcing the new ECPF funding guidelines at Komihana Station, near Gisborne. “The Labour-Progressive Government is prioritising sustainable land management,” he said. “In the Gisborne-East Coast, as in other areas of North Island hill country, soil conservation plays a critical role in ensuring the economic future of primary production. With climate change and expected increases in extreme weather events, we can expect more pressure on erosion-prone country. The East Coast Forestry Project (the ECFP) is designed to prepare ourselves for such events.”
The Government has set aside $10 million over the next four years to fund a Sustainable Land Management (Hill Country Erosion) Framework. This funding aims to support regional initiatives that target the most erosion-prone land.
“This funding is part of the Government’s agenda aimed at the economic transformation of our agriculture sector into the most sustainable primary production system in the world.”
The revised guidelines and grant rates are available at http://www.maf.govt.nz/forestry/east-coast-forestry/index.htm

Beware National's hollow forestry lines

beehive.govt.nz — Wed, 13 Jun 2007 14:00:00 +1200

“National's Hollow Men campaign on forestry should be exposed for the sham that it is,” Forestry Minister Jim Anderton said today.

"The National party is using newspaper columns, such as one today from Simon Power in the Wanganui Chronicle, to spread a grossly distorted picture around forestry and carbon credits.

"National is once again being driven by the distortion and spin of the same shadowy figures behind the Hollow Men, such as National Party strategist Matthew Hooten, who moonlights as public relations advisor to the Kyoto Forestry Association.

"All the lines are the same and the timing smacks of more than coincidence. The media and all New Zealanders should be aware of this continuation of National's tactics to play fast and loose with the truth.

"National should come clean. How much is Hooten being paid by the forestry lobby? What talks has he had with National? How come National is using the same lines as the foresters at the same time? What influence does Hooten and his vested interests have over National's forestry polices?

"I'm very interested in the answers to these questions and to seeing how closely National policy develops along the lines of the demands of Hooten's clients,” Jim Anderton said.

What's really happening in forestry?

“National claims massive deforestation when the facts clearly show that there is more land in forestry now than there was in 1999 − 69,000 hectares more. The national forestry estate now stands at 1.8 million hectares compared to 1.73 in 1999.

“National also claims that foresters can't get credits for the trees they plant. This is simply not true. Those foresters that establish new permanent forest sinks qualify for credits under the Permanent Forest Sinks Initiative.

“Furthermore, the Government has recently consulted on incentives to encourage planting of commercial forests, including devolving all credits and liabilities to foresters and an Afforestation Grants Scheme. This is in addition to $10m in the Budget to promote tree planting on erosion prone hill country.

“While the Government has been grappling with the complexities of climate change since 1999, the National Party has been using this serious global issue as a political football. When the Government proposed the agricultural sector, which is responsible for half of New Zealand emissions, make a modest contribution to emission reduction research, the National Party cheered while one of its MPs drove a tractor up the steps of Parliament. Would they still do this now? National’s lack of credibility on this issue speaks for itself.”

Key stumbles with policy on the hoof

beehive.govt.nz — Tue, 06 Mar 2007 15:00:00 +1300

The announcement today by John Key and Nick Smith that National would give foresters carbon credits dating back to 1990 show’s his political naivety by making up uncosted, unaffordable and unfair policy on the hoof," said Forestry Minister Jim Anderton.

“The value of carbon credits accrued to New Zealand from forest plantings since 1990 is $1.24 billion. This can only come from two places, taxpayers or from farmers, motorists and major industry. John Key’s uncosted policy-on-the-hop would create large windfall gains for a few forest owners at the expense of ordinary taxpayers.

“Mr Key must come clean on how many credits National would devolve, what this will cost and where the money is coming from. To suggest he would give away the credits and offer tax cuts is simply not credible - unless Mr Key has a plan to seriously scale back social services and sell assets.

“To claim forest owners have a right to credits from trees that were planted before carbon credits were even invented is to suggest farmers, motorists and the rest of New Zealand should pay for their emissions dating back to 1990. I look forward to John Key telling the rest of New Zealand they should pay for emissions produced before climate change was widely known about.”

The majority of Kyoto forests were planted before the Kyoto protocol was even negotiated at the end of 1997, before it was signed by New Zealand in 1998, ratified in 2002 and well before it came into force in February 2005.

“The Government has already devolved carbon credits for Permanent Forests and is now consulting on a range of options to encourage afforestation. One option proposed is to devolve credits to those who plant new forests from the 1st of January next year. This would be a world first,” Jim Anderton said.

“It is instructive that the National Party did not include devolution of carbon credits in their Blue-Green discussion document, which was launched just before Christmas and with so much fanfare. Today’s announcement by John Key, which has been clearly orchestrated by National party strategist Mathew Hooten, who moonlights for Roger Dickie's Kyoto forestry lobby, is the latest evidence of National working with vested interests who wish to line their pockets at the expense of ordinary taxpayers.

“The only good news in this announcement is that John Key appears to have finally accepted the reality of climate change and seen the opportunities of the Kyoto Protocol. This is a complete flip flop from his statement to Parliament regarding climate change that ‘this is a complete and utter hoax, if I may say so. The impact of the Kyoto Protocol, even if one believes in global warming-and I am somewhat suspicious of it-is that we will see billions and billions of dollars poured into fixing something that we are not even sure is a problem’.”

“The newly anointed emperor of the National Party has no clothes. I rest my case,” said Jim Anderton.

Every day Environment Day for this Government

beehive.govt.nz — Tue, 06 Mar 2007 11:00:00 +1300

Agriculture and Forestry Minister Jim Anderton congratulated National Party Leader John Key today on finally coming round to the Labour-Progressive Government's point of view that climate change is a reality.

"Mr Key is engaged in what he calls 'Environment Day' in Canterbury today. Of course, for this government every day is environment day," Jim Anderton said "but one day is at least a start. Perhaps National is beginning to understand that New Zealand has some serious issues to debate."

"Climate change is not only a reality, but quite probably, the greatest long-term threat facing our biological economy, and in turn the New Zealand economy. John Key has been slow to realise this," Jim Anderton said.

Mr Key is intending to join his colleagues Nick Smith and David Carter at the MAF Consultation Meeting on Climate Change, being held in Christchurch. He will later meet a number of forest owners, including Roger Dickie of the Kyoto Forest Owners Association.

"Nick Smith has recently sunk so low in this debate as to attack a MAF official in the House," Jim Anderton said. "Are he and his Leader now in collusion with Matthew 'Hollow Men' Hooten and Mr Dickie in trying to intimidate officials who are actually trying to have a constructive debate over the discussion document put out by the government, Sustainable Land Management and Climate Change – Options For A Plan of Action?"

"Mr Dickie has been to all the Climate Change consultation meetings and has consistently promoted misinformation, claiming among other things that the government is 'stealing' carbon credits and that it will impose a deforestation tax."

"However, it is good to see John Key showing an interest in forestry matters after Nick Smith told Parliament a fortnight ago “that halting the massive deforestation going on in New Zealand right now should be the No. 1 climate change priority”. Given National's stated support for tradeable emissions schemes we look forward to their support for a tradeable permit regime for managing deforestation," said Jim Anderton.

"On the other hand, National has no policy on carbon credits. If they are going to flip flop on this are they going to send the bill to ordinary taxpayers or farmers?"