Small-town New Zealand suffering as forestry industry's hit hard by impact of coronavirus

The forestry industry, and the towns that rely on it for survival, are approaching a crisis point as the coronavirus grips countries worldwide.

Around 80 per cent of New Zealand's export logs go to China and the temporary loss of it is catastrophic to the industry.

Nathan Taylor, from the New Zealand Forest Industry Contractors Association, told TVNZ1's Breakfast things are in a "dire state".

"These are the hardest times we've probably had since 1990, to be honest."

Co-director of a forestry contracting firm, Mr Taylor says he hasn't had to let anyone go yet but things are in bad shape across the country.

"There are guys all throughout New Zealand that have lost contracts, that have lost jobs, it's dramatic," he says.

"It's really hurting the whole forestry in New Zealand, it's really hard."

Towns like Wakefield, in the Nelson-Marlborough region, are built around the industry and rely on it to keep the local economy running.

Mr Taylor says there are around 50 towns across New Zealand in the same situation, with families struggling.

"These are guys that want to work in forestry, but at the moment if they're not working at all, or working at 80 per cent, it's pretty hard on the families," he says.

Last week, Finance Minister Grant Robertson confirmed they're working on a response plan to support staff and businesses impacted by the Covid-19 outbreak.

"The sense I've got from industry is there is an understanding that this situation – an export shock with domestic flow-on impacts – is different to others the economy has experienced in recent years," he said in a statement.

"That means a tailor-made response is required. Industry representatives are telling us they are seeing different effects on different industries in different regions. A one-size-fits-all approach is not what is needed."

Some workers are picking up other, seasonal work in the meantime, which means they're needing to pay secondary tax - a "double whammy", Mr Taylor says.

"That might be something the Government could look at right away, to ease the burden on these families."