Struggling Northland sawmillers call for Government help, fearing 'complete closure'

February 2, 2020

The region's largest timber mill is likely to close.

Sawmillers in Northland are calling for Government help as they struggle to source raw logs being snapped up by international buyers. 

The region's largest timber mill is likely to close and others say they could follow. 

"We've been concerned about our log supply for a couple of years now and there's certainly not enough to go around," Rosvall Sawmill's Mark Hansen told 1 NEWS. 

Maurice Davis, from the Amalgamated Workers Union, says it's a major issue.

"The problem is there are no mature trees in Northland of any scale that we can mill, so we're having to bring them in from central North Island," he says.

"And the cost of that has blown out."

Now Carter Holt Harvey is looking to shut down its Whangārei sawmill and move production to its Kawerau plant, with the potential loss of 110 jobs. 

The nearby Rosvall Sawmill is facing similar problems. 

"In eight to 10 years time we certainly won't have the raw material we have today and we could well be looking at a similar situation, a complete closure," Mr Hansen says.

Trees are typically cut at 25 years old, but foreign buyers aren't waiting and are buying them at good prices before they mature. 

Sawmills can't compete price-wise and forestry owners can't keep up with the demand.

"The problem you've got is, if someone's offering you record prices for your timber and they're not really worried about the age of the timber, people just chase the money," Mr Davis says.

"But there's no stability long-term when you have that because it's just boom and bust.

"The consequence of that is if you cut out a decade's worth of trees young, you've got to wait for a decade to get older in order to meet the New Zealand standard."

The industry would like the Government to introduce greater controls around exports and show commitment to supplying the local industry.  

"We're looking at options for transport logs to the north to keep these facilities going so that's what we're doing about it," Deputy Prime Minister Winston Peters told 1 NEWS.

"[We're] not sitting on backsides, [we're] getting on with the job... Might even barge them if necessary."

Mr Hansen hopes for action soon, with the 55 workers at his family-operated sawmill in Whangārei hoping too. 


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