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Tangled web for Hikurangi Forest Farms

 

Local stakeholders in Gisborne’s forestry industry have accused Hikurangi Forest Farms of boycotting a planned sawmill and wood processing centre of excellence, and want the company stripped of its sustainability certification. Source: Gisborne Herald

Those efforts have found support from a conservation group in Switzerland.

A statement issued by the Basel-based Bruno Manser Fund, which is primarily committed to working for the protection of the indigenous people and rainforests in the Malaysian federal state of Sarawak, said local stakeholders on the East Coast had lodged a complaint with the Forest Stewardship Council (FSC) against HFF’s Malaysian owners, the Samling Group.

“Samling is accused of boycotting efforts to build up a wood processing industry and failing to provide sufficient economic opportunities to one of New Zealand’s economically weakest regions,” the statement said.

“Despite being a key player in the local timber business, the Malaysian group has consistently refused to provide timber at market rates to a new wood-processing facility (the currently closed Prime Sawmill) built up by the Gisborne District Council, the Eastland Community Trust and Activate Tairawhiti in a joint effort to revive the local economy.”

The FSC is an international body that issues sustainability certificates to timber operators.

“According to FSC principles, a timber operator is required to enhance local communities’ social and economic wellbeing and should maintain and enhance long-term economic, social and environmental benefits from the forest,” the statement said.

Auckland-based spokesman for the complainants, Carrick Graham, said FSC had acknowledged the receipt of the complaint and was expected to reply to the complainants, according to the FSC dispute resolutions system.

A complaint made by Mr Graham on behalf of a client last month suggested that because the company had so far refused to publicly or actively back the Prime venture, it was at risk of not complying with FSC criteria.

“Local stakeholders are very disappointed at the lack of response from HFF about supporting the Prime Sawmill as a high-value, innovative wood processing cluster. This is even more relevant considering the location of a HFF wood storage site directly across the road from the Prime sawmill site,” his letter of complaint said.

In case of noncompliance with the FSC principles, Samling could face a loss of its certification.

HFF forests general manager Paul Ainsworth said the complaint appeared to be an attempt to use the threat of losing FSC to force commercial decisions.

“We are not concerned.”

Eastland Community Trust last year agreed to invest NZ$7.4m to buy the Prime Sawmill site on Dunstan Road to set up a sawmilling operation that could employ 50 people.

The eventual aim was to establish a centre of excellence with the potential to employ 120 people on-site and support another 300 jobs off-site and inject NZ$6.7m into the local economy over the following three years.

ECT general manager Leighton Evans said the trust was not aware of the complaint, had no involvement with the complaint and had not been in conversation with Activate Tairawhiti or Gisborne District Council about the issue.

“We are of the view that there is a need for a sustainable and collaborative approach to wood processing if we are to maximise the benefits of this sector to our region.

“In regards to the sawmill, the trust has been looking at different business models for operating the site sustainably. We are confident that the site will be reactivated within the next 12 months.”

Mr Evans said the trust was in the process of “scoping” log supply options, and HFF was a supplier the trust would need to consider.

“To date the trust has not engaged directly with Hikurangi for log supply.”