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WPMA blames demise of mills on a distorted market

Brian Stanley WPMA

Brian Stanley New Zealand’s Wood Processors and Manufacturers Association chair penned an open letter to express its deeply felt regrets regarding the announcement of intent of closure of another wood processing mill in New Zealand and the loss of yet more jobs in the regions. Source: Timberbiz

Mr Stanley said that the New Zealand government is fully aware that the demise of wood processing firms is being caused by a highly distorted domestic market for logs.

He said that the prices for logs in New Zealand have been driven up to unprecedented levels over recent years by foreign buyers operating on subsidies provided by their own countries.

These subsidies enable foreign buyers to artificially inflate prices, effectively capturing the domestic log market by creating some of the highest softwood log prices in the world.

According the Mr Stanley the fact that this grossly unfair market is occurring under NZ’s Free Trade Agreements with these countries should be extremely concerning to all New Zealanders. The WPMA is urging the NZ Government to take immediate action to halt these unfair trading conditions and prevent the loss of jobs and community to what is thoroughly unethical trade.

Mr Stanley said that continued government inaction will inevitably lead to further loss of wood processing jobs to blatantly unfair trade and dash hopes of building a future bio-economy around NZ’s forestry sector.