world news - 04.09.2007
Illegal logging costs New Zealand millions
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.”
See also:
- — Industrial production in Estonian wood industry increased 3% in July 2007
- — Forest fires wreak more destruction
- — More wood in Norwegian forests
- — Wildfires, Housing Have Lasting Effect on Timber Prices
- — Russia Ready to Provide More Facilities to Fight Greek Fire
