Forestry workforce declining — report

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

The number of people employed in the region’s forestry contracting industry has halved in size in just two and a half years, a new report reveals.

The situation was laid out at the end of November, in a report from Tairāwhiti CARE,  the Regional Skills Leadership Group which runs under the Ministry of Business, Innovation and Employment.

“The Tairāwhiti forestry industry continues to transition affected workers to other work opportunities but remains concerned about the long-term future,” the group said in its report.

“Rising production and regulatory costs along with the fluctuating export market is exacerbating the negative impacts of the North Island weather events.

“These are compounding longer term issues that have seen the forestry contractor workforce halved over the last 2.5 years, and the departure of skilled workers for other regions poses a significant challenge for the future of the industry.

“China is a primary export market, and a significant influencer of local log prices. However, the market has not recovered to pre-Covid levels.

“Industry stakeholders are predicting that the best-case scenario for the Chinese market is a slight increase due to their housing crisis.

A recent “uptick” in log prices,  would not be enough, on its own, to drive a return to previous production rates in Tairāwhiti, the report said.

“While some corporate crews are returning good production rates, it is unlikely this pace can be maintained.

“For example, some local crews are assisting with a wind-throw event in Tūrangi/Taupō, but this work is expected to last only six more months.”

Trust Tairāwhiti had supported nearly 80 contractors under the Manaaki Forestry programme to transition to other industries, primarily civil construction.

“However, there is a need for longer-term solutions to these recurring problems, especially as the Ministerial Inquiry into Land Use (MILU) review could inform what a ‘just transition’ might look like for the forestry industry.”

New Forestry Minister Todd McClay said he would be visiting in the new year to start discussions on how to best support the sector locally.

“Forestry is an important industry in Tairāwhiti,” he said.

“It has faced challenges over the last few years, particularly from severe weather. This Government is committed to restoring stability and confidence in forestry to support further investment as part of rebuilding New Zealand’s economy.”

The Eastland Wood Council and the Forestry Industry Contractors Association did not respond to requests for comment.