Hawke's Bay forestry gets back into gear as Government works to improve things for the road ahead

Forestry Minister Shane Jones has hailed a return to work for the forestry industry when the country drops to alert level 3 on April 28. Photo / File

One of the lockdown's hardest hit industries will get into gear on Tuesday, which will mean many in the Bay heading back to work.

Forestry Minister Shane Jones has hailed a return to work for the forestry industry when the country drops to alert level 3 on April 28.

"The forestry sector has told me they are raring to go," he said.

"With forestry being among the first industries affected by the fallout from the Covid-19 pandemic, it's great that businesses across the supply chain are ready and waiting to get back up and running.

"When a sector as big as forestry, which employs 30,000 people across the supply chain nationwide, grinds to a halt, the knock-on effects are huge."

Jones said that the Government is committed to supporting all parts of the forestry sector to restart, and ensuring the industry remains financially supported in the meantime, but said that he is proposing an idea to limit raw log export to build local industry in New Zealand.

The Napier-Wairoa rail link took a hit from the Covid-19 pandemic when it reopened and it is expected to continue to suffer in the near future, but Jones said that during these unprecedented times it is about getting things back to business.

"Moving forward it's about supporting all parts of the industry, but also it is making sure suppliers can find the most economical way of moving logs across the country."

Pan Pac Forest Products managing director Tony Clifford said this week, it will be five weeks since the company fully restarted forest and processing operations. Photo / File

Pan Pac Forest Products managing director Tony Clifford said that this week, it will be five weeks since the company fully restarted forest and processing operations.

"This period is nominally 10 per cent of a production year, so financial impact is quite significant," he said.

"Currently, we have been authorised a restart on our sawmill to allow the supply of products to essential industries (ie that produce pallets and bins).

"However, this is only from our available log stocks which will run out before level 3 commences."

While Pan Pac can survive a five-week lockdown, he said that the company is relying on the global economy to return to some semblance of normality in the second half of 2020.

"Near-term demand for pulp in China and lumber in the US looks quite good (due to the lack of supply for five weeks from New Zealand and other countries).

"However, there could be softening in the ensuing months as countries return to normal production levels but with reduced demand globally."

Clifford said that during the lockdown period they have been able to support all Pan Pac's employees through Government subsidies and benefits, but understand others will be suffering during this time.

"We are mindful that many contracting companies that rely on Pan Pac have also suffered through lack of income for five weeks and want to get them all back to work safely."