Rotorua MP Todd McClay believes a new wood-products levy will help to inject some much needed funding into Rotorua's forestry sector.
Associate Minister for Primary Industries Jo Goodhew this week announced Government approval of a 27c/tonne levy on all harvested wood material from New Zealand plantation forests during 2014. Thisis expected to raise more than $6.5 million during the year.
She said the Government had agreed to make the new levy order following a successful referendum of forest growers in March this year.
"By voting in the referendum, forest growers gave a mandate to the Forest Growers Levy Trust to collect levies to invest in industry activities such as research and development, forest biosecurity, and industry training and education to support the success of forestry," Mrs Goodhew said.
Mr McClay said the levy was a bid to raise funds for investment in the forestry industry. "This sector is incredibly important to the Rotorua and Kawerau economies and there is plenty of potential for growth. A key part of this is focussing on research and development and this new levy will create extra means to invest in this area as well forest biosecurity and training and education.
"Already Scion in Rotorua is leading innovation in our forestry sector with their world-class research, giving us the edge in attracting new investment in our town and increased employment opportunities."
Mr McClay said it was important the forestry industry continued to think of new ways to foster development within the industry.
"Some of the proceeds will also be invested in the development of codes of practice and industry standards relating to the health and safety of forestry workers. The issue of safety in Rotorua's forestry sector has been raised with me several times this year and I am sure this latest announcement by the Government will be welcomed by industry officials who have been calling for improvements to be made to safety codes."
