Rimu are the most important single component of the forest ecosystem to many species of birds and other animals. Damage from sustainable logging until 31 August could be minimised to some degree by directing Timberlands not to develop any further roading within North Okarito or Saltwater. The rimu contracts have the same force majeure clause as the beech contracts, which Timberlands can invoke if government policy changes. Timberlands directors clearly felt that their fiduciary duties demanded the inclusion of such a clause, which suggests that government policy to bring an early end to the logging was anticipated at a commercial level. There is no need to break the contracts and no implication or precedent for general government contracts.
International investors are likely to regard action over rimu logging with little concern.
ACC legislation extinguishing both contractual rights, and the right to compensation for this extinguishment, has already been passed by this Government. The previous Government directly devalued private shareholders rights during the split of line and energy companies in the electricity sector. Both are far more significant in financial and legal terms than our proposal. The public expectation is that these statements will be followed through. To the best of our knowledge, new contracts were clearly signed after the Labour policy was agreed, but before it was announced.