Connell Brian: Questions for Oral Answer — Questions to Ministers Questions to Members 
Connell Brian: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:620;Page:15542] 
12.  
BRIAN CONNELL (National—Rakaia) 
 to the  
Minister of Forestry 
: Is he concerned that the number of hectares planted per annum in new forestry plantations decreased by 63 percent between 1999 and 2003; if not why not? 
Hon JIM SUTTON (Minister of Forestry) 
: 
 I would prefer to see a faster rate of expansion but I recognise that since the Government withdrew—[ 
Interruption 
] Mr Speaker could I be heard in silence please? 
Mr SPEAKER 
: Yes—[ 
Interruption 
] Order! The Minister asked reasonably to have his answer heard. There is no need to shout out. 
Hon JIM SUTTON 
: I would prefer to see a faster rate of expansion but I recognise that since the Government withdrew from large-scale investment in forest planting private sector investment has closely followed short-term trends in free on board log prices. 
Brian Connell 
: Is the Minister concerned that the majority of forest owners attribute the record low plantings to the Government’s intention to introduce a land-use change tax of between $18000 and $25000 per hectare; can the Minister confirm that that is the Government’s intention? 
Hon JIM SUTTON 
: The member has obviously got things completely wrong. The Government has assumed liability for the Kyoto Protocol deforestation carbon charges where it is has assumed the relevant credits—that is for everything planted post-1989. 
Janet Mackey 
: Is investment in the forestry industry really in the doldrums as the Opposition seems to think? 
Hon JIM SUTTON 
: Hardly. North American investors seem to find New Zealand forestry an attractive investment as is witnessed by the arrival of several timber industry management organisations and Harvard University. I can assure other potential investors that there is still room for more investment in our industry especially in wood processing. 
Brian Connell 
: Is the Minister concerned that the forestry industry our third-biggest export earner is facing significant damage because Australia which is New Zealand’s biggest wood-product customer is heading towards becoming self-sufficient due to rapid rates of new planting and is not considering a land-use change tax? 
Hon JIM SUTTON 
: I am well aware that Australia is rapidly approaching self-sufficiency. Indeed it has always been self-sufficient in hardwoods but it is not yet self-sufficient in softwoods which are what New Zealand principally produces. In addition we have wonderful prospects in the North Asian markets. The Government is leading the way in opening up those markets for our industry. 
Hon Matt Robson 
: How is the Labour-Progressive Government working to facilitate increased profitability throughout the forestry industry? 
Hon JIM SUTTON 
: We are pursuing a wood-processing strategy that is working towards removing impediments to investment. The Government is also working in partnership with the industry on initiatives to improve the industry’s profitability such as the $23 million per year allocated to improve the transport infrastructure. Improved profitability will turn investor sentiment around and the Government is working hard to effect that.