10. Question No. 10—ForestryANNA LORCK (Labour—Tukituki) to the Minister of ForestryQuestion No. 10—Forestry10. ANNA LORCK (Labour—Tukituki) to the Minister of Forestry: What recent announcement has he made on how New Zealand's forestry can help grow the economy and contribute to climate change response?Hon PEENI HENARE (Minister of Forestry): Last Thursday I spoke at the Wood Processors and Manufacturers Association conference where I announced on behalf of the Government a $57 million fund that will enable the Government to partner with the wood processing sector so that together we can process more logs on shore. This fund will support feasibility projects through a catalyst fund and provide capital support through an accelerator fund. This announcement will help us achieve the objectives of this Government's Forestry Industry Transformation Plan to support our economic plan to build a high value high wage low emissions economy. The fund will open on 3 July and work is currently under way to engage all interested parties. Anna Lorck: What is the significance of this announcement?Hon PEENI HENARE: There is huge potential in the wood processing sector and this Government is here to grow this potential. This fund is a kick-start to encourage this sector to process more logs onshore and help move the sector from volume to value to lift our economic performance and resilience support our climate change response and create high wage jobs in our regions.Anna Lorck: How will the announcement support the economy and contribute to the Government's climate change response?Hon PEENI HENARE: In 2021 wood product manufacturing plus pulp and paper contributed around $3.8 billion of our GDP. Wood processing and manufacturing alone makes up around 40 percent of this figure. It is estimated that this funding support could see over $500 million of additional GDP over the life of the funds' investments. These investments will deliver better outcomes for workers families communities and regions to support a more productive economy. Current projections will see hundreds of jobs generated from the additional capacity created by the fund. In addition this fund will help meet our climate change goals. For those who don't know wood products store carbon and delay carbon dioxide being released back to the atmosphere. Te Uru Rākau - New Zealand Forest Service modelling indicates that processing an additional 1 million cubic metres of logs annually could reduce our emissions by 7.4 megatonnes of carbon dioxide equivalent by 2050. We will also see increased onshore processing that produces sawmilling residues that can be turned into a range of biofuels and other products which contributes to reducing our emissions. Anna Lorck: What feedback is the Minister hearing from the sector about this announcement?Hon PEENI HENARE: Feedback from the sector has been extremely positive. Techlam New Zealand managing director Brett Hamilton said it was encouraging to see that this Government is listening. Wood Processors and Manufacturers Association chairman John Eastwood said the Minister's announcement was a really positive step. He said investing in lifting productivity in the sector was really important It's about considering how we can maximise every fibre we have in our forestry profile. It's not just about finding more efficient sources it's about making sure that we are using every aspect of our tree in our economy.""