Prosser Richard: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeProsser Richard: Questions for Oral Answer — Questions to Ministers[Sitting date: 13 June 2013. Volume:691;Page:11122. Text is incorporated into the Bound Volume.]2.RICHARD PROSSER (NZ First)to theMinister of Revenue: How much tax revenue is forecast from the predicted increase in log export volumes over the next four years?Hon STEVEN JOYCE (Minister for Economic Development)on behalf of theMinister of Revenue: The Government’s tax revenue forecasts are calculated on awhole economy basis and are not generally separated into industry sectors of the type that the member is seeking. Obviously everything else being equal an increase in export volumes should increase domestic profit and therefore tax revenue. But at the granular level the member is requesting it is not possible to give him any sort of accurate estimate.Richard Prosser: Does he concede the fact that greater volumes of timber being processed in mills such as Red Stag Timber in his own electorate would lead to greater revenue for the Government and reduced unemployment?Hon STEVEN JOYCE: It does not necessarily follow. It would depend very much for example on the profitability of the foresters versus for example the profitability of the processing company. If the processing company was not profitable then obviously it would not be paying any tax. So I do not think that you can make any sort of assumption based on just a suggestion about one type of company versus another.Richard Prosser: Is he aware of the significant financial benefits to the Government and to the regions of processing those logs for export here in New Zealand with Kiwi workers rather than just exporting just large volumes of unprocessed logs offshore?Hon STEVEN JOYCE: I think we are getting away from the Minister’s portfolio a little bit but in terms of the member’s specific question I do not think you can necessarily make assumptions in regard to it. I am aware that there are a number of organisations looking at doing more processing in this country in a number of different markets and presumably if that turns out to be economically viable that will be done. But I think some of the advice that I have seen in this regard is that it is actually the control of the value chain right to the consumer that really creates the value. So it is not just enough to create a processing plant in a region as against for example having control of the brand right across to wherever you are selling the product.Richard Prosser: Would he in light of the considerable benefits consider adopting policies aimed at increasing the domestic processing of timber such as New Zealand First’s lower domestic log price policy; if not why not?Mr SPEAKER: Hon Steven Joyce in as far as the question is associated with the revenue portfolio.Hon STEVEN JOYCE: Again I am not really sure how close this is to the revenue portfolio but I think it would be difficult to suggest that the Government should necessarily just go out there and by fiat declare a price on logs—although it would fit with the Greens’ power policy of course. I think probably the best approach is to let the competitive forces play. It is important to note of course that the forestry industry including the logging industry is making a very big contribution to New Zealand’s exports currently.