Tabuteau Fletcher: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTabuteau Fletcher: Oral Questions — Questions to Ministers[Sitting date: 02 March 2016. Volume:711;Page:9289. Text is incorporated into the Bound Volume.]5.FLETCHER TABUTEAU (NZ First) to the Associate Minister for Primary Industries: What is the Government doing to increase log processing in New Zealand to maximise wealth for the regions that produce them?Hon JO GOODHEW (Associate Minister for Primary Industries): The Government has a wide range of measures under way designed to support the growth of log processing and the wider forestry industry. It is worth noting that domestic processing of logs has actually been increasing. In 2014 the share of total harvest processed domestically was 49 percent; in 2015 this rose to 51.2 percent; and domestic processing is expected to continue to increase in 2016. Of the timber exported 42 percent goes out as logs; 58 percent of it is processed in New Zealand. I will give the member just a couple of examples to support this. We are working as part of the Engineered Timber Stakeholder Working Group to identify and develop export markets for those processed wood products. We are ensuring a supportive regulatory environment—case in point the Ministry for Primary Industries has recently approved the new Rotorua log processing company Lumbercube to undertake phytosanitary inspection as a Ministry for Primary Industries - approved organisation. And lastly the Ministry for Primary Industries is also undertaking analysis—this is New Zealand Trade and Enterprise and the Ministry for Primary Industries—have co-funded analysis on wood availability and processing capacity for a new processing facility located in Ngāwhā in Northland. There is plenty to say about what we are doing—Mr SPEAKER: Order! The Minister is taking too long to say it.Fletcher Tabuteau: Why is she allowing foreign corporates to buy up large regional forests such as Northland Southland Taranaki and Rotorua which are then exporting two-thirds of logs directly overseas bypassing local New Zealand sawmills and processors?Mr SPEAKER: In so far as there is ministerial responsibility the Hon Jo Goodhew.Hon JO GOODHEW: Yes I will stick to my ministerial responsibility. What we currently have in New Zealand are some companies that have changed hands and yes there has been foreign investment. So although the member was on his feet a couple of years ago decrying the loss of jobs in Rotorua when Tachikawa Forest Products lost more than 200 jobs now we see Lumbercube investing here in New Zealand in many jobs and new processing capability. That is but one example. There are many other examples around the country where overseas investment—which is not a dirty thing in New Zealand—is creating jobs for New Zealanders whose jobs have disappeared. The Government—Mr SPEAKER: Order! [Interruption] Order! The answers have to be shorter than the Minister is giving.Fletcher Tabuteau: If she does not agree with me does she agree with Dr Jon Tanner Chief Executive of the Wood Processors and Manufacturers Association that the current trend is threatening the longevity of the wood processing sector; if not why not?Hon JO GOODHEW: I am able to advise that we are in constant engagement with Dr Tanner and that we are working together with him. So although there is always more economic gain to be strived for in the wood processing sector that in fact has been encouraged and supported by this Government. That is why there has been more processing happening each year for the last 3 years as this Government supports the businesses in New Zealand that are processing and the member would do well to remember the statistics I gave him at the beginning about the numbers of logs—Mr SPEAKER: Order! [Interruption] Order!Fletcher Tabuteau: Has she even considered options such as those in Canada that require logs to be supplied first to local processors and that the best logs cannot be exported; if not why not?Hon JO GOODHEW: It will not surprise this side of the House that we are not market interventionists trying to screw the scrum. We are enabling businesses to get on and do what they do best. So while the engineered timber frameworks in New Zealand are being developed we will use the best logs and get the best possible price back to New Zealand’s economy instead of trying to advantage one part of the sector over another.Fletcher Tabuteau: Would she concede or does she agree that New Zealand wood processors—or in fact the whole New Zealand economy—are missing out as foreign corporates take the value and the wealth of unprocessed New Zealand timber directly overseas?Hon JO GOODHEW: I do not accept the premise of the member’s statement.Fletcher Tabuteau: What will she do to ensure foreign corporates from Canada Malaysia Japan China and America work first with our local wood processors or is she willing to see regional industry go bust?Hon JO GOODHEW: This Government is focusing many many actions on regional economies—for instance I will give examples from up in Northland. These examples show that we are analysing the wood availability and the processing capacity up in Northland currently. What that will mean is more jobs for the people of Northland. That is but one example. However we understand that this country also needs foreign investment and the member would do well not to forget the jobs that have been created by foreign investment.