Red Stag announcement shows up stark contrasts in wood policies

A signal of increased investment from Rotorua company Red Stag Timber is very positive news, especially following the loss of 120 jobs from the closure of Tachikawa Forest Products, the union for wood processing workers says.

Red Stag Timber has said today that if Labour’s Pro Wood policy was implemented, it would proceed with a $120 million capital investment upgrade of its Rotorua facility.

FIRST Union represents 1500 workers in wood processing, and has members at Red Stag Timber.

“Already some former workers at Tachikawa have gained employment at Red Stag.  Senior officials of FIRST Union and the company met two weeks ago to re-establish a good working relationship,” FIRST Union General Secretary Robert Reid said.

“We welcomed Labour’s policy announcement on the wood industries.  It is a consistent and coherent policy that looks at big picture issues like raw commodity exports, the exchange rate and investment, while not losing sight of the workers on the ground.”

“National has sat on its hands while the high New Zealand dollar, the high price of logs and the inadequate government procurement strategy around both the Canterbury rebuild and government house building programmes has made life tough for wood processors and workers in the sector.”

“Unless these issues are address we are still concerned that the New Zealand wood processing industry will further decline.”

“Some of our largest competitors – Russia, Canada and Chile – have a lower price for logs for domestic production.  We think Labour also needs to consider a domestic log price so we can add value to wood products and keep good wood processing jobs here.”

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