Industry executives were alarmed yesterday when told that officials expected to apply the same essential and non-essential split as in March in the event that deeper workplace restrictions are required. During that lockdown many manufacturers – particularly exporters – fought unsuccessfully to keep operating given the safe distance working inherent in many of their operations.
Jon Tanner, chief executive of the Wood Processors and Manufacturers Association, said the stakes are now much higher.
“If we get shut down this time there are plants that will close. There are plants that are that vulnerable,” he told BusinessDesk.
And he said all the sector’s efforts in April, getting safe working practices approved by the Ministry for Primary Industries and the Ministry of Business, Employment and Innovation, are at risk of being wasted.
“We’ve got all the protocols in place. We’ve had them approved by MPI and MBIE. There’s no reason for the wood processing industry to be shut down.”
Forestry is the country’s third-largest export earner after dairy and meat, and employs about 38,500 people. While much of that export value is in logs shipped from the provinces, the country is also a major exporter of wood pulp, packaging and timber.
The government was widely criticised in March for its decision to shut whole industries with no consideration as to whether individual sites or firms could operate safely or not.
And the distinction they made in favour of essential industries – typically food, energy and healthcare – became increasingly arbitrary despite the activities being identical in terms of workplace safety.
Export fruit harvesting was allowed; export log harvesting was not. Domestic coal supply was allowed; export coal mining was not.
The Glenbrook steel mill was forced to almost shut entirely, with only sufficient staff kept on site to keep the iron melters operating.
At the time, Metals New Zealand, the Wood Processors and Manufacturers Association, and Plastics New Zealand said more than 700 non-food manufacturers risked irreversible market losses.
“It’s back to where we were before if we don’t get this changed,” Tanner said today of the government’s approach to industry shut downs.
He said he is not aware of what other sectors are doing, but his association is planning for operations at level 3 and 4 and is pushing back hard on the government’s plan.
While only the Auckland region is currently subject to level 3 controls, he said it is an important part of the economy that is supplied from around the country.
Many framing and truss makers operate in Auckland, as do some of the country’s large packaging firms. Many higher-value wood finishers and manufacturers also operate there.
“It’s a very important part of the country for this sector.”
-BusinessDesk
