Govt considering help for sawmillers

The Government is to continue winding up Timberlands West Coast, as well as considering what it can do for sawmillers to make up for the failure of the state-owned enterprise.

In February, the previous government announced its intention to transfer the company's assets to Crown Forestry.

Sawmillers said they were told about 350,000 cubic metres of timber harvested annually would guarantee the security of the industry. In reality, about half of this was available.

Yesterday, Forestry Minister David Carter confirmed National would continue winding up Timberlands West Coast.

From January 1, contractor PF Olsen will assume control of the company under the auspices of Crown Forestry.

West Coast Timber Association chairman Peter Anisy said he hoped the Government would help the industry, which was suffering as a result of the lack of supply.

He had been frustrated that Labour had not made a decision on possible compensation for sawmillers before it was ousted.

"We are going to need some money to repair the industry and restructure the industry for the future," he said.

West Coast-Tasman MP Chris Auchinvole said he had briefed the ministers involved on the situation. Their decision, and any payout, would focus on reviving the industry.

- © Fairfax NZ News