Southern Wood Council Regional Graduation

Thank you Grant (Grant Dodson – CEO City Forests Limited) for the kind welcome and for the invitation to speak to you this evening.

Tonight’s graduation ceremony is a joint initiative between the Southern Wood Council and Competenz and I would like to acknowledge the Competenz National Business Manager for Forestry, Marc Borland, and the industry representatives present.
I would like to begin by offering my congratulations to all the trainees for all their hard work and commitment.

Graduation ceremonies mark the culmination of long, hard hours of study and physical effort.  Completing a course of training often means sacrificing other activities to finish assessments.   Once completed however, there is a great sense of satisfaction.    Training can become a life-long habit, one that does not come with a health warning! 

This evening we recognise your achievements and acknowledge those who have mentored and supported you.  As an industry, the forestry sector places a high priority on training and on helping workers reach their potential. 

As the next generation of forestry leaders it is vital that you are equipped with the right tools to grow your industry.

The close relationship between the Southern Wood Council and FITEC has enhanced industry training in this region.   The recent merger of FITEC into Competenz provides a good platform for further strengthening this bond. 

A key industry for the region and nationally

Commercial harvesting and sawmilling has been a feature of the Otago – Southland region for over 160 years.  Today the local industry directly employs 1,400 people in forestry and first stage processing, part of a national workforce of close to 18,000.  When we tally up the jobs associated with building and construction, furniture manufacturing, and transport, the total is several times higher. 

Locally, the annual timber harvest has grown strongly over the past three years.  In 2012 it topped two million cubic metres for the first time.   Nationally, the harvest exceeded 27 million cubic metres, a new record.

The forest industry is one of our top export earners, making up 10 percent of New Zealand’s merchandise exports.   In 2012, $4.3 billion worth of sawn timber, logs and panel products were exported.   Behind this impressive statistic stands a skilled workforce, and a firm commitment from companies, the industry and government to improving productivity.

An industry with potential for further growth

So what does the future look like for forestry in Otago and Southland?

Your region has 204,000 hectares of commercial forests.  This resource is relatively young and has potential for sustainable growth.   It could mean an increase of 25 to 30 percent in the regional harvest.  This additional timber could provide a springboard for further investment in existing and new facilities. 
Achieving this increase will involve a range of challenges, not least the co-ordination of hundreds of smaller-scale growers.

Your region has a more diversified forest estate than other parts of New Zealand, due to the investment in Douglas-fir over the past generation.  Increasing volumes of Douglas-fir will come on stream as the supply bulge from smaller-scale growers’ tapers off. 

Looking ahead, Chinese and Indian economic growth, and hence demand, is expected to continue.  New Zealand, including Otago and Southland, are well positioned to supply these growing economies with a significant share of their timber needs. 

In short, today’s trainees are joining an industry with strong prospects for future growth, in both traditional products and emerging technologies, such as engineered timber products. 

Prioritising health & safety

Industry training is a critical tool for both improving productivity and introducing new health and safety practices within the sector.  This evening we recognise a key initiative in this area, the ‘Breaking Out’ certification programme. 

Breaking Out was identified in ACC commissioned research as one of the two major causes of injury in the sector, along with tree felling. 

The new certification programme provides practical guidance and resources to contractors.  I understand the first local crews have now been through the programme and will be acknowledged this evening.

Reducing industry related injuries is an ongoing process, with Government, industry and trainers all playing a part. 

The industry has shown a strong commitment to work with Government on injury prevention. We have seen this through joint initiatives such as the Forestry Sector Action Plan, which aims to reduce work-related injuries, and the significant contribution made by a number of companies in preparing the ‘Approved Code of Practice for Safety and Health in Forest Operations’, which was rolled-out earlier this year.

Conclusion

I will finish now by offering my personal congratulations to all graduates.  I encourage you to think of training as a vital stepping stone for both your career and your personal life. 
I wish you every success in the future.