Some facts on illegal logging and New Zealand

Impact of illegally logged timber on New Zealand economy

For the New Zealand forestry sector estimates from the Radiata Pine Market Model suggest that the benefit of eliminating illegal logging is a US$175 million (2.4 percent) to US$302 million (4.2 percent) increase in the net present value of producer revenue (at 10 percent discount rate, 2008 onwards), depending on the extent of illegal logging eliminated. For the sawmilling sector the estimated benefit is less; US$96 million (0.5 percent) to US$143 million (0.7 percent). For the wood processing sector (wood panels to prefabricated housing) estimates from the Global Forest Products Model suggest that the benefit of eliminating illegal logging is US$880 million (2.4 percent) to US$2,012 million (5.4 percent).

Beyond the direct benefits to the forest industry assessed in this study, the trade distorting effects of illegal logging have potentially significant economic implications at the national level, in terms of lowering investment in forest development. This results in higher carbon liabilities for countries, such as New Zealand. It also reduces the provision of other benefits provided by forests, such as watershed and biodiversity protection. At the global level, trade distortions due to illegal logging likely discourage forest investment that could address global deforestation.

James Turner, Andres Katz and Joseph Buongiorno, Implications for the New Zealand Wood Products Sector of Trade Distortions due to Illegal Logging; A report prepared for the Ministry of Agriculture and Forestry, July 2007, available at: http://www.maf.govt.nz/forestry/illegal-logging/trade-distortion-implications/Final_Report.pdf, p.164.

Illegal logging is on the decline because of stricter regulation

The data suggest that illegal logging worldwide has reduced by almost a quarter over the last decade, based only on estimated reductions in Brazil, Cameroon and Indonesia. Around 17 million hectares of forest may have been protected from degradation and possible eventual destruction as a result – an area larger than England and Wales combined. This in turn could have contributed to the avoidance of between 1.2 and 14.6 billion tonnes of carbon dioxide emissions – more than half the amount which is emitted through human action worldwide each year.
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Actions to tackle illegal logging by governments and the private sector in consumer countries have played an important role [in reducing illegal logging] in Cameroon, and were also a driver in Indonesia.
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In consumer countries, there are limits to how much more can be achieved solely by procurement policies and voluntary private-sector action driven by NGOs.

Sam Lawson and Larry MacFaul, Illegal logging and related trade; indicators of a global response, July 2010, http://www.chathamhouse.org.uk/files/16950_0710pr_illegallogging.pdf

New Zealand regulation remains significantly behind the US and EU

Importers of wood products may want to keep an eye on newly passed regulations in last month’s farm bill. New amendments added to the Lacey Act aim to cut down on illegal logging. Depending on how strongly the new provisions are enforced, the law could have implications for the furniture industry’s supply chain.

The legislation creates a requirement for importers to declare the species and country of origin of any plant or plant product, including wood. Penalties range from $250 to in excess of $500,000 with a possibility of jail sentence for knowingly sourcing, or failing to exercise due care when sourcing, products that contain illegal timber or plants.
Heath E. Combs, Updated Lacey Act becomes world’s first ban on illegal logging, June 2008, available at: http://www.furnituretoday.com/article/46783-Updated_Lacey_Act_becomes_world_s_first_ban_on_illegal_logging.php

The European Parliament has voted to ban imports of illegal timber. From 2012, companies importing timber will need to prove where it came from, and will face legal sanctions if they do not comply with the new law.

"It is good news that Europe has finally agreed to crack down on illegal timber, creating a level playing field for responsible retailers," said Ian Cheshire, CEO of Kingfisher plc, the parent company of European DIY giants such as B & Q, Castorama and Screwfix.
Richard Black, European Parliament bans illegal timber, July 2010, available at: http://www.bbc.co.uk/news/10557228


Kwila is the problem

Merbau/kwila may comprise around 80 percent of the issue for sawn timber imports and is also a major factor with flooring and outdoor furniture. Hence a measure to target this species could address a major source of NZ’s illegal timber problem.

In interviews with timber importers and wholesalers the report found that the four NZTIA members (timber importers and wholesalers) they talked with,

Request that Govt assistance required to undertake promotion and awareness of legality (and sustainability) issues with public.

Six non-NZTIA timber importers and wholesalers spoke to said,

Estimate approximately 70% of tropical timber is imported from illegal sources – but is difficult to differentiate legal from illegal.

All support the legality concept in order to ensure industry credibility but are concerned about additional administrative burden and cost

Ogle Consulting, Research into labelling of legal timber products and policy options to improve the legality of timber products in New Zealand, available at: http://www.maf.govt.nz/forestry/illegal-logging/labelling-of-illegal-timber-products/legality-of-timber-final.pdf

Summary

• Illegal logging prevents our local forestry, saw milling and wood processing sector from growing.
• Illegal logging is on the decline internationally because of pressure from consuming countries to halt illegal logging.
• The New Zealand timber industry on the whole supports regulation to ensure that illegally logged timber is not sold in New Zealand.
• Globally the trend is for increasing pressure on retailers to prove legality of supply before being allowed to market timber products.

What you can do

• Buy 'Say no to Kwila' stickers for $1 each from Rainforest Action by emailing Omar on omarhamed123@gmail.com
• Send a donation to the Indonesia Human Rights Committee.
• Join the demonstrations next summer outside retailers selling Kwila. Go to Global Peace and Justice Auckland and join the email list.
• Tell everyone you know- don't buy Kwila and other tropical hardwoods!