New Govt procurement rules - a missed opportunity for timberFriday 10 Oct 2025
But, the benefits of these new rules to the wood processing sector in increasing sales of wood products is not certain, with other building materials and services also competing for the10 per cent and sub $9 million government contracts. ‘A directive in the new rules, like with wool, to government agencies to use locally produced wood where practical in the construction and refurbishment of their buildings is what we need to genuinely grow domestic timber and lumber sales, and to stop the significant job losses in our small communities due to the recent closures of wood processing mills’, said Mark Ross, Chief Executive of the Wood Processing and Manufacturing Association (WPMA). ‘With mills in our regions shutting down and a flat domestic market, the Government has overlooked a clear means to leverage its spending in these new rules to provide direct support to boost the wood processing sector,’ said Ross ‘Wood products are not only renewable but have strong economic benefits in supporting rural communities.’ New Zealand produced wood, unlike concrete and steel, is a natural sustainable product for building and construction. It is sourced locally, creates regional employment for over 30,000 New Zealanders, is cost-competitive and generates wood chips and sawdust, which are valuable by-products in the manufacture of biofuels and for supplying our bioeconomy with raw materials. ‘Wooden products create safer, healthier and more sustainable environments for workers and families,’ Ross said, ‘the sector contributed $7.2 billion to the economy in the financial year ending 2024 from domestic sales and from exporting value-added wood products and their derivatives, such as pulp and paper. ‘Hence, our disappointment with this missed opportunity that sees wood taking a back seat to wool and woollen products.’ WPMA will now work with our members and government to assess future options for greater use of wood products in government procurement decisions, such as aligning the wool directive with wood, as a way to lift the fortunes of the wood processing sector in New Zealand. Source: Wood Processing and Manufacturing Association (WPMA)  | ||
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