13.0 DISCUSSION OF ISSUES AND OPPORTUNITIES FACING THE WAIROA COMMUNITY
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Key points
- The ability of territorial authorities to control land-use is more tightly constrained under the Resource Management Act 1991 when compared with the provisions of the Town and Country Planning Act 1977.
- Compiling all available information and fostering open discussion between land-users and their servicing sectors is essential. Misperceptions of likely impacts and outcomes lead to unnecessary conflict.
- The ability of the Wairoa community to capture the employment opportunities generated by forest planting, and the potential opportunities if local processing can be developed, will determine whether land-use change enhances or damages the community in the long-term.
- Agricultural servicing industries will have the potential and the need to diversify into forestry-related business in the future.
- Future transport planning should be undertaken at an early stage, given the limited access alternatives to and from the District and the current funding mechanisms.
- Community consultation, participation and motivation is the essential ingredient for successful adaptation to a changing economic and social environment which is likely to continue to encourage land-use change in the medium-term.
13.1 Immediate issues
The Wairoa District has become an increasingly attractive area for investment forestry.
By early 1994, sections of the community were expressing strong concern that this would
have a detrimental effect on the people of the District. Forestry appeared to be
displacing traditional pastoral farming, which provided both the social infrastructure in
rural areas and employment in processing and support services in the urban areas.
The Wairoa District Council expressed a need for much more information than it
currently held on the extent and effects of this change. Some of the questions the Council
wished to address were:
- Whether the Council's District Plan, which currently permits forestry on all but "fertile lands", was sufficient to sustain the economic wellbeing of the District.
- At what point the diminished carrying capacity of the District's farms would jeopardise the meat processing operations which were urban Wairoa's major employers.
- What benefits from increasing afforestation could be identified for the workforce of Wairoa in the immediate future.
- How the Council could best plan to ensure that the community would benefit from the changes, given the limited range of options available under the Resource Management Act to influence land-use.
- What research had been done into the long-term effects of Pinus radiata plantations on soil stability and water quality.
- What would be the effect of increased weight and frequency of traffic on local roads at
the time of harvest.
These questions illustrate how a mix of economic and environmental concerns surround
land-use issues at a community level. In mid 1994 it was commonly believed that the AFFCO
meat works was in a precarious position because of an overcapacity of killing facilities
on the east coast of the North Island. The AFFCO works is the major employer in the
District (approx. 15% of the workforce), and generates a significant amount of contract
work and indirect business in the retail and service sectors. In addition, much of the
employment generated by recent afforestation had been captured by contractors residing
outside the Wairoa District.
Farmers expressed strong opposition to commercial forestry because of perceived impacts
on rural services, rate levels, weed and pest control, and commercial liability for loss
by fire.
As researchers, our initial concern was the disparity between the heat generated by the
issue and the amount of data available that described the true rate and impact of the
changes. In hindsight, these factors are probably strongly correlated - the greatest heat
is generated where there is the least amount of knowledge.
A second characteristic we noted was the tendency for protagonists to leap into
argument over solutions before adequately defining the issues. The District Council was
caught in a bind, with farmers calling for land-use controls, and forest companies
challenging the current differential rating policy. The Council had been advised that
under the RMA it was not possible to control a particular land-use in favour of sustaining
another without clear net environmental benefits.
13.1.1 Community and land-use change
Change in rural communities is inevitable. Commodity price trends are resulting in farm
aggregation and a trend to larger economic farm units. This, combined with progressive
land-use change to forestry in response to market forces, superannuation concerns and, to
some extent, forestry taxation provisions ensures that demographic and community structure
changes will occur. Such changes need not be detrimental if the community concerned takes
hold of the issues and manages the changes to ensure continuation of services, social
interaction and growth. Rural depopulation will occur to some extent, but analysis
indicates that it will be at a lower level than many fear, and need not threaten rural
school closures. Change does not - or should not - imply unacceptable or irreversible
threats. Communities must learn to manage the often inevitable changes to their
traditional structures to much greater effect in the present-day environment. The Wairoa
community is no exception to this.
The forestry expansion in Wairoa District is notable for the fact that it predominantly
involves the purchase and afforestation of whole pastoral farms. Farmers have no argument
that certain classes and areas of eroding land are better suited to blanket afforestation.
However, the planting of areas judged to have a long-term sustainable pastoral potential
is seen by many to impose unreasonable threats to the critical mass needed to sustain the
District's pastoral servicing industries, associated employment and social structure.
In general, this view receives wide-spread public support but generates debate as to
exactly where the break-point between the sectors should be and how a control mechanism to
ensure 'appropriate' land-use should be implemented. From an economic viewpoint, and from
that of investors in forestry, the most appropriate value and use of any land, within
environmental constraints, is best determined by the market price. Farmers' difficulty
with this argument is that it results in intense competition for 'better' pastoral land.
Poorer pastoral hill country is marginal for grazing, and is also likely to be passed over
by forestry companies, who prefer clean, easier hill country with good access - if it is
affordable.
With regard to District Scheme controls on land-use, the provisions of the RMA permit
controls only to mitigate adverse effects from a particular land-use. Under these
circumstances the use of District Plan restrictions on forestry activities would not be
permitted on purely social or economic grounds.
Where whole farms are being planted, subdivision and resale of homestead areas on some
is occurring. This encourages retention of rural populations, some of which will be in
forestry-related jobs. Provisions encouraging such subdivision could be included as part
of a District Planning Scheme.
Following the commissioning of this study, a major restructuring in the meat industry
took place. This resulted in the 1995 closure of the Tomoana and Kaiti meat processing
plants at Hastings and Gisborne respectively. As a consequence, the market position of the
AFFCO facility in Wairoa was considerably strengthened in terms of potential stock
throughput. As a result, ongoing employment opportunities were also secured. This
potential was realised in the 1995/96 killing season with the plant working at or near
full capacity and employment. In the event of no new meat processing plant being
established in an adjacent District (Gisborne, Hastings), there is every likelihood that
the AFFCO facility will continue to operate at or near full capacity for the foreseeable
future.
13.1.2 Employment and business opportunities
The scenario used in this study would replace 400 400 stock units on 45 000 pastoral
hectares. The land-use change would result in the loss of 136 Full-Time Equivalent (FTE)
jobs on farms, and a further 101 FTEs from service industries after 30 years. It is noted
that only 29 FTEs were estimated to be lost from the Wairoa meat processing industry. This
is owing to the Weddel plant closures and the resulting availability of livestock from
adjacent Districts.
The developing forest area in the scenario used will require an extra 80 FTEs per annum
by about the 15th year of planting. In addition to this, existing forest which is maturing
in the next 10-15 years will create a further demand for harvesting-related jobs totalling
120-180 FTEs. These are direct employment opportunities in a range of forestry
occupations, which will in turn generate other indirect and servicing jobs. These
increasing employment opportunities exclude the large job creation in 30 years time
associated with the harvesting of trees projected to be planted from 1995 onwards in the
scenario used in this study.
The crucial factor facing Wairoa concerns the local population's ability to capture the
emerging job opportunities. If they don't, then outside workers and contractors will enter
the region, and most likely take their incomes and profits out of the District. In turn,
this will reduce local servicing jobs, retail turnover and associated employment. This
applies to both the forestry establishment and maintenance phase and the harvest and
(possible) processing stages; levels of employment will be maintained at a sustainable and
relatively constant level after harvesting of the first rotation begins. The job
opportunities arising exceed the District's current level of unemployment.
To capture this number of forestry-related jobs, the local population will need to
reskill for forestry work. Skills training programmes will be needed, and local motivation
will be required for success. Experience must be gained in the silvicultural and
harvesting industries, as well as gearing up for locally owned future infrastructure and
transport needs. A requirement to change skills may scare people, and often appropriate
training facilities don't exist in a District. Community leaders and motivators must
facilitate a rational approach to change, and attract the appropriate training and
industry infrastructure to the District to ensure that all benefits to the community are
captured and threats minimised.
Wood processing facilities will need to be 'wooed' and attracted to the District to
increase the potential opportunities and reduce pressure on roads. Initiatives must
commence as soon as possible, including identification of suitable wood processing sites
and developing appropriate planning provisions to streamline consent procedures.
Businesses with a high dependence on agriculture (e.g. vets, agricultural contractors,
stock and station agencies) will notice the most immediate downturns in business activity
as further land-use change occurs. These businesses must be encouraged to diversify as
soon as possible, with emphasis on servicing the emerging forestry sector. For example,
shearing contractors have already acquired the business skills in the course of their
occupation to successfully become forestry contractors. They can operate both businesses
using local people. Other businesses should be encouraged to actively seek new
opportunities created by the emerging forestry sector and its servicing industries.
Forestry businesses have a strategic preference for dealing locally, but experience
elsewhere has shown that they will do so only if the quality of service and supplies meets
their expectations.
13.1.3 Environment and social issues
Environmental impacts and risks must be managed on a integrated, cross-sector basis.
The various industries must be encouraged to work together for the best interests of the
community. Study surveys in Wairoa District have indicated an ambivalence towards the
environmental effects of land-use change. There are some effects of plantation forestry
which are negative and which ought to be controlled. However, from a national
environmental perspective the reduction in mass movement erosion and the flow-on benefits to
water quality from a change in land-use on susceptible land are substantial, and form a
very strong case for supporting or facilitating such a change. The Government actively
promotes land-use change of this nature in the Gisborne District through the East Coast
Forestry Project.
A simple assessment of the potential nett employment benefits of forestry development
disguises the very real costs that are also incurred. In the case of land-use change these
are predominantly carried by the present farming community. There are economic costs of
rates increases, the restriction of farm activities and increased liability risk. There
are also more substantial social costs in changes to existing community structures,
perceived isolation, threats to schools and school bus routes and loss of other services.
Council-supported community debate around the issues raised in this report would be
valuable. The development of community initiatives to address changes in particular
localities could also be supported. Issues addressed could include school bus services,
sponsorship of local community activities and rationalisation of farm services within an
area.
The establishment of a Council-supported rural issues committee that includes
representatives from Council, forestry companies and local communities might be a suitable
forum for resolving common issues such as fire control and prevention procedures, weed and
pest control, roading and landscape planning.
A survey response from one farmer suggested the establishment of some method of
bringing together farm neighbours and potential forestry purchasers of land before the
sale of a particular property. This might allow negotiation of an appropriate
rationalisation of land units which would be to the benefit of both parties. Legal
arrangements under the Forestry Rights Registration Act 1983 are relatively simple.
13.2 Medium-term issues
Medium-term issues which should be addressed at an early stage particularly concern
transport of forestry products and provision of intermediate or tertiary wood processing
facilities. Roading upgrades will be inevitable as harvesting approaches. In Wairoa this
task will be made difficult by the mosaic of forest locations generated by ad hoc
investor-based planting. This will require a larger number of road upgrades than in
regions where the forest estate is concentrated in one locality. Planning for the road
network requirements and the sources of funding for upgrades should be instituted as early
as possible in the planning cycle.
Alternative transport options include rail in particular. This option is likely to be
the most attractive if in-District wood processing facilities are established. Such
facilities would be established close to a railhead, and the volume of product transported
would be up to 50% less than the equivalent quantity in raw logs. The use of rail
transport would significantly reduce the potential pressure of logging trucks on the State
Highway between Gisborne and Napier.
This study has also highlighted some gaps in our present knowledge base. It has been
very difficult to measure the social impact of land-use change because of a lack of well
formulated social indicators of community structure and community wellbeing. It has also
not been possible to forecast the specific environmental impacts of land-use change to
forestry despite the availability of a large number of data sets measuring environmental
characteristics of different land-uses. This is primarily because we have no analytical
tools that can link the information spatially. These deficiencies highlight the need for
ongoing monitoring and research into the implementation of land-use changes, the
realisation of potential benefits and the quantification of social costs.
Identification of suitable social indicators and development of environmental models
that can forecast environmental outcomes of land-use and land-use change in a spatial
format are clear needs. Research in these areas should be promoted to research funding
organisations.
13.3 Long-term issues
The timely establishment of in-District wood processing facilities is important. The
job opportunities arising will be many and varied, increasing the range of employment
options available to local people. This study estimates that if 65% of the District's wood
were processed locally after 30 years, there would be an additional 595 jobs created at
current staffing levels of sawmills and MDF plants. This would increase the total
employment opportunity in the District (arising from afforestation as included in the
study scenario) to a nett 950 jobs or more once harvesting commences in about 30 years'
time. The increase in nett household income to the Wairoa District at this time is
estimated to be about $33 million annually in real terms, if the job opportunities are
captured predominantly by the local population.
These job and household income opportunities will be in addition to those arising from
forest areas already planted before 1995. The importance of attracting processing
facilities to the District cannot be underestimated in terms of employment and income
opportunities and reductions in road transport pressures. It is reemphasised that Wairoa's
success or failure hinges on its community's ability to capture the opportunities arising
from the forestry expansion. This will depend to a large extent on skill changes and
upgrading, improved education and a strong and competitive work ethic.
Employment and job opportunities are not necessarily restricted to forestry-related or
generated occupations. Other possibilities should be researched. These include skill
training occupations in a variety of job areas likely to be in demand in the near future,
opportunities associated with tourism and/or fishing, intensification of land-based
activities on suitable sites (e.g. horticulture) and establishment of new businesses
associated with heavy transport and forest harvesting activities and servicing. Community
taskforces should be established to research these opportunities and to identify
constraints to their realisation. Once the constraints are known, realistic progress can
be made towards removing them and thereby creating an operating environment conducive to
business establishment and expansion.
13.4 Summary
This study highlights the extent to which a local community must take charge of its own
destiny. To hide from change will usually mean that (often substantial) opportunities may
be lost, and may be captured by more motivated people elsewhere. The impacts of macro
land-use change from farming to forestry are often perceived as threats to the traditional
and protective views held by farming communities. Changes in primary product mix and
volumes engender fears of job losses, and people often fail to recognise the compensation
effect of new job creation resulting from the changes.
Above all, motivation of individuals - probably the most difficult immediate issue in
depressed rural areas - must change to one of being positive, forward-looking and
confident. Building this attitude is one of the greatest challenges and prerequisites to
successful social and economic change facing communities. United communities free of
intersectoral conflict constitute the first step in the right direction.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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