Monday, April 02, 2018

HOW AND WHY THE JNL MILLS CAME TO BE IN KAITAIA


Every day, hundreds of workers clock in and out of the JNL mills here in Kaitāia as they operate around the clock.  Have you ever wondered how and why those mills came to be here?  Pull up a chair and let me tell you what I know.

In 1970, Petia (Bill) Welsh of Tao Maui (Te Rarawa) and Te Uri o Tai (Rarawa / Aupouri) hapū retired from a long career in the forestry industry.

He had started before World War II as a trainee saw doctor at Kaitāia Timber Mill working under the management of Garth Beatson and others. Forty years later, he completed his career as a senior manager and the Pacific troubleshooter for Fletchers International.

When he retired, Petia came home with a simple clear message which he shared with Māori land owners mai Te Rerenga Wairua ki Hokianga Hakapau Karakia – i.e. If not THE economic mainstay of Te Hiku o Te Ika in the future, forestry is going to be a major player, and there is money to be made by Māori from it – BUT NOT IN SIMPLY LEASING LAND IN EXHANGE FOR AN ANNUAL PEPPERCORN RENTAL AND A LOW STUMPAGE AT THE END OF THE LEASE.
INSTEAD, he said, THE REAL REVENUE IS TO BE FOUND IN BEING PART OF THE VALUE CHAIN, RIGHT FROM OWNING THE LAND IN WHICH THE TREES GROW, THROUGH TO MILLING, FINISHING AND SELLING THE TIMBER AND OTHER END PRODUCTS THAT COME FROM THE TREES.

To that end, Petia convinced the Trustees and owners of six of the largest Māori landholdings in Te Hiku o Te Ika to set up the Northland Federation of Māori Land Trusts and Incorporations [NORFED for short].

The original members were Te Puna Toopu o Hokianga Trust in Mitimiti, Panguru-Motuti Forest Trust, Tapuwae Incorporation, Epikauri Forest Trust at Herekino, Parengarenga B3 Trust in Te Kao, and Te Hapua 42 Incorporation (later to become Muriwhenua Incorporation).

These NORFED members then agreed to advertise their combined land holdings as being open for tender to those who met the following conditions:

  • A fair annual rental for use of the lands, to be divided on a pro rata basis amongst the land owners.
  • A commitment to build a manufacturing plant in the region capable of producing a range of wood products from the timber grown on NORFED members’ lands.
  • A commitment to reserve a 15% shareholding in the plant for NORFED members to take up within a set period.
  • A commitment to train and employ a local workforce from amongst NORFED’s people.
It was a bold and visionary plan, and when the tender process was completed, NORFED had found an equally bold and visionary partner in the shape of Keith Hunt and the recently invented product, Triboard.

Next week I will share how the vision unfolded.

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