New Zealand company McVicar Timber Group is to build a NZ$6-10m sawmill in New South Wales because, it says, Australia is friendlier to business.
The family-owned company plans to start building in the next few months. It said Australia was also preferred because it is the company’s biggest market.
McVicars has negotiated log supply with state-owned forests in NSW and said resource consents for the mill were easier to get than in New Zealand.
Others factors weighing against New Zealand were compliance costs of health and safety laws, new employment contracts law and the strong kiwi dollar.
Australia on the other hand helped smooth negotiations and assisted with finance. Wood supply in Australia is also cheaper, longer term and more guaranteed.
