17 July 2013
An application for the introduction of a levy on harvested logs has been lodged with Associate Minister for Primary Industries Hon Jo Goodhew.
“This is an important step in the process of getting a Levy Order under the Commodity Levies Act and follows a successful forest grower referendum in March,” says Forest Growers Levy Trust chair Geoff Thompson.
“Officials will now take several months to assess the application and all the accompanying detail about levy collection, budgeting and ongoing structure. We are fundamentally on target to introduce the levy from 1 January 2014.”
The Trust has consulted mills, log marketing companies and export marshalling companies about the systems that need to be in place to secure the log harvesting data needed for the Trust to collect the levy.
“Feedback from these discussions has been very helpful and will strongly influence the shape of our data collection system. Log buyers will play a central role in the system and the minister needs to be satisfied about the particulars of collection and the cooperation requested from participants,” Mr Thompson says.
The Trust will continue to keep potential levy payers informed of developments, but this is not easy because there is no central database of forest growers to allow direct contact. Instead the Trust is using its ForestVoice website, industry publications and other media.
The month long levy referendum had a successful outcome with 502 growers (86.3%) voting “yes”. The results on numbers voting and hectares represented by the “yes” vote were the same. Analysis of the vote satisfied the Trust that the turnout was on a par with similar commodity referendums.
The proposed levy rate is 27 c a tonne of harvested wood in the first year and can be raised to a maximum rate of 30 c a tonne over the 6 year term of the levy order. With sharply increased harvesting now occurring, the income from the levy is likely to exceed $6.5 m annually.
Most of this will be applied to industry-good projects like improved health and safety, ensuring high levels of protection against bio-security risks and researching many issues from improving seed genetics to harvesting methods.
“The Trust will be working closely with the minister’s advisers to ensure that all necessary input for the issue of the Levy Order is provided,” says Mr Thompson.
“This is a very important step to unify and boost the forest industry. It produces exports of similar value to meat exports, but has potential to expand more quickly over the next 10-15 years with positive leadership and encouragement from the government,” concluded Mr Thompson.
For more information, please ring Geoff Thompson, Tel 04 499 3280
Trevor Walton
Forest Growers Levy Trust communications
Tel 021 381 465
Established plantations of pine, macrocarpa and Douglas-fir over 40 hectares now co-exist with carefully positioned ornamental trees on the long and narrow property running 16 kilometres from the highway to the sea.
Often circling the plantations are lusitanicus and cypress that will remain standing when timber trees are harvested.
Another 30 ha of native bush is protected by QE11 covenant and the couple have fenced from stock about 100 ha in gullies for their personal pleasure.
Charles Wiffen said the trees had been planted at the 1400 ha farm as much for providing a pleasant working landscape as for shelter and shade for stock. He said they had made a point of planting oaks, poplars and cypress for variety.
The Wiffens, who also run a Blenheim vineyard and manage the Charles Wiffen label, have been at Inverness for 48 years with Charles' father first running the farm. Elms, maples and "every oak you could think of" now line the property.
Farm Forestry Association award judge Neil Cullen, Balclutha, said the trees were an example of good land use.
Many of the "awkward" corners and gullies had been planted in small tree blocks, shelter belts and ornamental trees to provide shade and shelter appreciated by stock this dry summer, he said.
"I was impressed with the way they have managed the property as far as land use goes. It's a long, stretched out property 16km to the ocean and although there is only 40 ha of tree blocks in 1400 ha a lot of the property isn't suitable for forestry because of access problems."
Wiffen said he was a farmer first and a forester second, but he had always appreciated trees for the qualities they brought to a farm.
Story by Tim Cronshaw, © Fairfax NZ News. To read the full story, click here.