Call for forestry R&D levy

Ian Jackson
Ian Jackson
Small forest growers - numbering more than 10,000 around the country - are being urged to participate in the referendum for a proposed compulsory levy for an almost 300% boost to industry-financed forestry research and development funds.

The New Zealand Farm Forestry Association and NZ Forest Owners Association is driving the referendum and proposal to boost R&D funding from the present around $1.7 million in annual voluntary contributions to an estimated $6.75 million, based on last year's harvest level.

Logs and wood products, excluding firewood, would be levied 27c per tonne when arriving at the mill or wharf.

Just as southern red meat farmers this week called for wide-ranging changes to their flagging sector, the similarly volatile forestry sector has for the past 18 months called for consolidation to target funding from each industry participant with the aim of

boosting overall returns. The referendum, accessible online, closes this Friday, March 29.

The lion's share of funds would be used for promoting wood, biosecurity issues, research into alternative species, environmental and fire protection, forest health and harvesting techniques.

Forestry is worth about $4.5 billion in exports at present, but the Wood Council of New Zealand wants that raised to $12 billion by 2022, including targeting a harvest increase from 18 tonnes per hectare of radiata pine to 35 tonnes per hectare by 2025.

At present, the Government puts in about $25 million annually, but it has signalled a much reduced contribution in the future, and funding which would be ''highly contestable'', NZ Farm Forestry Association president Ian Jackson said.

''Unless the forest sector is prepared to step up and back its own science, research activity will definitely decline,' Mr Jackson said.

While the New Zealand Farm Forestry Association and NZ Forest Owners Association account for more than 80% of plantation forests by area, there are potentially more than 10,000 forest growers outside the associations.

''Small growers stand to gain just as much proportionally from having a unified and healthy prosperous forest industry that realises its huge potential,'' Mr Jackson said.

It was ''important'' that small growers agree to the proposal ''to get the levy vote across the line'', he said.

The Commodities Levies Act requires support from those holding more than 50% of the total forestry area around the country, and also acceptances of more than 50% of the total forestry growers, by number, he said.

-simon.hartley@odt.co.nz


Proposed forestry levy
Would be spent on. -

Aim: to double production.
60%-70%: for science funding.10%: administration.
Balance of 20%-30%: wood marketing and promotion.
Cost: 27c per tonne; increasing to 30c over six years.
Charged: at harvest time; at mill delivery or logs on the wharf.
Who: new Forest Growers Levy Trust Board; independent chairman, two small-scale forest reps, four other reps voted on by all growers.


Add a Comment