Forest growers' levy to take effect in January

A forest growers' product levy begins on January 1, in a bid to boost the forestry sector's fortunes through research and development, biosecurity, marketing, industry training and education.

Associate Minister for Primary Industries Jo Goodhew said the Government agreed to make the new levy order following a successful forest owners' referendum in March this year.

''This is the first levy order in the forestry sector. Other sectors such as meat and horticulture have had similar levies for over a decade, and they have brought greater cohesion and co-ordination in those industries,'' Mrs Goodhew said in a statement yesterday.

Overseen by the Forest Growers Levy Trust, the levy order comes into force on January 1, and will be reviewed by referendum in six years.

The tax deductable levy rate for the first year is 27c a tonne, increasing to 30c during the following five years.

At 30c for 30-year-old radiata, the levy would average out at $5 per hectare for each year of growth.

Products to be levied include logs, posts, poles, forest waste, binwood, hog fuel and woodchip, exported or processed in New Zealand, but does not apply to bark, Christmas trees or domestic firewood.

More than $6.5 million will be raised during the first year, with a budget of $3 million for research priorities and the balance used to fund activities, including health, safety and education, promotion and forest health surveillance.

simon.hartley@odt.co.nz

Add a Comment