Australasia's home for timber news and information

Levy on harvested timber will add to profits

From next year a levy of NZ27c per tonne for harvested timber will be used to research ways to make forestry more profitable according to New Zealand Forest Growers’ Levy Trust chairman Geoff Thompson. Source: Wanganui Chronicle

The referendum on the levy finished at the end of March. Voters, based on both hectarage and individuals, were 86% in favour of it.

Anyone with more than four hectares of forest more than 10 years old was eligible to vote – although Thompson said not all did so.

The referendum was publicised in journals, newspapers, online and on radio.
There are 15,000 forest owners in New Zealand and fewer than 3000 belong to forestry associations.

The levy will raise an estimated $6.5 million to $7 million a year for the next six years. It will apply to all harvested timber, either at the mill or as it crosses wharves for export.

Research funded by the levy will cover aspects such as health and disease, new species, better genetics and ways to harvest steep hill country.

The main species focus will be Pinus radiata, but Thompson said there was also a lot of interest in eucalypts, and in the South Island in douglas fir.

The Forest Owners’ Levy Trust is to morph into the organisation administering the funds. At present, members of the society are hand picked, and are formulating the terms of the levy order.

Eligible foresters will later be asked to elect permanent representatives.

Thompson believes the emissions trading scheme (ETS) will eventually help foresters. He said strong rules would make the credits acceptable internationally, and put a genuine price on climate-changing carbon.

“Long term there will be an ETS. There must be a response to climate change and this is a good one if they can only get it working properly.”