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New Zealand embraces forest growers levy

A compulsory forest growers’ levy in New Zealand appears to have been embraced by small and large forest owners alike. Source: Otago Daily News

Interim referendum results showed ”substantial support” from a majority of growers.

Forest Growers Levy Trust chairman Geoff Thompson said the long-awaited Forest Voice referendum would deliver a ”clear yes vote” in favour of the commodity levy when final results were released in a few days, after the counting of postal votes.

”The interim results show there is substantial support from forest owners, both by area of forest and numbers voting, for the proposed work program and the levy that will fund it,” Thompson said in a statement yesterday.

While the New Zealand Farm Forestry Association and NZ Forest Owners Association have been driving the referendum idea for more than 18 months, it was crucial to gain small-grower support, he said.

There was some concern a fortnight ago, with the referendum closing on March 29, that the required numbers might not be reached.

The law requires more than half of the estimated 10,000 small forest owners to vote for the levy in the referendum. The Commodities Levies Act requires support from those holding more than 50% of the total forestry area around the country, mainly a small number of large companies, but also acceptances from more than half of individual forestry growers.

Under the compulsory levy proposal, research and development funding would be boosted from around $1.7 million in annual voluntary contributions to an estimated $6.75 million, based on last year’s harvest.

Wood products and logs, excluding firewood, would be levied NZ 27c per tonne when delivered to a sawmill or the wharf for export.

Up to 60% to 70% of the levy would be used for science funding and 20% to 30% for wood marketing and promotion.

Thompson said the final postal votes were still being counted and some ”ambiguous votes” were being clarified, but these would not affect the outcome of the poll.

The Forest Growers Levy Trust is to meet tomorrow to consider the results, after which the final vote count was expected to be released, Thompson said.