Industry set to consider Commodity Levy ProposalFriday 20 Jan 2012 The New Zealand Forest Owners Association (NZFOA) is developing a proposal for a levy under the Commodity Levies Act 1990 on logs from plantation forests. If approved, it will be on harvested logs of all species, including export logs and logs processed in New Zealand. For plantation forestry to achieve its full potential, the industry needs the NZFOA to be truly representative of everyone in the sector. Hence the need for a levy paid by all and an organisation answerable to all.A NZFOA project team is now working on the proposal. Forest owners are being consulted and this will be followed by a referendum in mid-2012. To be adopted, the levy must win the support of a majority of owners, both by number and by forested area. Levy payers will then be consulted each year on spending priorities. After six years the levy would need the support of a further referendum before being renewed. The main drivers for the levy are growing demands on NZFOA resources and the need to make forward financial commitments, especially to fund research. This in turn reflects rapidly increasing log production and the growing expectations society has of land-based industries. The NZFOA is expected by forest owners, industry stakeholders and government to drive co- operation within the sector and to represent the sector in its interactions with government and the wider community. At the moment the NZFOA and Farm Forestry Association do this work, but although they are well supported by the subscriptions and levies of those who choose to become members, many non-members also benefit. In addition, the NZFOA relies heavily on the voluntary input of members via a strong committee structure. The focus now is on developing the draft proposal to form the basis of the referendum. This in part involves meeting – in discussion with MAF – the statutory requirements for a commodity levy, including communications with all potential levy payers. A series of meetings around the country are going to be held in early February to discuss the levy proposal with forest owners. Source: NZ Forest Owners Association  |
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