forest talk
Overseas investment reform questioned THE FOREST OWNERS ASSOCIATION (FOA) IS QUESTIONING WHY the government needs to reintroduce more process around overseas investment for conversions from pasture to plantation forests. Associate Minister of Finance, David Parker, says the government is changing the application process for conversions. FOA President, Phil Taylor, says he hopes that this will not lead to a protracted and cumbersome process that kills off interest in New Zealand by overseas investors. “Minister Parker acknowledges the need for overseas investment in our primary sector, given that there is a limited amount of capital within New Zealand. The government in its previous term realised that the application process was bureaucratic and pointlessly expensive and so brought in the special forestry test. Now it’s changing it back again for new planting.” Since the special forestry test was introduced in late 2018 the Overseas Investment Office (OIO) has approved a total of 23,402 hectares of pasture for forest conversion, which is an average of 600 hectares a month. “That is a very modest rate in the context of a total hill country estate of 8.5 million hectares,” Mr Taylor says. “My main concern though is that the government is sending mixed signals about the need for an expansion of plantation forests. “Minister Parker says it’s important that we have a ‘strong forestry sector’. We agree of course. That must mean an expansion. The Climate Change Commission says we need to grow the area by another 380,000 hectares for New Zealand to meet greenhouse gas emission goals. “The government has also set lofty goals for increased export income from forestry. An emerging bio-economy and the widespread adoption of modern engineered timber will also drive extra consumption, here and overseas.” Federated Farmers, on the other hand, believes the new requirements for overseas investors buying New Zealand farmland for forestry are encouraging but are only step one of a suite of changes required.
“For years Feds and other organisations have been calling for a reversal of rules that exempt overseas buyers intending to convert our farmland into forestry from the ‘proof of benefit to New Zealand’ requirements that apply when buyers intend continuing farm production land use,” Federated Farmers Meat & Wool Chairperson William Beetham says. “That chorus has grown ever louder as tens of thousands of hectares of productive farmland are blanketed in pine trees, in large part because of the chase for carbon credit revenue. “We’re glad the government is listening and taking action. But more must be done,” he says. Federated Farmers supports a ‘right tree, right place’ philosophy and agrees there is an important role for production forestry, and for farmers to have the option to choose to integrate more sequestration into their farms by planting out land that they see as being marginal to their farming systems. “Increasing the integration of vegetation into farms can bring biodiversity, animal welfare and environmental benefits, including sequestering carbon to fight climate change,” says Mr Beetham. “What we oppose is interventionist government policies – and in particular ETS settings – that lead to a skewed, unfair playing field. Employment and the viability of rural communities are being destroyed as good production farmland is blanketed in pines in a chase for short-term profit. “It’s not even sound policy in the long-term on the climate change front because such offsetting means polluting industries have less incentive to develop more emissions-friendly ways of doing business. “As well as getting the ETS settings right, there are options for even-handed treatment in terms of resource consent conditions between production forests and ‘carbon-only’ forests, and the treatment of forestry in terms of the rates income requirements of local councils,” he adds. For more on the carbon forestry debate, turn to our feature on page 30. NZL
Sa S
Container shipping to Russia suspended SHIPPING GIANTS, SWITZERLAND-BASED MSC, DENMARK’S Maersk and France’s CMA CGM have all halted non-essential cargo bookings to and from Russia until further notice. This covers the Baltics, Black Sea and Far East Russia, says MSC. These steps taken by the world’s largest container shipping lines effectively cut Russia off from a large chunk of the world’s shipping capacity. However, essential supplies, such as food, medical
4 NZ LOGGER | April 2022
equipment and humanitarian goods will still be delivered. They are among many corporates boycotting that country over the invasion of Ukraine, including our own Fonterra which has suspended shipment of product to Russia and closed its Moscow office. The escalating conflict and Russian sanctions are expected to have a significant impact on the shipping industry for some time. NZL
F Fa
E EN
