New Zealand Forestry Minister Todd McClay has announced that annual service charges in the forestry Emissions Trading Scheme (ETS) will be cancelled for 2023/24. Source: Timberbiz
“The sector has told me the costs imposed on forestry owners by the previous government were excessive and unreasonable and I agree,” Mr McClay said.
“They have said that there was insufficient transparency, communication, and engagement around the introduction of the new annual service charges. This compromised the sector’s confidence, which I am now working hard to restore.
“To give participants certainty, we will remove the annual charge for 2023/24. Participants will continue paying for specific services, but they won’t be charged the NZ$30.25/hectare.
“The decision follows the independent review into the cost recovery of the ETS register to ensure its efficiency and cost effectiveness.
“The review identified a number of issues in the previous government’s settings, and I will now work to rectify these with the forestry sector.
In the coming months, participants will have cost certainty, and a revised annual charge in place for the 2024/25 financial year that is fair and reasonable.
“There are more than 590,000 hectares of post-1989 forest land in the ETS and around 4,200 forestry participants. We are working with the sector to ensure they have confidence in the function, operability, and cost recovery of the Forestry ETS.”
Mr McClay says this is part of a pre-election commitment to rebuild confidence in the forestry sector.
“Forestry plays an important role in helping New Zealand meet its emissions reductions obligations. This review is the government’s first step on halting Labour’s attack on forestry through in-creased costs and regulations,” Mr McClay said.
In a separate statement Mr McClay said this was the start of the Government’s plan to restore certainty and confidence in the forestry and wood processing sector.
“This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay said.
“Forestry’s success is critical to rebuilding New Zealand’s economy, boosting our GDP and providing regional jobs in a highly productive sector.
The Government’s vision to grow the forestry sector includes:
- Spurring economic growth through jobs and exports
- Delivering low emission solutions and products
- Supporting land use resilience, adaptation, biodiversity & social benefits and
- Providing carbon removals to support climate goals.
The Government will be introducing a package of initiatives during the course of this parliamentary term to support industry growth and to deliver positive outcomes across the forestry and wood processing value chain.
“This includes working with the industry to increase onshore wood processing, opening new and improving access to existing trading markets, supporting sensible planting, easing burdensome regulations, enabling and supporting the development of new and innovative wood products, adjusting investment settings and supporting New Zealand’s climate change goals.
“Nearly 60% of New Zealand’s harvest is exported. Increasing our domestic processing, will grow the economy, create more regional jobs and help us double our exports by value in 10 years.
