Forest Grower’s Levy Referendum 2024
Forest Grower’s Levy Referendum 2024
MPI notified Forest Grower’s Levy Trust (FGLT) just before Christmas that the Harvested Wood Materials Levy is up for industry review in 2024, to set the course for 2025-2031. Also, that a consultation process with growers would need to be completed and submitted by October 2024 – earlier than in previous years. After consultation and approvals are given, the Government will issue the Levy Order, next year.
The FGLT board decided to propose raising the levy rate from 33 c per tonne of processed wood, to a proposed levy rate band at 50 - 70c for the next 6-year period. It is an increase that would see the levy take total $10 to 15 million based on today’s volumes.
Initial thoughts are that the increased funds would provide more resource for social licence activities, increased support in the regulatory/policy space, and investment into biosecurity and research, and potentially more.
To achieve this, FGLT is required to consult with the industry - both large and small forest owners – in coming months, with a roadshow commencing 22 April 2024 across the motu in key forest growing regions.
At these roadshows, FGLT (with NZ Forest Owners Association as secretariat) will discuss and consult with growers on the proposed levy rate, how it will be spent, and will gather general feedback on the areas of investment and what they’d like more/less of.
The referendum vote will be made under two categories: 1) forest growers of harvestable wood over 1,000 hectares, and 2) forest growers of harvestable wood under 1,000 hectares.
To be clear - the vote is not for landowners, it is for owners of Forestry Cutting Rights only. Ngā Pou a Tāne estimates Māori forestry interests over 1,000 hectares are around 150,000 hectares owned by less than 20 entities - and those under 1,000 hectares are around 130,000 hectares owned by more than 1,000 entities. These growers must be registered with FGLT to vote, before the referendum in October.
Ngā Pou a Tāne and Māori forest growers will be able to make recommendations towards nine other areas of focus being proposed by FGLT under the referendum also. According to our discussions these recommendations will be considered and addressed, maybe, by FGLT and Government - perhaps in the Order, but more likely in a future process.
The Levy was raised at Ngā Kōrero Rangatira 2023, our National Māori Forestry summit last year in May. In the words of our Rangatira:
“A commodity Levy is an Act of government - if we are participants, payers, it should be about leveraging the distributions proportionally to go towards issues that we are experiencing, and what we also think is important.”
“Wood commodity levy needs to be revisited. As other nations are becoming more protectionist, we must accept that our primary duty as an industry is to the care and resilience of our own nation and people - of course this might be unnecessary if the sector delivers sustainable contracts and guarantees onshore manufacturing to the benefit of New Zealanders.”
“We need to track the flow of funds through forestry, there’s enough money, the question is “where is the benefit flowing?” Every tonne attracts a Levy. We need a voice, a working group/advocating group, Ngā Pou a Tāne to speak for us on the cost-benefit to Māori of forestry operating on our land.”
“We applied for Levy research and representation funds, we got declined, because they don’t want to fund mātauranga Māori - they made a wrong assumption about our intentions and underestimated us - they don’t understand mātauranga Māori is simply the way we see our world of forestry, and how beneficial our world becomes to all whenever we are supported.”
In general, Ngā Pou a Tāne supports the idea of increasing the Levy rate from 33 cents to 50-70 cents - to lift the performance of the industry because we agree Levy expenditure into research, biosecurity, and advocacy is good for business as usual.
However, lifting the price alone, is insufficient to get the future focused, transformation level results that Māori forest growers are seeking. Levy administration does not currently encourage a culture of collaboration. This is contributing to blind spots and an inability for the industry to pivot to a resilient and comprehensive set of visions and pathways. Our opinion is that material changes must occur to Board structure and composition to encourage, integrate, and make best use of the diverse range of interests and influence in the industry, and the FGLT Board must be made accountable to the whole of the industry for impact. Whole-of-Levy-Payer leadership at the decision table is required to execute a shared vision, fresh discourse, and regenerative culture.
In the meantime, Ngā Pou a Tāne Board members are actively consulting (gathering information) with FGLT/NZFOA to ensure good quality information sharing and participation by Māori growers in the referendum. Watch this space for information about information sharing and Q&A with Māori forest growers, via a webinar next week. We will also notify by email.
Publicly available information about the Harvestable Wood Products Levy on the links below:
Notice of intent to undertake a referendum on the Levy
