ANNEX 1: SUMMARY OF PLANTATION FORESTRY INCENTIVES AND DISINCENTIVES IN NEW ZEALAND
Year |
Description |
Purpose |
Funding |
Target source |
Cost group |
Impact on plantation development |
Prior to 1870 |
||||||
1858 |
Reimbursement of costs if lease terminated |
On-farm wood supply |
Regional government |
Landowners |
Unknown |
Low |
1870-1918: Incentives |
||||||
1871 |
Grants of land, reduced rentals, or land orders |
Local timber supply and shelter |
Central and regional governments |
Landowners |
Unknown |
Low |
1870s |
Grants of government land |
Regional timber supply |
Central government |
District government |
Unknown |
Medium |
1896 |
Establishment of afforestation branch of Lands Department |
Conservation of indigenous forests via plantations |
Central government |
Central government |
Unknown |
Low |
1986 |
National conference |
Develop strategy |
Central government |
All stakeholders |
Low |
Medium |
1915 |
Seedlings provided at cost price |
Promote afforestation |
Central government |
Landowners |
Unknown |
Medium |
1918 |
Indigenous timber controls |
Limit depletion of native forest |
Central government |
Indigenous industry |
Zero |
Low |
1870-1918: Disincentives |
||||||
1874 |
Focus on indigenous forest management with some afforestation |
National timber supply |
Central government |
Lands Department |
£10 000 for 10 years |
Low |
1870 to early 1900s |
Lack of political commitment to forestry |
|
|
|
|
Medium |
1919-1938: Incentives |
||||||
1919 |
Government forestry department |
Professional forest management |
Central government |
Central government |
|
High |
Early1920 |
National forest inventory and strategic planning |
Sustainable wood supply |
Central government |
Forest industry |
Unknown |
High |
1920s |
Research on species, establishment and products |
Successful afforestation |
Central government |
Forest industry |
Unknown |
Medium |
1920s |
Sale of seedlings at cost price |
Encourage planting |
Central government |
Landowners |
Unknown |
Medium |
1920s |
Forestry extension |
Encourage planting |
Central government |
Landowners |
Unknown |
Low |
Mid-1920s to mid-1930s |
Bond sales |
Capital for land purchase, planting and maintenance |
Private industry |
Small private investors |
Unknown |
High initially, later negligible |
Early1930s |
Subsidized tree planting |
Employment |
Central government |
Unemployed |
Unknown |
Medium |
1930s |
Construction subsidies |
Development of affordable housing |
Central government |
Construction industry |
Unknown |
Medium |
1919-1938: Disincentives |
||||||
1928-1934 |
Oversupply from indigenous forests |
|
|
|
|
Medium |
1928-1934 |
Competition from imports |
|
|
|
|
Medium |
Early 1930s to 1934 |
Abuse of bond sales |
|
|
|
|
Medium |
1939-1958: Incentives |
||||||
Late 1930s and 1940s |
Government development of harvesting practices and wood utilization |
Consolidating viability of plantations and demonstrating utilization and marketing of new products |
Central government |
Forest industry |
Unknown |
High |
1948 |
Dedicated forest research institute |
Research |
Central government |
Forest industry |
|
Medium (in this period) |
1949 |
Tax deductions |
Encourage afforestation |
Central government |
Landowners |
Indirect |
Low |
1950s |
Direct financial assistance plus supply of wood at low cost |
Establish large-scale processing |
Central government |
Private company |
£14 million setup plus 50% of other costs |
Medium |
1950s |
Infrastructure development |
Facilitate processing and forestry development |
Central government |
Forest industry |
Unknown |
High |
1946 to 1955 |
National forest survey |
Assess indigenous resource and merchantable area |
Central government |
Central government |
|
High |
1939-1958: Disincentives |
||||||
Mid-1930s to 1950s |
Price controls |
Low-cost timber for housing |
Forest industry |
Construction industry and citizens |
Unknown |
High |
1930s to 1960s |
Supply of subsidized indigenous wood |
Maintain domestic supply |
Central government |
|
Unknown |
High |
Late 1950s |
Tax legislation (refer to next period) |
|
Central government |
Forest industry |
Unknown |
Medium on replanting |
1959-1984: Incentives |
||||||
1959 |
Wood demand and supply analysis |
Ensure national wood supply needs |
Central government |
Central government |
Unknown |
High |
1959 |
Log exports |
Increase returns to growers |
|
|
|
Medium |
1965 |
Taxation incentives |
Encourage forestry |
Indirect |
Private companies |
Indirect |
Medium |
1960s to 1980s |
Forestry extension |
Encourage private forestry |
Central government |
Landowners |
Unknown |
Low |
1962 to 1984 |
Loans and grants schemes |
Encourage private forestry |
Central government |
Landowners |
Varied (see table) |
Medium |
1967 to 1985 |
Mâori land lease arrangements |
Encourage afforestation on Mâori land |
Central government |
Mâori |
Moderate |
High |
1969 to 1981 |
Government - industry planning |
Establish common goals and commitment |
Central government and industry |
Forest and industry government |
Unknown |
Medium |
1960s to1980s |
Research |
Analysis of databases and communication of results |
Central government |
Forest industry |
Government Institutes budget was NZ$12 million in 1980 |
High |
1983 |
Forestry Rights Registration Act |
Facilitate investment |
|
Forest industry and landowners |
Low |
Low |
1980s |
High quality resource information |
Policy making, forecasting, planning, monitoring |
Central government and industry |
Forest industry, government |
About NZ$300 000 per year (2002) |
High |
1970s |
Training and 1980s |
Create skilled workforce |
Central government and industry |
Forest industry |
Unknown |
High |
1959-1984: Disincentives |
||||||
1970s and1980s |
Forestry conflict with farming and environmental movement |
|
|
|
|
High |
1977 to 1991 |
Land-use planning legislation |
Protection of land with high value for food production |
Central government |
Land developers/ landowners |
Unknown |
Medium |
1984-2002: Incentives |
||||||
Mid-1980s |
General economic reform |
Establish a market-based and enabling economy |
|
Economy wide initially |
High social costs highly positive |
Negative initially, then |
Mid-1980s |
General removal of direct incentives |
Create level playing field and international ensure competitiveness |
|
Economy wide |
|
High |
1988 to 1996 |
Sale of government plantation forests |
Reducing public debt |
|
New Zealand and international investors |
|
Medium |
1989 |
Removal of extension service |
Remove government competition with private consultants |
|
Ministry of Forestry |
|
Low |
1991 |
New Zealand Forest Accord |
Establish common understanding between industry and environmental groups |
Industry and environmental groups |
Forest industry and environmental groups |
Unknown |
Medium |
1993 |
New indigenous harvesting legislation |
Sustainable ecosystem management |
Central government |
Forest industry |
Unknown |
Low-medium |
2001 to 2002 |
Wood Processing Strategy |
Remove barriers to domestic processing |
Central government and industry |
Forest industry |
Unknown |
Full impact yet to be determined |
1984-2002: Disincentives |
||||||
1987 |
Requiring costs to be capitalized instead of deducted against taxable income when incurred |
Establish neutral taxation regime with respect to other land uses |
|
Forest industry |
|
Strongly negative |
1991 to 2002 |
Implementation of the Resource Management Act |
Sustainable management of resources |
|
Landowners and managers |
|
Low-medium |
2002 |
Climate change policy |
Reduce CO2 emissions |
|
Economy wide |
|
Yet to be determined |