Allocation of New Zealand Units (NZUs) to Pre-1990 Forest Owners

The pre-1990 Forestry Allocation Plan is expected to be released next week, along with the mapping standard. This will allow the processing of applications of the free allocation/partial compensation NZUs for pre-1990 forest owners from the 1st of August 2010.

All pre-1990 forest owners are encouraged to apply for this allocation as soon as possible. There will be a finite time window to apply and limited resources both within MAF and within forestry service firms to prepare and process the applications. There is no downside in applying for these units as the restriction on future land use will apply to pre-1990 forest land regardless of whether the units are taken up or not.

Buyers and sellers of pre-1990 land are advised to be cognisant of the Issue Date which is also expected to be announced next week. The Issue Date is the date prior to which the registered legal owner of the land will be the beneficiary of the allocated credits.

Purchasers of post-1990 forest land also need to fully understand the implications of the ETS on the future land-use options for the land.