Invitation to Forest Owner's Association Proposed Commodity Levy Regional Workshops

The FOA is currently looking at a compulsory commodity levy under the Commodities Levy Act. This would involve forest owners voting on whether the industry should compulsorily fund the pan-industry good activities such as training, biosecurity risk readiness, R&D, fire campaigns, wood promotion etc.

The current FOA membership fee and targeted levy structure brings in income from FOA members. There are thousands of small forest owners in New Zealand. Therefore on an area basis almost one third of forest owners do not contribute to the association, and on a number-of-owners basis only a small percentage contribute. A voluntary levy is inequitable as it allows non-paying growers to benefit from the contributions of others. It is not possible to restrict the flow of industry benefits arising from FOA activities exclusively to FOA members. The results of FOA input to communication, policy development and research for example are nearly always available across the industry and cannot be restricted to FOA members. Projects undertaken by FOA benefit the industry generally. A compulsory levy on log production is equitable, as eventually the majority of forests are harvested, and the levy will be imposed at the time of cash generation for the forest grower.

The proposed Commodity Levy will be on all harvested logs from plantation forests that are either exported in log form or processed in NZ. This includes all species and all production that leaves the forest in log or chip form. A referendum will be held to obtain approval for the Commodity Levy from participants.

The levy will be administered by either the New Zealand Forest Owner's Association Incorporated or a body set up specifically to manage the levy funds. The reasons for moving to a commodity levy, and how levy payers can have their views listened to and incorporated into the final proposal will be presented at regional workshops.

FOA wants your feedback and views. This is an opportunity that you can't afford to miss! Come along and be informed, and then tell FOA what you think.

Schedule for workshops:

Rotorua Tues Feb 14th
6.00 – 7.00pm
Rimu Room
Scion, 49 Sala St
Gisborne Wed Feb 15th
6.00 – 7.00pm
Juken NZ Boardroom
74 MacDonald Rd
Auckland Thurs Feb 16th
6.00 – 7.00 pm
Rayonier NZ Boardroom
32 – 34 Mahuhu Cres
Whangarei Fri Feb 17th
6.00 – 7.00pm
NZRC Lounge
Toll Stadium
Okara Dr

Please RSVP to Diane Davidson: Diane.davidson@nzfoa.org.nz if you are able to attend.

Full details of background, reasons for and other supporting information is available on the FOA website.