Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Media Statement - Kyoto Forest Owners Association

19th May 2004

Issued by Kyoto Forest Owners Association (KFOA) in response to the proposed Forestry Industry Partnership announced by the Government today.

The KFOA represents tens of thousands of New Zealanders who own 50% of our post 1989 Forests. Only post 1989 forests will earn carbon credits under the Kyoto Protocol.

The government is proposing to continue with its policy to nationalise (steal) the carbon credits of post 1989 New Zealand forest growers. The quantum of this theft is estimated by government to be $5,000 per hectare for every ha of post 1989 forest for the period 2008 and 2012. A total value of NZ $2.62 billion.

The governments proposals announced today are patently unfair, anti the environment and will result in diminished planting of new forestry as well as reduced overseas investment in our forest industry. Less than 1% of the package will flow back to post 1989 forest investors.

Approximately 82% of the package is the $125 million per year allowed for the deforestation of pre 1990 forests (These are not the forests that earn carbon credits). This money will allow pre 1990 forests that exist now as carbon sinks to be converted to other land uses. It is highly likely this will be to dairying. Dairy cows produce methane which makes a significant contribution to global warming as well dairy farming allows for nitrogen, effluent and other nutrients to infiltrate ground water supplies.

Planting of new areas of forestry is essential if New Zealand is to honor its commitments to the Kyoto Protocol.

Planting of forestry is dependent on the forecast profitability of the investment. By proposing to steal the private property rights of potential forestry investors the government has reduced the Internal Rate of Return from forest investment by at least 1.5% (government’s estimate). This is equivalent to removing $6.8 million or 43% from the return of a typical investment forest.

The government’s actions have obliterated investment in new forestry planting. The governments actions are penalising investors who have demonstrated their commitment to a cleaner, greener environment.

Fair-minded New Zealanders will be appalled to see that the government has absolutely no regard to investors private property rights. A KFOA spokesman said the credits being stolen would have a value of around $50,000 over a five-year period for a typical forestry partnership investor.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>