Money Can Grow On Trees

Farm consultant Stu Orme has contacted Horizons with some interesting information regarding Money Can Grow On Trees.

Mr Orme states that the pre-1990 legislation says that if you own pre-1990 exotic forest, and you harvest it without re-planting, you will be liable for the carbon credits represented by that harvest.

Plus a possible fine of up to $30/ unit if you do not make a voluntary emission return /advise you have deforested.
Assuming you have to surrender 850 NZU to cover off on the deforestation for a 30 year old forest the maths for a 4.0 Ha (10 acres) example look like this: 4.0 Ha x 850NZU = 3400 NZU to be surrendered.

If MAF find out that you have a deforestation liability that you have not advised them of you will be fined the additional $30/NZU plus have to purchase and surrender the number of credits required thus 3400 NZU X $50/unit = $170,000 i.e. (purchase price of $20 + $fine of $30/unit = $50/unit) (NB: the costs of this will not be tax deductible)
This potential liability might amount to $40,000-$50,000/ha. Depending on the prices of NZUs at the time

ends

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>