MAF Policy News
Issue 8, February 2008
ISSN 1177-701X
In this issue you can read about:
New Programmes Directorate now in action
The Programmes Directorate came into being on 7 January 2008. It brings together the related activities of the Indigenous Forest Unit (IFU), the East Coast Forestry Project (ECFP), the Permanent Forest Sinks Initiative (PFSI), the Afforestation Grant Scheme (AGS), as well as the forest specific aspects of the Emissions Trading Scheme (ETS). These programmes are central to Government’s plans to reduce carbon emissions.
The Programmes Directorate will provide a seamless and user friendly experience for landowners choosing to participate in the government’s sustainability and climate change programmes. The ETS, the PFSI and the AGS will create a strong economic incentive for owners of pre-1990 forests to retain their forests and encourage further conversions of marginal land to forests, especially when there are potential co-benefits such as the stabilisation of erosion prone land.
Regionally-based programmes advisers will be the face of the Programmes Directorate. They will provide a “one-stop-shop” for landowners wishing to participate in the government’s climate change initiatives, advising on the benefits and requirements of the “family” of programmes. Landowner participation will then be administered by a central processing unit with the support of the regionally-based advisers and other specialists.
The Programmes Directorate is currently focused on implementing the ETS, the PFSI and the AGS. Recruitment for key staff, including a permanent director, is well underway and the Directorate is expected to be fully operational by spring 2008.
Michael Mills is currently heading the Programmes Directorate. For more information on the Directorate or upcoming roles contact Michael at michael.mills@maf.govt.nz.
For more information
• On Forestry in a New Zealand Emissions Trading Scheme (ETS)
• For updates on climate change and legislation email info@climatechange.maf.govt.nz
Walking access moving forward
A new government agency is planned to advise and implement walking access policies. In December, Rural Affairs Minister Damien O’Connor announced a new agency would be established to coordinate the involvement of key stakeholders, help local groups with access issues and take responsibility for mediation of disputes over walking access.
The new agency will initially develop a national access strategy along with a voluntary code of responsible conduct. An appropriate mapping database for walking access is planned and funding will be sought and managed by the agency to assist with establishing new walking access.
The basis for all new walking access over private land, including Maori land, is to be by negotiation and agreement with the landholder(s).
Legislation to establish the new agency is planned for this year.
For more information
• Go to http://www.walkingaccess.org.nz
Raw Milk review progresses to second stage
MAF Policy is undertaking a comprehensive review of the Dairy Industry Restructuring (Raw Milk) Regulations. The Regulations require Fonterra to sell a certain quantity of raw milk to other dairy processors, at a regulated price.
In 2007, the Government implemented an interim solution, increasing the maximum volume of raw milk available under the Regulations up to 600 million litres for the 2008/09 season. Government and industry are now working together to find a durable solution to be implemented from the 2009/10 season onwards.
The first public discussion document closed with around 40 written submissions being received. MAF was pleased with the range and quality of the submissions, with representations from across the dairy industry. Officials are now actively working through the issues and concerns raised by industry stakeholders.
A summary of the submissions on the first public discussion document will shortly be available on the MAF website. A second public discussion document, outlining regulatory options and seeking further industry feedback, will be available on the MAF website in late March 2008.
For more information
• Read about the Raw Milk Review
New wood availability forecasts for Hawkes Bay and East Coast
The Ministry of Agriculture and Forestry has compiled wood availability forecasts to assist with future regional forest industry planning.
New Hawkes Bay wood availability forecasts
The Hawkes Bay region has a well-established forest growing industry and forecasts indicate that the availability of radiata pine will remain relatively static over the next decade (2007–2015). After 2016, increases in wood availability are expected to result in greater log supply, with the potential for an increase from 1.8 million to 3 million cubic metres leading up to 2021. Most of this potential increase will come from the region’s small-scale forest growers who established forests during the 1990s. The actual timing of the harvest from these forests will depend on market conditions and the decisions of a large number of small-scale owners. Post 2034, the total harvest is projected to decline depending on three factors: the rate at which the post-1990 forests are harvested, the extent to which they are replanted, and the level of new land planting. These forecasts are based on no new land planting.
The full Hawkes Bay forest industry and wood availability report is due to be completed later this year.
Read the forecast
• Hawkes Bay wood availability forecasts for the period 2007-2040
East Coast wood availability forecasts
The East Coast wood supply region has an extensive forest growing industry with considerable potential for future utilisation and development.
Forecasts indicate that the availability of radiata pine from the East Coast will double from 1 million cubic metres in 2007 to 2 million cubic metres in years 2010 to 2013. From this point forward the East Coast regional harvest has the potential to further increase to around 3.4 million cubic metres per year after 2020 through to 2034, after which the total harvest is projected to decline if no new land planting occurs.
Read the forecast
• East Coast wood availability forecasts for the period 2007-2040
Research and development tax credit set at 15%
From 1 April 2008 New Zealand businesses may be able to claim a 15 percent research and development (R&D) tax credit.
The government introduced the tax credit as part of a package of business tax reforms expected to encourage increased investment in R&D and lead to innovation and development of improved products and processes.
Inland Revenue, who will administer the new incentive, says businesses will claim the credit in their normal income tax return. IRD will also require a supporting R&D tax credit detailed statement and businesses will need to keep good records to support their claim.
The R&D must meet three key eligibility tests relating to the business itself, the R&D activity and the expenditure:
• The business must operate in New Zealand;
• R&D activities must be related to business activities; and
• The business must control the R&D, bear the financial risk, and own the results.
The first claims will be filed at the end of 2009. To support their claims, businesses will need to start keeping good records of their R&D spending from 1 April 2008.
For more information
• Go to the IRD’s website http://www.ird.govt.nz/rd-tax-credit/
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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