2 BACKGROUND
2.1 Background Summary
There have been three major phases of exotic forestry development over the past three decades in New Zealand which have had important social and economic impacts on rural communities. In the first period (1960-1986) there was a rapid expansion of plantation forestry and competition for farm land. This resulted in agricultural interests and rural local authorities restricting or wishing to restrict the conversion of agricultural land to forestry. New purpose-built forest towns were created during this period.
The second period (1987-1991) of reduced forest development followed taxation changes in 1986 which removed incentives for establishing new plantings. Major restructuring of private and Crown ownership of forest land and cutting rights, particularly since the closedown of the New Zealand Forest Service in 1987, are also associated with the reduced forest development and new planting that occurred during this period.
The third period (1992 - present) has been one of renewed development and expansion of forestry. There are now (in 1993) more private sector participants than there were prior to 1986. These include major companies (those holding over 10,000 ha), smaller companies and local authorities, partnerships and individual owners.
Increased new forest planting since 1991 has been stimulated by international demand for timber. This has again as in earlier times raised concern that rural communities and agricultural activities in New Zealand are and will in future be affected by forestry development. The nature of the impacts is unknown and appears to vary regionally.
2.2 Phase 1: 1960-1986
Agriculture and exotic forestry have actively competed for land since the early 1960's as illustrated by the reviews of Le Heron and Roche (1984, 1985) and Meister (1987). Active programmes for enhanced public relations by the major forest companies (members of the New Zealand Forest Owners Association, NZFOA) are illustrated in a document produced in 1984.
Establishment of exotic forestry plantations increased markedly from 1960 through 1986 as the "second planting" expanded the scale of forestry in New Zealand. The harvesting of the forests planted in the 1920's and 1930's as well as accelerated demand for timber lead to "the second planting" that included both replanting in established forests and new plantings as more land was acquired by private companies and by the state through the New Zealand Forest Service (NZFS). This is illustrated by the fact that from 1965 to 1975 the total area of new plantings increased from 14,000 ha per year to 44,000 ha per year. New plantings peaked at 54,000 ha in 1985. New plantings declined to 15,000 ha in 1990). Replanting has continued at 15,000 to 20,000 ha per a over this period refer Table 1.
Table 1: Plantation Forest Establishment (1984-1990)
| Year Ending | New Planting | Restocking | Total |
| 31 March | (hectares) | (hectares) | (hectares) |
| 1984 | 51,000 | 12,000 | 63,000 |
| 1985 | 54,000 | 15,000 | 69,000 |
| 1986 | 48,000 | 14,000 | 62,000 |
| 1987 | 40,000 | 21,000 | 61,000 |
| 1988 | 30,000 | 22,000 | 45,000 |
| · 1989 | 20,000 | 22,000 | 42,000 |
| # 1990 | 14,300 | 22,000 | 36,300 |
· estimate
# provisional Source: Ministry of Forestry 1990 - Post Election Briefing.
This phase saw the development of forestry company towns (such as Kawerau,Tokoroa, Murupara)
Government incentives, tax policies and demand for timber encouraged expansion of plantations by the state (NZFS) and companies as well as individual farmers.
The expansion of forestry during this time resulted in active opposition to plantation forestry by farmer groups and local authorities especially counties which frequently included farmers as a majority of the councillors.
From 1976 to 1984, for example, 49 counties adapted restrictive zoning practices and several counties were involved in Planning Tribunal actions (e.g. Wairoa County 1977) by forest interests wishing to establish or extend plantation areas. Government provisions such as the 1960 removal of estate duty on wood lots and the 1962 forestry incentive scheme were designed to be of direct benefit to individual farmers who established forestry on their land.
From 1960 through 1986 (Le Heron and Roche 1984, p.29) farmers responded to forestry encouragement provisions with the result that "The presence of farmer-owned and controlled land with trees blurred the previously sharp distinction between farm and forest owners." However local authority planning regulations continued to distinguish farm "woodlots" from forest owner "plantations" and a frequently unsympathetic response was given to new forest plantation development (p.29 1984).
Documentation of the amount of farm based, small-scale forestry, commonly referred to as farm forestry, woodlots or agroforestry is not readily available. Agroforestry may be defined on the basis of a final development of less than 100 stems per hectare. A definition of agroforestry (p.37 1990 Ministry of Forestry) is:
"Agroforestry refers to land-use systems that combine tree growth with agricultural crops or livestock.... [This can include] the management of shelterbelts for both shelter and timber and the establishment of woodlots with grazed understorey. The largest potential for agroforestry in New Zealand is undoubtedly in providing a sustainable management system for fragile hill country, at present in eroding pasture."
2.3 Phase 2 1987-1991
Phase 2 of forestry development includes two major events, the change in taxation regime which started in December 1986 and the corporatisation of the NZFS 1 April 1987. Since these two events major changes have occurred which affected small-scale exotic forestry development on the farm and in other small holdings as well as in the larger plantations.
The forestry incentive scheme by government which had operated since 1962 and other tax policies encouraging forestry were withdrawn in 1986; these changes have been associated with causing the reduction in new planting by forest companies and reducing farmer interest in forestry. Policies were established in 1984 which specified state and private forestry to become purely commercial. Social goals of employment and regional development were removed from forestry (Ministry of Forestry 1988, 1990).
State participation in the plantation forest estate changed radically after 1 April 1987 with the restructuring of the state sector forestry and sales of state forest cutting rights to private companies including foreign companies. The result is a concentration by 1991 of over 70% of plantation ownership in two New Zealand companies. The balance of ownership is divided among other companies, Maori owners, partnerships and individuals.
2.4 Phase 3: 1992 - present
With establishment of new ownership regimes for the major forest holdings by 1992 there has been stabilisation for ownership and major supply issues.
Local government planning regimes and district scheme restrictions on forestry that operated in areas such as Clutha County in the south and Wairoa County in Hawkes flay have been replaced by the Resource Management Act (1991). The restructuring of local government in 1989 also changed the nature of many local councils with representation from more groups than the traditionally dominant agricultural sector and wider geographic interests of urban and rural residents.
Rural depopulation trends, new attitudes to ownership and subdivision of rural land also served to encourage new forest development
Economic influences have caused a resurgence of interest in forestry investment and development since 1991; there has been increased international demand for timber and more attractive returns from forestry. For some observers this renews interest in issues about the conversion of rural land for forestry that prevailed earlier (as in the period to 1986). As illustrated by the increased new planting in Otago-Southland (Table 2).
Table 2: New Planting in Otago and Southland
| 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | |
| Forest Companies | 2,960 | 3,756 | 987 | 547 | 448 | 440 | 896 |
| Local Authorities | 511 | 368 | 446 | 405 | 440 | 229 | 201 |
| Investment Groups | 132 | 65 | 55 | 28 | 32 | 414 | 876 |
| Small Companies | 52 | 84 | 93 | 132 | 112 | 127 | 251 |
| Small Growers | 377 | 389 | 537 | 1,197 | 366 | 1,272 | 3,041 |
| TOTAL | 4,032 | 4,662 | 2,118 | 2,309 | 1,398 | 2,482 | 5,265 |
Source: Ministry of Forestry
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