East Coast Forestry Project Grant Guidelines
If an application is approved
Approval process
Once applications have been assessed by MAF, successful applicants are given provisional approval so that:
- land can be secured by applicants
- landholding checks can be undertaken by MAF
- resource consents and archaeological site certification can be sought by applicants, if necessary.
For large blocks, successful applicants are normally notified of provisional approval by 15 July each year. For small blocks, successful applicants are notified of provisional approval by 30 August each year. This timeline is to allow provisionally approved applicants to arrange the supply of planting material for their approved establishment year(s).
Formal grant approval will be given by MAF when:
- proof of unconditional rights to the land is provided by the applicant (this may be done by producing a Certificate of Title, lease or some other legal interest in the land)
- necessary resource consents and archaeological site certifications have been obtained.
Once formal approval is given, a Grant Approval Certificate will be issued by MAF. This will be issued by 30 June in the year that the first erosion treatment commences.
The Grant Approval Certificate details what treatment(s) have been approved, how much money per hectare will be paid and when the payments will be made.
Covenant
Successful applicants will be required to register a covenant against their land title. A covenant is a legal arrangement between two or more parties that offers benefits to those parties and specifies certain actions or constraints. A non-use agreement may be signed in lieu of a non-use covenant at the discretion of the Secretary of Forestry after consultation with the Department of Conservation.
The covenant is registered against the land title and binds current and future landowners for its term. Successful applicants have the choice of three forms of covenant:
- an ECFP covenant administered by MAF
- a Queen Elizabeth II National Trust covenant
- a Ngā Whenua Rāhui covenant.
All covenants are to be of 50 years' duration and will cover areas for which the grant is made and existing vegetation within treatments.
If a grant is given for planting trees or poles, the covenant will require that the landowner maintains the erosion control effectiveness of the planted area for the period of the covenant. This will mean replanting following harvesting or maintaining, or replacing trees and poles when they die.
Where trees or poles are planted, all stock or certain classes of stock may need to be excluded during the establishment phase. The covenant will detail the stock grazing requirements relevant to the type of treatment being carried out.
Payment schedule
The Government makes grant payments provided that the landowner has completed the erosion treatment in accordance with the approval certificate. The Government's commitment can be transferred if the land is sold and if the new owners wish to continue the approved work schedule.
After the erosion treatment has been completed, a claim for payment should be submitted to MAF. The claims should be made in the years identified in the work schedule. Claims must be certified by the applicant's company auditor or a chartered or practising accountant.
A claim for payment for establishment will be considered a minimum of six weeks after control of grass around newly established trees has been carried out.
MAF will generally make payments within 30 days of receiving a claim and audit. A covenant will need to be registered against the land title before an establishment claim can be paid.
Grants will be paid in two instalments.
- For forestry treatments involving radiata pine, Douglas fir and other approved species:
- 70 percent will be paid following the completion of establishment and registration of the covenant
- 30 percent will be paid after mandatory thinning.
- For all pole planting:
- 80 percent will be paid following the completion of establishment and registration of the covenant
- 20 percent will be paid in the third year after establishment.
- For the indigenous reversion treatment:
- 50 percent will be paid in the first year and registration of the covenant
- 50 percent will be paid in the fifth year.
Income tax
Grant payments are treated as grants to businesses under section DF1 of the Income Tax Act 2004. The grant is made by the Government under a contract at an approved value and is not a reimbursement of costs. Other spending relevant to grant operations should be accounted for under normal accounting procedures in the year incurred.
MAF will advise Inland Revenue of all grant payments.
| Goods and Services Tax (GST) |
|---|
| All grant applications are calculated on a GST-exclusive basis. GST is added to the grant payment and must be accounted for in the usual way. |
Quality control auditing
MAF will audit the annual claims for payment to make sure that agreed work is completed to an acceptable standard and in accordance with the approved treatment plan. For instance, if a block has a poor survival rate, or the stocking rate is too low or is grazed or thinned early, the effectiveness of the erosion control treatment will be reduced. In such circumstances, a grant payment may be withheld.
Establishment payments for planted trees or poles will be made following field audits to assess survival. Payment will be based on the following:
- full payment for survivals above 85 percent
- pro rata payments for 50–85 percent survival
- no payment for survivals below 50 percent.
Audits will be undertaken of indigenous reversion treatments to check that:
- fences are being maintained and livestock is excluded from the grant area
- good progress has been made towards attaining adequate indigenous cover capable of providing effective erosion control.
Withheld money will be paid upon satisfactory remedial work being carried out to achieve the required survival rates.
Failure to carry out any stage of the agreed work schedule will result in the grant instalment for that stage not being paid. No further payments will be made until the work agreed on is completed.
Although the grant is to be paid on the basis of the approved application, applicants may be required to provide evidence of related spending for audit purposes and to ensure MAF pays the grant to the correct recipient.
Variation of the Grant Approval Certificate
A variation to the treatment will be considered subject to the suitability and effectiveness of the changes requested.
Requests will be considered for an extension of up 25 hectares for an approved area, as long as the area is contiguous to the approved area and provides more effective land stabilisation boundaries.
Transfer of the Grant Approval Certificate
Where the land with a Grant Approval Certificate is sold or transferred to a new landholder who wishes to continue the approved work schedule, MAF is able to transfer the Grant Approval Certificate to them.
Contact for Enquiries
East Coast Forestry Project
Ministry of Agriculture and Forestry
Cnr Grey St & Childers Rd
1st Floor ZGFM Building
PO Box 2122
Gisborne 4040
Tel: +64 6 986 8691
Fax: +64 6 986 8697
Contact this person
