Pre-1990 forest land allocation: Consultation and process
22 October 2009
Introduction
The Climate Change Response Act 2002 (the Act) establishes the NZ Emissions Trading Scheme (NZ ETS). Emissions arising from the deforestation of more than 2 hectares of exotic pre-1990 forest land after 1 January 2008 are automatically included in the NZ ETS unless the land has been exempted. To offset some of the impact of the NZ ETS, the Act requires New Zealand Units (NZUs) to be allocated to eligible owners of pre-1990 exotic forest land.
Each eligible landowner will be given 18, 39 or 60 units per hectare depending on when and how they acquired the land. The rules determining land and landowners’ eligibility to receive an allocation are outlined in the Act, with some details to be outlined in the Pre-1990 Forest Land Allocation Plan (which is currently being consulted on).
The forestry allocation has significant value. Landowners will not be obliged to apply for either an allocation of NZUs or one of the available exemptions but it may be in their financial interests to do so. The Government expects most, if not all, eligible landowners will apply for either an allocation or an exemption.
Indigenous forests are not subject to the deforestation provisions of the NZ ETS and therefore do not receive an allocation.
New consultation on the pre-1990 forest land allocation
Pre-1990 Forest Land Allocation Plan (Consultation Draft) (October 2009) has been released for the allocation of New Zealand Units (NZUs) to owners of pre-1990 forest land. Further details on the aspects of the allocation plan being consulted on, and information on how to submit are provided below.
The Consultation Draft supersedes the Draft Forestry Allocation Plan released in October 2008. All submissions received in response to the 2008 Draft Plan were carefully considered. Where supported by the Government, options put forward in previous submissions have been included in the current proposed changes.
A new allocation plan is required because of the changes to the forestry provisions of the ETS that are proposed in the Climate Change Response (Moderated Emissions Trading) Amendment Bill currently being considered by the Finance and Expenditure Select Committee (see Sustainable Forestry Bulletin Issue 8 for further details). Note that current legislation and regulations still apply until changes are passed into law by Parliament.
Aspects of the Pre-1990 Forest Land Allocation Plan being consulted on
The Consultation Draft follows the revised policy and process requirements included in the Amendment Bill.
Feedback is currently being sought on the following aspects of the allocation plan:
- Which landowner should receive an allocation of units if forest land was recently sold?
- When does a shareholding change become an ownership change, and how to determine when ownership was transferred?
- What information should be provided with applications?
- What records must be kept and for how long?
These elements of the allocation plan will not be in the Act, once the Act is amended.
Information about the Consultation Draft will be advertised around the country and placed in MAF’s Sustainable Forestry Bulletin. MAF will also consult directly with sector representative bodies and Māori leadership.
How to make a submission
You can make submission on the Pre-1990 Forest Land Allocation Plan (Consultation Draft) using the form attached at the back of the document.
Submissions can be made by:
Post: FAP Submissions,
Ministry of Agriculture and Forestry,
PO Box 2526,
Wellington 6140.
Submissions close on Sunday 22 November 2009.
Finalisation of the allocation plan
Following the public submission period, a report on the submissions will be prepared. Subject to the Amendment Bill being enacted, the Minister will then recommend to the Governor-General that a finalised Pre-1990 Forest Land Allocation Plan be issued.
Once the Allocation Plan is issued, a public notice will invite people to apply for an allocation.
Public meetings and information on allocation and exemption options
Once the finalised Allocation Plan has been issued, MAF plans to hold public meetings around the country in the 1st half of 2010 on forestry in the ETS, and allocation and exemption options. The meetings will be held before the deadline for applications for an allocation or an exemption close.
MAF will also put an information document about the pre-1990 forest land allocation and exemption policies on its website.
This is the time when landowners will need to make sure they are adequately informed to make their decision (if eligible) about applying for an allocation or an exemption. Landowners may like to seek independent expert advice at that time.
Distribution of units
Upon receiving applications, the Minister will decide (based on the criteria in the Allocation Plan) whether the person is eligible to receive an allocation, the total number of NZUs to be allocated to the person and the year(s) in which the person will receive their NZUs.
A person who has made an application for an allocation will have at least another 20 working days to supply further information to correct any errors or miscalculations in the Minister’s decision. A final decision will then be provided to them, and published in the Gazette, and the NZUs transferred.
Timeframe
An indicative timeframe is given below for the forestry allocation and exemption process. The dates given (except those that are in bold) are all subject to review and will be reassessed when the finalised Allocation Plan is issued.
| Indicative Dates | Activity |
|---|---|
| 16 November 2009 | Select Committee reports back to Parliament |
| 22 November 2009 | Close of submissions on the Consultation Draft |
| November/December 2009 | Consultation on regulations required to implement the pre-1990 tree weed exemption and on assessment criteria for prioritising applications. |
| December 2009 | Amendment Bill enacted |
| December 2009 | Order in Council issuing the finalised Pre-1990 Forest Land Allocation Plan |
| March/April 2010 | Information seminars held around NZ |
| Tentatively April 2010 | Public Notice calling for applications for an allocation and for tree weed exemptions |
| 1 July 2010 (if this date remains fixed in the act) | Closing date for applications for less-than-50ha exemptions. This might also be the first closing date for a tree weed exemption application. |
| Tentatively 30 June 2011 | Closing date for applications for an allocation |
More information
If you have questions about the pre-1990 forestry allocation or deforestation exemptions from the NZ ETS, you can phone the Climate Change Contact Centre on 0800 CLIMATE (254 628).
You can find more information on the forestry elements of the New Zealand Emissions Trading Scheme (NZ ETS) at www.maf.govt.nz/sustainable-forestry, including A Guide to Forestry in the Emissions Trading Scheme.
Contact for Enquiries
Emissions Trading Scheme
Ministry of Agriculture and Forestry
PO Box 1127
Wellington
Or call us on 0800 CLIMATE (254 628)
