Friday, March 29, 2024

Treasury shares forestry review focus

Neal Wallace
The Treasury has released the terms of reference into a review of Overseas  Investment Act (OIA) regulations, which ease the process for foreign forestry investors to buy land.
To date, 30 students throughout NZ have received scholarships since 2018.
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Foreign investors own nearly 70% of New Zealand forest plantations but in 2018 the Government changed the way they were screened by the Overseas Investment Office (OIO) in recognition of the importance of that investment to the sector and to support projects such as the One Billion Trees programme.

The legislation has been criticised by rural leaders for enabling foreign investors to buy pastoral land for conversion to forestry, as well as extending their ownership of existing plantations.

Farmers Weekly revealed this month that since 2018 the legislation has allowed foreign investors to buy 30 farms covering 32,644ha for conversion to forestry, along with another 35 existing forestry blocks covering 111,517ha.

The Government has announced its review will look at whether the changes achieved the original intent and are aligned with other government objectives and work programmes.

Those objectives and programmes include domestic wood processing, changes to the national environmental standards for plantation forestry, the Emissions Trading Scheme (ETS), emission reduction, the One Billion Trees programme and reform of the Resource Management Act (RMA).

A report is not expected to be ready for the minister until late next year 

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