Biosecurity Levy Application 2018

The Levy application was submitted to MPI on the 20th of December 2018.  Currently being considered by MPI.

On behalf of the plantation forest industry, the FOA is the forest industry representative on the GIA deed and is the industry organisation to which the proposed biosecurity levy is to be payable under any Biosecurity Levy Order. A copy of the Government Industry Agreement for Biosecurity Readiness and Response (GIA) can be accessed from the link below.

Potentially the greatest threat to the plantation forest industry is a biosecurity incursion. An incursion could affect all growers and does not respect boundaries, ownership or size. Effective management of an incursion requires government and forest growing sector collaboration via the sector Government Industry Agreement (GIA). It is proposed that the Forest industry GIA response will be initially funded by borrowings from commercial entities, with a levy under the Biosecurity Act acting as collateral and subsequently being invoked to service any loan.

Due to the long time period for a forest crop to mature and be harvested, a dual levy is proposed on seedlings / cuttings and on harvested wood products. This is seen as spreading the levy take more equitably over the forest industry.

It is proposed that the biosecurity levy on seedlings / cuttings will be 1 to 4c per seedling/cutting. In conjunction with a biosecurity levy on harvested wood products of 10 to 26c per tonne, the levy has been structured to bring in a maximum of approximately $10m/yr, based upon an assumption that harvest is 34 m m3/annum, resulting in 63,000 ha replanting, and with new planting of 40,000 ha per annum.

The levy will initially be set at zero until incursion costs are incurred under the GIA agreement.

It is emphasised that FOA is to be a trustee for the forest growing industry i.e. current and potential levy payers, in respect of the application of the biosecurity levy funds via the Forestry GIA agreement. This is reflected in the structure of the FOA Executive which has representatives from large, small and farm forestry sections of the industry.

Links to documentation:

If you wish to discuss the Plantation Forest Industry Biosecurity Levy proposal please contact:

Glen Mackie, - Technical Manager, FOA, 04 473 4769, 027 445 0116