16 October 2026
Forestry rates blowout after Council modelling error
Forest owners in Carterton District could face even steeper rates increases after the District Council admitted errors in the modelling behind its controversial rating proposal.
The New Zealand Forest Owners Association (NZFOA) says the correction shifts an even greater share of roading costs onto forestry, despite the original proposal already showing rates increases of up to 1200 per cent.
NZFOA chief operating officer Joseph Brolly says forest owners are being asked to shoulder an extraordinary financial burden, with the latest changes raising concerns about the consultation process.
“Forest owners were already facing rates increases of tens of thousands of dollars a year more in some cases,” Brolly says.
“For a medium-sized 300-hectare forest, the proposed increase would take annual rates from $8,700 to $107,700 – more than 12 times the current Bill. Now the Council has acknowledged a modelling error that could make that situation even worse.”
“Increases of this magnitude threaten the viability of all forestry businesses and put at risk the jobs, local spending and economic activity they support in rural communities. “
Juken New Zealand chief forest officer Sean McBride says the proposed rates fail to adequately reflect the long-term nature of forestry and existing contributions to road funding from the sector.
“Forestry, like any major road user, has a responsibility to contribute to maintaining local roading infrastructure, particularly during harvest. Log trucks already pay road user charges (RUC) to contribute to the wider funding of the roading network.”
“But forests can go decades without generating logging traffic, while owners face rates bills every year. Increases of this magnitude will make it harder to justify investing in forestry in the district.”
Roger Dickie NZ Director Jeff Dickie says the implications could extend well beyond Carterton if other councils adopt similar approaches.
“Forestry investors make decisions based on costs and returns over decades.”
"You can't impose rates increases of this scale halfway through an investment and expect it won't affect the outcome.”
“If councils across New Zealand follow Carterton's lead, it's going to make investors think twice about whether they invest in the fourth-largest food and fibre export earner – one that employs over 40,000 Kiwis.”
Brolly says errors in the Council’s modelling have led to further changes to the proposal, raising concerns about the fairness of the consultation process, with affected forest owners now having less than two weeks to respond before the 26 October deadline.
“Given the scale of the proposed increases and the implications for forestry businesses, forest owners should have a fair opportunity to understand and respond to the revised modelling. NZFOA is calling on the Council to extend consultation before making a final decision.”
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