COMBATING DEFORESTATION

Decision-Making: The Government has signaled its desire to promote investment in forest growth through its
taxation regime. New Zealand's tax system is such that the costs incurred by a forestry business in planting, tending
and maintaining a crop of trees are fully deductible from income of any source in the same year costs are incurred.
This system replaced the previous system whereby forest growing costs were deferred until an income was
generated from the harvest of that forest. Thus, forest product businesses are now treated in the same way as other
businesses in terms of taxation. Voluntary measures that enhance the protection and sustainable management of
New Zealand's forest resources include the New Zealand Forest Code of Practice and the New Zealand Forest
Accord. The Forest Heritage Trust Fund and Nga Whenua Rahui were established by Government to help achieve
the objectives of the Government's Indigenous Forest Policy.
The Imported Tropical Timber Group (ITTG) was formed in response to concern by the New Zealand public,
timber trade and conservation NGOs over the link between the import of tropical timbers and unsustainable logging
of tropical forests. Since 1991, the ITTG, representing New Zealand conservation organisations, timber importers,
and building supply retailers, with the Ministry of Forestry as observer, has been assisting the transition of the New
Zealand trade to certified sustainable sources of imported tropical timbers.
Programmes and Projects: No information available.
Status: New Zealand's forests cover about 28% (or 7.5 million hectares) of the country's land area. Of this, 6.2
million hectares is natural forest, and 1.3 million hectares, planted forest. The area of planted forest is currently
increasing at about 80,000 hectares per annum, and this rate may be maintained for the next 20 to 30 years. If this
happens, New Zealand's planted forests would account for more than 4 million hectares by 2020.
The State owns 4.9 million hectares of the country's natural forest. Most of this is managed for conservation values.
Only 164,000 hectares of it is managed for wood production. Under the Forest Amendment Act 1993, areas of
natural forest that are used for production must be managed in way that maintains the ability of the forest to
continue to provide a full range of products and amenities in perpetuity while retaining the forest's natural values.
The ownership of New Zealand's planted forests has undergone considerable change since 1990, with the sale of
timber and management rights to much of the State's forest resource. Before 1990, the State owned about half the
planted forest. From 1 April 1993, the State owned, or had a commitment to manage, about 20% of the resource. Of
the balance, three-quarters is owned by seven major corporations, with considerable offshore investment, while
about one-quarter is owned by small companies, local government bodies, partnerships, joint ventures, and farmers.
Maori are significant players in the New Zealand forestry sector. There are approximately 7,000 hectares of Maoricontrolled
forest, and a further 140,000 hectares of forestry on Maori-owned land. In some regions of New Zealand,
this involvement is more significant, for example in Northland, where Maori forestry holdings make up more than
25% of the planted estate. Increasingly, Maori see forestry as a significant vehicle for sustainable capital
development to benefit both current and future generations and, in some of the Maori areas, new tribal-based forest
companies are emerging.
Capacity-Building, Education, Training and Awareness-Raising: Universities and tertiary educational
institutions are responding to student interest in forestry by developing an array of forestry-related courses.
Information: Domestically, forests are included in New Zealand's National Environmental Indicators Programme
being coordinated by the Ministry for the Environment.
Research and Technologies: On 1 July 1992, a Crown Research Institute called the New Zealand Forest Research
Institute was established to carry out research for the development of New Zealand's forestry products. Research on
sustainable management of land resources is provided by other Crown Research Institutes, including Landcare Research Limited. Forestry is one of the priority areas for science funding, with special emphasis given to forest
processing research.
Financing: No information available.
Cooperation: New Zealand is actively involved in the Montreal Process to develop indicators of sustainable forest
management.