Changes to overseas investment rules for forestry are a good start but Government needs to do more, farming groups say.
Today the Government announced it is taking steps to ensure forestry conversions by overseas investors are of better benefit to New Zealand.
The changes to the Overseas Investment Act 2005, approved by Cabinet, meant that proposals by overseas investors to acquire land for conversion to production forestry would be considered under the Benefit to New Zealand test - rather than under the streamlined "special forestry test," Associate Minister of Finance David Parker said in a statement.
Ending the streamlined forestry test was an important first step in addressing the issue of wholesale farm conversion for carbon farming and showed the Government had listened to rural communities' concerns, Beef + Lamb New Zealand (B+LNZ) chief executive Sam McIvor said.
However, it was only the first step of many, he said.
"The recent report by Lawrence Yule made it clear there is a range of policy mechanisms that need to be adjusted to address this issue.
"The special forestry test was one mechanism identified. While it is positive the Government has now moved to fix this area, this alone won't fix the problem."
OIO sales only accounted for around 20 per cent of the sheep and beef farmland that had recently been sold for conversion into forestry, McIvor said.
Beef + Lamb New Zealand chief executive Sam McIvor. Photo / Supplied
"B+LNZ's primary position has long been that the Government needs to change the Emissions Trading Scheme (ETS) to include limits because that's the legislation that's causing the problem."
B+LNZ had raised concerns for some time about the speed and scale of land-use change caused by fossil fuel emitters planting exotic trees on sheep and beef farmland for offsetting, rather than reducing their emissions, McIvor said.
"New Zealand is the only country in the world with an ETS that allows unlimited forestry offsetting and both the Climate Change Commission and the Parliamentary Commissioner for the Environment have recommended that limits are needed.
"B+LNZ is not anti-plantation forestry. We are particularly concerned about whole farms being planted just for carbon. We have always seen significant opportunities for the integration of exotic and native trees on-farm, but this should not come at the expense of rural communities."
Meanwhile, Federated Farmers meat and wool chairman William Beetham echoed McIvor's statement.
"We're glad the Government is listening and taking action. But more must be done."
Federated Farmers meat and wool chairman William Beetham. Photo / Supplied
Feds supported the "right tree, right place" philosophy and agreed there was an important role for production forestry; as well as farmers who chose to integrate more sequestration by planting out marginal land on their properties.
"What we oppose is interventionist Government policies - and in particular ETS settings - that lead to a skewed, unfair playing field.
"Employment and the viability of rural communities are being destroyed as good production farmland is blanketed in pines in a chase for short-term profit," Beetham said.
The Bill is expected to be introduced to Parliament in a few months. At the same time, some minor and technical improvements will be proposed to the Act to help with the operation and effectiveness of 2018 forestry-related changes.
