A series of webinars on the Levy Vote 2024 is underway, hosted by the Forest Owners Association (FOA) and Forest Growers Levy Trust (FGLT).
The Harvested Wood Material Levy is paid by every plantation forest owner in New Zealand when their trees are harvested.
Money raised by the levy is used to support work for the collective benefit of the industry. The levy supports research and development work, health and safety initiatives, biosecurity protection, forestry advocacy and promotion and a host of other work programmes to help support forest growers and New Zealand forestry.
At present every tonne of wood harvested from a plantation forest is levied at 33c per tonne. The levy is collected at the port or sawmill and the funds and work programme are managed by the FGLT. It is proposed that the levy rate be potentially increased in the next six-year levy term to support a larger work programme and do more to invest in the future of New Zealand forestry and meet the new challenges facing the industry.
The industry is required by legislation to vote every six years to decide whether to continue with the levy and at what rate. The vote will be held from October 1-31 this year.
The Harvested Wood Materials Levy was first established in 2013 after extensive consultation with the industry. The first levy order was voted in and ran from 2013-2019. The industry then voted to continue the levy for another six years from 2019 to 2025.
The current levy order expires in November 2025, but the Ministry for Primary Industries has advised that the referendum vote must be completed by October of this year. If voted back in, the next levy order will run for another six years from November 2025 to November 2031.
The levy focuses on industry good work for the collective benefit of NZ forest growers. Prior to the levy there was a volunteer contribution system to raise funds, resulting in a small pool of funds and a problem with fairness and equity in terms of contributors and those who benefitted. The scope of work completed for the industry has also significantly increased.
For more on the Levy Vote and to join one of the remaining two webinars on 21 and 31 July visit: https://fglt.org.nz/the-levy/levy-vote-2024