Forestry Venture Scuttled by ETS
A week before an agreement was to be signed with a well-known tree propagator, a big multinational group apologised and withdrew. They explained that the government had made it impossible for the venture to profit in New Zealand, because of the emissions trading scheme (ETS).
Jim Peel, the nurseryman affected, observed that “the stupid ignorant carbon trading concept heavily penalises tree harvesting, despite the huge amount of carbon that is soaked up by forestry”.
Such strong disincentives for any tree re-planting would see the area of forest in New Zealand steadily reducing, achieving a result exactly opposite to any intent of capturing more carbon.
The multinational group was expected to hire Mr Peel's tree farm and tree nursery services for some years. Much of the Peel's 120 acre farm was going to be put into trees for New Zealand timber, and the nursery was to supply the group's other big properties including hundreds of acres in Northland and Gisborne.
Peels are well known for their propagation of trees, including the chestnuts and black walnuts they specialise in. A hybrid black walnut they developed for FRI was the fastest growing walnut timber tree in NZ. Their diverse range of paulownias, eucalypts and many other mixed woodland forestry species should have been a great export earner for New Zealand, and been a good retirement provider for Jim.
However, government has demonstrated how to achieve idiotic outcomes despite starting out with presumably the best of intentions. The opportunity for a significant timber export industry had been lost.
Bay of Plenty Correspondent
NZTCA December 2009
