What does it take? The role of incentives in forest plantation development in Asia and the Pacific

ANNEX 1: SUMMARY OF PLANTATION FORESTRY INCENTIVES AND DISINCENTIVES IN NEW ZEALAND

Year	Description	Purpose	Funding	Target source	Cost group	Impact on plantation development
Prior to 1870
1858	Reimbursement of costs if lease terminated	On-farm wood supply	Regional government	Landowners	Unknown	Low
1870-1918: Incentives
1871	Grants of land, reduced rentals, or land orders	Local timber supply and shelter	Central and regional governments	Landowners	Unknown	Low
1870s	Grants of government land	Regional timber supply	Central government	District government	Unknown	Medium
1896	Establishment of afforestation branch of Lands Department	Conservation of indigenous forests via plantations	Central government	Central government	Unknown	Low
1986	National conference	Develop strategy	Central government	All stakeholders	Low	Medium
1915	Seedlings provided at cost price	Promote afforestation	Central government	Landowners	Unknown	Medium
1918	Indigenous timber controls	Limit depletion of native forest	Central government	Indigenous industry	Zero	Low
1870-1918: Disincentives
1874	Focus on indigenous forest management with some afforestation	National timber supply	Central government	Lands Department	£10 000 for 10 years	Low
1870 to early 1900s	Lack of political commitment to forestry					Medium
1919-1938: Incentives
1919	Government forestry department	Professional forest management	Central government	Central government		High
Early1920	National forest inventory and strategic planning	Sustainable wood supply	Central government	Forest industry	Unknown	High
1920s	Research on species, establishment and products	Successful afforestation	Central government	Forest industry	Unknown	Medium
1920s	Sale of seedlings at cost price	Encourage planting	Central government	Landowners	Unknown	Medium
1920s	Forestry extension	Encourage planting	Central government	Landowners	Unknown	Low
Mid-1920s to mid-1930s	Bond sales	Capital for land purchase, planting and maintenance	Private industry	Small private investors	Unknown	High initially, later negligible
Early1930s	Subsidized tree planting	Employment	Central government	Unemployed	Unknown	Medium
1930s	Construction subsidies	Development of affordable housing	Central government	Construction industry	Unknown	Medium
1919-1938: Disincentives
1928-1934	Oversupply from indigenous forests					Medium
1928-1934	Competition from imports					Medium
Early 1930s to 1934	Abuse of bond sales					Medium
1939-1958: Incentives
Late 1930s and 1940s	Government development of harvesting practices and wood utilization	Consolidating viability of plantations and demonstrating utilization and marketing of new products	Central government	Forest industry	Unknown	High
1948	Dedicated forest research institute	Research	Central government	Forest industry		Medium (in this period)
1949	Tax deductions	Encourage afforestation	Central government	Landowners	Indirect	Low
1950s	Direct financial assistance plus supply of wood at low cost	Establish large-scale processing	Central government	Private company	£14 million setup plus 50% of other costs	Medium
1950s	Infrastructure development	Facilitate processing and forestry development	Central government	Forest industry	Unknown	High
1946 to 1955	National forest survey	Assess indigenous resource and merchantable area	Central government	Central government		High
1939-1958: Disincentives
Mid-1930s to 1950s	Price controls	Low-cost timber for housing	Forest industry	Construction industry and citizens	Unknown	High
1930s to 1960s	Supply of subsidized indigenous wood	Maintain domestic supply	Central government		Unknown	High
Late 1950s	Tax legislation (refer to next period)		Central government	Forest industry	Unknown	Medium on replanting
1959-1984: Incentives
1959	Wood demand and supply analysis	Ensure national wood supply needs	Central government	Central government	Unknown	High
1959	Log exports	Increase returns to growers				Medium
1965	Taxation incentives	Encourage forestry	Indirect	Private companies	Indirect	Medium
1960s to 1980s	Forestry extension	Encourage private forestry	Central government	Landowners	Unknown	Low
1962 to 1984	Loans and grants schemes	Encourage private forestry	Central government	Landowners	Varied (see table)	Medium
1967 to 1985	Mâori land lease arrangements	Encourage afforestation on Mâori land	Central government	Mâori	Moderate	High
1969 to 1981	Government - industry planning	Establish common goals and commitment	Central government and industry	Forest and industry government	Unknown	Medium
1960s to1980s	Research	Analysis of databases and communication of results	Central government	Forest industry	Government Institute’s budget was NZ$12 million in 1980	High
1983	Forestry Rights Registration Act	Facilitate investment		Forest industry and landowners	Low	Low
1980s	High quality resource information	Policy making, forecasting, planning, monitoring	Central government and industry	Forest industry, government	About NZ$300 000 per year (2002)	High
1970s	Training and 1980s	Create skilled workforce	Central government and industry	Forest industry	Unknown	High
1959-1984: Disincentives
1970s and1980s	Forestry conflict with farming and environmental movement					High
1977 to 1991	Land-use planning legislation	Protection of land with high value for food production	Central government	Land developers/ landowners	Unknown	Medium
1984-2002: Incentives
Mid-1980s	General economic reform	Establish a market-based and enabling economy		Economy wide initially	High social costs highly positive	Negative initially, then
Mid-1980s	General removal of direct incentives	Create “level playing field” and international ensure competitiveness		Economy wide		High
1988 to 1996	Sale of government plantation forests	Reducing public debt		New Zealand and international investors		Medium
1989	Removal of extension service	Remove government competition with private consultants		Ministry of Forestry		Low
1991	New Zealand Forest Accord	Establish common understanding between industry and environmental groups	Industry and environmental groups	Forest industry and environmental groups	Unknown	Medium
1993	New indigenous harvesting legislation	Sustainable ecosystem management	Central government	Forest industry	Unknown	Low-medium
2001 to 2002	Wood Processing Strategy	Remove barriers to domestic processing	Central government and industry	Forest industry	Unknown	Full impact yet to be determined
1984-2002: Disincentives
1987	Requiring costs to be capitalized instead of deducted against taxable income when incurred	Establish neutral taxation regime with respect to other land uses		Forest industry		Strongly negative
1991 to 2002	Implementation of the Resource Management Act	Sustainable management of resources		Landowners and managers		Low-medium
2002	Climate change policy	Reduce CO₂ emissions		Economy wide		Yet to be determined