6.3.e Distribution of revenues derived from forest management

Rationale

This indicator provides information about the flow and distribution of revenues from forest services, management and use back into forest-based communities, wider society and the forest sector. The distribution of those revenues provides information on the extent to which forest- based communities, the forest sector and the wider society share in the economic benefits generated by forests.

Current state

Information is available on annual revenue for the commercial forest industries and for revenue received by government. Information is not readily available on revenue from the production of non-wood products or for environmental services from New Zealand’s forests.

Commercial forest management and wood-based products

For “Wood product manufacturing” and “Paper and paper product manufacturing”, the income received is all by private enterprises: the description covers a range of listed and privately owned international and domestic companies.

In 2012, some $1240 million was paid in salaries and wages to employees and working proprietors. Purchase and other operating expenses was $5748 million in 2012. No information is available on the distribution of profits or dividends.

For forestry and logging, ownership covers a  broad range of overseas-owned timber investment management organisations (TIMOs), listed and privately owned international companies, privately owned domestic companies, partnerships, joint ventures, private investors and central and local government agencies. Again, no data are available on the distribution of profits and dividends, other than from central government owned forests. For salaries and wages to employees and working proprietors, $278 million was paid in 2012. There was significant growth in this grouping over the period with intermediate consumption increasing to $2425 million in 2012.

State forestry

Crown Forestry - a unit within the Ministry for Primary Industries (MPI), but with a significant commercial function - administers the Crown’s interest in forestry leases on Māori land, residual Crown forest and other forestry assets. Consistent with government policy, Crown Forestry also seeks opportunities for the Crown to sell its interest in these assets, and works with the Office of Treaty Settlements to resolve Treaty of Waitangi claims over the Crown forestry assets it administers.

Crown Forestry’s commercial forestry business will deliver estimated revenues of $115.9 million with expenditure of $96.6 million during 2013/14. Trading surpluses are projected to remain reasonably steady (over $10 million) until about 2020. On the basis of net stocked area, Crown Forestry is currently the seventh largest forest owner in New Zealand.

All Crown Forestry net revenues (after paying whatever contractual obligations are owed to other parties) are paid to the Crown accounts.

The Department of Conservation (DOC) administers the conservation estate, including 5.5 million hectares of indigenous forest and small areas of inherited plantations from which periodic revenues are obtained.

DOC’s major source of commercial income is from licences and royalties paid by concessioners operating in the conservation estate and from partnering with businesses. Engagement of the commercial sector in conservation is increasing, with businesses entering new partnerships with DOC and building on established relationships (Department of Conservation, 2013). Total revenue from all concessions and partnerships was only $17.1 million (2011/12) and $18.6 million (2012/13). Reported trends in DOC’s financial activity in the 2014 Budget indicate that concession and partnership revenue is likely to remain around this level at least until 2017/18.

Environmental services

Most environmental services generate little revenue and data are limited.

Trends

In 2006, some $1241 million was paid in salaries and wages to employees and working proprietors; in 2012, salaries and wages were $1240 million. Purchase and other operating expenses increased from $5129 million in 2006 to $5748 million in 2012. The relatively small change to either compensation of employees or to operating expenses for wood and paper product manufacturing over this five-year period is consistent with the fact that there was little growth to output from either over this period.

For forestry and logging, ownership covers a  broad range of overseas-owned timber investment management organisations (TIMOs), listed and privately owned international companies, privately owned domestic companies, partnerships, joint ventures, private investors and central and local government agencies. Again, no data are available on the distribution of profits and dividends, other than from central government owned forests. For salaries and wages to employees and working proprietors, $239 million was paid in 2006 compared with $278 million in 2012. There was significant growth in this grouping over the period with intermediate consumption increasing from $1621 million in 2006 to $2425 million in 2012.

 

Trend Status

Data Quality L

Supporting Material:

Share this page!

Was this page helpful?