Ordinary meeting of the

Forestry Subcommittee

Date:		Tuesday 1 December 2020
Time:		3.00p.m. 
Location:		Rūma Waimārama, Floor 2A, 
			Civic House, 110 Trafalgar Street, Nelson

Agenda

Rārangi take

Membership      Mr John Murray (Chairperson)

                          Her Worship the Mayor Rachel Reese

                         Councillor Kate Fulton

                         Councillor Tim Skinner

                         Independent Forestry Expert, Peter Gorman

                         Group Manager Infrastructure, Alec Louverdis

Team Leader Parks and Facilities Activity Management, Paul Harrington

 

Quorum: 4, comprising the Chair and one elected member (decision makers), plus one Council officer and the independent forestry expert (for advice only)

 

 

Pat Dougherty

Chief Executive

 

 

 

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee Agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision.


Excerpt from Nelson City Council Delegations Register(A11833061)

Forestry Subcommittee

This is a subcommittee that reports to Council.

Areas of Responsibility:

·                              All matters relating to the commercial forestry operational portfolio including environmental and recreational issues

Powers to Decide:

·                              In accordance with Council’s Annual Plan and Long Term Plan:

o        Approval of forestry and harvesting management strategy and plans

o        Approval of the engagement of contractors/consultants and forestry tenders

Powers to Recommend to Council:

·                              Any actions relating to the oversight of all matters relating to the commercial forestry portfolio, falling outside the powers to decide, including:

o        Approval of forestry related budgets; and

o        Any other matters relating to continuing commercial forestry operations.

For the Terms of Reference for the Forestry Subcommittee please refer to document A1739267.

 


Forestry Subcommittee

1 December 2020

 

 

Page No.

 

1.       Apologies

Nil

2.       Confirmation of Order of Business

3.       Interests

3.1      Updates to the Interests Register

3.2      Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Confirmation of Minutes

5.1      29 September 2020                                                                        6 - 9

Document number M15167

Recommendation

That the Forestry Subcommittee

1.    Confirms the minutes of the meeting of the Forestry Subcommittee, held on 29 September 2020, as a true and correct record.

  

6.       Chairperson's Report  

7.       Draft 2021-31 Forestry Activity Management Plan      10 - 60

Document number R20298

Recommendation

That the Forestry Subcommittee

1.    Receives the report Draft 2021-31 Forestry Activity Management Plan (R20298)  and its Attachment (A2072414); and

2.    Approves the Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to be forwarded to Council as the version to inform the Long Term Plan 2021-31.

 

Recommendation to Council

That Council 

1.    Approves the Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to inform the Long Term Plan 2021-31; and

2.    Notes that the Draft Forestry Activity Management Plan 2021-31 will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

 

 

8.       Forestry Stewardship Council Management Plan - Deliberations                                                                               61 - 205

Document number R20333

Recommendation

That the Forestry Subcommittee

1.    Receives the report Forestry Stewardship Council Management Plan - Deliberations (R20333) and its attachments (A2476873 and A2514843); and

2.    Determines having considered the written and oral submissions that the proposed amendments to the Forestry Stewardship Council Management Plan as set out in Attachment 2 (A2514843) of Report R20333 be accepted; and 

3.    Agrees to seek Forestry Stewardship Council accreditation for Nelson City Council’s forestry estate.

 

 

9.       Forestry Update - Number 14                                 206 - 217

Document number R20334

Recommendation

That the Forestry Subcommittee

1.    Receives the report Forestry Update - Number 14  (R20334) and its Attachments (A2518534, A2518573 and A2518533).

 

       

 (delete as appropriate)

 

 

  


Forestry Advisory Group Minutes - 29 September 2020

 

 

 


Minutes of a meeting of the Forestry Advisory Group

Held in the Rūma Waimārama, Floor 2A, Civic House, 110 Trafalgar Street, Nelson

On Tuesday 29 September 2020, commencing at 3.00p.m.

 

Present:              Mr J Murray (Chairperson), Her Worship the Mayor R Reese, Councillor R Sanson, Mr A Louverdis (Group Manager Infrastructure) and Mr P Gorman (Independent Forestry Expert)

In Attendance:    Councillor T Skinner, PF Olsen representative (S Nuske), LandVision Ltd representative (L Grant) and Governance Adviser (J Brandt)

Apologies :          Nil

 

 

1.       Apologies

There were no apologies.

2.       Confirmation of Order of Business

There was no change to the order of business.

3.       Interests

No interests with items on the agenda were declared.

Councillor Sanson, having sought legal advice, retracted an interest declared at the previous meeting regarding logging trucks passing schools – noting that this was relevant in relation to agenda item 8 (Forestry Update – Number 13).

Mr Murray noted updates to the interest register as follows:

·    First NZ Properties Limited – Director

·    Superstore Properties Limited – Director

·    Springs Road Property Limited – Director

·    Cameron Road Properties Limited – Director

·    Symonds 110 Limited – Director

·    Cranford Street Properties Limited – Director

 

4.       Confirmation of Minutes

4.1      30 June 2020

Document number M11985, agenda pages 5 - 9 refer.

Resolved FAG/2020/023

 

That the Forestry Advisory Group

1.    Confirms the minutes of the meeting of the Forestry Advisory Group, held on 30 June 2020, as a true and correct record.

Murray/Sanson                                                                             Carried

5.       Chairperson's Report   

There was no Chairperson’s report.

6        Feedback received on the Forestry Stewardship Council Accreditation Management Plan Consultation

6.1       Roger May, on behalf of Tomorrow’s Forests (submission 24891)

Mr May gave a verbal presentation of his submission. The speaking notes are attached (A2482367).

 

 

 

Attachments

1    A2482367 - Speaking Notes - Roger May, Tomorrow's Forests - Forestry Advisory Group 29Sep2020

6.2       Steven Gray, on behalf of Friends of the Maitai (submission 24888).

Mr Gray spoke about the Friends of the Maitai and their key concerns. He said many members remembered the Maitai differently from its current state - healthier and full of trout. He spoke about the impact of industrialised agriculture and the lack of transparency of processes, the ongoing planting of radiata pine, which the group saw as a contributor to the decline of the river, and would be for the next twenty years.

Mr Gray noted the group would like to see evidence of river health, and Council transitioning to a more sustainable model as a responsible forest owner.

Mr Gray said the Friends of the Maitai would like to see a workshop being held for all involved parties, for better transparency.

7.       Forestry Stewardship Council Accreditation

Document number R18124, agenda pages 10 - 119 refer.

Group Manager Infrastructure, Alec Louverdis, noted that the Forestry Stewardship accreditation deliberations report would focus on matters relating to the accreditation process.

Resolved FAG/2020/024

 

That the Forestry Advisory Group

1.    Receives the report Forestry Stewardship Council Accreditation (R18124) and its attachment (A2454016).

Murray/Sanson                                                                             Carried

 

8.       Forestry Update - Number 13

Document number R18193, agenda pages 120 - 200 refer.

Team Leader Parks and Facilities Activity Management, Paul Harrington, presented the report.

Mr Murray and Mr Gorman answered questions about the way the asset’s value was presented in the financials, confirming it was in accordance with standard accounting practice.

It was noted that the media appeared to have received incorrect information regarding forestry profits, and that this needed to be addressed.

Her Worship the Mayor raised a Point of Order against Councillor Sanson that her statement about the Forestry Advisory Group not being supportive of recreational activities was misleading. The Point of Order was upheld and Councillor Sanson retracted her statement and apologised.

Councillor Sanson raised a question about a decision made by the Forestry Advisory Group on 5 May 2020 to replant Marsden Forest block 42-06 in radiata pine.

The meeting adjourned from 4.17p.m. to 4.34p.m.

The Chief Executive, Pat Dougherty, joined the meeting and answered questions about the approach taken and the information provided regarding this block. Councillor Sanson requested that her concerns about the 5 May 2020 decision to replant the block in radiata pine, despite it being marked for alternative land use, be recorded in the minutes.

Mr Harrington answered questions about planned events through forestry and available mechanisms to maintain a balance between biodiversity and recreational activities.

Resolved FAG/2020/025

 

That the Forestry Advisory Group

1.      Receives the report Forestry Update - Number 13  (R18193) and its Attachments (A2448484, A2452835, A2463952, A2467795, and A2449823); and

Murray/Sanson                                                                             Carried

Resolved FAG/2020/026

 

2.    Agrees the following revised condition with respect to logging trucks passing schools along the defined route:

“No truck movements between 8.15-9.15am and 2.45-3.45pm during the school term and that speeds past schools be no greater than 30kph”

Her Worship the Mayor/Sanson                                                     Carried

       

 

There being no further business the meeting ended at 5.02p.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                       Chairperson                                     Date

       

 


 

Item 7: Draft 2021-31 Forestry Activity Management Plan

 

Forestry Subcommittee

1 December 2020

 

 

REPORT R20298

Draft 2021-31 Forestry Activity Management Plan

     

 

1.       Purpose of Report

1.1      To approve the Draft Forestry Asset Management Plan 2021-31 (FAMP) to be forwarded to Council as the version to inform the Long Term Plan 2021-31 (LTP).

 

 

2.       Recommendation

That the Forestry Subcommittee

1.    Receives the report Draft 2021-31 Forestry Activity Management Plan (R20298)  and its Attachment (A2072414); and

2.    Approves the Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to be forwarded to Council as the version to inform the Long Term Plan 2021-31.

Recommendation to Council

That Council 

1.    Approves the Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to inform the Long Term Plan 2021-31; and

2.    Notes that the Draft Forestry Activity Management Plan 2021-31 will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

 

 

 

3.       Background

3.1      Draft Activity Management Plans (AMPs) are prepared for the approval of the Committee to inform development of the LTPs. This FAMP will inform the development of the 2021-31 LTP.

3.2      Following consultation and adoption of the LTP, the AMPs will be updated to align with the adopted LTP. The final updated AMPs will be brought back to Council early in 2021/22 for adoption.

3.3      The draft FAMP takes account of previous Council and Committee resolutions and feedback at workshops on the proposed work programme and budgets. Officers have undertaken a high level review of budgets across Council activities however, the AMPs are at different stages of development and amendments may be required to the draft Plan once all AMPs have been received by their respective committees and, the cumulative effect of the AMPs has been considered at the workshops in December 2020 and January 2021.  Officers will update the AMP after these workshops. The final AMP will be brought back to this Group and to the Council for approval after it has been updated to include decisions made during the LTP process.

4.       Discussion

4.1      The Draft FAMP sets out the background to Council’s forestry and includes details of the following:

·    Areas of focus for the activity during 2021-31;

·    Levels of Service;

·    The activity budgets for operations and maintenance, renewals and capital expenditure.

4.2      A workshop was held with councillors on 8 August 2020 to discuss priorities and performance measures for 2021-31.

5.       Discussion

5.1      Commercial forestry (and the Draft FAMP) is governed by Council’s Treasury and Investment Policy (TIP). The extract from the TIP (Section 10) is copied below.

 

 

 

 

 

 

 

10.        Forestry

10.1     Background

The Council has invested in and been involved in managing forestry interests since the 1940s and these are held as long term investments. Council-owned forests are located in the Brook, Marsden, Maitai and Roding. The total net stocked area as at 30 June 2019 is estimated at 579.3 hectares.

10.2     Policy

The Council’s current policy for commercial forestry is:

·    To not purchase land for forestry purposes nor plant more commercial forests other than replanting;

·    Endorse and observe the provisions of the New Zealand Forest Accord (August 1991);

·    Comply with the National Environmental Standard on Plantation Forestry

·    Contract out forestry management to an independent Forest manager;

·    To manage its forest estate on a sustainable basis and to maximise net present value.

·    To fulfil its obligations under the NZ Emissions Trading Scheme (as set out in the Liability Management Policy).

 

10.3    Rationale

In the last few years the forestry and land management environment has changed considerably with a much greater emphasis on sustainability and the ongoing development of the Emissions Trading Scheme. Council reviewed the forestry strategy in 2016 and resolved to retain productive commercial forests that can be managed sustainably and retire some 140ha of forests and consider alternate use.  The negative impacts of climate change and the likelihood of more extreme weather events is also a consideration for the future.

10.4     Benefits

The Council’s forests are a significant resource, a means of generating revenue from public reserve land and provide for recreational use.

10.5     Financial Benefits

As well as revenue generation, there are also environmental and social benefits in that forests provide areas with public access for walking, biking, hunting and other recreation. Forestry operations contribute to local business operations including contract forestry management, logging contractors, silvicultural contractors, transport contractors and Port Nelson.

10.6      Risks

Log prices are determined by market conditions and can therefore lose value if the market price falls.  However forestry is still expected to be a low risk investment in the medium to long-term.

 

10.7     Financial Risks

Any forest is at risk from natural disasters, fire, and disease. Prices fluctuate and at any given time depend on world markets, particularly those in Asia. As development is funded from retained earnings within the closed account, any shortfall in earnings requires the Council to make additional external borrowings to fund development.

10.8   Environmental Risk

Poor management of logging operations could pose environmental risks, especially to water supply.

10.9   How the Investment is managed

The Council actively manages its investment in forestry by:

 

·    Contracting out forest management to reputable consultants;

·    Carrying out silviculture to a defined forestry management plan, which is reviewed every three years;

·    Revaluing forestry assets at 30 June each year

·    Minimising the impact of short-term decline in prices by delaying harvesting as appropriate;

·    Maintaining insurance cover for fire and wind damage.

5.2      The management of NCC’s commercial forestry blocks adheres to all requirements of the TIP’s, specifically clauses 10.2 and 10.9.

5.3      Nelsons forestry holdings comprise around 589ha spread between the Maitai, Roding, Marsden and Brook catchments. Council is currently in the process of retiring around 25% of its commercial blocks as and when they are harvested into alternate species.   

5.4      Notwithstanding Nelson’s modest commercial forestry holdings NCC’s commercial forestry provides a contribution to the region’s economy. The logging supply chain is extensive and includes Port Nelson (exports), logging harvesters, logging transporters, sawmills and end product manufacturers. Price Waterhouse Cooper estimate that the annual total value chain per 1,000 ha is around 40 FTE’s. This equates to around 20-25 FTE’s for Nelson’s forestry blocks.

5.5      NCC’s forestry managers, PFOlsen, manage Council’s forestry in line with the requirements of the NES Plantation Forestry. 

5.6      With respect to carbon forestry and the Emissions Trading Scheme (ETS), the ETS now provides for average accounting where New Zealand Unit’s (NZUs – The NZU is the domestic unit created for New Zealand’s Emission Trading Scheme. One NZU corresponds to one metric tonne of carbon dioxide-equivalent emissions) are issued to a post-1989 forest until it reaches its long-term average carbon storage – about mid-rotation for an exotic forest that will be regularly harvested and replanted. However, the Council’s post-1989 exotic forests have already grown past their long-term average, so there is no opportunity to earn NZUs. The only way to earn NZUs under averaging would be to extend rotation length significantly (which is not desirable), or to replant a different tree species with significantly more carbon storage.

5.7      The option of re-establishing more exotic forests in permanent not-for-harvest native trees, after harvesting is also not recommended. Whilst this would result in environmental benefits, improved biodiversity and better recreational opportunities, the risks as listed below are significant:

5.7.1   The transition to native forest would need to be a mix of replanting and natural regeneration of native forest trees. This is expensive particularly on warmer, sheltered sites where weed invasion requires repeated control work. Council has been proactive in this area and already made the decision to re-establish native forest in some areas;

5.7.2   The risk of establishment failure would trigger a deforestation liability under the ETS in the order of $20,000 per hectare;

5.7.3   A cashflow analysis for post-1989 forest transition to native forest after harvest results in a negative net present value. In addition there would be no net carbon growth until around 10 years after re-establishment because the decay of post-harvest roots and stumps from the previous forest has to be included in the calculation;

5.7.4   The costs to convert the existing commercial forestry estate to other species is estimated to be around $15M and $20M with ongoing maintenance costs of between $200-$500/ha/year ($118,000 - $295,000 pa). This would require ratepayer funding as this would fall under the Parks and Reserves activity. In addition, there are no resources within Council to manage this work.   

5.7.5   Conversion would result in a loss of NCC net revenue, loss of regional jobs, reduced log supply to local timber industry and loss of value from sunk cost of existing infrastructure.

5.8      The draft FAMP considers no further work on either of these two matters.

6.       Options

6.1      The Group has two options – either to approve or not approve recommending the Draft FAMP to Council for approval. Officers support option 1.    

 

Option 1: Approve the Draft FAMP 2021-31 to be forwarded to Council

Advantages

·   Meet requirements of Local Government Act 2002

·   Reflects the input of elected members at the workshop

Risks and Disadvantages

·   Nil

Option 2: Not approve the Draft FAMP 2021-31 to be forwarded to Council

Advantages

·    Nil

Risks and Disadvantages

·    Fail to meet requirements of Local Government Act 2002

 

7.       Conclusion

7.1      The Draft FAMP has been prepared to inform the LTP and will support Council in meeting its obligations under section 93 and Schedule 10 of the Local Government Act 2002.

 

Author:          Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1:   A2072414 - Draft Forestry Activity Management Plan

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The Forestry AMP support the effective and efficient management of Council’s productive forests and through best practices and sustainability contributes to Local Government well-beings of social, economic, environmental and cultural.

2.   Consistency with Community Outcomes and Council Policy

Forestry  improvements support the following community outcomes:

“Our infrastructure is efficient, cost effective and meets current and future needs” and “Our communities are healthy, safe, inclusive and resilient.”

The FAMP has been prepared in line with Council’s Treasury and Investment Policy.  

3.   Risk

Not adopting the draft FAMP will leave Council without a document to support the goal of developing and adopting the LTP.

4.   Financial impact

There are no direct funding implications from the recommendation. The FAMP guides the funding in the proposed LTP and will be subject to a consultation process with the community.

5.   Degree of significance and level of engagement

This matter is of high significance because the adoption of an LTP is a statutory requirement under the LGA Act 2002. Consultation with the community will occur with the public advertising of the draft LTP.

6.   Climate Impact

The draft FAMP considers the potential impacts and risks climate change presents to the City as commercial pine forestry and harvesting is a sustainable practice.     

7.   Inclusion of Māori in the decision making process

A forestry presentation was made to iwi on 4 November as part of engaging with iwi on all of Council’s Activity Management Plans. Feedback will be considered as part of the LTP.

 

 

8.   Delegations

The Forestry Subcommittee is a subordinate decision making body that reports to Council. The Group does not have the delegated authority to approve AMPs and for the Draft FAMP this is the responsibility of Council. The Group does however have the powers to consider all matters relating to continuing commercial forestry operations and that includes the FAMP.   

The Forestry Subcommittee’s areas of responsibility include:

Areas of Responsibility:

·        All matters relating to the commercial forestry operational portfolio including environmental and recreational issues.

Powers to Decide:

·        In accordance with Council’s Annual Plan and Long Term Plan:

o   Approval of forestry and harvesting management strategy and plans

o   Approval of the engagement of contractors/consultants and forestry tenders

Powers to Recommend to Council:

·        Any actions relating to the oversight of all matters relating to the commercial forestry portfolio, falling outside the powers to decide, including:

o   Approval of forestry related budgets; and

o   Any other matters relating to continuing commercial forestry operations.

 

Council’s delegations in this matter include:

 

•      Developing, approving, monitoring and reviewing policies and plans, including activity management plans and the Financial Strategy

 

 


Item 7: Draft 2021-31 Forestry Activity Management Plan: Attachment 1

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Item 8: Forestry Stewardship Council Management Plan - Deliberations

 

Forestry Subcommittee

1 December 2020

 

 

REPORT R20333

Forestry Stewardship Council Management Plan - Deliberations

     

 

1.       Purpose of Report

1.1      To summarise and provide analysis on the submissions received on the proposed Forestry Stewardship Council (FSC) Management Plan (Plan).

1.2      To approve amendments to the FSC Plan.

1.3      To approve seeking FSC accreditation for Nelson City Council’s forests. 

 

 

2.       Summary

2.1      The Forestry Advisory Group (FAG) approved commencement of consultation on the FSC Plan to seek FSC accreditation.

2.2      Consultation commenced on 8 June 2020 and closed on 24 July 2020. The process of seeking feedback was run by PF Olsen, but Council offered its extensive suite of communications channels to assist in the consultation on this matter.

2.3      A total of 45 responses were received and two organisations presented at the 29 October 2020 FAG meeting.

2.4      It is noted that the feedback resulted in several requests for matters not relating to FSC accreditation. Those submissions have not been considered in this report. This report only considers matters relating to the FSC Plan and FSC accreditation.   

3.       Recommendation

 

That the Forestry Subcommittee

1.    Receives the report Forestry Stewardship Council Management Plan - Deliberations (R20333) and its attachments (A2476873 and A2514843); and

2.    Determines having considered the written and oral submissions that the proposed amendments to the Forestry Stewardship Council Management Plan as set out in Attachment 2 (A2514843) of Report R20333 be accepted; and 

3.    Agrees to seek Forestry Stewardship Council accreditation for Nelson City Council’s forestry estate.

 

 

 

4.       Background

4.1      At its meeting on 5 May 2020 the Forestry Advisory Group (FAG) approved the commencement of consultation on the FSC Plan having approved both the draft FSC Plan and FSC consultation document.  

4.2      Consultation ran from 8 June 2020 to 24 July 2020 and was publicised through the following:

·    Council officers and PF Olsen staff presented the draft FCS Plan to the Te Ohu Taiao hui on 13 May 2020. Iwi signalled that they would forward any interest directly to officers should they wish to be involved.

·    Letters were sent to neighbouring residents (within 200m of Council’s forests) during the week commencing 8 June 2020.

·    The FSC Plan and submission forms were made available at the following Council venues from 8 June 2020: libraries and the Customer Service Centre.

·    Stakeholders were emailed directly on Wednesday 11 June 2020.

·    An article was included in the Council’s Our Nelson publication on 24 June 2020 (hardcopy delivered to all of Nelson’s residential properties).

·    The Nelson Mail ran an article (in print and online) advising of this engagement on 28 June 2020.

·    Multiple social media posts on Council’s channels throughout June and July encouraging submissions. Councillors also shared the link to the submission page through their networks during this time. 

4.3      This report presents supporting information in relation to the feedback received and provides officer recommendations to assist with deliberations.

5.       Discussion

5.1      FSC accreditation is about applying good commercial forestry management practices to:

5.1.1   Set a leadership example as a forest owner;

5.1.2   Obtain best access opportunities to the local processing market.

5.2      The foundation of any FSC certification scheme is based on environmentally appropriate, socially beneficial and economically viable forest management practices.

5.3      Seeking and securing FSC accreditation does not exclude future engagement with key stakeholders or Nelson residents.

Summary of submissions

5.4      A total of 45 responses were formally received and presented to the 29 September 2020 FAG meeting. Two organisations presented in person – Tomorrow’s Forests and Friends of the Maitai.

5.5      Following the 29 September 2020 meeting officers and PF Olsen staff have followed up with a number of submitters where some aspects required clarification or to discuss relevant proposed amendments to the Plan.

5.6      Submissions ranged from support for accreditation, clarification on technical aspects, challenges to the appropriateness or benefits of accreditation, and opposition to forestry generally.

5.7      A summary of the relevant submissions together with comments relating to FSC accreditation and the corresponding proposed changes are appended as Attachment 1. The recommendations in the table are colour coded as follows:

·    Red: no change specifically to address the submission, although many of the concerns are generally addressed already through changes made in the plan where within scope.

·    Orange: small specific matters addressed in some form.

·    Green: plan amendments made to clarify, educate or adjust management to specific address matters submitted on.

·    Clear: parties should at some point be engaged face to face to clarify/resolve specific neighbour complaints/concerns.

5.8      A marked up version of the FSC Plan is provided as Attachment 2, with proposed amendments following submissions highlighted.

5.9      The full submissions are available to view on the 29 September 2020 agenda of the Forestry Advisory Group (pages 17-119): http://meetings.nelson.govt.nz/RedirectToDoc.aspx?URL=Open/2020/09/FAG_20200929_AGN_2211_AT.PDF.

Submissions not pertinent to the FSC Plan

5.10    Just over half of the submissions included requests that are out of scope on the matter of FSC accreditation as they relate to a request for Council to phase out its involvement in commercial forestry. These have not been considered further as the matter at hand is to deal with FSC accreditation. The retirement of commercial forestry is a matter for Council to consider and no indication has been signalled by Council that it wishes to retire its commercial forestry estate.

5.11    This said there were questions raised about Nelson’s suitability for commercial forestry specifically relating to steepness of Council’s forestry land. The Erosion Susceptibility Classification (ESC) is the method which determines the level of controls imposed by the NES Plantation Forestry (NES PF). The ESC is classified into four erosion risk categories: Low (green), Medium (yellow), High (orange) and Very High (red) based on a combination of erosion susceptibility (soil type), likelihood and severity of an erosion event, and the downstream consequences of an erosion event. The Council’s forest estate is considered medium risk under the ESC because despite being on steep land, it is located on very stable soil and stable underlying geology.

Submissions resulting in no recommended substantive changes to FSC Plan

5.12    Interest was expressed in alternative species, longer rotation periods and maintaining a continuous canopy cover. These options are often not practical in the Nelson City Council context due to the topography and small stand sizes, and are generally considered to be a high risk option (poor chance of success). Some additional text is proposed to be added to the Plan to further elaborate on this.

5.13    Some localised concerns were raised around forestry activities or processes in proximity to specific residences. Ongoing engagement with these submitters will be undertaken, however no changes are recommended to the Plan.

5.14    One submitter requested Glyphosate be reduced or phased out, however this herbicide is generally only used once per rotation. It is noted that Council plans to prepare a Glyphosate usage plan in 2021/22.

5.15    Riparian setbacks were mentioned by submitters, generally in support of the 10m margin and sometimes suggesting a larger setback. No change to the Plan is recommended as it is already noted that a setback greater than 10m would often be in place due to the morphology of streams and the presence of existing native margins. 

Submissions resulting in recommended changes to FSC Plan

5.16    Key submission themes and corresponding changes are discussed below. There are some maps and administrative tables in the Plan that are yet to be finalised however the substantive text of the Plan is not proposed for further change.

 

 

Erosion, sediment and water quality

5.17    Questions were raised with respect to the effects of sediment generated by forestry activities. In this matter Council acknowledges its obligations under the NES Plantation Forestry. NCC’s forestry managers, PF Olsen, manage Council’s forestry in line with, and in most cases above and beyond, the requirements of the NES Plantation Forestry.

5.18    An example of a recent project to improve water quality is the current installation of bridges over the Maitai and Roding rivers to allow harvesting of those blocks. It is also noted that no new significant engineering work (e.g. to create new tracks, roads or landings) is expected to be required, which can be a significant contributor to sediment.

5.19    Additional text is proposed to better explain the Erosion Susceptibility Classification risk profile for Nelson.

5.20    Some amendments were made in relation to the water supply areas, as in FSC terms these catchments would meet the definition of a Category 5 High Conservation Area (fundamental for satisfying basic necessities), and management adaptations discussed.

5.21    It is proposed that Rapid Habitat Assessment (RHA) plots be established within high conservation value areas to monitor the development of riparian conditions. RHA results will indicate the condition of the water body which may affect the diversity, abundance and distribution of freshwater biological communities. Additionally, macro-invertebrate (MCI) sample points will be established in two areas (one each in the Maitai and the Roding catchments) plus potentially two feeder tributaries to the Maitai. MCI is an effective and repeatable methodology indicating stream health conditions and as such will inform the general quality of stream water entering the Maitai from the production forest areas. Baseline fish surveys in relevant tributaries are also proposed to be completed with Council assistance.

Pests and wilding conifer control

5.22    Additional actions are proposed in relation to pests and weeds, including creating an inventory of key pest weed species, developing a control and monitoring program for weeds and vertebrates, and ensuring better integration with Council’s existing internal pest and weed programmes, particularly where there is a seamless boundary between large areas of natural forest.

5.23    Concerns raised in relation to wilding conifers have been addressed with additional proposed text e.g. in relation to managing difficult to reach segments that remain after harvest.

Protected ecosystems

5.24    It is proposed that the Plan includes a survey of ecosystems to be undertaken with input from relevant Council staff to establish the presence of special, unique and/or threatened flora or terrestrial ecosystems, and inform restoration projects or other programmes.

Recreation use of forestry land

5.25    Concerns were raised that forestry activities interrupted recreation use, including through closures due to high fire risk. Additional commentary is proposed to be added to the Plan to strengthen the profile of recreation activities, however the safety of reserve users and contractors is paramount and at times closures will be unavoidable.

Communication is key and an initiative proposed is to make harvest plans available to those interested where possible (e.g. online). With regards to fire risk, additional data and discussion is proposed to be added to the Plan; it is noted that reserves are closed during high risk periods whether there is commercial forestry present or not.

Heritage sites

5.26    Feedback from Heritage NZ Pouhere Taonga indicated a number of heritage or archaeological sites were missing, and the Plan is proposed to be updated to include this information.

6.       Financial

6.1      FSC accreditation is for a five year period and an annual fee of $1,383 is payable plus $0.086c/tonne harvested as the volume is cut. Note that at the time of certification there is an initial one-off application and processing fee of $500 and $1,500 for an initial audit. This does not repeat at the end of each five year period.

6.2      The majority of the groundwork undertaken as part of the current FSC accreditation is expected to still stand and the cost of re-affirming accreditation in 2025 is expected to be minimal and be captured within the standard charges, providing there is no significant change to the direction of the Plan. Rewrites or significant changes in the Plan itself (other than graphs and data tables) would incur time and materials charges. Because much of the plan is closely intertwined with Council’s reserve management some changes or adjustments may be best made by Council officers, which may save some direct cost.

6.3      Another consultation is not normally required unless a major material change to the direction of the Plan is proposed. This is also because the Plan will be available online and informal input is possible provided it is within scope of the FSC parameters.

6.4      Additional cost will be incurred as part of implementing the recommended changes to the FSC Plan. These costs are considered to be reasonable forestry expenses and not unwarranted in the context of the wider forestry activity. Estimated costs include: 

6.4.1   Around $750 to $2,000 per year for communications, provide additional inspections for wilding pines, undertake water quality assessments or undertake pest control trapping. Some work, e.g. assessments for clarity and temperature, can be undertaken at the time staff are already undertaking operations in a stream catchment which would be absorbed into current management fees.

6.4.2   Around $15,000 for animal control using a helicopter culling effort in the Maitai and Roding catchments. 

6.4.3   A one off cost of around $15,000 to $20,000 for ecosystem protection for a survey of threatened species which would build on the ecological restoration planning work already underway by Council. Officers will engage in more internal discussion to determine what level wilding control is currently undertaken and ascertain what additional funding might be valuable. Budget is already in place for this work and it is possible some additional gains could be made through contributing further funding to the existing programme.

7.       Options

7.1      The Subcommittee has two options – either to approve or not approve proceeding with FSC accreditation. Officers support option 1.

 

Option 1: Accept FSC Plan and approve to seek FSC accreditation

Advantages

·   Shows leadership

·   Will strengthen alignment with the Treasury and Investment Policy

·   Will realise increased financial returns to Council

Risks and Disadvantages

·   Nil

 

Option 2: Not accept FSC Plan/not approve to seek FSC accreditation

Advantages

·    Nil

Risks and Disadvantages

·    Will not show leadership

·    Reputational risk

·    Will not strengthen alignment with the Treasury and Investment Policy nor realise increased financial returns

8.       Conclusion

8.1      Feedback on FSC accreditation was sought and considered.

8.2      There are several items that do not relate to FSC accreditation and have not been considered in this report.

8.3      Officers recommend accepting the amended FSC Plan and proceeding with FSC accreditation. 

9.       Next Steps

9.1      Following approval by the Forestry Subcommittee, FSC accreditation will be sought.

 

Author:          Paul Harrington, Team Leader Parks and Facilities Activity Management

Attachments

Attachment 1:   Forestry Stewardship Council summary of submissions with recommendations (A2476873)

Attachment 2:   FSC Management Plan - marked up version for deliberations following consultation - Nov 2020 (A2514843)

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The FSC Plan supports the effective and efficient management of Council’s productive forests and through best practices and sustainability and contributes to Local Government well-beings of social, economic, environmental and cultural.

2.   Consistency with Community Outcomes and Council Policy

The FCS Plan aligns with the following Council outcome: “Our Council provides leadership and is supported by an innovative and sustainable economy”.

The FSC also aligns with Council’s Treasury and Investment Policy specifically the following:

·   Comply with the National Environmental Standard on Plantation Forestry

·   To manage its forest estate on a sustainable basis and to maximise net present value.

·   To fulfil its obligations under the NZ Emissions Trading Scheme (as set out in the Liability Management Policy).

“As well as revenue generation, there are also environmental and social benefits in that forests provide areas with public access for walking, biking, hunting and other recreation. Forestry operations contribute to local business operations including contract forestry management, logging contractors, silvicultural contractors, transport contractors and Port Nelson”.

 

3.   Risk

Attaining FSC accreditation is a positive initiative for Council. Some changes to the FCS Plan are proposed, following feedback, to the FSC Plan. The risk of not achieving accreditation is low in that Council will continue as before. There is also reputational risk of Council seeking accreditation and then deciding not to progress, when FSC accreditation is seen as a positive outcome.   

4.   Financial impact

Attaining FSC accreditation is expected to improve the financial return on Council’s trees because FCS-certified wood and products generally fetch higher prices. This aligns with Council’s current Treasury and Investment Policy on forestry which requires the forestry estate to be managed so as to maximise net present value.

5.   Degree of significance and level of engagement

Consultation on the FCS Plan has been undertaken.

6.   Climate Impact

Commercial pine forestry and harvesting is a sustainable practice and contributes positively to climate change mitigation.

7.   Inclusion of Māori in the decision making process

Specific engagement with iwi has been undertaken.

8.   Delegations

The Forestry Subcommittee has the powers to consider all matters relating to continuing commercial forestry operations and that includes FSC accreditation. The Forestry Subcommittees areas of responsibility include:

Areas of Responsibility:

·      All matters relating to the commercial forestry operational portfolio including environmental and recreational issues

Powers to Decide:

·      In accordance with Council’s Annual Plan and Long Term Plan:

Approval of forestry and harvesting management strategy and plans

Approval of the engagement of contractors/consultants and forestry tenders

 

 


Item 8: Forestry Stewardship Council Management Plan - Deliberations: Attachment 1

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Item 8: Forestry Stewardship Council Management Plan - Deliberations: Attachment 2

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Item 9: Forestry Update - Number 14

 

Forestry Subcommittee

1 December 2020

 

 

REPORT R20334

Forestry Update - Number 14

     

 

1.       Purpose of Report

1.1      To provide an update to the Forestry Advisory Group (Group) on forestry activities undertaken since Council adopted the Forestry Review recommendations in September 2016, and since the September 2020 update.

 

2.       Recommendation

That the Forestry Subcommittee

1.    Receives the report Forestry Update - Number 14  (R20334) and its Attachments (A2518534, A2518573 and A2518533).

3.       Tantragee Block harvesting

3.1      The Tantragee Block will follow the harvesting of the Brook Blocks. 

4.       Tasman Pine Forests and Waahi Taakaro harvesting

4.1      When Tasman Pine Forests Ltd harvest the block adjacent to the Waahi Taakaro Golf Club (which will include the small area planted by them on Council land) - expected to take one month - PF Olsen will monitor the work to ensure that the trees on Council owned land are harvested to the required standards. The small area will be replanted with indigenous species.

5.       Health and Safety

5.1      There are no Health and Safety issues nor Safe Work Observations (SWO’s) to report since September 2020.       

6.       Finance

6.1      An updated summary of Council budgets is appended as Attachment 1 and PF Olsen’s Quarterly Report is appended as Attachment 2.

 

7.       Harvesting

Bridges

7.1      An update of the progress with the bridges is shown below.

 

Maitai

Roding

Estimated cost (ex GST)

$420,000 (30% contingency)

$380,000 (30% contingency)

Proposed start date

January 2021

March 2021

7.2      Harvesting in the Maitai and Brook is expected to commence during winter 2021.

8.       Alternate Uses

8.1      Council agreed to retire approximately 140Ha of forestry and consider alternate uses and an Alternate Use Plan has been approved. Refer to Attachment 3 for an update. Lachie Grant (Landvision) will be in attendance to update the Group further.

 

 

 

Author:          Paul Harrington, Team Leader Parks and Facilities Activity Management

Attachments

Attachment 1:   NCC Forestry Accounts Summary at 30 September 2020 (A2518534)

Attachment 2:   PF Olsen Quarterly Report (Q1) - September 2020 (A2518573)

Attachment 3:   Alternative species update - November 2020 (A2518533)

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The regular updates support the effective and efficient management of Council’s productive forests and through best practices and sustainability contributes to Local Government well-beings of social, economic, environmental and cultural.

2.   Consistency with Community Outcomes and Council Policy

The Group aligns with the following outcome: “Our Council provides leadership and is supported by an innovative and sustainable economy”.

3.   Risk

The Group has been set up to specifically have an oversight on all things relating to forestry to reduce the risk to Council.

4.   Financial impact

The Group has been set up to monitor forestry activity and to manage income and expenses accordingly. Any expenditure recommended in this report is in line with this oversight.

5.   Degree of significance and level of engagement

The report deals with a number of matters that have required individual engagement with individuals/groups.

6.  Climate Impact

Commercial pine forestry and harvesting is a sustainable practice and contributes positively to climate change mitigation.    

7.  Inclusion of Māori in the decision making process

Iwi have not been consulted in the preparation of this report.

8.  Delegations

The Forestry Sub Committee’s areas of responsibility include:

Areas of Responsibility:

·   All matters relating to the commercial forestry operational portfolio including environmental and recreational issues

 

Powers to Decide:

·    In accordance with Council’s Annual Plan and Long Term Plan:

o Approval of forestry and harvesting management strategy and plans

o Approval of the engagement of contractors/consultants and forestry tenders

 

 


Item 9: Forestry Update - Number 14: Attachment 1

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Item 9: Forestry Update - Number 14: Attachment 2

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Item 9: Forestry Update - Number 14: Attachment 3

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