The Government is implementing new standards under the Forests (Regulation of Log Traders and Forestry Advisers) Amendment Act, regulating the activity of log traders and forestry advisers. This legislation supports the continuous, predictable, and long-term supply of timber for domestic processing and export. It also aims to provide a more transparent and open market for log sales through the provision of professional advice.
Under the Act, log traders and forestry advisers must now register to operate. There is a one-year transition period from 6 August 2022 for log traders and forestry advisers to get registered.
Forest Enterprises Growth Limited is a log trader for the purposes of the Act and a number of our forestry team are forestry advisers. We have registered as a log trader and in coming months will register as forestry advisers.
The registration system includes a public register. The register shows the contact details and location of registered log traders and forestry advisers. The system will assure anyone dealing with registered log traders and forestry advisers that they meet the forestry practice standards, and they are receiving expert and impartial advice from forest advisers with the right knowledge and experience.
To register under the Act, Forest Enterprises must satisfy the Forestry Authority (established under the Ministry of Primary Industries) that we meet the ‘fit and proper person’ standard. We provide evidence of our qualifications and experience in forestry. Additionally, there is ongoing compliance, reporting and record keeping obligations imposed on registered log traders and forestry advisers. A disputes body is also established under the Act to hear and administer complaints.
The Forestry Authority will have the powers to set standards on us as registered log traders and forestry advisers for forestry matters and services including:
- Land preparation, planting, forest management, harvest planning and valuation
- Biosecurity, sustainable land use, biodiversity and emissions trading; and
- Sale and purchase agreements for domestic transactions or exports.
The rules cannot, however, impose any condition or requirement which would be a matter for commercial agreement between parties, such as negotiating the price of logs.
Forest Enterprises will also be subject to a new code of ethics for registered forestry advisers which comes into effect on 17 October 2022. The code guides how forestry advisers conduct themselves and their business.
Visit the Ministry of Primary Industries website for more information.