Ikea’s Pine Plantation Plans Raise Concerns Over Potential Financial Burden on Hawke’s Bay Residents

Ikea’s Pine Plantation Plans Raise Concerns Over Potential Financial Burden on Hawke’s Bay Residents

Key Takeaways

  • New Zealand has seen a significant land-use change, with over 1.8 million hectares of land planted in pine trees, mostly for carbon credits.
  • The conversion of farmland to forestry has raised concerns about fire risks, with some farms being sold to overseas companies.
  • Rural communities are worried about the impact of forestry on their districts, including the risk of fires and the loss of traditional farmland.
  • There is currently no mandatory requirement for forestry owners to reduce or mitigate fire risk, but some companies are taking steps to prepare for wildfires.
  • The Government has strengthened its approach to forestry fire risk, but some are calling for legislation changes to make it mandatory for all landowners to reduce or mitigate fire risk.

Introduction to the Issue

The conversion of farmland to forestry in New Zealand has been a topic of controversy, with some calling it the "dumbest thing" the country has done in agriculture. The scale of this land-use change is vast, with over 1.8 million hectares of land planted in pine trees, mostly for carbon credits. This has raised concerns about the impact on rural communities, including the risk of fires and the loss of traditional farmland. Pōrangahau farmer James Hunter and pilot Joe Faram recently took RNZ on a flight over the affected area, giving a snapshot of the land-use change.

The Scale of the Problem

The flight over the region revealed thousands of hectares of new pine trees, covering what had been traditional farmland for generations. Hunter believes that the scale of this land-use change is not fully understood by the public, and that it is having a significant impact on the district. He is concerned that the forestry companies are not taking the fire risk seriously, and that the financial risk of losing trees to fire sits with the forest owner. Swedish furniture company Ikea has bought 28,000ha of New Zealand farmland since 2021, with another 10,000 pending approval in Northland. However, Ikea told RNZ that none of its trees have been planted for carbon credits, although they may look at "some form of offsetting in the future".

Fire Risks and Concerns

The risk of fires is a major concern for rural communities, with some farms having been sold to overseas forestry companies. Hunter is worried that the forestry companies are not contributing financially to Fire and Emergency or properly mitigating the fire risk, leaving farmers who do pay fire insurance levies and invest in fire protections to foot the bill. Pilot Joe Faram has been fighting forestry fires for decades and shares Hunter’s concerns about the increasing risk of fires. He believes that the increase in pine trees is creating a bigger fire risk, and that it is only a matter of time before a major fire occurs.

Community Concerns and Reactions

The spread of forestry in Hawke’s Bay has been met with concern from the local community, including the Ngāti Kere hapū. Chairman David Tipene Leach has been in discussions with Ikea since 2022, but feels that the company has not offered much to the community. He is worried about the impact of forestry on the environment and the community, and has urged Ikea to remove the pine trees planted closest to the village. However, Ikea has said that it is unlikely to remove the trees, and instead wants to meet with the community to understand their concerns.

Forestry Industry Response

The Forest Owners Association has said that commercial foresters do want to make a return on their investments, but the returns are slow to be realised, and forest owners are highly motivated to protect the environments and communities their trees grow in. Ikea has also said that it is "pouring cash into the country" through its forestry operations, and that it is not extracting a lot of cash out of the country for the benefit of an offshore entity. However, the company has also said that it would consider supporting calls for legislation requiring all landowners to mitigate fire risk and invest in fire protections.

Government Response

Forestry Minister Todd McClay has said that the Government takes the risk of forest fires seriously and has strengthened its approach in recent years. This includes updated guidance for landowners and councils, better co-ordination between the New Zealand Forest Service and Fire and Emergency New Zealand, and ongoing investment in research, risk mapping and seasonal forecasting. However, when asked if the Government was considering legislation changes to make it mandatory for all landowners to reduce or mitigate fire risk, the minister said that landowners already have responsibility for managing their property against the risk of fire. He believed that forestry owners were doing enough to reduce the risk of fires on their land, and that large forestry companies often have their own firefighting teams, equipment and water supplies.

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