Investor Updates
Catch up here on the latest news for existing Forest Enterprises' investors:
Kyoto
Forest Owners Association November Newsletter - 11/2004
Response
to Budget Announcement re Climate Change Framework Agreement - 05/2004
Budget
Announcement re Climate Change Framework Agreement - 05/2004
Windstorm
Damage - 02/2004
Tower
Trust sold to US-based Sterling Grace Corporation - 07/2003
Report
released on CCA treated timber - 05/2003
Forest
Industry Brief to incoming Labour Government
Proposed
tax changes will not affect your forestry investments!
Property
Relationship Act - no change to who can be a joint forestry shareholder
Kyoto Forest Owners Association November Newsletter
The Kyoto Forest Owners Association (KFOA) represents forest owners who have planted more than 200,000 ha in New Zealand since 1989. Only forests planted after 1989 generate carbon credits under the Kyoto Protocol. The Government projects that these Kyoto Forest sinks will generate $2.6 billion dollars in credits during the first Kyoto commitment period, 2008 to 2012. The Government intends to nationalise these credits to satisfy their commitments under the Kyoto Protocol. The KFOA believe that this is possibly the largest private property theft in New Zealand’s history and are determined to take whatever action is necessary to ensure they receive equity in this matter.
Click here
to view or download the November 2004 Newsletter (370 KB).
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Response to Budget Announcement re Climate Change framework Agreement
The forestry industry welcomes the package of measure announced by the
Government recognising the sector's significant contribution to meeting New
Zealand's climate change objectives.
Click here
to view 19 May 2004 Industry Statement.
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Budget Announcement re Climate Change Framework Agreement
The Government has agreed to a package of new forestry sector initiatives
that recognise forestry's value in addressing climate change.
Click here
to view 19 May 2004 Media Statement.
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Windstorm Damage February 2004
The widespread flooding and infrastructure damage from recent storms in the southern North Island has been widely reported. Although outside of most media attention, the Wairarapa received unseasonal and substantial amounts of rain. We escaped the worst of the flooding, however the rain has been followed by several gale force wind events.
With saturated soil, trees on faces exposed to severe winds can be uprooted or toppled and those that hold firm sometimes snap off or have their tops broken out. We are aware that this type of damage has occurred throughout the region. Damage varies from forest to forest, with most forests probably little affected however some have suffered significant damage to specific areas.
We will be undertaking an aerial inspection of all our Wairarapa forests as soon as the weather has settled and this will be followed by ground investigation where damage is identified.
The insurer has been advised of likely claims and an assessor appointed. Windstorm insurance cover applies to trees up to age 12 (inclusive) and the current policy period captures trees planted from 1991 (inclusive).
Investors in those forests affected in a material way have been contacted direct.
TOWER Trust sold to US-based Sterling Grace Corporation
Fund manager and insurer TOWER Ltd has sold its personal and corporate trustee services arm TOWER Trust Ltd to Sheffield Investments Ltd, a member of the US-based private investment company Sterling Grace Corporation with effect from 31 July 2003.
From 1 August the company will be called Trustees Executors Ltd, a truncated form of the companies old name before it was purchased by TOWER. You can read the letter from Tower Trust to Forest Enterprises by downloading the PDF file below.
TOWER Trust (Trustees Executors as it will be called soon) is an integral part of the investment structure (click here for investment structure details) for most of our investments and these responsibilities will continue unchanged following the ownership change.
Click here to learn more about the Sterling Grace Corporation.
Letter from Tower Trust (50KB)
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Report released on CCA treated timber
ERMA has recently released a report reviewing issues surrounding the use of CCA (Copper, Chromium and Arsenic) treated timber and providing recommendations for its use. You can read this report or a summary of the report in question and answer format by downloading the PDF files below.
CCA Report May 2003 (38KB)
CCA Questions & Answers (52KB)
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Reader click here)
Forest Industry Brief to incoming Labour Government
Click here to read the brief prepared for the Government by the New Zealand Forest Industry on Accelerating Innovation Driven Sustainable Development.
Proposed tax changes will not affect your forestry investments!
Some of the headlines in the business press on the ‘Mass-marketed tax schemes’ discussion paper recently released by the Inland Revenue Department may have caught your attention - click here to read the lead article on this subject in our February 2002 Investor Newsletter.
You can download full copies of the IRD Issues Paper or Forest Enterprises Submission as PDF files below.
Mass
Marketed Tax Schemes (141KB)
Forest
Enterprises Submission (167KB)
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Reader click here)
Property Relationships Act - no change to who can be a joint forestry shareholder
The very strict rules on who can be a joint shareholder in one of our company investments (all investments since 1992) have not changed as a consequence of the 1 February 2002 enactment of the Property Relationships Act.
The principal purpose of The Property Relationships Act is the granting of similar property rights to persons in long term relationships to those legally married. Unfortunately the Act does not contain a consequential amendment to the relevant sections of the Tax Act that currently exclude the joint investment by couples in a permanent (de facto) but non-marriage relationship in what are called qualifying companies. Our structure uses qualifying companies.
You can download legal communication on this subject as PDF files.
Legal
advice from Simpson Grierson (50KB)
Forest
Enterprises query (108KB)
Reply
from Ministry of Justice (109KB)
Reply
from IRD (123KB)
To download these files to your computer right-click on the file, select 'Save as' and save to your P.C. When the download is complete open the saved file. (You will need Adobe Acrobat Reader to view PDF files. If you need details on how to get Adobe Acrobat Reader click here)