Nelson City Council forestry update

At the last full Council meeting of the year on 9 December, the Chair of the Forestry Committee John Murray provided elected members with a summary of how Council's forestry operations are managed within the Council's financial management systems.

Mr Murray told the meeting that there had been a lot of confusion about the financial return from forestry and explained forestry is part of the general Council accounts, so the concept of a "dividend" like that paid by the Port is not applicable. 

However, forestry does contribute positively to Council finances, reducing the debt burden. 

The return from forestry on Council's investment over the last 10 years is approximately 11.5% per annum, excluding fixed assets.

Mr Murray also emphasised that returns from forestry to stakeholders are not just financial as they include improved environmental outcomes, the provision of recreational facilities and infrastructure such as bridges and contribute to the overall economic activity of the region.

He gave the example of Dun Mountain and the work done to ensure tracks in that area are safe to the public that had been paid for from the forestry account.

"There are a whole lot of benefits going back to the wider community of Nelson through our forestry account that aren't immediately obvious."

More information on Nelson City Council’s forestry and answers to frequently asked questions will be published online in the New Year.