The Central Otago District Council owns 159.4ha of forests and, under the scheme, it will face a total bill of up to $2.1 million if all its blocks of pre-1990 forest are cleared and not replanted within four years. All but 24ha of the council's forestry was planted before 1990.
Three of the district's four community boards have met to consider the implications of the scheme. The Maniototo board decided to replant a 40ha block rather than face a potential bill of $373,160, and the Roxburgh board voted to maintain its 10ha forestry block rather than harvest and risk a bill of $146,433.
The Vincent board this week also agreed to maintain its forestry block on the outskirts of Alexandra rather than face a bill of $500,000. The Cromwell board has a similar decision to make at its meeting next week and, under the scheme, its potential bill is $1.1 million if it harvests 73ha of forestry and does not replant.
Vincent board member Martin McPherson said Alexandra's forebears planted the pines at the town entrance to hold the sand in place.
"We've looked a few times in the past at harvesting this block but been told it's of limited value, even as firewood, so we'll have to keep these trees or replace them.
There's some significant losses in that area [trees dying], so if we have some serious die-back we'll also face some serious costs." The tree canopy had to remain at 30% cover. If it fell below that level, the owner was obliged to replant, Mr Taylor said. The pines area at the entrance to the town was gazetted as a tree-planting reserve in 1929.
The trees were located in the obvious area where the town would expand in the future, board member Graeme Bell said.
"I don't want this to be a barrier to the town expanding."
Barrie Wills said the forest could remain with a 30% canopy cover "and there would still be a fair chunk of land to develop".
The ETS encourages the retention of trees as a "carbon sink".
The owners of any land planted in forest before 1990 that has since been cleared, either by harvesting or natural disaster, are obliged to join the scheme.
Forest owners who do not replant within four years must surrender carbon credits or pay the Crown the equivalent value in cash.
Council property officer Brian Taylor said the council and boards had few options.
"The emergence of the emissions trading scheme has placed very real limitations on the board's future use of the land currently in forest plantation, particularly the older blocks established prior to 1990.
"The ETS has also significantly reduced the marketability of the land for any purpose other than forestry or wooded recreational areas, because of the imposition of very substantial penalties for loss of tree density or canopy below given thresholds."
Although the council would be entitled to get compensation credits for its pre-1990 forestry blocks, that figure would "go nowhere" towards meeting its liabilities should the trees be harvested and not replanted, Mr Taylor said.
