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Forestry Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Forestry Committee held in the Council Chambers, 15 Forth Street, Invercargill on Wednesday, 18 November 2015 at 9am.

 

present

 

Chairperson

Brian Dillon

 

 

Mayor Gary Tong

 

Councillors

Lyall Bailey

 

 

Stuart Baird

 

 

George Harpur

 

 

Ebel Kremer

 

 

Neil Paterson

 

 

IN ATTENDANCE

 

Group Manager Services and Assets Ian Marshall, Committee Advisor Fiona Dunlop, Dan Minehan Managing Director IFS Growth Limited and Reece McKenzie Forest Manager/Carbon Business Manager IFS Growth Limited

 


Forestry Committee

18 November 2015

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1          Apologies

 

There were no apologies.

 

2          Leave of absence

 

There were no requests for leave of absence.

 

3          Conflict of Interest

 

            There were no conflicts of interest declared.

 

4          Public Forum

There was no public forum

 

5          Extraordinary/Urgent Items

There were no Extraordinary/Urgent items.

 

6          Confirmation of Minutes

 

There was discussion regarding the delegation of authority to sell trees for harvesting which was considered at the 26 August 2015 meeting as contained in item 7.2 – Delegation of Authority to Sell Trees for Harvesting – Forestry Business Unit..  Clarification of this delegation would be captured when the Committee discussed item 7.1 Strategic Purpose of the Forestry Business Unit.

 

(Mayor Tong joined the meeting at 9.03am.)

 

Resolution

Moved Cr Dillon, seconded Cr Kremer and resolved:

That the Forestry Operations Committee confirms the minutes of the meeting held on 26 August 2015.

 

 

Reports

 

 

7.1

Strategic Purpose of the Forestry Business Unit

Record No:         R/15/11/20364

 

Group Manager Services and Assets Ian Marshall was in attendance for this item.

 

Mr Marshall advised that the purpose of the report was to achieve clarity and confirmation regarding the strategic purpose of the Southland District Council Forestry business unit.

 

The Committee noted that the report discussed the aspects of management of the forest estate and contemplates how the issues of recreational amenity, sale and acquisition, local support, supporting research and management support for urban plantings should be managed.

 

The Committee also clarified the delegation regarding the Delegation of Authority to Sell Trees for Harvesting.

 

 

Resolution

Moved Cr Bailey, seconded Cr Paterson and resolved recommendations a to d with new e to g (as indicated):

That the Forestry Operations Committee:

a)         Receives the report titled “Strategic Purpose of the Forestry Business Unit” dated 10 November 2015.

 

b)         Determines that this matter or decision be recognised not significant in terms of Section 76 of the Local Government Act 2002.

c)         Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

d)         Supports further development of the Forest Estate Management Plan to incorporate the issues of Recreational amenity, Sale and Acquisition, Local Support, Supporting Research and Management Support for Urban Plantings.

 

e)         Note the delegated authority given to the General Manager Services and Assets and Chair of the Forestry Operations Committee at the meeting held on 26 August 2015 in relation to the selling of trees for harvesting and request that the Committee members be informed of any proposal to sell trees for harvesting before the decision is made.

 

f)          Request that Officers report back to Committee at the next meeting to clarify the specific delegations of the General Manager Services and Assets in relation to forestry operations for Southland District Council.

 

g)         Report back to the next meeting of the Committee on the status of each block of forestry land.

 

 

7.2

Financial Report to 30 September

Record No:         R/15/10/19030

 

Group Manager Services and Assets Ian Marshall, Dan Minehan Managing Director IFS Growth Limited and Reece McKenzie Forest Manager/Carbon Business Manager IFS Growth Limited were in attendance for this item.

 

The Committee noted that the forestry business unit has had a slow start to the year in financial terms, due to no timber sales and as a result, minimal operational activities.

 

It was also noted that expenditure for the year to date stands at $150,000, from a total budget of $840,000 to year end. Major areas of expenditure so far have revolved around replanting operations at Dipton and Waikaia ($77,000), internal council rates, forest management and general maintenance.

 

The Committee further noted that the net position for the year stands at negative $150,000, which will quickly correct once the 2015/16 harvesting program begins. On a positive note export log prices are significantly up at the time of reporting for the Committee.

 

 

Resolution

Moved Cr Bailey, seconded Cr Baird and resolved:

That the Forestry Operations Committee:

a)         Receives the report titled “Financial Report to 30 September” dated 10 November 2015.

 

 

7.3

IFS Growth Forest Manager's Report of Forestry Activity for the period to 30 September 2015

Record No:         R/15/10/19064

 

Group Manager Services and Assets Ian Marshall, Dan Minehan Managing Director IFS Growth Limited and Reece McKenzie Forest Manager/Carbon Business Manager IFS Growth Limited were in attendance for this item.

 

The Committee noted that the have been no Health and Safety issues over the over the three month period to 30 September 2015 being reported on.  Three contractors had been employed.  Two for planting in the Dipton and Waikaia areas and one for general maintenance.  All the operators (including IFS Growth staff supervisors) require pre-operation induction, forest specific hazards and regular supervision to ensure all safe practices are being carried out.

 

The Committee also noted that IFS Growth continues to actively identify and manage hazards in Southland District Council’s forests.  From a health and safety perspective anyone (including IFS Growth staff and landowners, or their representatives) entering a forest (that we manage) should ensure that they have a list of hazards for that forest prior to entering the forest.

 

Officers advised that domestic log prices continue to improve.  A per tonne return on a pruned log is now 11% up on three month ago.  A mill saw log (S & L) is also currently trading favourably at $88/t compared to the equivalent export A grade at $73/t. 

 

Export logs were subject to good news in October 2015 with a suggestion of an increase in the market.  This is likely because of a reduction of logs in China and a pickup in demand. 

 

 

Resolution

Moved Mayor Tong, seconded Cr Kremer and resolved:

That the Forestry Operations Committee:

a)         Receives the report titled “IFS Growth Forest Manager's Report of Forestry Activity for the period to 30 September 2015” dated 10 November 2015.

 

 

 

The meeting concluded at 9.54am.               CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Forestry Operations Committee HELD ON WEDNESDAY 18 NOVEMBER 2015.

 

 

 

DATE:...................................................................

 

 

 

CHAIRPERSON:...................................................