Report to ENVIRONMENTAL PLANNING & REGULATIONS Committee for decision

Transcription

1 Title: Section: Prepared by: Waerenga-o-kuri Soil Conservation Reserve Environmental & Regulatory Services Lois Easton (Shared Services Science Manager) Meeting Date: 16 November 2016 Legal Financial Significance = Medium Report to ENVIRONMENTAL PLANNING & REGULATIONS Committee for decision SUMMARY The purpose of this report is bring the issues around the future management and use of the Waerenga-o-kuri Soil Conservation Reserve. The reserve is owned by the Crown but administered by the Gisborne District Council Environmental and Science Services Section. The Council s Soil Conservation willow and poplar nursery is located on the site, there is a grazing licence and the Council is currently in the process of relocating the gun club to the reserve. The reserve has a large and active gully erosion system as its heart, which has threatened the Tiniroto Road on a number of occasions. Council Land and Soil Resources staff monitor and manage the gully and much of the reserve has been planted with pine forestry as part of the stabilisation regime. Most of the forestry was harvested in and replanted. After the costs of maintaining the reserve since the first planting were deducted there is $4.4M in funds held as a liability against the Council which was the profit from the harvest. While some part of the money held by the Council will be used over the next years to operate the reserve, a sum in the order of $2M is likely to be excess to these requirements. Provided this money is used for soil conservation purposes it is considered likely that LINZ (as the Crown agents) would approve the expenditure of these funds, rather than requiring the Council to continue to hold them. Currently the Soil Conservation Nursery is run at a small loss in some years or breakeven in others. While the ECFP scheme is available for landowners with Overlay 3A land on their property, no other subsidy is offered in the district for Soil Conservation plantings, despite the district having the worst soil erosion problems in the country. Other regional Councils (eg Hawkes Bay, Wellington, Horizons, Waikato) operate nurseries and provide subsidies for soil conservation plantings in their regions for land of a similar (or less) level of erosion than experienced in the Gisborne district. A review of the Overlay 3A programme and Council s next steps with soil erosion is planned for The role of the Soil Conservation nursery and support for erosion plantings is planned to be considered as part of this. This report seeks approval of the Committee to: A Page 1 of 7

2 progress with scoping of the expansion of the soil conservation nursery and development of a subsidy scheme for sales of poplar and willow poles from the nursery for soil conservation plantings as part of the overall review of soil erosion programmes; approach the Ministry for the Environment to gain their approval for the use of the funds generated from the harvest of forestry on the site for the purposes of expanding the nursery and providing a district wide subsidy scheme for soil conservation plantings. The decisions or matters in this report are considered to be of Medium significance in accordance with the Council s Significance and Engagement Policy RECOMMENDATIONS That the Environmental Planning & Regulations Committee: 1. Notes the contents of this report - and in particular: a) That the Waerenga-o-kuri Soil Conservation Reserve is owned by the Crown by administered by the Gisborne District Council b) That $4.4M was generated from the harvest of forestry on the reserve and that approximately $2M is expected to be available beyond what is needed to maintain the reserve over the next years which could be allocated for soil conservation purposes. 2. Approves staff scoping the expansion of the soil conservation nursery, and the development of a district-wide subsidy scheme for soil conservation plantings. 3. Agrees that the Ministry for the Environment should be approached regarding the use of funds from the forestry sales for Soil Conservation Purposes on the reserve and in the district. Authorised by: Lois Easton Shared Services Science Manager Kevin Strongman Group Manager Environmental & Regulatory Services Keywords: Waerenga-o-kuri Soil Conservation Reserve A Page 2 of 7

3 BACKGROUND 1. Waerenga-o-kuri Soil Conservation Reserve is owned by the Crown but managed by Council (as a Regional Council) pursuant to S16 (4) of the Soil Conservation and Rivers Control Act (1941). Under this clause Council is required to manage and control the reserve in such a manner as in its opinion will best conserve the soil of the reserve and prevent injury to other land. S20 (4) allows for the Crown to dispose of all or part of the reserve but only if Council is of the opinion that the whole or any part of the soil conservation reserve is no longer required for the purpose for which it was set aside. Land Information New Zealand is the present administering agency but has no management role. 2. The reserve was purchased by the Crown in It was gazetted as a Soil Conservation Reserve to: Control earthflows threatening SH36 Tiniroto Road Control headward moving gully erosion Develop and demonstrate soil conservation practices. 3. Administration was through various government departments until 1977 when responsibility was transferred to the then Poverty Bay Catchment Board, later to be incorporated into Gisborne District Council. The Catchment Board set about implementing the original objectives through more of a land use focus. Boundary adjustments were made to bring more eroding land into the reserve to give a total area of 417ha. About 174ha adjacent to the central gully/earthflow complex was retired from all grazing to allow reversion to indigenous species. A 10ha wetland was developed. Suitable flat land was developed into the main (later to become only) council poplar and willow pole nursery. A small area of land around the buildings and further potential nursery land was retained in pasture. The balance was close planted in Pinus radiata exotic forest. 4. The soil conservation functions are met by periodic supplementary specialised tree planting, animal pest control, forest harvesting and earthworks management and maintenance of armoured gully drop structures. 5. At the core of the reserve is a large gully, much of which has progressed to the stage that the focus is on containment rather than treatment. The overall soil erosion state remains precarious. 6. Following transfer of the reserve management in 1977, initially the Crown provided funds through Ministry for the Environment to manage the reserve. However this became more spasmodic from In 1995 the Minister for the Environment advised Council would be reimbursed for reasonable expenditure incurred in managing the reserve once the forest harvesting income comes on stream. The following year the Minister raised the possibility of forest harvesting income surplus to that required for managing the reserve, being made available for sustainable land management initiatives in the region. 7. In 2007 Ministry for the Environment gave approval to council to harvest the exotic forest plantings and use the resulting profits to offset the accumulated deficit accrued through Council managing the reserve without Crown funding. Any surplus after harvesting and replanting was to be held in trust for the Crown ha of exotic forest was sold by stumpage sale in 2011 for $5,265,000 and successfully harvested in This sale process minimised management costs and risks to Council. A Page 3 of 7

4 Under a stumpage sale all costs of harvesting, including construction of roads and landings and re-instatement of fences is met by the purchaser. DISCUSSION AND OPTIONS Erosion issues 9. The need for careful management of the reserve for soil conservation purposes remains. The gully is very responsive to storm events and has much steep bare ground that is essentially untreatable. Maintenance and extensions to the surrounding vegetation delivers a containment function. The gully drop structures are currently working well but there have been past failures. Earthflows that begin at the Tiniroto Rd edge are planted in permanent tree cover however there are attrition losses due to ground movement and pest damage which need to be addressed is required from time to time. The reserve is not a simple indigenous reserve, an exotic forest, or a farm, but a mix of these in tune with land use capability. In this respect it is a microcosm of the wider erosion prone hill country in the district. A gazetted Soil Conservation Reserve is an appropriate status. Poplar and willow nursery 10. The poplar and willow nursery on the reserve is the only Council nursery, established to ensure a local supply of appropriate genetic material and a core supply of poles is available to the district. It is well established and includes all weather access to purpose built soak bays. There is room for expansion. 11. This pole planting is an important leg of Overlay 3A soil conservation treatment options as well as erosion control on other erosion prone land. Willow plantings are also an important part of managing the flood control scheme and provide important winter fodder for manuka honey beekeepers. In the last two years there has been insufficient willow stock in particular available to meet demand. 12. Of this over the last five years an increasing proportion of the poplars and willows have been taken up by planting requirements for the ECFP/Sustainable Hill Country programme and this is reflected in increasing demand. In the last two years there has been insufficient willow stock in particular available to meet demand. There are 3-4 other small, farm scale poplar and willow nurseries in the district, however the current and projected demand (based on existing approved ECFP applications for poplar and willow planting and projections for further approvals to 2020 when the fund expires) are such that we consider expansion of the nursery will be a critical requirement to enable the implementation of the ECFP. Gisborne Pistol Club 13. The Gisborne Pistol Club is in the process of relocating ranges to the reserve. There is potential for other recreational uses too, if limited in time and place so as to not hinder livestock management, nursery operations, forest management and the overall soil conservation function of the reserve. Funding of the Reserve Operation 14. Funding the operational management of the Waerenga-o-kuri Soil Conservation Reserve has been an on-going issue since the Crown withdrew annual grants for Soil Conservation Reserves in The reserve is not rates funded. Regular annual income is limited to tenancies on the three houses, small grazing licence and an annual transfer of surplus income from Wharekiri Demonstration Farm (also a soil conservation reserve). A Page 4 of 7

5 The reality is the indigenous scrub and tree reversion area, permanent tree plantings and the raw gully area produce no income. The major source of income is the 170ha of exotic forest, when it is harvested every years. Forestry Harvest Income 15. As at 18 May 2016 approximately $4.4M of the 2011 stumpage sale income remains after covering the deficit accumulated to that date, harvest planning, harvest management and forest replanting costs. 16. Analysis of the costs of maintaining the reserve over the next 30 years indicate that only a proportion of the funds will be required and it is expected that at least $2M in funds will be surplus to the requirements to maintain the reserve through to the second rotation harvest income. Potential Use of Surplus Funds 17. The funding is Crown money, held by the Council on its behalf. However given the past discussions with MFE around its use, it is likely that should a clear soil conservation purpose for the funding be identified, then it would fit within the purpose of the funds. Whether such a purpose is required to be spent at the reserve itself, or more widely in the district is a discussion which would need to be held with MFE. 18. A review of the Overlay 3A programme and Council s next steps with soil erosion is planned for The role of the Soil Conservation nursery and support for erosion plantings is planned to be considered as part of this. 19. The most obvious use for the surplus funds, given the current uses of the reserve for soil conservation, is expansion of the poplar and willow nursery and the introduction of a subsidy for the provision of poplars and willows where these are being used to support soil conservation initiatives outside the ECFP subsidy area. This could include the Overlay 3 area which includes all Land Use Capability Class 7 (steep) land much of it with moderate or severe erosion problems. It may also be appropriate to consider whether, as is provided for under the ECFP, indigenous reversion of steep eroding land and retirement from farming, may also be appropriate for some form of subsidy. Next Steps 20. Given that we have now identified that there is a significant quantum of funds in excess of what is required to manage the reserve until the second rotation forestry harvest, the next steps are to discuss possible alternative uses of the funds with MFE and scope in detail what those uses might be and likely costs. ASSESSMENT OF SIGNIFICANCE Criteria This Report The Process Overall The effects on all or a large part of the Gisborne district Low Low The effects on individuals or specific communities the level or history of public interest in the matter or issue Medium Medium Consistency with Council s current strategy and policy Low Low Impacts on Council s delivery of its Financial Strategy and Long Term Plan. Low Low A Page 5 of 7

6 21. The decisions or matters in this report are considered to be of low significance in accordance with Council s Significance and Engagement Policy. 22. Spread across the whole district the impacts will be low, but there will be medium impacts on those affected by soil erosion occurring in the reserve, users of the nursery and those able to be assisted with assistance for the soil conservation works. COMMUNITY ENGAGEMENT 23. There has been no community engagement as this is a Council-Crown matter. CONSIDERATIONS Financial/budget considerations 24. There will be no impact on rates, however currently the $4.4M is identified as a liability in the Council balance sheet. Retention of the reserve will continue soil conservation measures within the reserve and enable nursery outputs to be maintained. Income generated by the reserve remains Crown owned. This report seeks use of surplus income beyond that required to manage the reserve, for wider soil conservation activities in the district. LEGAL CONSIDERATIONS 25. The report and recommendations are consistent with the relevant provisions of the Soil Conservation and Rivers Control Act (1941). It could be construed that the management and control responsibilities council enjoys over the reserve pursuant to Section 16 of this Act are sufficient in themselves to enable surplus funds to be used outside of the reserve. However, there is a history of engagement with Crown agencies and it is considered appropriate that this continue. POLICY AND PLANNING IMPLICATIONS 26. This report and recommendations are consistent with Councils policies and plans. RISKS 27. There are no real risks associated with the decisions. NEXT STEPS Date Action/Milestone Comments Dec 16-Feb 17 Dec16 Feb 17 Engage with MFE officials on potential use of funds Develop draft proposals and costings to inform MFE and Annual Plan A Page 6 of 7

7 Appendix 1: Aerial photo of Waerenga-o-kuri soil conservation reserve A Page 7 of 7