Tararua District Council earns $4 million from sale of forest near Weber

The Tararua District Council has raised more than $4 million in the sale of a forest in southern Hawke’s Bay as it moves into a rationalisation of assets aimed at paying off council debt.

The Dannevirke headquarters of Tararua District Council, which has sold a forest 52km away near Weber and is now looking at other possible asset sales. Photo / NZME

It’s part of a long-standing plan but comes as councils across the country grapple with huge costs and the need to keep rates down.

The 334ha of the pre-1990, mixed-age Birch North Forest, near Weber and 52km east of Dannevirke, has been sold to Ingka Investments, the investment arm of Dutch company the Ingka Group, the largest Ikea retailer.

A statement from the council’s Dannevirke headquarters said a one-month tender process started through New Zealand Forest Sales Ltd in April, and Ingka Investments Forest Assets NZ submitted a conditional offer of $4,059,642.

To complete the process the company was required to gain consent from the Overseas Investment Office (OIO), and the sale and transfer was completed on December 10.

Ingka, which has forestry interests in at least nine countries, owns about 25,000ha in New Zealand, and the purchase is not its first in Hawke’s Bay. In 2022, it was reported to have purchased Stoneridge Farm, near Pōrangahau.

The council statement said that during its Long-Term Plan 2012/2022 consultation it stated a desire to exit commercial forestry through the sale of the forest, and it became the council’s long-standing position under the Tararua District Council Significance and Engagement Policy.

Ingka forestland country manager Kelvin Meredith said the purchase is a long-term commitment. “We want to show that well-managed forests can be both sustainable and a smart investment,” he said. “Responsible forest management means thinking in terms of generations, not financial quarters.

“Our approach always takes into consideration the impact we have on local communities and the environment, and we look forward to being part of the community.”

In a separate statement, the council said it was considering disposing of more council-owned assets following a recent review of council-owned buildings, reserves, and other land.

The rationalisation project, included in the current Long-Term Plan (LTP), aims to address the council’s goal to further cut operational expenditure so that rates can be reduced in the future.

An assessment focused on identifying non-operational land and less-used community buildings across the district, and excluded community buildings managed by Domain Boards, public conveniences, sports pavilions, aquatic venues, Dannevirke Civic offices, and campgrounds.

It said “notable” council-owned assets it is now seeking to shed are 39 Gregg St, 39 Ransom St Reserve and a rural bus depot in Dannevirke, part of the Woodville Pioneer Museum site, land at Newman Rd and Bengston St, Eketāhuna, Weber Reserve, at Waitahora Road, Waitahora, and land surrounding the Old Maharahara Public Hall.

The council said further cost-saving measures include reducing insurance coverage to demolition-only policies for “certain older, low-use buildings” and incorporating provisions in occupation agreements that shift operational expenses such as insurance and maintenance to tenants, or reflecting these costs in annual rental charges based on tenants’ financial capacity.

Disposal plans for each asset will be developed with iwi and through public consultation before council approval to dispose of the assets.

Doug Laing is a senior reporter based in Napier with Hawke’s Bay Today, and has 51 years of journalism experience, 41 of them in Hawke’s Bay, in news gathering, including breaking news, sports, local events, issues, and personalities.