[Greens-Media] MEDIA RELEASE - SENATOR CHRISTINE MILNE - Greens question viability of pulp mill project reliant on unfair tax rules

[Willis, Katrina (Sen C. Milne)]

MEDIA RELEASE

Tuesday, 12 September 2006

Greens question viability of pulp mill project reliant on unfair tax
rules

The Australian Greens today questioned the economic viability of Gunns'
proposed pulp mill in northern Tasmania amid industry claims that
changing unfair tax rules could put the project at risk.

"Gunns' pulp mill is extremely marginal and it is difficult to see why
the investment community would be interested in investing over the long
term if returns were dependent on a tax minimisation scheme," Greens
Senator Tasmania Christine Milne said in Canberra.

"The federal government's special tax rules for plantation forestry
investments are unfair to growers and rural communities, and distort
investment decisions because they are focused on short-term tax savings
for high income earners.

"Rural communities across Tasmania and other parts of the country are
increasingly speaking out against the negative impacts of the federal
government's special tax rules that encourage short-term investment in
commercial forestry plantations. 

"Now the forest industry's peak body, NAFI, is claiming that changing
the rules to require tax deductions to be spread over a longer period
would 'impact adversely' on the pulp mill project.

"This is another example of why Gunns' pulp mill is a bad investment for
Tasmania. In addition to air and water pollution and the destruction of
native forests which are habitat for endangered species, we now have
reliance on unfair tax rules that are disadvantaging farmers and rural
communities.

"Forestry Minister Eric Abetz who has attacked rural communities and
farmers opposed to the current tax arrangements should abandon his
support for the tax rules which are unfair and should be changed.

"If the pulp mill project is not economically viable without special tax
treatment, then it should not proceed."

Contact: Katrina Willis 03 6234 4566 or 0437 587 562 


Katrina Willis
Adviser
Senator Christine Milne
Phone 03 6234 4566
Fax 03 6234 2144
Mobile 0437 587 562
www.christinemilne.org.au