[Greens-Media] Greens-Nationals carbon sink forests move stymied by Labor and Liberals

[Hollo, Tim (Sen C. Milne)]

Greens-Nationals carbon sink forests move stymied by Labor and Liberals

Canberra, Monday 1 December 2008

An Australian Greens' motion to disallow another forestry tax rort today
won the support of the Nationals, who crossed the floor, and Senator
Xenophon. However, the Liberal and Labor Parties joined forces to quash
the motion, with Senator Heffernan refusing to cross the floor.

This attempt to protect the environment and social fabric of regional
Australia is the result of many months of work by Senator Milne, working
with the Nationals and others. A timeline is attached below.

"This managed investment scheme on steroids is a disaster for rural and
regional Australia," said Australian Greens Deputy Leader, Senator
Christine Milne.

"What we have here is the plantation industry wanting yet another major
handout from the public purse, along with the coal and aviation sectors
looking for a cheap way to avoid reducing their greenhouse emissions at
source.

"It is utterly wrong to describe this as a carbon sink forest scheme
when it is not guaranteed to be a permanent carbon sink, nor is it a
real forest when it can be a monoculture plantation.

"The law gives investors an up-front 100% tax deduction on their costs
in relation to establishing a plantation with no requirement that the
trees be kept in the ground. There is nothing to stop a company
declaring its intention to establish a carbon sink forest, claiming the
tax deduction for their establishment costs, and then on-selling the
land, allowing the trees to be cut down or die.

"Contrary to what the Government has been telling stakeholders, legal
advice I have obtained tells me that the full value of the purchase of
land for these plantations will be tax deductible. This will
dramatically increase the incentives for the scheme, making what was
supposed to be a small change into a huge impact.

"This law will not, as the government claims, result in native
vegetation being established in marginal areas. These trees will be
established on prime agricultural land, buying up water rights, driving
more families off the land and diverting land and water from food
production. Investors will have the option of using the plantations for
fibre production or carbon credits, depending on which price is higher
at the time.

"Regional communities have already been destroyed by plantation
companies taking advantage of the tax benefits of Managed Investment
Schemes, buying off family farms which do not receive the same
preferential tax treatment. As families are driven away, communities
lose schools, doctors, local processing and postal runs. 

"This bad law must be removed, Senator Nash should be congratulated for
her stand in support of my motion, and I will continue my efforts
through each Tax Law Amendment Bill that comes forward to ensure that it
is."
 
Notes

2007
*	Bill introduced by Treasurer Costello in May 2007 Budget. Passed
Reps. Came before the Senate on last day of sittings before election.
Senator Milne objects and predicts "rural revolt". Bill deemed
non-essential and held over.
2008
*	Tax Laws Amendment Bill 1 re-instated post election and marked
for debate by the Greens.
*	Treasurer Swan reintroduces measure in Tax Laws Amendment Bill
2, which is marked as "non-controversial". Same measure is now in two
bills, Tax Laws Amendment Bills 1 and 2. Government whips do not inform
The Greens of this duplication.
*	Senator Milne watches for and picks up on first bill but, in the
meantime second bill passes as "non-controversial".
*	Senator Milne draws the attention of opposition members, who
have Senate majority, to the contents of the bill.
Tuesday 24 June
*	Greens, Nationals, Senator Heffernan condemn carbon sink measure
in the Senate. Bill held over.
Wednesday 25 June
*	Senator Milne puts amendment to rescind first bill.
Thursday 26 June
*	Opposition propose inquiry and oppose Milne recision amendment
as well as Greens amendments to ensure carbon sink trees cannot be cut
down or burnt but must be kept in the ground at least 100 years.
Tuesday 23 September
*	Senate Inquiry Report tabled, with Greens, Nationals and
Liberals tabling dissenting report written by Senator Milne against
Labor majority report.
Monday 1 December
*	Senator Milne moves disallowance motion.



Tim Hollo 
Media and Communications Adviser 
Senator Christine Milne 
Australian Greens Deputy Leader
ph: (02) 6277 3588 
mob: 0437 587 562
Come join the conversation at GreensBlog <http://greensmps.org.au/blog>