get in for chop now!

Article from: Weekly Times

Sell Gunns' land to farmers

Leslie White | September 25, 2012


LAND owned by fallen logging giant Gunns should be sold in small lots to local farmers, a Nationals MP says.

NSW Senator John Williams said he did not want to see a repeat of the Cubbie Station or Great Southern Plantations sell offs.


Both sell offs drew criticism when administrators refused to break the estates up into smaller lots - which real estate agents said would maximise the sale price, returning more money to investors - as well as giving local buyers the chance to buy the land.

On each occasion, the property has been sold in a massive parcel to an overseas buyer.

Gunns controls about 250,000ha of forestry land, some of which it owns, but most of which is in complex lease arrangements.

Senator Williams said administrators had a responsibility under section 420A of the Corporations Act, which instructs them to get the greatest return for investors when a company collapses.

"If they split it up into smaller blocks, numerous titles, that would give farmers the opportunity to get in and get it," Senator Williams said.

"If they sell it off as one holus bolus project, who will pay money for it when the figures show it has little to return. If the projected forecast is disaster it will be a bargain basement sale."

Gunns had lost some $950 million last financial year.

It had 16 managed investment schemes comprising $600 million of investor funds under management.

Senator Williams slammed managed investment schemes.

"MIS has been a flop,’’ Senator Williams said.

"They forced price of land up because buyers could claim sale as tax deduction, and squeeze the family farmer out of market. It's something we need to revisit."

Farm group the Tasmanian Farmers and Graziers was worried farmers owed rent by Gunns may not be paid.