Yellowcake,For someone who holds no stock you seem very keen to...

Yellowcake,

For someone who holds no stock you seem very keen to persuade people to sell shares.

In response;

1. Incorrect. The Government has released details on carbon sinks via the Carbon Farming Initiative which they have confimred will be linking to the carbon price legislation and ETS when it comes in. The Greens were against mono cultures but they have been pesrsuaded to let go via the establishment of the $1billion bio-diversity fund. Under the CFI each company submits various programs which are then signed off by the relevant government agency and which have already been signed off for these companies.

2. Plant species are not allowed to be imported to WA thus effectively quarantining WA plantations from an unlikely disease issue. Should rust become an issue, it doesnt impact species every year and can easily be controlled with spraying, a marginal cost. My understanding is that the carbon sink companies are all looking at various trees outside of mallees which will add to the mix as capital begins to flow from clients.

3. I dont think the Government really wants to be seen putting another tax out there. Regardless, in CCF's case the land being utilised is gutless soil that does not retain moisture and thus is not good for food production. In addition the WA ag industry has had Government supported mallee plantings in the grain belt for the past 15 years to reduce water tables because of the massive impact of salinity which has already turned 2 million hectares into waste. It is true that you dont plant mallees into saline soil. Mallees get planted in recharge areas where the water tables accumulate and cause ground water to rise (typically in the lower areas of a paddock) which then are impacted by salinity. There is much proof to show that those saline impacted areas can once again become useful farmland once mallees (or other trees) have reduced the saline effected water tables.

In relation to prime farm land I agree that these companies should not be going there. I think you will find that the economics for carbon sinks dont add up in those areas anyway, thus why these companies plant in lower rainfall, low productive areas.