MIS last rites

Reports suggest New Forests has bought Gunns’ assets (not including the pulp mill site and permits) for $330 million.

In all likelihood this means Gunns’ land plus the trees growing on the land. Some of the trees however belong to MIS investors and joint venture partners.

Court proceedings have been underway for some time to get court approval for the amount to be split to the tree growers.

It won’t all end up with the hedge funds or whoever now owns Gunns’ bank debt.

Joint venture partners will get some and some will go to the MIS growers. Korda Mentha also will undoubtedly clip the ticket.

Privatisation: Broader issues

Privatising public assets is back on the agenda with Treasurer Hockey reigniting the discussion with his offer to State governments of a bonus if they sell remaining public assets and spend proceeds on new much needed infrastructure.

The Mercury ran an opinion piece on April 7^th from one of its resident op ed writers Hodgman has to sell off assets  urging Will Hodgman to sell assets and  ditch the leftist, big government view of the world as a necessary precondition to reviving Tasmania.

The privatisation debate has been around for a while but nothing new was presented on this occasion.

The economic blogosphere is full of bloggers trying to come to grips with the causes of the GFC. At the heart of this discussion are the matters of money, debt, and the role of government and hence is of particular relevance to the issue of privatisation.

Reality bites: Part 2

Two days ago Minister Harriss announced the way forward for the Tasmanian forest industry by creating a new class of reserve for 400,000 hectares of native forest destined for World Heritage protection designed to allow selective logging of special species whilst continuing to receive funds to compensate for the extra costs of reserve management.

Support for the Minister’s proposal has, so far, been a little underwhelming even from the main industry body FIAT.

The Mercury found a pocket of support:

Reality bites

It was only a matter of time before the incoming State government started backing down on its forest policy promises such as ripping up the forests agreement and ceasing funding Forestry Tasmania (FT).

The emotive term ‘ripping up the TGA’ suggests the Tasmanian Forests Agreement Act will be repealed. This is, and always has been, unlikely.

Even the latest announcement of changes to the classification of 400,000 hectares doesn’t imply the Act is being repealed or ripped up.