Great Southern to quit Tassie

Great Southern held their AGM on Thursday 19th February 2009 at which they announced plans to quit Tasmania. They reviewed a tough year for the company. Their woes are typical of the MIS industry. The Chairman and the Managing Director addressed the meeting. The full address can be found on the ASX website (http://www.asx.com.au/asxpdf/20090219/pdf/31g4gmvvxd9h02.pdf ) but like all such addresses is very much a sanitised view of events. An earlier draft of the address has been ‘discovered’, a draft before the usual sanitisation and omission of facts and the application of gloss by spin doctors.

A better way forward

Thirteen months away from a crucial State election, and the Messiah is yet to appear. Dominated by forestry and Tarkine issues, it is sometimes easy to forget about some of the other matters that bear upon the lives of mortals. Like dollars and cents and hospitals. So it was pleasing to see Alex tackle the neglected subject, and review the State’s Mid Year performance for the period ended 31st December 2008 ( The State Budget update: Panic or celebrate ). But there was little I could agree with, neither his description of the current situation , nor his proposed solutions.

There currently exists a sound base for the future, if only there was a greater willingness to understand the present. And also a greater willingness of the Government to reveal the options for the future. And a greater desire by those in Opposition to do more than merely oppose.

A response to Great Southern

There was disturbing unreality about Great Southern’s Mr Ikin reply (Your Say January 30^th) to my letter on land tax in general and GSL’s Temma property in particular.

Mr Ikin is still reading from an old copy of GSL’s psalm book.

GSL reported on their website in October 2008 that “extensive areas of this plantation have failed and the majority of the failed areas are yet to be replanted……..approximately 36 hectares of this area will not be replanted.”

This differs from Mr Ikin’s assertion that only 14 hectares failed and it has all been replanted.

GSL has also allowed its cattle to graze the property inflicting great damage to the seedlings already battling to survive adverse conditions.

Forestry Tasmania's delusions

Ill informed claims and counter claims are by no means endangered species in the forestry debate. The interpretation of finance and economic statistics is often a cause for concern, even alarm. Usually one can safely turn a blind eye to the PR boys when they venture into areas of ‘benefits of Project A’ or ‘economic value of Industry B’. But when the executives involved in some of the decisions enter the public arena with similar fatuous claims, it is little wonder how confusing it is to interested observers.

Dr Hans Drielsma, the Executive GM of Forestry Tasmania (FT) in a letter published in the Mercury on 22nd January 2009 under the heading ‘True economic value’ attempted to argue that the true economic value of the State’s forestry industry can be measured by reference to its annual turnover.

Rates land tax and plantations

Do MIS companies pay their fair share of municipal rates?

The answer in short, is they are given special treatment which allows them to pay lower rates than other farmers. But it is in the matter of land tax where the State Government has been seriously remiss. Many of the failed and failing MIS schemes are arguably not entitled to land tax exemption which has always been granted in the past.

Special treatment for plantations

One of your correspondents in a note titled “Does Gunns pay rates” again raised the question whether plantation growers pay their fair share of municipal rates.

The answer in short, is they are accorded special treatment with respect to their assessed level of rates. But it is in the matter of land tax where the State Government has been seriously remiss. Many of the failed and failing MIS schemes are arguably not entitled to land tax exemption which has always been granted in the past.

Great Southern heads further South

Great Southern (GSL)continues its search for cash to enable it to survive 2009 after a tumultuous decline in its fortunes during 2008.The Plan to purchase 6 tree projects and 2 cattle projects from investors in exchange for GSL shares was aborted in Dec 2008 when the value of GSL shares fell as low as 12.5 cents. GSL will try again to get approval from investors and shareholders in the last week of Jan 2009. The shares are currently trading at 17.5 cents, not much improvement.

This time the Independent Directors had no alternative but to recommend against the Plan in respect of the 1998 Project which is currently being harvested. 1998 investors can wait a few months to receive $2,300 cash or accept GSL’s offer of 4,606 GSL shares currently worth $800. No need for a calculator.