Source: The West Australian, Peter Williams
Tax breaks for carbon sink forests are set to be implemented after Nationals senators, who believe the scheme will have a devastating effect on agriculture, failed to convince Liberal colleagues to vote against it.
Labor and Liberal senators joined forces last night to reject an Australian Greens’ motion to prevent the scheme, which critics say would allow polluting companies to gain a tax advantage by buying out productive farm land to grow trees.
The Nationals, led by Senator Barnaby Joyce, voted with the Greens and Independents against the policy, which would grant tax subsidies to forests grown to offset carbon emissions.
“Crossing the floor is the longest walk in politics,” Nationals Senator Ron Boswell said. “This tax deduction has the potential to distort land prices in major agricultural regions, moving good growing land to carbon sink land and undermining food security.”
Liberal senators Bill Heffernan and Julian McGauran spoke against the scheme but abstained from the vote. “I’d cross the floor if it’d make a difference,” Senator Heffernan said. “I don’t need to tug my ego, but I oppose the legislation.”
The Greens said the party had received legal advice that the full cost of land would be tax deductible, dramatically increasing the financial incentives for the scheme and its effects.
“It is poorly drafted and will cause damage to the environment and social fabric of rural and regional Australia,” Greens Senator Christine Milne said.
The Government says the tax break will encourage the establishment of carbon sink forests, making a contribution to reducing carbon in the atmosphere and delivering natural resource management benefits.
Environment Minister Peter Garrett said the Nationals were rejecting a scheme Opposition Leader Malcolm Turnbull had introduced as environment minister.
