who owns the land, page-22

Buyers line up for Timbercorp assets
MARIUS CUMING
30/04/2009 3:30:00 AM
BUYERS interested in Timbercorp's assets are lining up for a bargain purchase after the agribusiness investment group was placed into voluntary administration.
And now the path could be open for investors to launch a class action against such failed timber managed investment schemes, the financial advisors who peddled them or even the Federal Government for allowing them.

The Shareholders Association of Australia said there was precedent against companies who had created a misleading prospectus and poor governance.

With uncertainty now surrounding the future of some 500,000 hectares of land under MIS control, consultant Mike Stephens said it was mind boggling that the Federal Government had no immediate intention of changing the MIS tax ruling, allowing upfront tax deductibility for investors.

"The real villains are the members of the present and recent Federal Government who allow the continuation of a flawed policy," Mr Stephens said.

"The MIS policy in the forestry industry has developed a false and unsustainable market for farming land, been responsible for the destruction of rural communities and created an oversupply of timber.

"It also cost the tax payer millions, failed to deliver a return for the investor and will ultimately leave a landscape which will cost thousands of dollars a hectare to rehabilitate."

He suggests such management in the private sector would deliver a class action.

Last year, financial auditor HLB Mann Judd raised serious questions with failed timber MIS Environinvest, after it appointed administrators last September.

A misleading prospectus, no due diligence and a lack of accurate and reliable management reporting were cited amongst the failings of the company.

Timbercorp last week also appointed administrators, who have declared the company has net debt of over $900 million and assets of just under $600 million.

It has over 18,500 investors and has staff of about 170.