meanwhile we are about to see how much political clout there is in the bush. cannot believe that gov would allow this at a time of drought and assistance already being paid out - surely this will only increase dependence on hand outs in the bush ?
Contrast this to the repeated statements that any carbon tax would not disadvantage fossil fuel providers. Clear that coal lobby has the gov where it wants it. bush considered to be expendible. however backlash is coming;
"PRESSURE has intensified on the Federal Government to revise its decision to allow the Tax Office to scrap tax breaks for agricultural managed investment schemes, after a revolt from its own back bench and reports of job losses.
Prime Minister John Howard was contacted by several members of his back bench yesterday to revise a cabinet decision not to extend tax concessions for non-forestry managed investment schemes.
Outspoken Liberal MP Wilson Tuckey has called the decision "bad politics", and chief Nationals whip Kay Hull said local jobs were in danger. "It's about local people and local money," she said. "The decision is just unfair and there should be time for the Productivity Commission to investigate."
Stewart McArthur, federal member for Corangamite, said many people in his Victorian-based electorate would be hurt.
He said transitional arrangements were needed "to assist those that had acted in good faith". "There's big contractors out there and news from the field today is that contracts are being terminated," he said.
The owner of Australia's largest privately owned fresh produce business, Frank Costa, is warning about the dire impacts on rural Australia. He said many people in the industry would suffer, and called on the Government to provide a three-year adjustment period. "It's not good for the Liberal Party, who is facing an election, to do something that is going to hurt the country," he said.
Despite eight months of delays, and a decision late last year to extend tax breaks available under forestry-related managed investment schemes, Revenue Minister Peter Dutton announced on Tuesday that the same tax breaks would not be offered for agribusiness investors from July 1.
The decision is expected to affect investments in a range of horticulture products, including nuts, avocados, tomatoes, olives, grapes, wine and pearls. The industry has warned that thousands of jobs could be lost.
Ross Hardwick, from the Western Australian Farmers Federation, said many of its members were worried about their future. He called on the Government to revise its decision.
Australian Olive Association president Paul Miller said about 70 per cent of the olive trees planted in Australia depended on MIS and many associated parts of the industry had planned expansion.
"Should this stall because of the current government attitude, then those plans will be dashed, with the obvious adverse economic and employment consequences for regional Australia," he said.
Rob McGavin, chief executive of Australia's largest olive oil company, Boundary Bend, said he was forced to shed 20 jobs at its Lara nursery yesterday. "It's an absolute disaster and it's getting worse by the minute," he said. "We are all coming under so much pressure. I am very concerned that we have been asked by the Government to deal with courts and the tax department when the Government is the one running the country."
Mr Dutton said the courts would decide whether the schemes were legitimate investments.
He denied he had ever announced that the Government would inquire into the matter.
Shadow primary industries minister Kerry OBrien said Agriculture Minister Peter McGauran had failed to fight for rural and regional communities threatened by the decision. But Mr McGauran said he endorsed the Government's decision.
Shares of some of the biggest companies involved in the schemes clawed back part of the previous day's drop, with Timbercorp shares gaining 2¢ to $1.96 and Great Southern Plantations adding 6¢ to $2.25
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
