Managed investment schemes

Posted by Michael on May 17, 2009, 8:34pm, 298 views

There should be an independent inquiry into the effectiveness of Managed Investment Schemes.

With Timbercorp struggling and the future of Great Southern in doubt, the schemes must be reviewed.

Australia’s timber industry is under enough pressure without having to worry about government tax incentives, which should be the cream, rather than the cake.

According to ABARE, throughout 2008 Australia’s forest sector continued to perform strongly, however current economic conditions suggest difficult times ahead, with uncertainty regarding investment and employment in many regions.

The biannual report, Australian Forest and Wood Products Statistics, describes an industry exhibiting strong investment in new timber plantations and benefiting from continued housing sector and international demand.

“So far, the global financial crisis has not severely affected areas critical to the Australian forest sector, such as domestic housing and woodchip demand. Nevertheless, the effect of the crisis on these variables over the next few months will be critical for Australia’s forest industry,” ABARE executive director Phillip Glyde said.

He was commenting on figures from several months ago when making that statement.

The fact is conditions have deteriorated and many jobs have been lost. There is no sunshine on the immediate horizon for forestry.

These articles might be of interest: