Australian Greens Senator Christine Milne was very pleased that her amendments to the 'carbon sink forests' tax laws that were slipped through last week had drawn the vocal, if not active, support of Senators Joyce and Heffernan today.

Senators Joyce, Heffernan and Boswell have spoken in strong support of the Greens' proposed amendments, but will not cross the floor against the wishes of Senators Abetz and Minchin to vote in favour of amendments to repeal the laws.

Senator Milne said, "This cross-party concern should be a clear warning to Prime Minister Rudd that he must fix this mess or immediately explain to the people of regional Australia why he is determined to drive them off the land and further undermine the viability of their communities with another tax rort for plantations dressed up as climate policy.

"It is utterly wrong to describe what is a Managed Investment Scheme on steroids as a carbon sink scheme.

"This law that was slipped through last week by being moved into the schedule of a different bill gives investors an up-front 100% tax deduction on their costs in establishing a plantation with no requirement that the trees be kept in the ground.

"There is nothing to stop a company declaring its intention to establish a carbon sink forest, claiming the tax deduction for their establishment costs, and then on-selling the land, allowing the trees to be cut down. It is even unclear whether the tax deduction cover the cost of purchasing land for the plantations.

"The Climate Change Minister is required to provide guidelines but refused to answer any questions in the debate as to what those guidelines would be.

"This law will not, as the government claims, result in native vegetation being established in marginal areas, as marginal land does not produce healthy, fast-growing forests. These trees will be established on prime agricultural land, buying up water rights and driving more families off the land. Investors will have the option of using the plantations for fibre production or carbon credits, depending on which price is higher at the time.

"Regional communities have already been destroyed by plantation companies taking advantage of the tax benefits of Managed Investment Schemes, buying off family farms which do not receive the same preferential tax treatment. As families are driven away, communities lose schools, doctors, local processing and postal runs.

"The Mayor of King Island has already said this law will leave his world famous island's food production in a grave situation.

"This travesty must be fixed."

Notes

2007
• Bill introduced by Treasurer Costello in May 2007 Budget. Passed Reps. Came before the Senate on last day of sittings before election. Senator Milne objects and predicts "rural revolt". Bill deemed non-essential and held over.

2008
• Tax Laws Amendment Bill 1 re-instated post election and marked for debate by the Greens.

• Treasurer Swan reintroduces measure in Tax Laws Amendment Bill 2, which is marked as "non-controversial". Same measure is now in two bills, Tax Laws Amendment Bills 1 and 2. Government whips do not inform The Greens of this duplication.

• Senator Milne watches for and picks up on first bill but, in the meantime second bill passes as "non-controversial".

• Senator Milne draws the attention of opposition members, who have Senate majority, to the contents of the bill.

Tuesday 24 June
• Greens, Nationals, Senator Heffernan condemn carbon sink measure in the Senate. Bill held over.

Wednesday 25 June
• Senator Milne puts amendment to rescind first bill.

Thursday 26 June
• Opposition propose inquiry and oppose Milne recision amendment as well as Greens amendments to ensure carbon sink trees cannot be cut down or burnt but must be kept in the ground at least 100 years.