ANZ BANK chief economist Saul Eslake,a former Smithton boy who has stated he would like to die in Tasmania, is a respected commentator well worth listening to.

He recently restated his longstanding view that Tasmanian industry should shift from it’s current emphasis on bulk production of low value added commodities such as woodchips and potatoes. (Mercury 29/8)

Eslake goes on to say that: “To my mind Tasmanians are still more resistant to social and economic change … than many of their mainland counterparts”.

I have not seen the evidence for or against this belief but I am aware of the negative effect federal tax policy has had in this regard.

The so-called ‘2020 vision’ removes impediments to the increase of Australia’s plantation estate by (amonst other things) providing a 100% tax break for developing short rotation, broadacre pulpwood plantations whether they be on prime agricultural land or on clearfelled native forests.

This policy threatens the long-term viability of a Tasmanian Specialty Timber industry, the organic agriculture and aquaculture sectors, leatherwood honey production and eco-tourism. These industries are all of the type that Eslake (and many other Tasmanians) would like to see supported by all levels of government.

Mr Eslake could greatly assist Tasmanians by lobbying the Prime Minister and the Treasurer to remove this tax incentive which unfairly favours an outdated and destructive activity. The money saved would, no doubt, be appreciated by farmers (and others) wishing to diversify and differentiate into niche market products.

He could also ensure that his own financial institution did not support any company’s involvement in these activities as they have done in the past.

Frank Nicklason
West Hobart