Would you pay an 80 per cent non-refundable deposit on a house in the hope of getting the title in 10 years’ time?
That is exactly what the government wants to do with Forestry agreement! My amendments to Schedule A Reserves would see a slowing down of the reserve creation process for land that is not under world heritage nomination. The rescheduling of creating reserves would provide time for attainment of FSC certification, an essential to the future of the timber industry in Tasmania. It also provides a more reasonable time to assess durability.
Last week the government accepted my amendments requiring the attainment of FSC certification for the 2nd and 3rd tranches of reserve land. I think it is important that FSC be obtained and peace demonstrated before the bulk of the land becomes permanent reserves.
The government proposal is to put some 80-90% of the land (tranches 1&2) into reserves without a reasonable time frame in which to obtain FSC certification, or to assess durability.
What I am proposing is the same process that applies to the sale of land. The deal starts with an exchange of contracts and a deposit, both parties proceed through due diligence and then, at the very end, at a single point in time, settlement occurs when the title is exchanged for money.
To apply the analogy
1. The passage of this legislation is the exchange of contract, the world heritage nominated land is the deposit.
2. FSC certification and substantial (not total) peace in the forests and markets is the due diligence 3. the final making of the reserves (settlement) should occur at the end of the process
“My proposal is to reduce the deposit from 80% to 24%; still a hefty amount!
Who ever heard of a contract where due diligence occurs AFTER settlement! Yet the government’s process is to have settlement occur shortly after contract exchange and then go through due diligence – all too late – the land is locked up without any gain!
The amendment does not change the substance of the agreement, only its implementation. The government could not argue this is a show-stopper as both governments have indicated that implementation amendments would be acceptable.
• David Obendorf: No Plan B
Just days from an expected Upper House verdict on Tasmania’s forest peace deal, the Premier Lara Giddings has reminded MLCs there’s no ‘Plan B’.
She was out and about hosing down claims that a failed peace deal would be a blow to her Government.
‘It won’t be a big blow for the Government, but it will be a big blow for forestry workers themselves’, Ms Giddings said.
The Premier reminded MLC that there is no contingency plan.
‘We’ve always said there isn’t a Plan B that you would just immediately go to and say: “Oh well, it didn’t succeed there… let’s go to Plan B”,’ the premier said.
• Use the TT NEWS Dropdown menu (top nav bar) for breakingnews/comment on the legislation …
• ABC Online: MLCs blast forest deal ‘circus’: … It is understood a majority of MLCs are now lining up to support Rumney MLC Tony Mulder’s amendment to halve the first amount of forest to be protected from logging. Environmentalists say that would force them to walk away from peace agreement. Huon MLC Paul Harriss says he will no longer try to fix the legislation. Debate will resume this morning, but a third reading and final vote on the legislation is unlikely to happen before Easter. The Upper House is not scheduled to sit again mid-April. Full story, ABC Online, here
