Gunns tree plantations
The real risks
If you're thinking of investing in trees in Tasmania, then there are some vital facts that you need to know first.
The first is that the person recommending that you 'invest' in tree plantations, is going to be getting paid a healthy commission of 10% - 15% of your money.
At Gunns usual rates for a hectare, you'll need to get $35 - $47 tonne for your trees (150 - 200 tonnes/hectare/15 years) just to break even in today's dollars!
In its 20 year wood supply contract with Gunns, the State government has just reset the price per tonne (i.e. floor price) for public pulpable hardwood at $16 tonne delivered to Gunns mill.
For those plantation investors for whom Gunns is their only possible customer, they will have no choice but to sell trees at whatever price Gunns offers - which is likely to be around $16 tonne delivered!
That's a loss of between $25 to $35/tonne or around $5,ooo per hectare for local investors. Those with 100 ha of plantation are in for an extremely nasty shock as is anyone relying on notional income from plantations in a decade or so.
The tax incentives to grow tree plantations are little more than a taxpayer subsidy to Gunns, who take no risks, get all cash up front and have the taxpayer/investor pay for the growth of trees that they need for their pulp mill.
The first is that the person recommending that you 'invest' in tree plantations, is going to be getting paid a healthy commission of 10% - 15% of your money.
At Gunns usual rates for a hectare, you'll need to get $35 - $47 tonne for your trees (150 - 200 tonnes/hectare/15 years) just to break even in today's dollars!
In its 20 year wood supply contract with Gunns, the State government has just reset the price per tonne (i.e. floor price) for public pulpable hardwood at $16 tonne delivered to Gunns mill.
For those plantation investors for whom Gunns is their only possible customer, they will have no choice but to sell trees at whatever price Gunns offers - which is likely to be around $16 tonne delivered!
That's a loss of between $25 to $35/tonne or around $5,ooo per hectare for local investors. Those with 100 ha of plantation are in for an extremely nasty shock as is anyone relying on notional income from plantations in a decade or so.
The tax incentives to grow tree plantations are little more than a taxpayer subsidy to Gunns, who take no risks, get all cash up front and have the taxpayer/investor pay for the growth of trees that they need for their pulp mill.
Why haven't I heard this before?
Just about all printed and verbal information about tree plantations comes from people who rely on getting your money. Your financial advisor, the plantation company, both are paid by YOU. If you don't purchase a tree plantation, they make nothing.
We're different
We are independent of the industry and free to report the facts as we see them.
What to do
Find out your situation - DO NOT MISS THIS STEP
If you cannot get satisfactory answers to these questions, contact your federal MP. It's federal MIS tax subsidies that are stimulating the tree plantation business.
Trade Practices Action
If you feel you've been misled by the plantation company in any way, you can lodge a complaint with the ACCC Trade Practices Commission, whose Act forbids misleading or false advertising on pain of financial penalties.
You can also join a group of people who want to take similar action to decrease your workload and increase your chances of success.
They are not going to tell you the risks.
We're different
We are independent of the industry and free to report the facts as we see them.
What to do
Find out your situation - DO NOT MISS THIS STEP
- How much have you got invested in trees?
- Do you have any guarantee of the price you'll get for them?
- What happens if the price is much lower than you have been led to believe?
- What guarantees are there for your future income from your plantation(s)?
- Can you sell your plantation if you want to? When? How?
If you cannot get satisfactory answers to these questions, contact your federal MP. It's federal MIS tax subsidies that are stimulating the tree plantation business.
Trade Practices Action
If you feel you've been misled by the plantation company in any way, you can lodge a complaint with the ACCC Trade Practices Commission, whose Act forbids misleading or false advertising on pain of financial penalties.
You can also join a group of people who want to take similar action to decrease your workload and increase your chances of success.
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