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FRA shares South Australian plantation industry's water legislation concerns
Forestry Research Associates (FRA) agrees that Victoria, Australia, could see an influx of forestry plantation investment, as a result of the introduction of tougher water policies in the South Australia region.
The South Australian plantation industry said that the new NRM (Commercial Forests) Amendment Bill could require plantation owners in the region to pay for licenses for the use of intercepted water in their irrigation, which they claim could put investors off doing business in the region. Instead, they claim that investors will be drawn to the Victoria region as it does not have the strict licensing rules over the use of rainwater.
The Australian Forest Products Association CEO, David Pollard, stated, “The South Australian Bill threatens to impose costly and burdensome regulations on plantation growers that do not recognise the rights to existing water use in declared areas.”
FRA, which is a research and advisory consultancy specialising in sustainable forestry and forestry investment, stated its support for South Australia’s plantation industry’s concerns. Its analysis partner, Peter Collins, said, “FRA agrees that these new regulations over what should be a free-to-access commodity are outrageous and will surely work to the detriment of the plantation industry in the region. However, forestry investors may now move their cash to Victoria, where the legislation does not exist.”
Mr Pollard continued to explain why investment might make its way to Victoria: “Victoria has released its Western Region Sustainable Water Strategy, which provides recognition for the water rights of existing plantations and the right to ongoing harvesting and replanting at the time a site is declared an intensive management area.”
Plantation projects, such as those operated by Greenwood Management in Brazil, are a popular reforestation tactic in many nations around the world and can offer great investment opportunities for those looking to make cash from investing in trees, added FRA.
About Forestry Research Associates
Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.
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