New Environmental Plan Worth Billions to Rural Australia
© Environment News Service (ENS) 2001
August 28, 2001
SYDNEY, Australia, August 28, 2001 (ENS) - A partnership between Australian corporations, environmentalists and scientists has released a report identifying strategies to mobilize nearly A$13 billion dollars (US$6.9 billion) over 10 years. The funds would come from the private sector and would be invested in addressing salinity and other environmental problems in rural Australia.
This represents the first time business leaders from agriculture, finance, wine and food sectors have united to tackle some of Australia's most serious environmental problems.
The partnership includes leaders from Southcorp, Elders Ltd, Berri Ltd, ABN AMRO and Macquarie Bank as well as the Australian Conservation Foundation, and the Australian government's research branch, CSIRO.
The report, "Repairing the Country - Leveraging Private Investment," was commissioned by the Business Leaders Roundtable and prepared by the Allen Consulting Group.
The consultants found that over 10 years, A$12.7 billion in new private investment in environmental projects can be generated through a mix of policy and taxation measures costing taxpayers less than $3.6 billion over the same period.
The funds are urgently needed. The total area of land affected by salinity is expected to rise from 2.5 million hectares to over 17 million hectares by 2050 - equivalent to around 75 percent of the state of Victoria.
Launching the report, Southcorp chairman Rick Allert said, "As leaders of businesses with sizeable investments in rural Australia we have a keen interest in sustaining our farmlands, soils, rivers and our native plants and animals for future generations. There can be no better way of doing this than by helping to make the environment an attractive business investment."
"Under this package, every government dollar will generate A$3.50 in private environmental investment; all-up an investment in rural and regional Australia worth around 15 billion dollars over 10 years. That's very heartening news for rural communities," he said.
Allert said, "The report has found that farmers need a commercial incentive to adopt more sustainable practices, and this is why we need smart ways of linking new land use opportunities to big sources of private funds."
Australian Conservation Foundation president Peter Garrett said, "Environmental damage is already costing Australians $3.5 billion annually. The very landscapes that define us as Australians are at stake. Our soils, our unique plants and animals, our rivers and our water supplies are seriously threatened by problems such as salinity, soil loss, pollution and habitat destruction."
The report recommends improved access to private capital through tax preferred investment vehicles. An integrated package of tax offsets and concessions could tailored to make environmental investments more attractive.
A Land Repair Fund could be established to administer a range of programs and tax concessions, and seed funding could be provided for innovative commercial ventures that achieve environmental benefits.
Accreditation for sustainability plans would ensure projects are consistent with national and catchment based policies and objectives, the report recommends.
Garrett, who is also lead singer in the band Midnight Oil, said, "We've welcomed the opportunity to be part of the Roundtable and commend the business leaders involved for their vision and commitment to land and water repair.
"A year ago the federal government asked us for advice on how to better engage the private sector on the environment. I hope that both government and opposition can take up the challenge from here in a bipartisan spirit of cooperation," Garrett said.
The report proposes a clear policy of prevention in preference to cure for Australia's environmental problems. "Surely it is better for government to invest in leveraging private investment and rebuilding a more sustainable economic base in rural and regional Australia now, than to be paying for subsidies and relief packages for struggling communities and failing industries well into the future."