The private sector of the afforestation industry in Australia : with particular reference to afforestation investment companies

Abstract

This essay examines the private afforestation industry in Australia, placing greatest emphasis on the investment of funds by members of the public in afforestation companies. During the 1920's and 1930's many small investors heeded the call to invest their capital in the establishment of plantations of fast growing conifers to overcome the predicted "famine" of timber in the future. These investors received little return on their capital as most of the companies collapsed during the depression without having established their promised plantations. When similar predictions of timber shortage occurred in the 1960's and since other companies have sought capital from the small investor. These companies are examined in the main body of the essay. The company and taxation law relating to these companies is examined and the deficiencies that allowed the collapse of earlier companies without a return have mostly been removed but later sections describe practices that would appear to be in contravention of the law. The details of the majority of companies offering their services to the public as forest managers are examined and a personal appraisal of their performance given. This performance is generally found wanting. Cases are cited of plantations that cannot provide any return on the public's investment and in the majority of cases little hope is given that the return will be as substantial as has been promised by the salesman for the investment. The forms of investment presently available to the public are found to be grossly inefficient as is the assistance given by governments to encourage private afforestation. The need for assistance for the industry is councilled and possible forms of assistance suggested. The need for the professional forester to be concerned with the activities of the so called "forestry consultants" and the companies offering afforestation investments to the public is also councilled. Show more