Tuesday, 9 October 2012

Money out of thin air evaporating?

Just over a month ago, this blog published an item called Money Out of Thin Air (Link)

This video from Koozzoo exposed some of the manifestly corrupt practices now being used by big business to exploit the Carbon Tax in Australia, in particular the ridiculous practice of "carbonising land" - turning valuable agricultural land in to carbon sinks. 

 It concerned also Qantas' buying of carbon credits from RM Williams Agricultural Holdings' property Henbury Station.  ABC Rural wrote of it in July (here)
Qantas has agreed to buy carbon credits from the Henbury Conservation Project in the Northern Territory, under its voluntary offset program.

The credits are being produced by R.M. Williams Agricultural Holdings by regenerating the former cattle station, about 130 kilometres south of Alice Springs.

Head of Environment at Qantas, John Valastro, says while he can't say exactly how many credits will be purchased, it will be a significant amount.

Four months earlier, however,  ABC Rural  had raised doubts about the success of the project. (link)
When RM Williams Agricultural Holdings (RMWAH) bought Henbury Station, 130 kilometres south of Alice Springs last year, it was hailed as a bold new step forward in carbon farming.

But the sale only went ahead because the Federal Government contributed $9 million of the $13 million sale price. 

Now there are questions about whether the company will be able to make as much money from carbon credits as it expects, and whether the Government made a mistake in contributing funds.

A Northern Territory Government document obtained by ABC TV's Landline program says up to $78 million a year could be made from Henbury Station by selling carbon credits under the Federal Government's Carbon Farming Initiative.

RMWAH plan to generate the credits by removing cattle from the property and culling feral animals.
This stops emissions from the animals themselves, and allows vegetation to regrow and store carbon.
RMWAH bought the property by putting in $4M with the Government giving them  $9M.

How does that works? Didn't the Government (ie we, the people) put in more than RMWAH?

But RMWAH BOUGHT the property?

The Government spent more money on promotional blurbs. From one:- (link)

While Henbury has previously operated as a cattle station, 70 per cent of the huge property remains largely in its natural condition – a great platform for the new owners to implement a conservation and restoration plan to manage the entire property for conservation in perpetuity. 

With the removal of grazing pressures, the company will actively manage the former pastoral property to control fire, water, weeds and feral animals to support the regeneration of native vegetation. Income from the resulting biodiverse carbon credits will fund Henbury’s long-term conservation.

Now we learn that Australia's largest 'carbon farm' is failing: