Nick Xenophon (SA, Independent) Share this | Hansard source

I rise to indicate that I support the Greens amendment moved by Senator Milne. This is an issue that will not go away. When I speak to irrigators in Riverland in South Australia and to environmentalist and environmental groups in the Lower Lakes, there is a common ground when it comes to managed investment schemes and the impact they have on the water market and on land use. Carbon sink forests and the tax breaks given for them further distort the water market and distort the use of prime agricultural land. There is also the impact they have on water with respect to the interception of that water from going into river catchment areas.

I endorse what Senator Milne has said. I note that the Nationals—in particular, in the work that they have done, and Senator Nash in particular—have been outspoken as to their concern about the distortionary effects of carbon sink forests. This issue will not go away. This is an issue where there is considerable angst in the community, particularly amongst river communities. Both environmentalists and irrigators have real concerns about these tax write-offs. These tax write-offs really need to be abolished, and we need to go back to the drawing board.