Seedling production in the nurseries this season has not been without its challenges and frustrations. However with the exception of Lox liss, the available seedling numbers are above contract. The germination problems with Lox liss continue to frustrate nursery growers and seed collectors. However, OMC is taking positive steps to help address these problems by co-operating with Notre Dame University to facilitate investigations by a PhD student, Robyn Bell, into the possible causes of the poor germination performance of some of the oil mallee species. We are hopeful of some positive indications in the near future.

The majority of seedlings are in the regionally based nurseries so seedling delivery will be a local issue for most growers this year. Some growers have requested that OMC consider accepting cancellations of orders this year due to the extremely difficult season in some areas. OMC’s policy is to work with growers to help accommodate their wishes of not taking delivery of seedlings if we are able to place them with other growers. However, we will not be refunding cancelled orders if those seedlings have not been placed.

OMC has contracted to pay the nurseries for all seedlings that have been contracted, hence OMC is liable for the seedlings whether they are despatched or not. OMC will also be financially penalizing nurseries who do not achieve contracted numbers of seedlings.

The NHT funding support for oil mallees needs to be committed prior to 30th September 2001 to ensure that surplus funds do not have to be returned to the NHT Secretariat at the conclusion of the Project No. 983394, Regional Integration of Oil Mallee into Revegetation Practice, a three year project which concludes on September 30th 2001. The full uptake of this subsidy will result in 10.56 million oil mallee seedlings being planted with NHT support from seedling subsidies, plus many biodiversity plantings, over a three year period.

To ensure that the seedling subsidy is utilized by those for whom it was intended, we have adopted the following policy for this season:

The NHT Secretariat have requested us to ensure that growers focus on planting oil mallees away from salt susceptible areas that will affect seedling survival. It is not efficient use of taxpayers funds to plant seedlings on sites that are likely to cause seedling death! If you have any queries relating to the NHT scenario please phone Annie on 9478 0340.

OMC is working with Metasource on a project in Esperance which is focussed on integrating oil mallees into the farming system so that several positive outcomes are possible – these include:

1. Belts of perennials utilizing surplus water and nutrients across the landscape.

2. Providing farmers with an alternative income source that will be competitive for nett returns/ha with existing cropping and sheep operations.

3. Allow farmers a real opportunity to make a major impact on waterlogging, rising water tables, salt encroachment and wind erosion on their farming lands.

4. Develop a regionally based industry that will provide regional employment as well as potentially reducing the cost of electricity to consumers.

Metasource has contracted OMC to provide the on farm services required to ensure that the oil mallee plantings are successfully planned, sited, established, monitored and in the future, harvested and the biomass transported to the mill.

During this process OMC works closely with the landowner and others to ensure that a successful partnership between the investor and the landowner develops and prospers. This process will result in:

• Detailed farm plans to facilitate the integration of mallees into the farming system.

• The negotiation of a long term contract (20 years) between the landowner and Metasource Pty Ltd which allows for:

1. land rental

2. share of harvest profits

3. the investor meeting all costs associated with seedling establishment including planning and site assessment.

4. The opportunity for the landholder to increase their share of the harvest profits by contributing to the upfront costs.

• Carbon credits remaining with whoever funds the trees.

During this first year we are focussed on the successful establishment of 1 million oil mallees in the Esperance region and are extensively utilizing the services of the local people. It is most likely that the mallees will be planted on less than 10 properties this year.

We look forward to the day when there are several opportunities available to farmers in different regions of WA to participate in similar projects.