Great Southern Group
Great Southern Group was a group of Australian companies that was notable as the country's largest agribusiness managed investment scheme (MIS) business.
| Company type | Public company |
|---|---|
Traded as | ASX: GTP |
| Industry | Managed investment schemes |
| Founded | 1987 |
| Headquarters | Perth, Western Australia |
Key people | David Gould (owner),David Griffiths (chairman), Cameron Rhodes (managing director), John Young (founder and board member) |
| Products | Pulpwood Beef cattle |
| Revenue | $444 million (2008) |
Net income | (loss) $63.8 million (2008) |
Number of employees | 430 (2008) |
The company was founded in 1987 and became a public company in 1999. It expanded its MIS business rapidly in the 2000s, supported by favourable tax regulations for these types of investments. Most of the Group's business was in plantation forestry to supply woodchips for the pulp and paper industry, but in the 2000s it diversified into high-value timbers, beef cattle, olives, viticulture, and almond production. The company's after-tax profit peaked at $132 million in 2006, but by 2008 had deteriorated to a $63 million loss.
The Great Southern companies attracted debate and criticism associated with the operation of managed investment schemes generally, and the environmental performance of their Tiwi Islands operation in particular. On 16 May 2009, as a result of worsening economic conditions and regulatory issues, the GSL, GSMAL, GSF and other subsidiaries of GSL entered into voluntary administration. Ferrier Hodgson was assigned as liquidator of Great Southern Group. The collapse of Great Southern Group, in conjunction with the failure of another high-profile agribusiness company, Timbercorp, led to three separate Australian parliamentary committee inquiries into the MIS industry.