Farmers and the environment would be the big winners under a plan to develop a new cash crop producing eucalyptus oil, Premier Carmen Lawrence said today.
"Work is underway to determine the viability of planting eucalypt crops in areas threatened by high salinity to produce oil for a variety of uses," Dr Lawrence said.
"Tests are being conducted by the Department of Conservation and Land Management and Murdoch University on an oil solution which could be an alternative to existing industrial solvents.
"Some conventional solvents used by industry in large amounts contain chlorine and can contribute to ozone depletion.
"The test product - `Eucasol' - is a natural solvent which could more readily meet increasingly stringent health and safety regulations.
"This and other potential oil products could more than cover the cost of tree planting in agricultural areas where the rainfall is not high enough to produce economical tree crops for timber production.
"Unless we continue remedial action, it is estimated that the area of agricultural land affected by salinity in Western Australia will increase five times to 2.5 million hectares in 30 to 50 years."
Dr Lawrence said that next year, several species of local mallee trees would be planted in about 120 kilometres of mallee hedges.
The leaves could be harvested after the first four years and subsequently every two years.
As well, a seed orchard would be established by CALM to produce seven mallee species from 150 different seed sources.
The crops would be planted under sharefarming partnerships between farmers, investors and CALM such as those developed for blue gum timber crops in high rainfall areas of the South-West.
Dr Lawrence said there were other opportunities to develop new eucalyptus oil markets.
Good Samaritan Industries and the Rottnest Island Authority were taking part in a pilot scheme with CALM to test another possible product - `Mallee Boy Firelighters'.
GSI would make eucalyptus oil and beeswax firelighters to be included in bagged firewood supplied to Rottnest under a new 12-month contract.
"Further evaluation is required before `Eucasol' and `Mallee Boy Firelighters' are available to the public but their development offers a natural solution to some important economic and environmental problems," Dr Lawrence said.