A proposal to pay farmers to preserve koala habitat did not address long-term issues regarding the species' survival, according to Port Stephens koalas.
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The state government plan, which would compensate farmers under the Biodiversity Conservation Trust, is the latest attempt to find a solution to an issue that has split the Coalition.
Port Stephens Koalas spokesman Ben Van Der Wijngaart said he was not opposed to compensating farmers, however, the plan needed to be part of a broader strategy.
"What we would rather have is the government look seriously at the bigger picture of koala extinction," he said.
"Preserving a few bits of rural land is not going to stop koalas going extinct. Let's tackle the big issues, which are the hard ones, and not fiddle around the fringes.
"What would be really helpful is protecting known koala habitat from urban development."
The government is hoping to bring its latest koala policy to parliament early in the new year.
But Mr Van Der Wijngaart said the plan, as it stood, raised more questions than it answered.
"What are the minimum sizes of land you would put aside for this sort of thing? is it viable koala habitat in the context of where it is? what else is going on in terms of disturbing koalas? which are very susceptible to stress as a consequence of human activity," he said.
"Is it going to be fenced off if so is it a bushfire trap? Where are the corridors that can be accessed by koala care groups to check on the health of koalas and the population sustainability?"
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Port Stephens MP Kate Washington dismissed the Coalition's plan as the "latest episode in the Coalition's Koala War saga."
"Urgent action is needed to protect koala habitat, otherwise they'll become extinct before 2050," she said.
"By the time the Liberals and Nationals stop arguing about koalas, there'll be no koalas left in NSW."
Catherine Cusack lost her position as Parliamentary Secretary for the Hunter when she crossed the floor and voted against a government land management bill in November.
"Our koalas are in so much trouble. The plight of koalas is really well understood by my community, and indeed by the whole world, which donated tens of millions of dollars in a stunning act of generosity to funds established specifically help koalas," Ms Cusack told Parliament.
"My community is incredibly distressed by this legislation. In all of the communications sent to me on this issue, I have not had a single person ask me to vote for this bill-not one. I cannot find a constituency for this legislation. All I can find is enormous distress and mistrust."
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