Gunns’ special water deal … and the fast-track poll

Tim Morris Media Release

Potential to Cost Taxpayer Millions in Lost Revenue to Hydro

Sue Neales Mercury: Majority against fast-tracking
The Tasmanian Greens today have described as “yet another special ‘mates-rate’ deal for Gunns” the draft water rights contract between Hydro Tasmania and Gunns Limited to provide water to the proposed pulp mill, and have demanded that the contract be rewritten to ensure that Gunns must pay the same market price for water as any other water rights purchaser.

Greens Shadow Water spokesperson Tim Morris MHA said that the draft contract provisions which allow Gunns to pay a mere $24 per megalitre, and guarantees a supply of 24 thousand megalitres per annum with the ability for this to be increased to a massive 40 thousand megalitres per annum, is unfair to other users, and will cost the taxpayer potentially millions of dollars in lost revenue.

Mr Morris also said that the release by Hydro of the proposed water price allocation to Gunns increases pressure on the government to also release the price Gunns will be paying for its wood supply which has been kept secret.

“The draft water contract between the Hydro and the pulp mill proponent is yet another special ‘mates-rate’ deal for Gunns, that short changes other primary industry water users, and will cost Hydro potentially millions in lost revenue on an annual basis,” Mr Morris said.

“The Greens are demanding that this draft contract is torn up, and started again factoring in all costs that any other irrigator must pay, including up front water right charges and market price cost of purchasing water on an annual basis.”

“Hydro Tasmania will lose up to $42 million if this deal goes ahead, which goes some way to explaining the looming electricity price raise.”

“This deal being stitched up between the Hydro and Gunns will mean a loss of up to $42 million up front if Gunns takes the full 40 thousand megalitres per year that is on offer and up to $4 million per annum over the annual charge.”

“From the information released by the Hydro it appears that Gunns will pay no more that $960, 000 per annum if they take up the full allocation of 40 thousand megalitres.”

“There appears to be no end to the extent that the Lennon government will go to subsides this mill using taxpayers’ money.”

“It is special deals such as this, which is virtually a state subsidy to one of the most profitable corporates, which makes the Tasmanian, Farmers and Graziers Association’s position of support for the proposed pulp mill deeply disturbing as they should be jumping up and down demanding that the costs farmers are expected to brunt also apply to every other purchaser of water rights.”

“Tasmanians have had enough of these special deals to Gunns, and the release of Hydro’s draft contract increases the pressure on the government to release the price details of the wood supply agreement with Gunns, which we know is for at least twenty years but the cost details have been kept secret,” Mr Morris said.

And,

Nick McKim MHA

Wednesday, 8 August 2007

NEW PULP MILL POLL SHOWS CONCERNS OVER FAST TRACK PROCESS, AND PROJECT ITSELF

The Tasmanian Greens today said that the poll results released today by Investors for the Future of Tasmania showed that Gunns Ltd’s proposal for a pulp mill in the Tamar valley, along with the government’s fast track assessment process, are very unpopular in the Tasmanian community.

Greens Acting Leader Nick McKim MHA said the results are particularly telling given the massive advertising spend in support of the project by Gunns Ltd and the state government.

Mr McKim said that the results also showed that the debate was not a split between development and anti-development sentiments, as mill supporters have tried to beat up, but about what kind of development strategy Tasmania should have.

“There is no way that anyone can realistically label as anti-development the 51% of people surveyed who do not support Gunns Ltd’s proposal, and it is now clear that the debate is about what kind of development people want in Tasmania, rather than the over-simplified development versus anti-development analysis.”

“This mill and its fast track assessment process are clearly viewed as duds by the Tasmanian community,” Mr McKim said.

“Given the millions of advertising dollars spent in support of the pulp mill, the fact that that over half the people surveyed still do not support it should send a stark message to Legislative Councillors.”

“Paul Lennon will no doubt carry on his ‘crash or crash through’ agenda, but he is clearly not acting in the nest interests of the majority of Tasmanians, who do not want the mill or its fast-track approval.”