Jennifer Hewett and Matthew Denholm Australian
ENVIRONMENT Minister Malcolm Turnbull is under increasing pressure to make a quick decision in favour of the Tasmanian pulp mill after new Liberal polling showing a jump in the party’s support in the crucial seat of Bass. Although Labor remains ahead, the Liberals are now far more confident of their chances of retaining the seat and say they can cement their momentum by giving the mill formal approval before the election.
John Lyons Australian
BUSINESSMAN Geoffrey Cousins last night described Labor environment spokesman Peter Garrett as “a weak man who I would not give the time of day” as he intensified his campaign against a proposed $2billion pulp mill in Tasmania.
Nick Clark Mercury Delivery day for mill
Meanwhile, Gunns share price: Here
And …
Gunns is under pressure to reveal what it as agreed to pay Forestry Tasmania to use logs from state forests in its controversial pulp mill proposed for the Tamar Valley, amid claims it has cut a special deal. Liberal senator Bill Heffernan, a confidant of Prime Minister John Howard, told Gunns representatives this week that the details of the agreement should be disclosed because the forests were a public asset.
GUNNS PRESSED ON DEAL
Sophie Morris – Australian Financial Review 21 September 2007
Gunns is under pressure to reveal what it as agreed to pay Forestry Tasmania to use logs from state forests in its controversial pulp mill proposed for the Tamar Valley, amid claims it has cut a special deal.
Liberal senator Bill Heffernan, a confidant of Prime Minister John Howard, told Gunns representatives this week that the details of the agreement should be disclosed because the forests were a public asset.
Senator Heffernan, who on Wednesday met a group of Tasmanians who argue the Tamar Valley mill will harm the State’s other industries, is concerned the logs may have been promised to Gunns at below cost price.
“There ought to be full disclosure of commercial arrangements, including logging prices for what is a public asset to be provided to a [private company,” he told the Australian Financial Review.
“To fully inform debate on the cost-benefit analysis, people need to know: are the logs at cost price or at a profit or a loss to Forestry Tasmania?”
Tasmanian Greens leader Peg Putt said the party secured partial information about the draft agreement between Gunns and Forestry Tasmania under Freedom of information laws earlier this year.
“What we don’t know is whether a deal has been concluded or not…and we don’t know the price for the logs”, she said.
“But we do know there is a clause tying the amount of royalty or stumpage paid to Forestry Tasmania to the world market price at which Gunns manages to sell pulp. This means Gunns’ profits are protected and Tasmanians will bear their risk of any downturn in the market.”
Gunns representatives this week lobbied politicians in Canberra to support the mill, which was approved by Tasmania’s parliament but is under review by chief scientist Jim Peacock ahead of a federal decision on its future.
University of Tasmania economist Graeme Wells said Gunns could save $440 million to 2030 on the log price because of a favourable deal, though deals were not known.
Gunns representatives in Canberra referred the AFR to the company’s “propaganda department” in Tasmania. A spokesperson there refused to comment.
