The pulp mill wood supply deal

Garry Stannus

Under this second agreement, the Derwent, Bass, Murchison and Huon Forestry districts can have old growth forest logged for the life of the agreement. Provision is also made in the agreement for the variation, and possible increase, of the 200,000 tonnes p.a. agreement for old-growth logging for the mill.
Late last year Forestry and Gunns signed two agreements, in October and December, 2008.

The first, to supply native forest timber for pulping in the mill, got wide publicity, attracting criticism for the ridiculously low prices that Gunns would be required to pay for our forests.

The second agreement, largely unknown to the public, dealt with ‘sawlogs and other products’. It provided for 200,000 green metric tonnes per annum of old growth forest to be available to Gunns for Biofuel at the mill, where it will be burnt to heat the boiler that will in turn produce electricity. This electricity will power the mill and any surplus power will be available for on-selling. Because of ridiculous greenhouse-gas accounting conventions, this electricity, from wood-fired furnaces, will be classed as clean-green power, whereas Victorian power, generated from coal, is classed as dirty.

Under this second agreement, the Derwent, Bass, Murchison and Huon Forestry districts can have old growth forest logged for the life of the agreement. Provision is also made in the agreement for the variation, and possible increase, of the 200,000 tonnes p.a. agreement for old-growth logging for the mill.

When John Gay, or Paul Lennon or anyone else says that no old growth forests will be used in the mill, their words contain 200,000 tonnes of untruth, each year.

Download analysis: LONG_TERM_PULPWOOD_SUPPLY_AGREEMENT_old_growth_logging.doc

Garry Stannus,
Liffey.