Tough time for Gunns, says Gay

Rachel Williams Examiner
GUNNS managing director John Gay yesterday admitted the current economic climate was the toughest he had ever experienced. Mr Gay will take his concerns to a business roundtable being hosted by Bass Labor MHR Jodie Campbell in Launceston today. While unable to elaborate significantly because of a pending half- year result release to the ASX, Mr Gay said the timber company was experiencing difficult times. Gunns’ Triabunna, Bell Bay and Hampshire woodchip mills have all been temporarily closed because of a significant reduction in woodchip sales to Japan. But Mr Gay could not say what other measures might be implemented to deal with the global financial crisis. “At the moment, Gunns has made a decision that we would take a shutdown for a period of time in our forestry business and hopefully it’s enough to get us through,” Mr Gay said. “But you do one thing today and in a month’s time it’s not enough and it makes us look like we don’t know what we are doing. “I can say the market slow down has happened faster and quicker than I’ve ever known a market to slow down. “We have got very difficult times ahead of us as businessmen and Government has to start to listen to the businesses that employ people and not listening to their economists and advisers.” Mr Gay will join representatives from some of the region’s biggest employers at the roundtable, to be chaired by Labor Senator Nick Sherry, including Rio Tinto, ACL Bearing Co. and the University of Tasmania. Read more here