ROBERT GOTTLIEBSEN, Business Spectator
The Gunns pulp project in Northern Tasmania could start construction within three months but for one problem – Australian banks are too frightened of the environmentalists to loan relatively small sums to the project. Overseas banks are prepared to stump up almost all the money required but Gunns still needs one or two Australian banks to loan the project at least $50 million, but preferably $100 million. So far, Australian banks’ fear of the environmentalists runs so deep that there are no takers. The ANZ was an early backer but pulled out because of the environmentalists threats. Given that the project is being supported by the federal and Tasmanian governments, and that northern Tasmania is about to be hit with the closure of the Wesley Value pulp mill, all that stands between employing thousands of people on the construction is a couple of small loans from Australian banks. At least at this stage, it seems that the environmental movement has more power over the Australian banks than the Australian or Tasmanian governments. Read more, Comment here
