Economy
Yes Mr Gay (3)
THE State Government paid $239,000 for an under-road crossing for Gunns Limited’s pulp mill water pipeline, shortly before Premier David Bartlett drew his “line in the sand” to end government support for the project.
Pulp mill project manager Les Baker asked Department of Economic Development secretary Norm McIlfatrick for help to pay for the box culvert under the Batman Highway-East Tamar Highway interchange in April 2008.
Mr Baker pleaded that Gunns was under “extreme financial pressure”.
Documents obtained by the Mercury under the Freedom of Information Act show Gunns had been set a deadline to pay the $239,008 cost for the culvert by the Department of Infrastructure, Energy and Resources.
DIER officers were concerned that Gunns’ three-month delay in agreeing to pay was delaying work on the $70 million East Tamar Highway upgrade.
“They [DIER] have given us a deadline to commit to the payment which expires this week,” Mr Baker wrote in an email to Mr McIlfatrick.
“With our extreme financial pressures in developing this project we are not in a position to make such a commitment until financial close.
Can you help us here?”
Mr McIlfatrick discussed the matter with Infrastructure secretary Mark Addis.
“I have Mark Addis’ support to move forward with this work on the basis that Gunns commit to fund the specific project work for the box culvert for a future pipeline crossing subject to the Bell Bay mill project obtaining financial close and proceeding,” Mr McIlfatrick replied to Mr Baker.
Mr Baker agreed by return email.
Gunns is still seeking a joint venture partner for the $2.5 billion pulp mill.
Two months after the deal was made, Premier David Bartlett declared that government support for the project would end if the mill was not under construction by November 30 that year.
Gunns reported a $64.5 million profit for the 2007-08 financial year.
Image: HERE