Mill closure a sad day for North West Tasmania

13 April 2010

Mill closure a sad day for North West Tasmania

· Labor’s desperately late Paper Industry Strategy secret report still on Minister’s desk

· Allocation of $20 million industry rescue funding misses deadline

The announcement today of the closure of the paper mill in Burnie will be met with sadness, though not great surprise, by workers at the mill.

Coalition spokesman for Forestry and Tasmanian Liberal Senator Richard Colbeck said the losses of hundreds of jobs from both the Burnie and Wesley Vale paper mills was a major blow to industry across the region.

“The paper industry has, for many years, defined the economic foundation of Burnie. To lose the paper mill will leave an indelible hole in the greater region’s economy,” Senator Colbeck said.

Shadow Minister for Innovation, Industry, Science and Research Sophie Mirabella said she was greatly disappointed the final report of the Pulp and Paper Industry Strategy Group was still stuck on the desk of Federal Industry Minister Kim Carr.

“All this delay and these broken promises have let down the local paper industry and local families. It is a huge blow to Tasmania,” Mrs Mirabella said.

“This is typical of the Labor Government: all talk and promises, no action and gross incompetence.”

“Minister Carr and Braddon Labor MP Sid Sidebottom gave the strong impression last year they would be the white knights of the paper mills and the workers by announcing the formation of this Strategy Group,” Senator Colbeck said.

“Now both paper mills are closed, hundreds of local jobs are lost and the final report of Minister Carr’s Strategy Group is collecting dust on his desk.

“This is the same report which was originally supposed to be released in June last year, some 10 months ago.” (timeline below)

Senator Colbeck called on Labor to not hold up the announcement of funding for local businesses as part of the $20 million industry rescue package any longer.

“Senator Carr said, in Burnie on December 8, that he wanted to see new manufacturing projects up and running by April. It’s now well into April yet there has not been a project announced let alone up and running.

“Applications for ‘shovel-ready’ projects were received some time ago – the application process has been closed – it is now time to see some action.

“The Coast needs the money out there immediately so businesses can start investing and creating new jobs.”

Minister Carr and Sid Sidebottom’s timeline of non-action on paper industry

March 6 2009 – Braddon Labor MP Sid Sidebottom, Minister Carr and 5 North West Mayors meet Australian Paper management in Melbourne.

March 6 – Following meeting, Minister Carr announces intended formation of Pulp & Paper Industry Strategy Group with the Minister stating the final report will be complete in June 2009. Mr Sidebottom says:

“The strategy group will run in parallel with the current company review, which is intended to be completed by the end of June.”

March 20 – Minister Carr’s office says terms of reference still being decided.

May 15 – Minister Carr’s office says terms of reference will be announced within 2 weeks.

June 11 – Minister Carr’s office tells media there is no timeframe for the terms of reference.

June 19 – Minister Carr finally announces terms of reference for the review to be finalised by November 2009

August 21 – Minister Carr claims again report will be finalised in November 2009.

October 21 – Minister Carr’s Department says report will be finalised on 16 December.

December 8 – Minister Carr and Sid Sidebottom announce $20 million funding package to see new manufacturing projects up and running by April.

December 16 – Minister Carr announces a further delay in the report – to end of March 2010.
Senator Richard Colbeck