Economy
Impacts of the Gunns pulp mill. Scottsdale, a way forward. Hope, say groups. Train wreck, fears W-W
How Gunns’ planned pulp mill is already displacing opportunities for community and regional growth
TAP supports promotion of Talent, Innovation, Diversity and Environment (TIDE) and a shift in government policies towards promoting more diversified resilient sustainable development based on Tasmania’s unique clean island qualities, niche markets and favourable climate. But Gunns’ proposed pulp mill is damaging to TIDE and displaces opportunities for community and regional growth.
Adapted from the Cool Cities program, Michigan, USA, the acronym TIDE represents four conditions that are holistic and systemic rather than causal. Each one is necessary but by itself is insufficient for generating long term prosperity. To attract creative people, generate innovation and stimulate economic growth, there must be substantial, balanced performance across all four.
In TAP’s assessment, Gunns’ proposed pulp mill has a negative effect on Talent, Innovation, Diversity and Environment and therefore scores a fail on each condition.
Talent
Tasmania’s ability to attract and retain a ‘creative class’ of talented and creative people will drive opportunities and competitive advantages to our communities. For example, the ‘creative sector’ in the United States represents 30% of the total workforce but earns 50% of the wages (Richard Florida).
Companies increasingly move to locations based on access to talented and creative people rather than expecting those individuals to always come to them. This sector is not limited to young people in high-tech jobs. It includes all ages across every sector and type of organisation.
Innovation
Innovation, entrepreneurs and entrepreneurial activity across the State’s economy creates jobs. There are creative jobs and occupations in all sectors of the economy. The State’s unique qualities, its brand and niche markets offer particular opportunities for innovation and development.
Diversity
Communities with high levels of diversity are the most desirable for young families and young professionals and are economically more successful. Diversity of ideas, organisations and people attracts and retains creative talent.
Environment
The Environment (or Quality of Place) focuses on the amenities and other assets that attract and retain individuals and organisations. Creative workers demand natural, recreational, cultural and lifestyle amenities as well as a balance of economic opportunity and lifestyle when selecting a place to live, work and play.
Negative impacts of the forestry/pulp mill model on Talent, Innovation, Diversity and Environment of Tasmania’s future
The proposed pulp mill scores a fail grade on all four TIDE conditions. The government’s failure to assess the social and economic costs of the project is the principal reason for the ongoing absence of financial backing. That failure has also blindsided the Government to the mill’s harmful effects on Tasmania’s future prosperity.
In addition, One-sided legislative support for forestry interests give forestry a massive edge over all other industries competing for the same resources. Forestry industries are exempt from the Land Use and Planning Act, Environmental Protection Act and Freedom of Information Act.
TAP believes that Tasmania can do much better than accept a future dominated by forestry and pulp mill.
Talent = fail.
Wells Economic Analysis concluded that economic gains from the proposed pulp mill will be offset by “crowding out” of other development opportunities and job losses elsewhere. Crowding out will lead to emigration of talented innovative individuals from Tasmania and discourage others from coming.
Innovation = fail.
Innovation and entrepreneurial activity based on Tasmania’s unique qualities and clean brand will be squeezed out under a forestry and pulp mill future that makes the State a bulk commodity supplier into an undifferentiated global pulp market. Preferential treatment and subsidies for forestry and pulp mill sends the wrong signal to entrepreneurs.
Diversity = fail.
A pulp mill and its service industries will force a narrowing of diversity of enterprises in the north as people sell up to escape odour, traffic and pollution, and as tourists stay away, and Tasmania’s clean brand is eroded. An economically impoverished zone of plantations will expand around the mill site as farmers find that they are unable to sell their land to anyone but Gunns. The economic stability promised by diversity will be lost under bulk global commodity market that cycles between boom and bust.
Environment = fail.
The pulp mill environmental footprint including odour, Bass Strait pollution and large areas of plantations threatens to smother tourism, wineries, organic food production, fishing and associated service industries over a large part of the State. Diversion of taxpayer funds from hospitals and schools etc to forestry and the pulp mill is a disincentive to the ‘creative class’ settling in Tasmania.
A better future
TAP urges adoption of the TIDE framework and a shift in government policies towards promoting more diversified resilient sustainable development based on Tasmania’s unique clean island qualities, niche markets and favourable climate.
Professor Joseph E. Stiglitz recommended diversification and promotion of tourism as key requirements for Tasmania to weather global financial booms and busts (ABC July 2010). Stiglitz is an acclaimed international economist, University Professor at Columbia University in New York and a recipient of the 2001 Nobel Prize in economics.
References
Wells Economic Analysis, Tasmanian Roundtable for Sustainable Industries Project, 2007.
Meanwhile,
GREENS WELCOME SUPPORT FOR A NEW SCOTTSDALE DIVERSIFIED MILL
Alternative Mill Proposal Offers Hope for Future
Kim Booth MP
The Tasmanian Greens today welcomed the passing of their Parliamentary Motion to support alternative mill proposals for Scottsdale following Gunns’ decision to close the town’s last softwood sawmill.
Greens Forests spokesperson Kim Booth MP said the Greens’ proposal for a diversified wood processing and training mill for Scottsdale had the potential to reinvigorate the forest industry in Scottsdale, while underpinning the sector as a whole in Tasmania.
Mr Booth also said that the loss of the last softwood sawmill in Scottsdale was due to the decisions of successive Labor governments to sell-off the publicly owned softwood plantation estate, and to then do nothing while the softwood supply for Scottsdale was transferred to Bell Bay.
“I would like to congratulate the Liberal Party for their support on this important issue, and can only hope that this move will eventually result in a viable new sawmill for Scottsdale,” said Mr Booth.
“We now expect that any package being developed by the Premier and his North-East Parliamentary Secretary Brian Wightman will investigate proposals such as the radial milling and diversified wood processing plant, as the Greens have been advocating since 2008.”
“A diversified training and wood processing mill will provide long-term viable jobs for Scottsdale, and essential training in new and innovative techniques for existing sawmillers and their workers.”
“The Greens’ proposal for a new diversified wood processing and training mill for Scottsdale offers hope for a future sawmilling industry in Scottsdale, as well as training options for existing sawmillers, and we would like to thank the Liberal Parties for supporting this important initiative,” said Mr Booth.
Download: Diversified Wood Processing and Training Mill for Scottsdale: A Working Mill Run By the Workers, Fact Sheet released by Kim Booth MP, July 2008:
Oct20_Diversified_Mill_Proposal_K_Booth_ATTACH.pdf
Text of Greens’ Motion passed with Liberal Support:
That the House notes:
1. With grave concern the announced closure of Gunns softwood sawmilling operations at Scottsdale;
2. The economic and social effects on the Dorset community;
3. That the Greens warned at the time that the sale of the publicly owned softwood plantation estate into the Taswood growers joint venture with GMO would lead to the ultimate closure of the Scottsdale sawmills;
4. That the Greens opposed the transfer of the combined log allocation from Frenchs and Auspine to FEA at Bell Bay warning that this would also lead to the closure of the mills;
5. Condemns successive Labor governments for their failure to act in the interests of the Scottsdale community despite all the above warnings, and despite the Greens’ proposed 2008 Diversified Wood Processing plant for the region; and
6. Calls on both Labor and Liberal parties to support alternative proposals such as the radial milling and diversified wood processing plant, and to work to make Tasmania’s regional and rural areas more economically robust.
Regional conservation groups looking for local outcomes from forest agreement …
MEDIA RELEASE – 21st October 2010
Regional conservation groups looking for local outcomes from forest agreement
A cross section of environment groups from around the state today welcomed the agreement on a Statement of Principles between ENGOs and timber industry stakeholders and said that it promised to deliver real conservation outcomes in the region.
The agreement, which promises a moratorium on logging high conservation value forests, leading eventually to full, formal protection, offers new hope for regional community groups that have worked hard to promote the conservation values of the forest in their backyards.
Lesley Nicklason, spokesperson for the Friends of the Blue Tier, congratulated all parties involved in the agreement. “This is a significant achievement that can deliver long overdue protection to the natural and tourism values of the Blue Tier and other spectacular areas across the North East,” she said. “When the high conservation value forests of the Blue Tier are protected, the upper catchment of the Groom River will be secured.”
East Coast group Save Our Sister confirmed that an end to logging on South Sister would protect landscape, viewfields and other values. “Tasmania can’t afford for its tourism drawcards to continue to be tarnished by clearfells and forestry burns. This agreement will give hope to tourism operators and begin the healing of long-held community rifts”, said Andrew Lohrey, a former forestry minister.
Scott Jordan from the Tarkine National Coalition said that “the agreement offers great hope for the Tarkine and when implemented, the moratorium would protect 70,000 ha of unreserved forest in the Tarkine.”
The Statement of Principles, in which industry has agreed to protect forests as identified by conservation groups, will provide great outcomes for water catchments, carbon storage, landscape values and wildlife habitat.
Dr Eric Woehler, Chair of Birds Tasmania said “this is a significant contribution towards the conservation of some of Tasmania’s iconic bird species, notably the endangered Wedge-tailed Eagle and Swift Parrot. Their populations have decreased markedly as a result of loss of their breeding and feeding habitats. Expected changes to forestry operations in Tasmania will reduce the pressures that these and other species face”.
“We hope that this will lead to an immediate conclusion to logging activities within the habitats of the 12 endemic birds on Bruny Island, particularly the endangered Swift Parrot. This is cause for celebration at the Bruny Island Bird Festival this weekend” said Louise Crossley from The Spirit of Bruny.
Jenny Cambers-Smith of the West Wellington Protection Group said “High altitude coupes such as those in West Wellington, adjacent to Hobart’s Wellington Park, would take hundreds of years to recover from clearfell operations, we ask that the forest industry embrace this new spirit of cooperation and act swiftly honour the agreements made.”
Angie McGowan from The Florentine Protection Society also welcomed the signing of the Statement of Principles, saying “unique forest areas such as the Upper Florentine Valley might now be appreciated for what they are – beautiful wild places – rather than the scene of ugly confrontations”.
The Public Environmental Health Network (PEHN) congratulates the hard work of the roundtable in arriving at their first stage of agreement. “We encourage the contribution of community science in any further scientific views on this matter including biodiversity, water catchment management and chemical use in broad acre plantations. Community scientists must be recognized as contributing to the diversity of scientific views on this matters,” said Dr David Obendorf spokesperson for PEHN.
Participating groups include the Tarkine National Coalition, Friends of the Blue Tier, Birds Tasmania, Florentine Protection Society, Huon Valley Environment Centre, Peninsula Environment Network, Save our Sister, Still Wild Still Threatened, Future Tasmania, West Wellington Protection Group, Public Environmental Health Network.
Sawmillers welcome Statement of Principles as first step in providing a secure future for the industry
Country sawmillers have welcomed the forestry industry Statement of Principles,handed to the Premier this week as a vital first step in guaranteeing a viable future for the industry which has suffered decades of decline.
The Tasmanian Country Sawmillers Federation, a signatory to the agreement between contributors to the Industry Reference Group and environment groups, said the document was an essential step towards a long-term plan to ensure a sustainable, viable forestry industry in Tasmania that is capable of providing ongoing employment in regional communities in perpetuity.
“It is a sad indictment on previous governments, the industry and the community that our industry has been allowed to decline so much, suffering a silent death due to reductions in saw log availability,” TCSF chairman Fred Ralph said.
“Just 20 years ago there were 85 country sawmills operating in Tasmanian, yet in the last two decades 65 of these businesses have shut their doors, leaving just 20 remaining today.
“In all this time not one statement of regret has been made and not enough has been done to stop the jobs and investment that had bled out of timber communities, but we won’t allow that to be the case this time.
“We are pleased to be part of this negotiation process which will lead to a better and more secure future for country sawmills while also delivering vital environmental outcomes.
“Contrary to some opinions, processing suitable plantation sourced logs holds no technical difficulties for country sawmillers, with some retooling, as the science of drying plantation timber is well advanced and it is just the marketing that still needs to be addressed.
“We are committed to working positively with all participants over the next 12 months to deliver a good outcome for the Tasmanian community, of which country sawmills are an important part, and we hope this same goodwill and genuine commitment will be shared by all sides.”
Environment Groups welcome Bartlett/Gillard meeting
The Wilderness Society, Environment Tasmania and the Australian Conservation Foundation welcomed last night’s meeting between Prime Minister Julia Gillard and Premier David Bartlett.
“We are encouraged to see Premier Bartlett rapidly engage the Prime Minister in discussions onimplementing the new agreement,”said Vica Bayley of the Wilderness Society.
“This is an important signal of the seriousness and urgency with which both governments are giving the opportunity presented to Tasmania with the signing of this agreement.”
“We look forward to the Federal and State Governmentsoffering strong support to help implement theagreement so together we can builda future that protects native forests and timber jobs.” said Dr Phill Pullinger of Environment Tasmania.
Dr Phill Pullinger, EnvironmentTasmania
Vica Bayley, The Wilderness Society
Lindsay Hesketh, Australian Conservation Foundation
Andrew Darby, The Age,
Gunns boss at work on forest peace pact
October 21, 2010
A bridge-builder is at the helm of the country’s biggest woodchipper, writes Andrew Darby.
When forest activists swarmed over a Gunns woodchip mill in Tasmania, shutting it for much of a working day, the company’s response was to sue.
The activists were arrested by police and dealt with by courts, but that wasn’t enough for Gunns in 2008. The Triabunna 13 case was born – with a twist, because the plucky protesters countersued, alleging false and misleading claims over the Gunns pulp mill project.
This week industry and green groups in Tasmania set out a roadmap to remove the need for such skirmishes. Instead of lawyers at 20 paces, Gunns wants peace with the Triabunna 13.
”We’d like to get a resolution of this,” its chief executive, Greg L’Estrange, said. ”And we’re hopeful of achieving it. We recognise people should have the right to protest. But there is the issue of putting people in danger. There should be principles of how you resolve this more proactively.”
This is the language of a bridge-builder, and it is new for Tasmanians used to the old Gunns. It is less than six months since institutional investors shook loose the company’s entrenched former executive chairman, John Gay, and L’Estrange was given his head.
Since then he has kept up a fast-paced company restructure, rocked the national forest industry with a landmark speech and helped set up a mountain of work in translating the forests peace pact into reality.
And:
Nimble greens outgunned Gunns
And, Felicity Ogilivie PM:
Disquiet in Tasmanian Greens over forestry peace deal
MARK COLVIN: The Tasmanian Premier has flown to Canberra to ask the Prime Minister to support a peace deal designed to end Tasmania’s forest conflict.
Old enemies from environmental groups and the timber industry have already signed the deal to end native forest logging.
Now it’s up to the politicians to work out how to keep jobs while protecting trees.
The Greens say it can be done and they plan to use their power both in state and federal politics to end old growth logging.
But cracks are already emerging with a former Greens Senate candidate and anti-pulp mill campaigner describing the peace deal as a train wreck waiting to happen.
Felicity Ogilvie reports from Hobart.
FELICITY OGILVIE: There’s been extraordinary scenes in Tasmania this week with old enemies from the timber industry and the environmental movement coming together with a peace plan for the state’s forest.
It’s now up to politicians to support the plan and turn it into reality.
And there’s already disquiet in the Greens; the man who stood for the Senate along with Bob Brown at the last election is worried that his party is about to sacrifice the pulp mill in order to win the war to protect the forests.
Peter Whish-Wilson has a vineyard that overlooks Gunns’ pulp mill site.
PETER WHISH-WILSON: I’d really like to see resolution on forestry conflict in Tasmania, but if it means that the Tamar Valley is going to be sacrificed at the altar of some high conservation coupes, then I don’t think it will last no; I think it’s a train wreck waiting to happen.
FELICITY OGILVIE: He’s predicting the Greens will be the losers if the deal falls over.
PETER WHISH-WILSON: What we’re faced with now is a concept that this is all going to fall apart in a few months time, because it’s so complex and so difficult and then what are we left with? We’re left with the potential to burn old growth forests or native forests for biomass, continuing wood-chipping, plus a pulp mill in the Tamar Valley; we get the worst of all worlds.
FELICITY OGILVIE: The Greens Leader Bob Brown has reacted to Mr Whish-Wilson’s concerns by assuring him the pulp mill won’t get support in order to protect high conservation value forests.
But Senator Brown isn’t ruling out supporting a different pulp mill proposal from Gunns.
BOB BROWN: The essential component of a large industrial plant like a pulp mill is that you have community acceptance and that’s where Gunns needs to reconfigure what it’s putting forward to the Tasmanian community, particularly the local community where it wants to place a pulp mill and go through the process of getting that acceptance.
FELICITY OGILVIE: The Greens view on the Gunns pulp mill has clout because the party is flexing its political muscle and using the power it has in the Tasmanian and Federal Parliaments to join the political negotiations.
The Tasmanian Greens Leader, Nick McKim, is also a member of state Cabinet because the Greens are keeping Labor in power in the state’s hung Parliament. Mr McKim says he wants to end native forest logging.
NICK MCKIM: We do foresee a resource there for specialty timbers out of our native forests, but in terms of industrial scale native forest logging a transition out of that is very much Greens policy and that’s exactly what’s reflected in the agreement.
FELICITY OGILVIE: The man the Tasmanian Greens are keeping in power – the Premier, David Bartlett, is meeting Julia Gillard tonight. Mr Bartlett is asking the Prime Minister to support the peace plan for Tasmania’s forests.
The plan to end native forest logging came from a forestry round-table that the Premier started five months ago.
Now David Bartlett wants the politicians to start negotiating with the members of the timber industry and environmental movement who put together the peace plan.
DAVID BARTLETT: I am talking about a structure that would engage both the Tasmanian Government, the Federal Government, the key stakeholders in the implementation of these principles.
FELICITY OGILVIE: The Premier says the negotiations will take months.
DAVID BARTLETT: I said very clearly on day one that this was the start of the hard work, not the end of the hard work. No-one should be doing a George Bush and declaring victory. We are at the beginning of a long and difficult road towards a bright future for the forest industry in Tasmania.
FELICITY OGILVIE: He says it could take up to a year to finalise an agreement.
MARK COLVIN: Felicity Ogilvie.