Coroner & Legal
Minister dodging questions on Forestry handout. Mill buyers. Gunns quizzed
The Tasmanian Greens today said the Forestry Minister Bryan Green has failed to explain to the Tasmanian people why he approved another $1.1 million in public funding to prop up the failing forestry industry.
Greens Forestry spokesman Kim Booth said there’s no credibility to the Minister’s claim that the industry could afford the transportation costs to Triabunna, but somehow could not afford to go the remaining 146 kilometres to Bell Bay without receiving public subsidisation.
“If the woodchipping industry is so unviable that it cannot even afford to pay the cost of transporting logs 146 kilometres, it is about time that the Minister realised that the industry is just not viable,” Mr Booth said.
“The Minister must first justify then explain why he thinks woodchippers of native forests should be paid with public funds and should take priority at a time when other areas are having to do it tough by cutting services.”
“As for the question of the supposed ‘log jam,’ the question must be asked why Forestry Tasmania is causing these trees to be cut down if the operators cannot even afford to transport them to the point of sale?”
“Every other transport business in the state must survive on its own resources, and there’s no doubt that all the other struggling transport operators in Tasmania would love a handout. So why is the woodchipping industry treated so differently?”
“How many million dollars of public money will this Minister rob from the public purse and give to his industry darlings before he wakes up to the fact that public money if for public benefits like healthcare, not to prop up unviable private businesses.”
• ABC Online: Buyers found for Gunns’ mills
Tasmania’s Forestry Minister has revealed the Southwood sawmill in the state’s south has been sold to an interstate company.
It comes as Gunns’ sells off three northern mills.
Forestry minister Bryan Green has told parliament the family-owned Victorian company Del Vista Proprietary Limited has bought the Southwood sawmill in the Huon Valley.
Mr Green says owner, Trevor Andrews, has appointed Tasmanian forestry stakeholder Ken Last to oversee the negotiations.
“Mr Last has confirmed that they are currently in the process of finalising a wood supply negotiations with Forestry Tasmania,” he said.
“They’d be native forests, 40,000 cubic metres and that is part of the 155,000 cubic metres that exists within the intergovernmental agreement for ongoing supply to the sawmilling and veneer industry here in Tasmania.”
The sale is expected to be finalised at the end of this month.
It comes as a consortium headed by former Gunns boss John Gay has signed contracts to buy Gunns’ sawmills at Somerset and Deloraine.
Mr Green has told parliament the Somerset mill’s new owners are negotiating wood supply agreements with Forestry Tasmania, but he says a commercial arrangement has not yet been finalised.
The identity of the buyer of Gunns’ Western Junction mill has not been revealed.
Mr Green has welcomed the sales as proof the timber sector has a strong future.
Gunns has declined to comment on the sales as has former Gunns boss John Gay.
Greens MP Kim Booth yesterday told parliament Mr Gay’s consortium was looking to buy the northern mills.
Forestry Tasmania has hit back at claims it is negotiating special wood supply deals for the consortium.
• Alison Andrews, Examiner: ASX quizzes Gunns over share price rise
FORESTRY company Gunns Limited was given until noon today by the Australian Securities Commission to provide answers on the company’s fluctuating share price.
ASX adviser Kobe Li emailed Gunns’ company secretary Wayne Chapman this morning setting out four questions to be answered by the deadline or face a trading halt.
The ASX wanted to know if Gunns was aware of any reason why the company’s shares had jumped from 14 cents each on October 5 to 33 cents this morning.
The ASX asked Gunns if it had information that should no longer remain confidential and whether it planned to make an immediate announcement.
Or whether there was any other explanation for the skyrocketing share price.
ASX advised Gunns that it should request a trading halt if it had new information that it needed to make public.
Mr Chapman replied to the ASX email on deadline saying that Gunns was unaware of any information that had not been announced which could explain the share trading frenzy.
He said that Gunns’ September 19 market update remained current except for the Tasmanian Environmental protection Agency clarifying the status of the company’s state pulp mill permit.
The company does not intend requesting a trading halt.