Minister must investigate FT involvement in Gunns mill sale

The Tasmanian Greens today expressed concern that Forestry Tasmania is again seeking to undermine the Tasmanian Forests Intergovernmental Agreement (IGA) by negotiating with industry players over a new guaranteed wood supply agreement.

Greens Forestry spokesperson Kim Booth MP said industry sources have reported that Forestry Tasmania had been negotiating with a consortium headed by former Gunns boss John Gay, which is looking to purchase Gunns’ Deloraine sawmill and Somerset veneer mill.

“The Forestry Minister Bryan Green must immediately investigate whether any negotiations have occurred between Forestry Tasmania and any potential purchaser of either or both the Gunns mills that have involved any guaranteed native wood supply,” Mr Booth said.

“It is would be grossly improper for a purchaser of any Gunns sawmill to be secretly provided with a resource guarantee by Forestry Tasmania.”

“Any new contract guaranteeing native wood supply would be in breach of the IGA, and would also breach the commercial settlement between Forestry Tasmania, Gunns and the Crown, which stipulates that Gunns’ retired wood supply contracts are not to be on-sold.”

“If it is proven to be the case, this would appear to be another secretive attempt by Forestry Tasmania to undermine the IGA, and another clear demonstration of why this agency needs to be reformed.”

“The Minister must investigate this situation and ensure that Forestry Tasmania is abiding by the terms of the commercial settlement deed.”

Secret Gay deal claims
BY ROSEMARY BOLGER
19 Oct, 2011

GUNNS has confirmed it has found a buyer for at least three of its timber mills in the state’s North, amid allegations of a “secret deal for special mates” involving ex-Gunns boss John Gay.

Launceston estate agent Shepherd & Heap, appointed to handle the sale of six Gunns mills, confirmed a contract had been signed for the Deloraine, Somerset and Western Junction mills this month.

http://www.examiner.com.au/news/local/news/politics/secret-gay-deal-claims/2328214.aspx