WARNINGS OVER GUNNS COLLAPSE KEPT QUIET BY LABOR & LIBERAL

The Tasmanian Greens today demanded the Labor and Liberal Parties explain their failure to alert Tasmanian businesses to the imminent collapse of Gunns Limited, even after receiving an explicit written warning from the Managing Director of Forestry Tasmania.

In Parliament today, Green Forestry Spokesperson Kim Booth MP brought up a briefing note sent in July 2011 to the Forestry Minister by Bob Gordon advising that Gunns Ltd was in a dire financial position.

In the letter, Mr Gordon states that “Forestry Tasmania has formed the view that Gunns financial problems are overwhelming and may soon lead to the appointment of a receiver by its secured creditors.”

“The Liberals later obtained the same communication through a Right to Information request in November 2011, and yet neither Labor nor Liberal chose to disclose this critical piece of information,” Mr Booth said.

“If Labor and Liberal knew there was a real risk Gunns was trading insolvent, why the hell did they say nothing about it even while local businesses were continuing to sign contracts with Gunns?”

“Both Labor and Liberal have a lot to answer for because they both knew and yet chose to conceal that Gunns financial problems were overwhelming, and likely to lead to the appointment of a receiver.”

“The Minister himself continued to advocate extending public credit to the company, despite receiving advice that it was headed for receivership.”

“This was at the same time the Liberals were still championing MIS plantation schemes, which will now see many Tasmanians left high and dry.”

“As if it’s not bad enough that these businesses were allowed to sign contracts that Gunns could never pay, they now face the prospect of never getting their money back because, unlike ANZ, they are not secured creditors.”

“It’s just one more example of how the interests of small businesses and the community were callously swept aside in the mindless pursuit of this ridiculous, fanciful mega-project.”
Kim Booth MP Greens Forestry Spokesperson Tuesday, 5 March 2013