Economy

Australian taxpayers pay millions to controversial Sarawak timber cartel

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Huon Valley Environment Centre’s spokesperson Jenny Weber said, “Huon Valley Environment Centre is appalled that taxpayers are footing the bill for the mistakes of a negligent Tasmanian Government, as the Australian Government will pay $28.6 million to the controversial multi-million dollar Sarawak timber company Ta Ann.”

“Ta Ann had a major cut to their wood supply from public forests because Forestry Tasmania and the State Government over-committed the wood supply contract. When logging industry stalwarts, Paul Lennon and Evan Rolley wooed Ta Ann in 2006 with a 26 year contract, the wood supply was set at an unsustainable rate. It was a foolish contract in 2006 and now the Australian taxpayer is paying for the mistake made by Tasmanian Government and forestry industry,” Jenny Weber said.

“The terms of the negotiation with the Australian Government means that Ta Ann have to stay in Tasmania for five years, entrenching the destruction of native forest destruction and ongoing support for a company with extensive links to corruption and human rights violations,” Jenny Weber said.

“The contract signed in 2006 with Ta Ann was an economically unviable contract between the company and the Tasmanian Government. Closer scrutiny was required on the original contract to determine how such an injurious agreement to Australia’s taxpayers was secured. Ex-Premier Paul Lennon and Forestry Tasmania’s CEO at the time, Evan Rolley are responsible for the Australian taxpayer being in an outrageous position of having to buy off a company that is highlighted across the world as being unacceptable in terms of its practices and political abuses and connections,” Jenny Weber said.

“Here is a company that is responsible for misleading their Japanese customers with the source of their Tasmanian product, extensive and proven links with criminal abuses of power and environmental destruction that has violated the human rights of indigenous people in Sarawak, Malaysia.

“And now the Australian Government will pay Ta Ann $28.6 million, the community have been misled to believe the company was going to leave.

“With Federal Government taxpayer subsidies to set up in Tasmania, cheap electricity provided by the Tasmanian Government, environment groups willing to green-wash the Ta Ann product in the international markets, and implicit support for their disgraceful practices in Sarawak, a large palm oil company, Ta Ann had no intention to leave Tasmania and now has been rebooted to continue their ongoing role as the driver for forest destruction.” Jenny Weber said.

Nick McKim: TFA mopping up past messes: the Greens have never supported Ta Ann’s presence in Tasmania, and had warned the Lennon government against locking in a resource-security style contract that would inevitably leave future governments with a financial liability should public policy change. “Ignoring the warnings in 2006, the Lennon government, cheered on by the Liberals, locked in a dodgy deal with Ta Ann despite concerns about future financial liability and resource availability.” “And now, just as the Greens warned at the time the Ta Ann deal was stitched up, the Australian taxpayers are being hit up to undo the terrible mistakes of the past.” “The Greens want to see Ta Ann out of Tasmania, but a significant reduction of their quota is at least a step in the right direction.” HERE

• John Hawkins, in Comments: Surely with the finalisation of this payment to Ta Ann we now have the grounds for a Royal Commission into this appalling State and Federal Labor TFA.

Guy Barnett: Green reps lobby in Cambodia for more Tasmanian lock ups while 3000 protest against the lock-ups in Smithton

TWS, ET, ACF: Wood Supply Commitment Key Forest Agreement Milestone

Sarawak Report: Australia Buys Out Taib-Linked Logging Contract To Save Its Forests However, it has highlighted serious questions as to why the Sarawak company was ever allowed such permits in the first place and why, despite the payment, Ta Ann is still being allowed to source wood from Tasmania’s threatened forests? Campaigners from the Huon Valley Environment Centre, who exposed Ta Ann for falsely marketing their wood “eco-friendly” in Japan, are calling for the company to be expelled altogether, particularly given the growing international recognition of Sarawak’s timber corruption and Ta Ann’s own highly questionable record.

• Lano, in Comments: More information on Ta Ann Board of Directors: http://www.taann.com.my/board-of-directors/ Executive Chairman Abdul Hamed Bin Haji Sepawi He is the cousin of Taib Mahumad the man responsible for deforestation of Borneo for his filthy wealth estimated US$100B stacked in Swiss Bank, Hong Kong, BVI, Canada, UK, USA and Australia (Adelaide) http://www.sarawakreport.org/2013/06/australia-buys-out-taib-linked-logging-contract-to-save-its-forests/

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