RACHEL WILLIAMS, Examiner Business Reporter: In his first interview since taking over the reins at the controversial timber company, new Gunns chief executive Greg L’Estrange tells The Examiner’s business reporter, RACHEL WILLIAMS, about his plans for the future.
TASMANIAN timber company Gunns is reviewing its sponsorships as it comes to terms with the bitter fallout over its $2.2 billion pulp mill.
New chief executive Greg L’Estrange yesterday said that the tens of thousands of dollars donated to the community each year was not secure.
One event in jeopardy is the Launceston Cycling Classic, which Gunns stepped in to save in 2004 when council and government sponsorship was withdrawn.
“We haven’t finished our discussions but certainly you would say our appetite for some of these areas has diminished,” Mr L’Estrange said.
“Life is a two-way street.
“People keep wanting us to keep putting money back into the community but they need to want us as well.”
The company’s review comes after years of debate about the Bell Bay project.
Mr L’Estrange has only been at Gunns since April 2008 and this month took over the chief executive role from John Gay.
But he has witnessed enough commentary in the past 15 months to conclude that it is “sad” and that some members of the community are “fickle”.
The quietly spoken 52-year-old, who has worked in the timber and metals industry for 20 years with companies including Boral Timber and Capral Aluminium, doesn’t want this, his first interview since taking over, to be all about the pulp mill.
But it is hard to avoid the project.
Especially when his predecessor has been so polarising with some of his statements.
“I think that John’s been very generous and some of the things that have happened to him personally – I just marvel at the resilience because he has done a lot for Tasmania,” Mr L’Estrange said.
He admits it has not been easy to take control of a company that has so many facets yet receives so much negative attention for one element.
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“The doubters, when they see (the mill) in operation, it will be somewhat different to what they were led to believe it will operate like.”
Mr L’Estrange concedes it will be tough to restore the company’s reputation. It has taken a hit over its handling of the mill, which has state and federal approval.
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He doesn’t understand why some people are “fickle” because they use paper but don’t care where and how it is produced.
“There is an emotional group of people, a minority, that has a philosophical view that (forestry) is the wrong thing to do. We may never be able to change their perspective.
“There is a whole group of people who need to understand more about what we do, and we have got more work to do for them to understand that there is a cycle for growing trees and Australia is probably one of the leaders in the science of growing both natural and plantation areas, and they are sustainable.”
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While he would not say anything about negotiations with a preferred joint venture partner, he said there would be a future for Gunns if the mill didn’t proceed.
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Mr L’Estrange said Gunns was committed to keeping the company in Australian hands and would continue to invest in its wine business and Entally Estate.
