The Liberal Government welcomes today’s announcement by KordaMentha that they have signed an agreement with New Forests for the sale of Gunns Tasmanian forestry assets.

This is great for jobs and great for Tasmania’s forestry industry which was almost brought to its knees under the former Labor Green Government.

The sale of Gunns plantation and wood chipping business secures the future employment for 32 Tasmanian employees and more than 150 harvesting and haulage contractors and their workers.

This is a sign of investor confidence in the future of Tasmania’s forestry sector.

I will seek a meeting with new owner New Forests as soon as possible to discuss the company’s plans and to reinforce the Liberal Government’s strong support for the forestry industry.

The Liberal Government is getting on with the job of delivering our long-term plan for the future of Tasmania.

Part of that future is rebuilding the job generating forestry industry.

We promised to rip up the job destroying Labor-Green forestry agreement and that is what we will do when Parliament sits next week.

I’m encouraged that KordaMentha have said they will continue negotiations with a number of parties interested in developing the pulp mill on a stand-alone basis.

The Liberal Government welcomes the fact that there remains strong interest in the pulp mill opportunity and that KordaMentha will continue negotiations to sell the site and permits
The Tasmanian Government remains fully supportive of the development of a world class pulp mill at Bell Bay as this presents the best opportunity for the further development of downstream, value-added processing of forestry product in Tasmania.

If the pulp mill proceeds, it will be one of the biggest capital investments in Tasmania’s history and generate significant employment and economic and social and economic benefits for Northern Tasmanian and the State as a whole and the Government remains fully committed to the project and ready to work with any proponent to secure this major investment for Tasmania.
Paul Harriss, Minister for Resources