FEDERAL Forestry Minister Eric Abetz has announced that the $60 million dollars for the East Tamar Highway was to “pave the way for the new pulp mill”.

This “proposed” pulp mill has not yet even come under the scrutiny of the RPDC, Tasmania’s independent planning body, which supposedly decides whether or not the pulp mill can go ahead.

Gunns have still not submitted their Integrated Impact Statement to the RPDC, which is apparently still to go through a rigorous review and public scrutiny process.

The Federal and State governments are sinking taxpayers’ money into the pulp mill hand over fist.

First there was State Government’s $6 million pledged to the Pulp Mill Task Force. This ‘task force’ simply carries out PR for the pulp mill.

Then the Federal government gave Gunns $2.4 million to help out in the planning process. This is not to mention the $250 million of State and Federal funding that went into Tasmania’s forest industry last year following a Howard election promise. This is without putting a figure on the 100% tax refunds that are received for establishing plantations.

Could Gunns’ proposed pulp mill survive in the highly volatile world pulp market without the corporate welfare of the State and Federal governments?

The world price of pulp has been falling over the past few decades with this downward trend set to continue. A good example of what those in the financial world think of Gunns’ proposal can be seen from CommSec Equities Analyst who stated that “the pulp mill is an extremely risky investment and the shift to selling pulp on the global market will increase the volatility of Gunns’ earnings.”

Read it here: comsec_gunns_060424.pdf

Source: FAOSTAT. Global chemical export pulp price expressed as US dollars per tonne deflated by US consumer price index (1982-84 = 100). Data is not yet available for 2005. Pulp: Material made up of separate fibres that are used to make paper (www.affa.gov.au).

All this government money being funnelled into Gunns and the pulp mill also begs the question: what validity is there in the approval process being carried out by the RPDC? The process is fast becoming a farce as governments push to ensure Gunns’ pulp mill will go ahead despite the economic, community, social and environmental risks.

It appears as though the public and the RPDC have been left out of the decision as to whether or not Gunns’ proposed pulp mill should be approved.

Paul I. J. Oosting
Pulp Mill Campaigner
The Wilderness Society Tasmania Inc.
Launceston

Earlier:

Investor confidence in Gunns is vital to the viability of the planned pulp mill. A rough analysis indicates that there has been significant fluctuation in the company’s share price — from an all-time high in 2004 of $4.80 to a low last October of $2.71.

And now:
Latest Stock Market detail: HERE

Earlier, TONY McCALL: The industrial museum at Long Reach

Meanwhile, in Argentina: Pulp mill fury