Media Release

Peter Gutwein MP
Shadow Treasurer

Tuesday 19th July, 2011

Labor, Greens must explain Gunns funding backflip

With the forest industry in crisis as result of the disastrous Statement of Principles, and the state budget a wreck, Labor and the Greens must explain why they support giving money to Gunns, despite their commercial decision announced last year to exit native forestry.*

Exactly how much money does Gunns want? What are the terms of this compensation? On what basis would they be entitled to claim it? And considering the state of the budget how will Labor and the Greens finance it?

Last year, former Premier David Bartlett categorically ruled out giving money to Gunns**, and Greens’ forest spokesperson Kim Booth said that the Greens “unequivocally rejected Gunns’ call for public compensation as it moves out of native forest logging, and said that taxpayers’ funds should rightfully be used to fund hospitals, schools and essential infrastructure…” #

Indeed, Kim.

Mr Booth’s backflip yesterday on this issue, and his attempt to try and somehow claim that taxpayer funding for Gunns in exchange for contracts they have voluntarily given up wasn’t compensation, was embarrassing to say the least.

The State budget is a wreck as a result of Labor and the Greens’ financial incompetence, yet it seems that Labor and the Greens now want to prioritise precious funding to lock up trees over providing funding for regional communities affected by the disastrous statement of principles process as well as nurses, teachers and police.

It’s becoming increasingly clear that a secret deal is being stitched up between big business, big environment and big union through the disastrous Statement of Principles process, which is not in the interests of the wider Tasmanian community.

The Liberals once again call on Ms Giddings to rip up the disastrous Statement of Principles and adopt the Liberals’ balanced, 13-point plan, which protects and secures jobs in the native forest industry and allows for improved environmental outcomes – all at minimal taxpayer expense.

*Gunns’ announcement to the stock exchange last year is available here, p12. www.cfmeuffpd.org.au/multiversions/4021/FileName/31sfk1fmdv189d.pdf

**Mercury, 27/11/10

#Kim Booth, Press release, 26/11/10