Media Release

Peter Gutwein MP
Shadow Minister for Forestry

Thursday 21st July, 2011

Questions which need urgent answers regarding Gunns and the Triabunna mill

The Government must urgently answer serious questions raised about the status of the Triabunna woodchip mill, and claims its reopening is premised on financial compensation being provided to Gunns.

If true, these claims raise very serious questions about the probity of the so-called peace process and the Government’s involvement in it.

Specifically:

1. Is the reopening of the Triabunna woodchip mill contingent upon financial compensation being proved to Gunns for their wood supply quota?;
2. How much money is the Government considering providing to Gunns?
3. Where will this money come from?
4. Is it true that Gunns voluntarily gave up their wood supply agreements to Forest Tasmania, in writing, in April of this year?
5. Given the undisputed fact that Gunns advised the Australian Stock Exchange of its voluntary commercial decision to exit native forest harvesting in September last year, on what legal basis is the government considering providing this compensation?

It is my understanding that the Government is considering providing somewhere up to $35 million to Gunns as compensation for them voluntarily giving up their wood supply quotas.

While we don’t support the disastrous Statement of Principles and have instead our own, balanced 13-point plan, if the Government is to provide funding through this process they must explain why it is going to Gunns ahead of workers and essential services such as health, education and police.