Plans by a statewide timber manufacturing organisation to build a new $7m facility on Mount Gambier’s fringe has hit a stumbling block after the proposal failed to receive vital Federal Government funding. Source: The Border Watch
But Orana, which provides employment for people with disability and the disadvantaged, vowed to explore all other options to try to get the project off the ground.
Orana is now in discussions with local industry and businesses to canvass other avenues, including staging the development.
The proposed project that would see an 8000 square metre manufacturing centre built was expected to employ 150 people and provide a boost for the South East timber sector.
The organisation already operates a timber manufacturing plant in Mount Gambier that makes timber pallets that are used by regional abattoirs and wineries for export shipments.
Orana chief executive officer Nicholas Mihalaras said he was disappointed the project failed to get Regional Development Australia funding.
“We are disappointed and surprised, we thought it ticked all the boxes,” Mihalaras said. In particular, he believed the job losses in the Mount Gambier timber sector in recent times added weight to the project.
He said talks were now underway with Mount Gambier companies to try to bring the project forward. Vowing the project would not be put on the backburner, he said the organisation would go back to the “drawing board” to canvass alternative concepts.
Mihalaras said the funding application lodged was for $3m to top up the $4m pledged by Orana to progress the project.
He said the business sector in Mount Gambier had thrown support behind the proposal.
“Collectively, we will get together to try and do something,” Mihalaras said. While pledging to seek other funding, he said the government was putting a squeeze on grants.
“Something may come up, money is tight, but we will have a go,” Mihalaras said.
Mihalaras is expected to travel from Adelaide to Mount Gambier in a few weeks to discuss the issue with industry. He said the project was important because it would provide much-needed jobs for people with disability, the disadvantaged or long-term unemployed.
Mihalaras said the proposed facility would have manufactured timber products and provided a boost for some sections of the timber industry.
