The Tasmanian Greens believe Forestry Tasmania’s secret purchase of the Southwood sawmill in the Huon Valley is further proof the state-owned company needs an overhaul. Source: ABC
It has been revealed the state-owned company spent $3.3 million buying the sawmill from Gunns with Victorian company Del Vista, before the family-run business defaulted on its loan, leaving Forestry Tasmania in control of the asset.
Greens forestry spokesman Kim Booth said the deal, revealed a year after it happened, has the “grubby hands of a rogue Government business all over it”.
“The fact that the Minister was unaware is not extraordinary because of the way that this rogue agency has been operating,” he said.
He accused Forestry Tasmania of attempting to resuscitate a financially unviable asset.
Booth said Forestry Tasmania’s intervention had made it harder for environmentalists and industry groups to strike a forest peace deal because the large sawlog quota attached to the mill will not be retired.
“Clearly Forestry Tasmania were trying to pre-empt the IGA (Inter-Governmental Agreement) here and interfere in the market again,” he said.
The Premier has rejected calls to close the sawmill and has defended the purchase, which was only revealed under questioning from the Greens in Parliament, six months after the sale was finalised.
“It’s an important part of the southern wood value chain and we don’t want to see that closed,” she said.
The Opposition says it is a sensible strategic move. Forestry Tasmania has leased the sawmill for three years to private operator Neville Smith Forest Products.
Managing director Bob Gordon said in a statement that company has acted responsibly. It expects to cover the cost of the sawmill within six months through sawlog harvesting.
Neville Smith Forest Products is member of the Forest Industries Association of Tasmania (FIAT). Chief executive Terry Edwards said that the mill’s operation would put millions into the economy.
“In the normal course of events FIAT would not support Forestry Tasmania being the owner and or operator of processing facilities but in the circumstances, where there was the potential for a repeat of the farrago at Triabunna woodchip mill when anti-forestry interest could have bought the mill and closed it down, then in our view it is a prudent decision,” he said.
Ms Giddings does not believe Forestry Tasmania’s actions undermine the forest peace talks.
“As part of the IGA statement of principles process, Southwood has always been recognised as being an important part of the southern wood value chain,” she said.
“So it’s always been recognised as a necessary asset, so it’s no problem at all.”
Mr Edwards said the peace deal negotiators had agreed that the mill should continue to operate due to the integrated nature with the Ta Ann veneer mill.
