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Jobs may be lost at Heyfield despite buyout

Up to 20 jobs could be lost from the Heyfield timber mill later this month, a Coalition MP has warned, as the Victorian Government continues to negotiate the purchase of the business. Source: The Weekly Times

The Government announced early last month it would buy the Australian Sustainable Hardwoods mill from the Hermal Group, which claimed the 250-employee mill was not profitable based on the timber supply offered by VicForests.

In Parliament last week, Ms Pulford said the deal was almost complete.

“The final details of the sale are still a matter of ongoing work. We are very close, but those matters are yet to be finalised,” Ms Pulford said.

“The owners of the mill have made an undertaking to the Government that while these arrangements are finalised there will be no job losses,” she said.

But Nationals Gippsland East MP Tim Bull said 20 jobs would be lost at the end of the month, when workers accepted voluntary redundancies.

“In just two weeks, employment at the green mill will drop from 42 to 22 due to the reduced timber supply,” Mr Bull said. “There is some comfort these have been covered voluntary redundancies and transfers, but the bottom line is they are still job losses in Heyfield and not good for the town.”

Mr Bull called on the Government to “come clean” on how long the transition period would last and how many jobs would be left after the sale.