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Taxpayers fork out half a million for overseas made paper

Taxpayers have forked out almost half a million dollars on overseas copy paper for federal agencies, as the Coalition pushes for a return of paper manufacturing in Australia. Source: Herald Sun

Australia’s last white paper mill at Maryvale in Victoria stopped making the product last year, resulting in up to 200 job losses.

The average price of imported paper has soared by up to $100 a tonne to around $2000, up about 5% last year.

Opposition forestry spokesman Jonno Duniam said the end of copy paper production had also cost Australia thousands of indirect jobs, as well as economic activity.

Senator Duniam pointed the finger at both the Victorian and federal governments, saying the shutdown of Australian manufacturing “could and should have been prevented”.

“A re-elected Coalition government would seek to work closely with industry to return paper manufacturing to Australia,” he said.

New figures reveal federal government departments and agencies spent at least $450,000 last year on overseas paper after Australian-made supply ended.

The Defence Department made up the bulk of the costs, spending almost $200,000 so far in 2023-24.

This was followed by the Home Affairs department, which spent more than $62,000, the Australian Taxation Office at almost $55,000, and the Agriculture department at about $20,000.

“In December 2022, the only paper manufacturer in Australia ceased operation, and Australian made paper can no longer be sourced,” an agriculture department spokesman said.

Some government agencies reinforced their commitment to going paperless. But major government departments including health are yet to respond to the questions from estimates, which are now overdue.

Senator Duniam accused Forestry Minister Murray Watt of being “asleep at the wheel” while his Victorian Labor colleagues terminated the native forestry industry”.

“The Victorian Labor government’s blinkered, ideological opposition to forestry always leads to worse outcomes, including for the environment,” the Tasmanian Liberal said, adding other countries had lower standards.

“It was a culmination of failures by Dan Andrews and Jacinta Allen who sold out Gippsland workers and formally banned Victorian native timber harvesting from the start of 2024.”

Manufacturer Opal Australia shut its paper manufacturing facilities after struggling to secure timber supply.

The decision was announced after the Supreme Court put regulations on VicForests, affecting its ability to meet contracts, because it did not do enough to protect endangered gliders.

Opal Australia will in mid-February have a major shutdown at its Latrobe Valley site to upgrade it so it can focus on brown packaging.