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Western Junction Sawmill director says recent media reports are false

The recent media campaign against Western Junction Sawmill contains false, misleading, and exaggerated allegations including attributing footage of logs on wharves that have nothing to do with Western Junction Sawmill, according to the mill’s director Vince Hurley. Source: Timberbiz

He says they are designed to create a negative perception and public outrage against the company and encourage political intervention in the upcoming Expressions of Interest process announced by Sustainable Timber Tasmania.

Mr Hurley was responding to reports that the Western Junction Sawmill has selling logs to Australian Sustainable Hardwoods in Victoria

It was reported that the move has outraged Tasmanian industry figures who warn the Andrews’ government was commercially killing local family-owned mills in Tasmania by offering above market price for timber logs.

Terry Edwards, a spokesman for a coalition of Tasmanian mills, told the Herald Sun the Victorian government “had closed its own logging industry” and was now “pillaging” resources in other states.

“Our mills are concerned that they are being expected to go into competition and an open tender process, where they are required to go up against the might of the Treasury of Victoria,” he said.

Mr Hurley said Western Junction Sawmill changed ownership in 2021 and was investing in high-value manufacturing at its Tasmanian facility with enormous benefit to Tasmanians.

These benefits included the ability to maximize the value of both low- and high-grade sawlogs ensuring the best return to Tasmanians, more employment per sawlog and higher paid jobs.

High-value manufactured products also have a large climate change benefit as they store carbon for very long periods of time compared to lower value products.

Mr Hurley said Western Junction Sawmill only employs Tasmanians and only engages Tasmanian contractors.

High value manufacturing ensures Tasmanians receive the highest return for their sawlogs. This includes all the people of Tasmania through returns to Sustainable Timber Tasmania, owned by the Tasmanian Government.

“Sustainable Timber Tasmania is then not forced to choose the lowest price harvest and haul contractors and Tasmanian timber workers can be both paid more and progress to higher paid jobs. Importantly private forest and plantation growers benefit through the increase in market price for sawlogs,” Mr Hurley said.

Sustainable Timber Tasmania’s Expressions of Interest process will include the allocation of hardwood plantation resource available from 2025 to 2035.

Mr Hurley says Western Junction Sawmill’s objective is to purchase the types of products it is currently purchasing from Sustainable Timber Tasmania and the same overall volume.

“Terry Edwards is running this campaign of false and misleading allegations on behalf of wealthy sawmill owners whose sawmills are at Smithton, Huon Valley and Bridgewater. Some of the wealthy sawmill owners are Victorian residents and two have significant processing facilities in Victoria,” Mr Hurley said.

“Their campaign to politically lock out Western Junction Sawmill from the Expressions of Interest process is not about volume. The campaign’s objective is to self-servingly influence competition and price. The wealthy sawmill owners have had many years to invest in high value manufacturing in Tasmania and provide Tasmanians the best return but have failed to do so in any significant way. They have reverted to their previously successful method of political influence and media campaign using their former seasoned lobbyist.”

The Expressions of Interest Process can address concerns of company ownership, account for previous investment and enable Tasmanians to receive the best return by using the following mandatory requirements applicable to all participants:.

  • Must not have any government or non-government organisation ownership or affiliation.
  • Must have a current Contract of Sale with Sustainable Timber Tasmania.
  • Must have plans to invest in on-island high value manufacturing in Tasmania and with the plant to be in place by June 2027, the end of the current sawlog contract period. Small sawmills should be exempt from this process and continue to receive their native sawlog supply.

“The Expressions of Interest applications should be assessed by an independent probity auditor to ensure facts determine the outcome and not self-interest or opinions expressed in the media,” Mr Hurley said.

“The Expressions of Interest can provide a masterplan to ensure there is investment in Tasmania and Tasmanians can optimise the value of their forest and plantation estate to help fund the health, housing and education resources they require.”