Gunns reneges on signing up to Bartlett's Sovereign Risk November deadline

The Wilderness Society (Tasmania) Inc
Media Release
2 September 2008

Confusion over the status of the sovereign risk agreement for the pulp mill and the revelation that Gunns is refusing to sign the re-negotiated agreement should empower Premier David Bartlett to stand up for the Tasmanians he represents and deliver on his promise to withdraw all government support for the pulp mill.

In July, Gunns accepted the Premier’s ‘line in the sand’ of a final deadline of November 30th.. By not signing the amended agreement, Gunns is showing blatant contempt for Premier Bartlett and the Tasmanian public.

“Gunns is again stringing the government and the community along and treating them with utter contempt,” said Vica Bayley, spokesperson for The Wilderness Society.

“Gunns’ latest failure to meet its own deadlines should empower Premier Bartlett to declare that enough is enough. There should be no more extensions or special deals.”

In statements to the ASX last week, Gunns has admitted that it will probably fail to meet the construction deadline of November 30th – the extension sought by the company in June and agreed to by the Premier.

“As Gunns are guaranteed to miss Mr Bartlett’s deadline, the Premier has good reason to withdraw government support immediately,” continued Mr Bayley.

“How that happens is up to the Premier.

“The public don’t support Gunns’ pulp mill; the bankers have refused to be part of it; shareholders and analysts are now skeptical. It’s time for the government to help Gunns put this project out of its misery,” concluded Mr Bayley.