Let Gunns bear the sovereign risk, not the public

The Wilderness Society (Tas.) Inc
Media Release
30 June 2008

Cabinet reminded that Gunns' massive Hampshire plantation estate should be their safety net

The Wilderness Society today renewed calls for the Labor Government and Tasmaniaís new Premier David Bartlett to continue the hands off approach to Gunns' pulp mill and decide not to extend the wood supply sovereign risk deal at tomorrow's meeting of Cabinet.

Pulp mill campaigner Paul Oosting also reminded Cabinet that Gunns' huge eucalypt plantation estate at Hampshire, currently not planned for the pulp mill but export as unprocessed woodchips, should be seen as a safety net or protection against sovereign risk.

"The sovereign risk deal is proof that to feed their pulp mill, Gunns plan to log controversial high conservation value forest areas that Tasmanians want to see protected," said Mr Oosting.

"Gunns own information shows that they have chosen to export their entire Hampshire plantation estate as woodchips and not use them as feedstock for pulp mill. Instead of using these plantations, Gunns plan to pulp Tasmania's irreplaceable native forests."

"Choosing to lock in dependence on logging controversial forest areas is a high risk strategy for Gunns, especially now the world is looking to protect forests to act on climate change."

The sovereign risk deal would see Gunns compensated up to $15 million if high conservation value forests Gunns demand for the pulp mill are protected by a future government.

"Because Gunns has deliberately decided on a high risk, native forest based pulp mill and have plantations to spare at Hampshire, the public should not be asked to guarantee compensation."

"The Cabinet decision that is in the best interest of the public would see the Premier write to Gunns to notify them the extension to the sovereign risk deal is not acceptable and that the company should look to their own plantation estate as a means of protection against sovereign risk," concluded Mr Oosting.

A media conference will be held today.