Federal Government risks Tasmanian livelihoods for Gunns profits

The Wilderness Society (Tasmania) Inc
Media Release
25 June 2009

The Rudd Government’s first parliamentary statement on Australia’s forests today has ignored evidence that the proposed Tasmanian pulp mill will cost jobs and harm Tasmania’s economy and environment, The Wilderness Society said.

In his first Ministerial Statement, Tony Burke – the Minister for Agriculture, Fisheries and Forestry, said the Gunns pulp mill would add about $6.7 billion to Tasmania's economy, and would not result in any increased harvesting of Tasmania's forests. 

However, independent studies have shown that the pulp mill will cost more jobs than it will create and will substantially damage Tasmania’s economy, Paul Oosting from the Wilderness Society said.

“The Minister has artificially inflated any benefits of the pulp mill. Far from the 8000 jobs claimed in parliament yesterday, there will only be 292 jobs created if the pulp mill becomes operational.

“Gunns have only said that 2000 extra jobs would be created in Tasmania by 2020 because of the mill.”

The independent studies include:

1. The Tasmanian Roundtable for Sustainable Industries (TRSI) found the pulp mill would cost some 1220 jobs in tourism and the fishing industry. Gunns has indicated the pulp mill will only create 280 direct jobs.

2. The National Institute of Economic and Industry Research found the most likely impact of the mill on the Tasmanian economy over 20 years would be negative $0.3 billion, not the positive $3 billion claimed by Gunns.

“Minister Burke is ignoring the huge risks of providing public funding to subsidise the pulp mill,” said Mr Oosting.

“It will be a gross waste of taxpayers money, endangerding the livelihoods of Tasmania’s if the Government funds Gunns’ pulp mill.”

An Essential Research poll, commissioned by GetUp in June 2008, found 61 per cent of Australians were opposed to the Gunns pulp mill.

“20 leading banks and pulp companies from around the world have committed not to fund Gunns’ pulp mill, now Gunns is trying to get the Federal government to save the ill conceived project,”

“Working families deserve a sustainable future with clean air, healthy water supplies and natural assets to help protect them from the risks of dangerous climate change,” said Mr Oosting.