Gunns mill battle 'economic sabotage'

ArticleData Array ( [Article] => Array ( [article_id] => 1016980 [headline] => Gunns mill battle 'economic sabotage' [abstract] => A leading environmental group has taken its fight against the Gunns pulp mill to Europe, where the company is hoping to secure finance for the $2.2 billion project.
[keywords] => gunns pulp mill, tasmania, europe [content] =>

A leading environmental group has taken its fight against the Gunns pulp mill to Europe, where the company is hoping to secure finance for the $2.2 billion project.

The Wilderness Society has placed an advertisement in Britain's Financial Times warning European banks they will be "pulping their profits" if they finance the controversial mill proposed for Tasmania's Tamar Valley.

Gunns is looking for overseas finance after its Australian banker - ANZ - withdrew its financial support.

Funded by Get Up!

The advertisement was funded by Australian lobby group Get Up!, which notes the Financial Times is read at all major banks in Europe every day.

"We thought it was really important that our members and the Australian public could have an opportunity to voice their opposition to the mill," Getup's campaigns coordinator Ed Coper told ABC Radio.

The Wilderness Society says a number of overseas banks already have shunned Gunns.

"In the last week, Deutsche Bank, who was widely rumoured to be the bank that Gunns had engaged in Europe, have now committed not to being involved in the project," the society's anti-pulp mill campaigner Paul Oosting said.

'Economic sabotage'

"Likewise, we've had commitments from the Royal Bank of Scotland and many others - UBS, Bank of China - that they won't be involved in the project."

The Tasmanian Forest Industries Association has described the society's action as "tantamount to economic sabotage".

"The advertisement ... is filled with misinformation and untruths," association spokesman Julian Amos said.

The society's "most appalling behaviour" was doing damage to the Tasmanian economy.

[start_date] => 30 April 2009 | 02:04:19 PM [comments_allowed] => 1 [source] => AAP [commentCount] => 0 [video] => [image] => Array ( [caption] => Part of the anti-Gunns Pulp Mill advertisement, printed in a British newspaper by activist group Get Up! [useRegularImage] => 1 [media_library_id] => 73872 [site_id] => 1 [media_library_group_id] => 0 [media_usage_id] => 0 [filename] => site_1_rand_716085868_gunns_ad_3004_b_getup.jpg [title] => gunns_ad_3004_B_getup_716085868 [description] => file:site_1_rand_716085868_gunns_ad_3004_b_getup.jpg [type] => [height] => 338 [width] => 450 [source] => [video_hi] => [video_lo] => [section] => [display_order] => 0 [create_date] => 2009-04-30 14:11:11 [active] => 1 [media_usage] => Article Large [usageWidth] => 300 [usageHeight] => 225 ) [imagePath] => http://media.sbs.com.au/news/upload_media/ [audio] => [reporter] => [relatedLinks] => Array ( [0] => Array ( [id] => 1006554 [label] => Gunns misleading over pulp mill: Garrett [display_order] => 1 [type] => Article ) [1] => Array ( [id] => 1004397 [label] => Gunns suing 13 anti-logging activists [display_order] => 2 [type] => Article ) [2] => Array ( [id] => 1004164 [label] => Environment minister gives mill cautious nod [display_order] => 3 [type] => Article ) ) [relatedArticles] => Array ( [0] => Array ( [article_id] => 1004164 [headline] => Environment minister gives mill cautious nod [abstract] => Timber giant Gunns Ltd has won federal government approval to start construction of its controversial Tasmanian pulp mill.
[content] =>

Timber giant Gunns Ltd has won federal government approval to start construction of its controversial Tasmanian pulp mill.

Environment Minister Peter Garrett on Monday said he had approved environmental modules relating to the proposed mill's construction in the Tamar Valley.

"The nine modules I have approved today relate only to the construction of the mill and its associated infrastructure," Mr Garrett said.

Four modules dealing with the construction of mill workers' accommodation on the Bell Bay site were satisfied last year.

But three modules addressing the impact of mill effluent on commonwealth marine assets remain to be satisfied.

Mr Garrett has given Gunns until March 3, 2011, to satisfy those issues, setting the scene for the controversial pulp mill project to become a federal election issue once again.

Gunns chairman John Gay welcomed the approvals, saying the company had proposed the outstanding marine effluent modelling itself.

"We are now clear to begin construction on the mill, pending financial close," Mr Gay said.

Gunn still needs to find a joint-venture partner to help fund the $2.2 billion mill's construction, a task made more difficult by the global financial crisis.

The Wilderness Society spokesman Paul Oosting said Gunns' bulldozers could be rolling into the Tamar Valley any day, despite the project not having full approval.

"The minister has made it clear that Gunns can begin construction of the pulp mill, even though they have not met the full federal government approval," Mr Oosting said.

Opposition environment spokesman Greg Hunt said the decision allowed mill construction to begin before the 2011 deadline.

"Peter Garrett today did his best to hide the fact that he had given the green light for the construction of the Gunns pulp mill in Tasmania," Mr Hunt said.

Greens Senator Christine Milne said the decision put the pulp mill squarely on the next federal election agenda.

"Gunns are clearly angling for taxpayers to have to pay for the tertiary treatment, and (Prime Minister Kevin) Rudd should unequivocally guarantee that no federal money will be on the table."

Senator Milne said she feared a scenario near the next election where unemployment and flagging investment caused by the global financial crisis would propel a late push by Gunns for public funds to address the effluent issues.

The pulp mill was estimated to create about 3,500 new jobs in the construction phase and a further 1,600 new permanent jobs.

The Forest Industries Association of Tasmania is disappointed with the federal government's failure to fully approve the mill.

The association's chairman, Dr Julian Amos, said he was disappointed all of the modules were not approved after Mr Garrett had approved them "in principle".

"Retaining conditions based on a precautionary approach is unhelpful and will foster further doubt over the mill," Dr Amos said.

Shares in Gunns eased three cents on Monday to $1.15.
 

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