A protest followed the announcement by Treasurer Jack Snelling in Mount Gambier of the successful bidder for the rights to harvest timber plantations in the South East of South Australia. The Campbell Group, based in the US, put forward the highest bid, which was not disclosed. Sources: Herald Sun, Adelaide Now, ABC News, The Australian
The Campbell group, was founded in 1981 and manages more than 1.2 million hectares or about $5.2 billion of timber assets, represents a number of investors, including Australia’s Future Fund. It is speculated that the winning bid was in excess of $600 million.
Mr Snelling said the sale would be finalised later this year, after which the Government would be able to reveal the sale price.
“TCG put forward the best proposal – which included a very strong price – that included meeting all of the conditions of sale which were developed by the South East Forestry Industry Roundtable and endorsed by the Government in March,” Mr Snelling said.
“It is pleasing that we have come to a set of conditions that will protect the long-term future of the industry in the South-East and that TCG have agreed to those conditions.”
Workers from timber firm Carter Holt Harvey initially gathered at the Crowne Plaza Hotel in Adelaide where Premier Jay Weatherill was due to address a luncheon.
They wanted to deliver a letter calling on Weatherill to suspend the forward sale of the harvesting rights “to deal with Forestry SA’s exorbitant log prices, which are putting 1000 Carter Holt Harvey jobs at risk”.
Mr Weatherill pulled out of the event at the last minute to deal with an “urgent” matter.
On hearing the news, about 20 protesters moved to ALP headquarters in Gilles St where they occupied the foyer and chained themselves together. About an hour later four police officers arrived and spoke to the organiser, prompting the protesters to unchain themselves and leave.
Last week Carter Holt Harvey had warned that 1000 workers were at risk of losing their jobs unless the State Government renegotiated a key contract with the firm.
The sale of the harvesting rights has become a controversial issue since former Treasurer Kevin Foley announced the move.
Mr Weatherill promised conditions would be put on the sale to protect the long-term future of the timber industry and the interests of the local community.
The aim of the sale is to raise more than $500 million, which will bolster the South Australia’s bottom line.
Ownership of the land, water and carbon rights will remain with the Government.
