Ta Ann has secured $7.5 million in federal funding to build a plywood mill in Tasmania’s north-west. Source: 7 News
The company has become the fifth recipient of funding tied to Tasmania’s historic forestry peace deal.
The money was committed by the previous Labor government, but the Coalition put the payment on hold while it conducted a due diligence test.
The Government has been re-assessing many of the projects seeking a share of $106 million.
Ta Ann plans to build the plywood mill beside its veneer operation at Smithton.
Chief executive Evan Rolley said the company would match the funding to build a $15 million state-of-the-art facility.
It will use veneer from its Huon and Smithton mills.
“We will be able to both guarantee a very high quality plywood, but also have the environmental credentials that this wood is being sourced under an independently certified system which will add significant value to the Australian construction industry,” he said.
Construction will start later this month and production will begin in December.
The mill will provide 120 direct jobs, as well as create employment for contractors in supply and transport. Mr Rolley said it was a long term investment.
“We are looking to develop this market in Australia, including a range of speciality plywood areas over the course of the next 12 or 18 months.”
Senior managers from Malaysia attended the funding announcement at Smithton, along with the Deputy Premier, Jeremy Rockliff, and Federal Braddon MP, Brett Whiteley.
The Labor leader and Braddon MP, Bryan Green, was not invited.
He said it was disgraceful that Liberal politicians are celebrating the project as if it was their achievement.
“How Jeremy Rockliff and Brett Whiteley can stand there and announce this project today is beyond me, given that they opposed the process of actually getting the money for Ta Ann the whole way,” said Mr Green.
Mr Rockliff said he was there to support Ta Ann.
“Supporting the Federal Government in working in partnership with private industry for the benefit of rural and regional Tasmania,” he said.
“I’m here because I’m excited about the job prospects for Smithton and the greater region.”
The Greens leader, Kim Booth, said giving the money to Ta Ann amounts to market interference.
“This is just another hit on the public purse again here with the forest industry receiving money from the public purse that should go to hospitals and schools,” he said.
“I mean it’s quite outrageous that they’re proposing to distribute public funding after the conservation agreements have now been torn up by this government.”
Mr Rolley said Ta Ann is looking to purchase timber from private forest owners.
“For many, many years now our private forest owners have not had access to markets.”
