The closure of long-term business Gunnedah Timbers has left its supporters angry and disappointed that new timber resources were not made available in time to save the business. Source: Namoi Valley Independent
Gunnedah Timbers shut its doors recently, making about 20 staff redundant.
The family business had been hoping for more timber to become available following the Natural Resources Commission’s report on the management of cypress forests in the Brigalow and Nandewar State Conservation Areas.
NSW Premier Mike Baird is expected to make a decision on logging in state conservation areas within the next two weeks. But the business could wait no longer, and announced through a statement that it had closed.
“It is with regret that Gunnedah Timbers announces the redundancy of its workers located at the Gunnedah sawmill site, effective from today’s date,” a statement from Gunnedah Timbers signed by co-owner Michael Paul said.
“The redundancies will also include employees engaged in administrative positions from a later date.
“For some time now, the company has not been able to source a supply of timber of an appropriate standard and quality. The company has attempted to maintain employee numbers for a considerable period of time, in the anticipation that the timber supply may improve.
“Unfortunately this has not occurred, and due to the diminishing log quality, the company is unable to keep employees gainfully employed in the saw mill operations.”
The statement said the redundancies were not the result of the appointment of an administrator, receiver or liquidator, but had been initiated “solely by the company to minimise any further losses to the trading operations”.
A small number of staff will be kept on for management, administrative and other duties, but the business said these positions would also eventually be made redundant.
The statement said the company would ensure all employees received their full employee entitlements and part of their accrued but untaken sick leave.
“Gunnedah Timbers is saddened to have had to make this decision but is of the view there are no present further alternatives,” the statement said.
Member for Tamworth Kevin Anderson, who has been a vocal supporter of Gunnedah Timbers, said he was “devastated and extremely angry” the business had been forced to close.
“This is a huge blow for the highly respected Paul family who own and operate Gunnedah Timbers and for the Gunnedah community,” Mr Anderson said.
“I am extremely upset that this has occurred, and my thoughts are with the families of those loyal workers and I am deeply concerned for their future.
“I know full well the supply issues that Gunnedah Timbers are faced with, and I hope this structural adjustment will enable them to remain an employer in this community into the future.
“On the many occasions that I visited the mill, talking to workers and management, I saw and heard first hand what they were talking about and despite the many meetings and the options put forward by the company, there has been no breakthrough.
“As the local member I have lobbied the government to find a solution to the problem, and I am devastated for the workers and extremely angry that a solution has not yet been found.”
He called on the NSW government to release an assessment of the Natural Resources Commission’s report to find a way forward for the local timber industry.
“I will continue to do everything I can to support Gunnedah Timbers and try and find a way forward, in the meantime my thoughts are with the loyal workers of Gunnedah Timbers and their families,” Mr Anderson said.
Gunnedah Shire Council also spoke out about the loss of “one of the last standing manufacturing businesses in Gunnedah and a significant local employer for the community”.
Mayor Owen Hasler said the council had actively championed the mill’s cause and pushed for the state government to review the management practices of formally milled forests in the area.
“Gunnedah Shire Council has consistently stated that the existence of the cypress pine industry and national parks were mutually possible should a more realistic allocation of forest areas be undertaken by the state government,” Cr Hasler said.
He said council had made representations to state government ministers and put in two submissions to the Natural Resources Commission.
“In those submissions, we argued, based on sound evidence and industry experience, that the best way to ensure the long-term health and sustainability of those formerly milled forest areas was to actively manage them, including the thinning and milling of the timber,” Cr Hasler said.
“It is extremely disappointing that the Paul Family have been forced to cease their Gunnedah milling operations, presumably on economic grounds because of their inability to acquire an adequate supply of appropriately sized and quality of timber since the former logging areas in the Pilliga and Brigalow have been restricted to timber companies.”
He said no rural community could afford to lose an important, productive industry.
“Today, my thoughts are with the Paul Family and the mill employees and their families,” Cr Hasler said. “The government needs to carefully examine whether its policy and position on the matter has been a good outcome for our community and the state generally.”
The mill’s fight to remain open attracted significant statewide attention, including a visit from Environment Minister Rob Stokes. Business co-owner Patrick Paul said earlier this year the mill only had enough timber to last until about August.
