The deadline was up and the result is that Tasmania’s forest peace-deal negotiators have asked the federal and state governments to help them reach an agreement after failing to settle their differences despite a second deadline extension. Sources: Ninemsn News, ABC News, The Australian
Negotiators from the forestry industry, unions and conservation groups say modelling on a preferred scenario that they had asked for two weeks ago had made a deal impossible after two years of talks.
“This (modelling) has thrown up some additional challenges in landing an agreement that provides the wood supply that industry needs while also creating a significant conservation outcome,” this point was made in a statement from the groups at the table.
The negotiators say they are close to an agreement on a large number of issues, but several sticking points remain as they try to determine how much of the state’s native forests should be protected during tough times for forestry industries.
The Federal Environment Minister has not ruled out providing more money to secure peace in Tasmania’s forests.
The signatories will continue their negotiations until Friday, when Tony Burke and Deputy Premier Bryan Green will join the talks to help facilitate an outcome. Mr Burke says there may be some room to provide more funding.
The latest development came on a day timber company Gunns conceded its proposed Tamar Valley pulp mill faced an uncertain future.
In a statement to the stock exchange, Gunns said plunging woodchip prices meant it would take an impairment for the year to the end of June of between $700 million and $800 million – at least five times its last available market capitalisation.
Costs of the development of the pulp mill, at Bell Bay in northern Tasmania, have to date been carried as an asset on the balance sheet. But Gunns now says that ‘‘a significant component’’ of the $250 million so far spent will be taken as an expense, directly hitting its bottom line.
It said the board was unable to form a view that the mill was likely to proceed for the purposes of accounting standards.
“The decision taken by the board does not necessarily mean that the mill project will not proceed,’’ the company told the exchange. ‘‘Rather, it is an indication of decreased confidence from the company that it has the ability to influence the mill project proceeding.”
Gunns announced that its profit for the financial year to June 30, 2012, would be about $26 million, and because of the slumping woodchip price would be worse during the current year.
