Australian Sustainable Hardwoods says it is prepared to consider selling its Heyfield timber mill to the Victorian Government. Source: The Weekly Times
“If the Government came forward with a genuine offer, in the context of saving the jobs of the workers, the board may consider a sale,” ASH spokesman James Lantry said. “I note, though … no such offer has been made.”
Premier Daniel Andrews in March said he would buy the timber mill after ASH said it would close because of a lack of native timber supply.
Until now, ASH has said the mill, which employs 250 people, was not for sale.
The breakthrough comes as negotiations on a redundancy agreement are expected to be resolved between ASH, the Construction, Forestry, Mining and Energy Union and the Government.
The Weekly Times believes Agriculture Minister Jaala Pulford recently intervened in a dispute between VicForests and ASH that threatened timber supply to the mill in the final months of its contract.
Sources confirmed VicForests was prepared to delay supplying the Heyfield mill over a pay dispute.
But Mr Lantry said there had been no disruption to timber supply.
“Since purchasing the mill, ASH has paid VicForests over $100 million for timber supplies and continues to provide monthly payments for timber,” he said.
“ASH remains hopeful that VicForests will actually be able to meet it contracted supply for 2016-17 as at this point every cubic metre of log deliveries will be longer our staff can -remain gainfully employed.”
Mr Lantry said ASH had recently sought changes to its monthly prepayment arrangement. “New monthly payment arrangements have been sought due to the cashflow changes and projected changes from such things as changes in sales levels, additional payments and payments for such things as staff redundancy costs,” he said.
VicForests said it would not comment on its commercial arrangements.
