Premier backs mill to the hilt SUE NEALES | February 19, 2011 12.01am
PREMIER Lara Giddings has given her wholehearted support to the Tamar Valley pulp mill project.
She also flagged yesterday that a solution to the protracted Tasmanian forestry peace talks will be reached within the next two weeks, three months ahead of schedule.
The timeline indicated by Ms Giddings will mean a plan for Tasmania's future forest sector will be neatly announced at almost the same time as the Federal Government delivers its environmental decision on the Gunns pulp mill.
She admitted both environmental and forest industry groups were likely to be unhappy with any outcome mediated by former union boss Bill Kelty, if it was to be a true compromise.
Mr Kelty has been in Tasmania this week talking to all 10 environmental and industry signatories to last October's forest peace blueprint and Statement of Principles.
In an interview with the Mercury yesterday, Ms Giddings said a spirit of compromise in any forest deal was essential if a solution to 30 years of forest conflict was to be found.
She said a compromise deal would probably mean environmentalists accepting that in return for protecting Tasmania's high-conservation native forests from logging, they might have to agree to "a, and possibly the, pulp mill".
Similarly, she said the forest industry might have to accept its days of logging high-conservation value native forests were over.
Ms Giddings is confident construction of the controversial pulp mill will begin this year, once or if a solution to Tasmania's forest future is found.
She maintained the $2.5 billion Gunns pulp mill was now more essential to the Tasmanian economy than ever.
The pulp mill, which Gunns hopes to have joint-venture finance to begin within the next three months, will employ 3400 construction workers, 300 on-site workers once in operation and add 0.5 per cent economic growth to the economy.
Ms Giddings said the construction jobs, the building activity, economic growth and state taxes contributed by the Long Reach pulp mill were now all desperately needed in Tasmania.
"Before [the economic crisis] the pulp mill was the icing on the cake, the cream," Ms Giddings said.
"Now it is the cake."
Ms Giddings also said the Government:
Was not considering direct financial assistance to the pulp mill. Would not underwrite the project's financial risk. Would assist the pulp mill project by funding relevant infrastructure such as upgrading associated roads, rail and port facilities. Would not change any of the pulp mill permits or legislation passed by the Tasmanian Parliament. Would not repeal notorious Section 11 of the Pulp Mill Assessment Act, which removes the common law right of appeal against the pulp mill, its construction or its environmental impact. She said the logical organisation to assist any international joint-venture partner in the pulp mill by reducing its risk exposure was the Federal Government's Export Finance and Insurance Corporation.
Ms Giddings said when the pulp mill approval legislation had been passed by the State Parliament in 2007, she had been confident Tasmania was getting a good quality pulp mill with high environmental standards.
"Now we are getting an even better one," she said yesterday.
Gunns said the mill and its wood-burning power station will only use wood from eucalypt plantations, not from native forests. The bleaching process has also been adjusted so 40 per cent less chlorine is used.
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