Gunns Ltd: ' No extra harvesting will occur as a result of this project.'
Comment: Whoops! Chances are they're regretting putting that in writing because just a couple of weeks later, in March 2005, they were announcing an increase from 5.4 million tonnes to 7 million tonnes by 2010 - an increase of 25%.
Gunns Ltd shareholder statement: 'The project provides an ability for the Company to obtain an increase in the value of pulpwood through accessing the pulp market in addition to its current woodchip markets.'
Comment: Yes, that's right. It's a direct contradiction of the first statement and what the Premier, Government and pulpmill task force have said. Opponents might argue that it proves that Gunns Ltd cannot be trusted.
RPDC final scope: ' Provide details of the quantity of Tasmanian pulpwood currently exported that will be directed for the supply of pulpwood in the mill.'
Comment: It seems the RPDC also want to know what's going on.
IIS: The proposed mill will not result in any changes to forest access or intensification of forest activities. This statement does not mean there will not be any extra forest activities. What Gunns Ltd are saying here is that it will increase whether the mill is built or not, the mill will make no difference.Comment: Last year Gunns Ltd only sold 4.7m. tonnes of wood chips. So it follows that increased forestry operations will only happen if either the mill is built or Gunns Ltd can sell up to 7m. tonnes of wood chips.
IIS:The mill will use 80% native forest and 20% plantation to start with with the proportions reversing over the next 30 years (36% native forest over that period). Conversion of native forest to plantations will be according to the Regional Forest Agreement.Comment: No figures given for conversion to plantations except that Gunns Ltd plantations will expand from 110,000ha to 150,000 by 2017.
IIS: 75% of wood for the mill will be sourced from the North-East. Tasmanian Premier Paul Lennon has confirmed harvesting of native forest will continue as at present for the next 30 years if the mill is built. No details are available about the price Gunns will pay for the resource. A Comsec report on Gunns Ltd has now reported that, although the price contract with Forestry Tasmania is confidential, they understand that the price paid for the wood will be tied to World pulp prices. This shifts part of the risk to the Tasmanian taxpayers who own Forestry Tasmania. In theory, if the price drops a lot, FT could be paying Gunns to remove the wood - negative stumpage. Comment: Many Tasmanians were hoping that when plantations came on line, the harvesting of native forest will stop or be greatly reduced. IIS: According to the IIS the supply from the mill will be as follows:
Region / type Startup Eventual Region Startup Eventual Type Startup Eventual
N.E.native forest 70% 20% North East 90% 75% Native 80% 25%
N.E.plantation 20% 55% South East 10% 10% Plantation 20% 75%
S.E.native forest 10% 4% North West 0% 15%
S.E.plantation 0% 6% Total woodchip harvest:
N.W.native forest 0% 0% North East 2.8mt 3.3mt
N.W.plantation 0% 15% South East 1.3mt 1.5mt
---------------------------------------- North West 1.2mt 2.0mt
100% 100% ----------------------------
5.3mt 6.8mt
IIS: As there will not be any significant change in the extent or nature of current forestry levels in Tasmania, there are no relevant environmental, social, economic or community impacts to be assessed or mitigated.
In the Hobart Mercury on 21/2/2006, it is reported that a report for the International Conservation Groups for the European Union ranks Tasmania's forestry practices alongside those of third-world countries such as Burma, Pakistan, Indonesia and Cameroon.
An article in the Hobart Mercury on 14th May 2006 suggests that current forestry practices are changing the landscape in Tasmania:
Hobart Mercury article on how forestry is changing the landscape
A group called 'Timber Workers for Forests' produced a paper in 2002. It says that jobs in the manufacturing side of the timber industry have decreased by 4000 since 1990 in spite of promises to the contrary. The year after the Regional Forest Agreement (RFA) came into effect jobs decreased by 1240. The conversion of native forest to Eucalypt regrowth results in loss of mature timber resources that many small industries depend on. This has an adverse effect on the Tasmania brand and tourism. Jobs in the industry are at all all time low and are likely to fall further. 40,000ha of native forest is cut every year with 15,000ha converted to plantations. 92% of the wood is chipped. Contractors profits depend on them cutting and delivering the Eucalypts to the mills as quickly as possible and the resulting wastage of potentially high value timber is great. The paper says that probably 50% could be used for various timber projects and that its value would be increased by 5 to 20 times. Here is the paper:
In an interview on 'Four Corners' on 16/2/04, John Gay was asked if Tasmania will be 'the plantation state'. Mr. Gay replied that Tasmania was the most suitable state for plantations. He also said that there were fewer jobs in wood chipping and that the sawlog and hardwood industry was more important. More interestingly, Mr. Gay said that it would be 2012 before Tasmania had enough plantations for a pulp mill. So what has changed? Opponents might argue that Gunns Ltd are worried that by then political support for a pulp mill will have evaporated. You can read the transcript of the interview on this link:
Four Corners interview with John Gay
The wood for the mill will be intensively grown in plantations with the forest never being allowed to mature before being harvested (every 10-25yrs). Native forest is logged every 60-80yrs. With the majority of wildlife making their homes in old or dead trees (according to Parks and Wildlife) then it follows that these plantations will not support much wildlife. The RPDC final project scope asks Gunns to explain how it will obtain its timber after 2017 when the Regional Forest Agreement expires. It may be that the political climate with regard to logging of native forests will have changed by then and that resource will no longer be available.
IIS: Gunns Ltd say that, if necessary, by 2017 they can supply the mill entirely from plantations but in the Examiner on 20/7/06, Tom Ellison says that the lack of detail in the IIS about plantation expansion may surprise many given the importance of plantations to the pulpmill. The article also says that Gunns will struggle to build up enough plantations especially if the favourable tax regime is scrapped. At present investments in plantations attract huge tax deductions and many groups, including farmers and agricultural companies, say that this creates distortions in land prices and greatly favours forestry over farming. Critics also say that if an industry needs huge subsidies to prosper it is basically unviable. The federal government is currently reviewing this. Critics of Gunns plantation strategy argue that it destroys rural communities and is detrimental to the water catchments. In a decision just before Christmas 2006, the Federal Government announced that the tax breaks would continue (with extra conditions) for at least another two years when it will be reviewed again. In the Mercury on 5/8/2006, it says that Gunns have admitted that their plantations are not growing as fast as predicted and yields are 80% of what is expected. Opponents are saying that Gunns will sell their high value plantations as wood chips and keep using as much native forest for the mill as possible and that explains why Gunns want their mill at Longreach instead of at Hampshire where they have huge plantations. IIS: The final mix will be determined by export market for woodchips. Comment: This statement could be interpreted as confirming opponents fears.A computer modelling commissioned recently by Forestry Tasmania and undertaken by Melbourne University gives the Wedge Tail Eagle virtually no chance of surviving in Northern Tasmania.
Hobart Mercury article on fate of Wedge-Tail Eagle
After ten years of trying to avoid the issue of Tasmania's unique endangered freshwater crayfish Astacopsis gouldi, a report has at last been released by the State government. The problem is disturbance of their habitat and possible effects of chemicals in forestry operations. Streams with a proven population will have a 30m. buffer but environmentalists say that only a few of the thousands of streams have been surveyed and so only they will be protected and that many of the others that contain the species will not be.
According to the Hobart Mercury on 13/8/2006, pressure is being put on the Federal Government by farmers and other agricultural businesses to withdraw tax concessions from plantations as it creates an uneven playing field and forces up the price of farming land. This has now been discussed at Federal cabinet level but a decision has yet to be made. Gunns Ltd CEO John Gay has admitted that withdrawal of the tax subsidies would result in more pressure on old growth forests in years to come and that it would 'kill the industry within 15 years'. However, he said that it would not stop the pulp mill. This is a report by URS Forestry commissioned by the RPDC on the IIS. It suggests that Gunns Ltd have not explained their wood supply clearly enough: URS Forestry report on the IIS Here is the submission to the RPDC by Birds Australia. It explains that they are worried that current forestry operations are resulting in degradation of our unique bird life: Birds Australia submission The court decision won by Dr Bob Brown which has halted logging in the Wielangta State Forest because Forestry Tasmania is not doing enough the protect to Wedgetail Eagle, Swift Parrot and Broad-toothed Stag Beetle (all endangered species) has now cast doubt on the future of the industry. This could potentially affect the supply of wood to the pulpmill as the same court decision could be applied to many areas of Tasmania's forests. 22/1/2007: The Federal Government has refused to back the 'Forest Stewardship Council' (FSC) certification system that verifies that wood has been legally harvested and that the supply is sustainable. Forest minister Eric Abetz, who comes from Tasmania, criticised the FSC even though many countries are now adopting it and companies in mainland Australia say it offers commercial advantages. Senator Abetz wants Australia to be tied to the Tasmanian system which is not recognised by the FSC. Article in The Age3/6/2007: NATIVE FOREST CONVERSION TO PLANTATION TO STOP - FOR NOW
Forestry Tasmania and Gunns have announced that conversion of native forest to plantations will stop. This
does not mean that native forest will not be harvested, but it will be replanted after harvesting. The time
native forest takes to mature is about 80 years as opposed to about 20 years for plantations. The timing
of this announcement just as the pulp mill is about to be built leads to suspicions that it has been forced
on them by financiers. But, of course, the decision could be reversed once the mill is built just as the Ralphs Bay project was cancelled before the election and reinstated after. Gunns say they
need another 50,000ha of plantations. Where will they get it? There are about 70,000ha of farmland in
northern Tasmania. Conversion of 70% of farmland would seriously damage the economy as plantations only
produce a fraction of the income and employ far fewer workers than farmland. Also affected would be Tasmania's
famed scenic beauty.
VERDICT: Once again, Gunns Ltd initial statement that no extra harvesting would result was misleading. It would only be true if they sold all 7mt as wood chips on a regular basic which is unlikely given that only 3.5mt were sold in 2005/2006. And so was the statement that only the existing woodchips would be diverted to the mill as an extra 3mt (only slightly less than at present) would be exported as well. Most wild life may be able to cope in surviving strands of old forest but the Wedge Tail Eagle, which is very territorial, may struggle to maintain a breeding population. As far as wood supply is concerned, Gunns at present do not have the plantations to supply their mill and will rely on access to native forest for many years. Gunns will also need the present expansion of plantations and political support to continue. If tax concessions were cut or clear felling of native forest stopped the supply to the mill would be curtailed.
