The Guardian 11 February, 2009

Gunns claims all clear for pulp mill

Bob Briton

Gunns Limited announced last week that its controversial Tamar Valley pulp mill "will meet approval requirements". A statement from the company cited a long-suppressed CSIRO report as support despite the fact that the scientist responsible for the research, Mike Herzfeld, concluded that mill effluent would spread many kilometres into Bass Strait "on a daily basis".

The statement to the Australian Stock Exchange (ASX) said that the "trigger levels" for the key pollutant, chlorate, had been lifted and that the way was open for the mill to be built. "We are now very confident we will meet all future requirements of the federal government with this project, and therefore there is no risk for our shareholders in proceeding with this project," Gunns chairman John Gay said.

A spokesman for Environment Minister Peter Garrett was forced to hose down the claim, noting that the minister "… is not prepared to grant final approval for the mill's operation until all the necessary (ocean impact) work and scientific studies have been concluded." He went on to note that Module L of the assessment - which includes the revised trigger levels - had not been signed off. Neither have two other remaining modules being examined by the department, the Independent Export Group and the minister. Tasmanian Greens Senator Christine Milne is concerned that Garrett raised the previous trigger level of 8 micrograms per litre of chlorate to 30mg/l in this instance. The change was said to be in recognition that the lower figure was based on protecting algae not present in Bass Strait. "But don't believe Gunns' spin for a minute … They can't make the claim that the pulp mill will meet all approval requirements before they've done that (ocean impact) modelling," Senator Milne said last week.

Environmental groups like the Wilderness Society point out that the federal government has bent over backwards to accommodate Gunns' priorities and has twice granted an extension of time for environmental studies to be completed. The first assessment was skewed in favour of the $2 billion mill project in that it didn't consider its impact on Tasmania's native forests or climate change. Even though the second assessment has not been completed, Garrett has cleared the way for Gunns to begin construction.

Most Australians oppose the massive mill project. A major campaign has begun demanding that no construction work be allowed until the results of the latest impact study are in. Opposition to the mill has already left its mark. ANZ Banking Group withdrew its support for the project last year prompting Tasmanian Premier David Bartlett to say his government would back out if another major financier were not found by November 30. The grandstanding "line in the sand" comments played to strong opposition in the community but no order was given to effectively bail out of state government commitments to the mill.

"The Pulp Mill Wood Supply Agreement signed between Forestry Tasmania, a publicly owned Government Business Enterprise, and Gunns Ltd is the key plank of support for this pulp mill proposal, and Premier Bartlett has refused to direct Forestry Tasmania to end that agreement now it is apparent that the project is on the backburner," Greens pulp mill spokesperson MP Kim Booth noted at the time.

Gunns' share price continues to sag on the ASX and the company is beset by other concerns. The economic downturn in Japan is reported to have led to a sharp drop in demand for woodchips. The company is due to appear in the Supreme Court in Launceston as it seeks damages from a group of forest activists who chained themselves to equipment at the Triabunna woodchip mill in December.

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