Welcome to Tasmania, the 'can do' state on forest management?

Treasurer defends timing of Gunns deal release

Gunns is not worried about the future timber supply, but the ANZ wanted surety. (ABC News: Cate Grant)

Tasmania's Treasurer has rejected suggestions a secret
deal between the State Government and Gunns was deliberately kept from
the public until after last weekend's upper house elections.

The deal provides up to $15 million compensation for Gunns if future
legislation interferes with the supply of timber for its planned pulp
mill.

It was signed back in January, but the Mr Aird announced it yesterday.

He has told ABC Local Radio the timing of the recent polls in Huon and Rosevears and the announcement are unrelated.

"The timing and release of these things is always problematic, if
you release it on Friday people say you're trying to hide it, if you
release it on Sunday people say you're trying to promote it," he said.

"Quite frankly getting through all the considerations to get into a
position to make the announcement, it just fit in yesterday, and there
was no other consideration taken."

Gunns Chairman John Gay says the deal was needed to appease financiers for the planned Tamar Valley pulp mill.

Deal 'uncommon'

Financial adviser with Shadforths Will Homan says it is not common
practice for a State Government to sign a multi-million dollar
compensation deal with a private company.

"The bit that you find unusual is that the State Government has come
out and put a guaranteed payment, that is a compensation payment, that
lasts out for the next 20 years," he said.

"And although the bank requires certainty, what's really taken place
is that the government has now put this compensation position in place
which is not only for the current government but potentially future
governments."

http://www.abc.net.au/news/stories/2008/05/06/2236373.htm