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Government forces sale of Cann River mill: Ingram

Gippsland East Independent MP, Craig Ingram, says the recent decision by a Cann River mill owner to announce the sale of his business highlights the devastating consequences that the State Government's VicForest, will have on country Victorian towns.

By Craig Ingram - 18th May 2005 - Back to News

Mr Ingram said today that the owner of Hallmark Oaks at Cann River, Bob Humphreys, had been forced to offer the business for sale due to the increase in native timber prices.

"The State Government’s new commercial forestry arm, VicForests, has notified sawmillers that their royalties will increase from 12 to 22.4 per cent," Mr Ingram said.

"The royalty price hikes will make many timber businesses unviable.

"The situation now at Cann River is a classic example of why I voted against the legislation last year.

"Hallmark Oaks, like all of the businesses remaining in the industry, have invested strongly in the industry’s future and value-adding, but in return they are rewarded with uncertainty and lack of security.

"In Parliament last year, I told the State Government that the real impact of the VicForests legislation is going to be felt most of all by the timber industries and business in electorates like mine.

"I also highlighted in Parliament at the time that the new regime would place businesses like Hallmark Oaks under threat. Unfortunately, the government did not listen to that advice.

"VicForests and the government must reconsider this decision and implement a realistically priced royalty regime to protect rural communities.

Source: http://gippsland.com/

Published by: news@gippsland.com

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