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$10m Bairnsdale log mill to be consideredThe Member for Eastern Victoria, Philip Davis, has opened negotiations with the State Government that could lead to the establishment of a new timber plant at Bairnsdale to process small logs. By Kevin Balshaw - 14th December 2009 - Back to News The Member for Eastern Victoria, Philip Davis, has opened negotiations with the State Government that could lead to the establishment of a new timber plant at Bairnsdale to process small logs.
Mr Davis says the proposal would involve an investment in the order of $10 million in a facility capable of processing logs that are too small for existing mills to handle and currently end up as woodchips.
He has received a favourable response from senior Government ministers to a proposal that they develop an arrangement to supply wood for the large timber processor, Fenning Bairnsdale Pty Ltd, to capitalise on an export market opening in China and support the company’s development of a small log processing line.
Mr Davis said that in an exchange during debate in Parliament, the Minister for Environment and Climate Change, Gavin Jennings, indicated expressions of interest in a small log processing operation would be considered early next year.
Mr Davis said arising from a pre-2006 election policy, the Government was committed to put $1 million into such a development, and in Parliament Mr Jennings reaffirmed the Government’s readiness to "acquit our offer".
Mr Davis also discussed the Fenning project personally with Treasurer John Lenders, and raised the issue formally on the Adjournment debate for Mr Lenders’ attention.
"A convoluted process involving ministers and a range of Government departments and agencies will have to be undergone to determine the future of the two elements of this proposal — a resource supply for the export of part-processed saw logs to China and the processing of small logs," Mr Davis said.
"But the outcome from my discussions, initially with company chiefs Leonard Fenning and Brian Donchi and with the two ministers, is looking quite hopeful and I would be looking forward to a decision in the first half of next year.
"Minister Jennings has indicated the Department of Innovation, Industry and Regional Development will manage the process for the establishment of a small log processing facility, but the overall package will obviously also need to involve VicForests and the Department of Sustainability and Environment and the respective ministers.
"In association with Fenning Bairnsdale, I will maintain liaison with the Government to ensure these inter-related projects are assessed and approved in timely fashion.
"These developments present a major opportunity for the Bairnsdale economy and are important to the future of the timber industry in East Gippsland."
Mr Davis told Parliament Fenning Bairnsdale was well advanced in negotiations in the Chinese market and had been endeavouring since midyear to gain access to an initial supply of 10,000 tonnes of logs for export to China, but consideration of its request had stalled with VicForests.
He said the company’s longer-term proposal to invest in a small log line would require a supply of 30,000 tonnes of wood a year over 10 years to guarantee its feasibility.
Source: http://gippsland.com/ Published by: kevin.balshaw@parliament.vic.gov.au
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