Economics
The State commissioned research that reported the project will generate $6.7 billion in spending over 25 years and create up to 1600 temporary jobs during the construction phase. After construction, it has been estimated by consultants engaged by Gunns that approximately 3100 extra long term jobs will be created in Tasmania and that approximately one twelfth of these will be employed by the operator at the pulp mill.
A report by Naomi Edwards, Economics Adviser to Australian Greens Leader Bob Brown has questioned the financial viability of the proposed Tamar Valley pulp mill. Greens Senator Christine Milne was criticised for describing the report as "independent" when it was written by a Greens adviser and paid for by Senator Milne using her taxpayer-funded allowance.
A January 2008 report commissioned by The Wilderness Society estimated the Bell Bay Pulp Mill may run at a $300 million loss to Tasmania. However the company told the Australian Securities Exchange in February 2011 that the mill would generate between A$475 and A$500 in pre-tax earnings.
The company has released statements (on numerous occasions – 2008, 2009 and 2010) that it was in negotiations with several partners to secure financial backing for the proposed pulp mill. A new company called Southern Star Corporation has been set up to build and operate the pulp mill. It is a private company with Gunns intending to retain a 51% equity share with the remaining 49% being made available for potential investors.
Read more about this topic: Bell Bay Pulp Mill
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