❓ Hon. Sally Talbot questions the Minister for Commerce regarding funding provided to the Greenbushes timber mill under the timber industry assistance package, specifically concerning job creation and compliance with employment targets. The Minister provides details of past funding agreements and employment targets, noting that targets were largely met.
AnsweredQoN 783Legislative Council
QuestionView source ↗
GREENBUSHES TIMBER MILL — TIMBER INDUSTRY
ASSISTANCE PACKAGE
783. Hon SALLY TALBOT to the Minister for
Commerce:
I refer to the advertisement posted
on the Gumtree website on 18 July 2016 entitled ''Backpackers Wanted for
Timber Mill—Greenbushes''.
(1) Under the
previous Government's $123 million timber industry assistance package,
what funding or resourcing was made available to the owners of the Greenbushes
timber mill to facilitate local job creation and upgrade the mill?
(2) What
conditions did that funding place on the owners of the Greenbushes timber mill
in creating jobs in the local area?
(3) Did these
conditions include any targets for local employment numbers; and, if so, are
these targets being met?
ASSISTANCE PACKAGE
783. Hon SALLY TALBOT to the Minister for
Commerce:
I refer to the advertisement posted
on the Gumtree website on 18 July 2016 entitled ''Backpackers Wanted for
Timber Mill—Greenbushes''.
(1) Under the
previous Government's $123 million timber industry assistance package,
what funding or resourcing was made available to the owners of the Greenbushes
timber mill to facilitate local job creation and upgrade the mill?
(2) What
conditions did that funding place on the owners of the Greenbushes timber mill
in creating jobs in the local area?
(3) Did these
conditions include any targets for local employment numbers; and, if so, are
these targets being met?
AnswerView source ↗
I thank the member for some notice of this question.
(1) In March
2000, a financial assistance agreement between the then Minister for Commerce
and Trade and Blueleaf Corporation Pty Ltd was entered into to assist Blueleaf
to purchase the Greenbushes timber mill from Whittakers. The FAA, as amended,
provided for a grant of $636 000; an interest-free loan of $2.4 million
convertible to a grant upon achieving certain employment milestones; and an
interest subsidy to assist Blueleaf with a commercial loan it had entered into
for the purchase of the Whittakers operations.
In October 2004 a second FAA was
entered into between the then Minister for State Development and Blueleaf to
assist Blueleaf to purchase and commission a small log line. The FAA provided
for an interest-free loan of $2.2 million converting to a grant over five years
on installation and commissioning of the small log line and achieving certain
employment milestones.
(2) The
conditions of the funding agreements in the terms of employment were as follows
for the 2000 FAA, as amended, to maintain an average of the following FTE
numbers: 2000–01 to 2003–04, 53; 2004–05, 73; 2005–06,
83; 2006–07, 91; 2007–08, 93; 2008–09, 93; and, 2009–10,
93.
For the 2004 FAA, to maintain an
average of the following FTE numbers: 2004–05, 73; 2005–06, 83;
2006–07, 91; 2007–08, 93; and, 2008–09, 93.
(3) Except for
2009–10, these targets were met. In 2009–10, the average FTE
number maintained was 91.3. However, the minister approved the final loan
conversion, taking into account Blueleaf's previous performance and the
impact of prevailing conditions within the timber industry on business activity
and capacity to maintain employment levels. These employment targets no longer
apply with the obligation ending on 30 June 2010 at the conclusion of the 2000
FAA.
(1) In March
2000, a financial assistance agreement between the then Minister for Commerce
and Trade and Blueleaf Corporation Pty Ltd was entered into to assist Blueleaf
to purchase the Greenbushes timber mill from Whittakers. The FAA, as amended,
provided for a grant of $636 000; an interest-free loan of $2.4 million
convertible to a grant upon achieving certain employment milestones; and an
interest subsidy to assist Blueleaf with a commercial loan it had entered into
for the purchase of the Whittakers operations.
In October 2004 a second FAA was
entered into between the then Minister for State Development and Blueleaf to
assist Blueleaf to purchase and commission a small log line. The FAA provided
for an interest-free loan of $2.2 million converting to a grant over five years
on installation and commissioning of the small log line and achieving certain
employment milestones.
(2) The
conditions of the funding agreements in the terms of employment were as follows
for the 2000 FAA, as amended, to maintain an average of the following FTE
numbers: 2000–01 to 2003–04, 53; 2004–05, 73; 2005–06,
83; 2006–07, 91; 2007–08, 93; 2008–09, 93; and, 2009–10,
93.
For the 2004 FAA, to maintain an
average of the following FTE numbers: 2004–05, 73; 2005–06, 83;
2006–07, 91; 2007–08, 93; and, 2008–09, 93.
(3) Except for
2009–10, these targets were met. In 2009–10, the average FTE
number maintained was 91.3. However, the minister approved the final loan
conversion, taking into account Blueleaf's previous performance and the
impact of prevailing conditions within the timber industry on business activity
and capacity to maintain employment levels. These employment targets no longer
apply with the obligation ending on 30 June 2010 at the conclusion of the 2000
FAA.
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