Maryvale Mill to offer Federal Government incentive to buy its product

A PAPER mill in the struggling Latrobe Valley will offer the federal government an incentive to buy its product and help secure almost 1000 jobs.

Australian Paper’s Maryvale Mill.

• Taxpayer cash splurged on imported paper despite directive to support Australian industry
• Union urges workers to take pay cut to ­ensure Maryvale paper mill stays open

A PAPER mill in the struggling Latrobe Valley will offer the federal government an incentive to buy its product and help secure almost 1000 jobs.

Australian Paper’s Maryvale Mill is the biggest private employer in the Valley, contributing $451 million annually to the Gippsland economy and underpinning almost 2500 flow-on jobs in the region.

The Herald Sun revealed last month that 16 of 22 federal departments were using imported paper, including paper from Indonesia and Brazil that had been “dumped” illegally at below the cost of production.

Workers at the mill — encouraged by their union — voted in favour of a 5 per cent pay cut in their new enterprise agreement last month, to help keep the business afloat.

The company’s chief operating officer, Peter Williams, said Commonwealth departments and agencies would be offered Australian-made recycled copypaper at a discount rate if they send their shredded wastepaper to Maryvale Mill for recycling.

“The economic benefits flowing from our operations are particularly important for the Latrobe Valley,” he said.

“As most people know, this region has experienced tough times recently, including the announcement of the closure of the Hazelwood power station. Also, with the current difficulties being experienced by ASH in Heyfield, access to secure wood supplies remains a key issue for both our businesses,” he said.

Hundreds of workers at Hazelwood are preparing for redundancy when the station is decommissioned this month.

Opposition industry spokesman Kim Carr has said the government had no excuse for not buying Australian when local manufacturers provided the best value for money.

“Labor calls on the government to cease buying dumped foreign paper, which is distorting the market and putting more Australian jobs at risk,” Senator Carr said.

The domestic industry generates $1.88 in government revenue for every ream of paper produced.

Mr Williams said that by choosing to dispose of their wastepaper through the Victorian operation, federal government departments would help boost the Latrobe Valley economy and support local manufacturing jobs.

New research yesterday reveals that the paper industry generates almost $1 billion a year in economic benefits for Australia.

The Western Research Institute report found the national benefits include $911 million in gross domestic profit, $495 million in household income and 5786 full time jobs.

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