Victorian Government to buy Heyfield timber mill

UPDATE: HEYFIELD timber millers fear up to 100 jobs will be lost despite an unprecedented government move to buy the Gippsland sawmill. Premier Daniel Andrews said today he would fight for every job.

Heyfield Mill workers protest earlier this year. Picture: Jason Edwards

HEYFIELD timber millers fear up to 100 jobs will be lost despite an unprecedented government move to buy the Gippsland sawmill.

An in-principle agreement to keep the mill open, under new management, was struck with Australian Sustainable Hardwoods on Monday.

The deal will cost taxpayers more than $40 million.

But workers say scores of jobs remain at risk from a restructure forced by a reduction in the quantity of timber ordered from the mill.

Premier Daniel Andrews said today they would fight for every job.

He said the sale price had not yet been set and would not comment if it would be under the $50 million the government promised.

Agriculture Minister Jaala Pulford said the reality was there was a recognition there was smaller amount of timber available for the mill and the parties needed to work out what transition would look like.

“We need to finalise the terms of the sale,” she said.

“We have pressure on the resource that is very real.”

Ms Pulford said environmental buffers around where the endangered leadbeater possums is found in state forests meant there was less timber available for the mill and other environmental factors.

“We believe we can have environmental factors protecting it the way they want and have a strong and viable timber industry,” she said.

Ms Pulford said issues like timber supply and a mill restructure would need to be finalised after the terms of sale were agreed.

Workers gather at a mass meeting announcing the closure of the Heyfield timber mill in March. Picture: Andrew Batsch

Hundreds of Heyfield timber mill workers await announcement by ASH CEO after govt decision to buy mill. @theheraldsun pic.twitter.com/7Au9Xb92db

— Aneeka Simonis (@AneekaSimonis) July 3, 2017

Workers told the Herald Sun yesterday they were worried for their future.

Maurice McCarthy, 60, who has worked at the mill for 25 years, said news of the government takeover was no reason to celebrate.

“There’s worry for everyone, because there will be job losses,” he said.

It’s just a matter of who goes and who doesn’t. It won’t go back to what it was.”

Supervisor Aaron McDonough said the number of losses was “yet to be confirmed” but several workers would leave voluntarily.

HEYFIELD MILL: VICTORIAN GOVERNMENT INCREASES TIMBER SUPPLY OFFER

"We are out of shut down mode. We are in going mode", ASH CEO Vincent Hurley to Heyfield mill workers #springst pic.twitter.com/Immvss3k8U

— Aneeka Simonis (@AneekaSimonis) July 3, 2017

Mr Andrews announced in March that the government would take the extraordinary step of either buying the mill itself or assisting in a sale.

He promised that taxpayers would not pay more than $50 million to save the mill.

It is understood the latest offer was $40-50 million, but Ms Pulford declined to confirm whether the Premier’s pledge had been kept.

ASH chief executive officer Vincent Hurley said “everything is still to be planned, but there will be no forced redundancies and now we have time to plan for the period of August 2018”.

“We are out of shutdown mode. We are in going mode,” Mr Hurley said.

The deal is due to be signed off in two to three weeks.

Victorian Nationals leader Peter Walsh said the government had “failed to give Heyfield mill workers long-term certainty for their jobs”.

“The only way to save these jobs is to increase timber supply, and the Andrews government confirmed again today that they aren’t prepared to put jobs first.

“Instead of seeking accolades, Daniel Andrews should get down to Heyfield, come clean, and admit he has failed to save all 260 jobs.”

Victorian Greens leader Greg Barber said the move to keep the mill open was an environmental disaster.

“Labor has saved some jobs for the short term, but can’t bring itself to reduce logging levels to protect the (endangered Leadbeater’s) possum,” Mr Barber said.

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