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CANBERRA - A planned pulp mill in Tasmania that would create about 3500 new jobs in the construction phase and 1600 new permanent jobs has faced a setback.
Federal Environment Minister Peter Garrett said yesterday that he had not approved all operating conditions allowing the $2.2 billion Gunns Ltd pulp mill in Tasmania's Tamar Valley to proceed and wanted further environmental studies carried out.
Garrett said he had approved 13 conditions so far, but three would not be granted until the completion of studies of potential marine impacts.
The minister also imposed a new condition allowing civil penalties of up to A$1.1 million ($1.33 million) per offence for any breach of the limits for the mill's operation.
"I am not satisfied ... that I can grant final approval for this mill without fully understanding its potential environmental impacts," Garret said.
"That includes having a thorough understanding of the potential impacts of the mill's effluent discharge on Commonwealth marine waters and absolute confidence in the proposed management and response strategies that are proposed to put in place to protect the environment."
Gunns now has until March 3, 2011 to re-submit the three conditions for approval after its environmental impact modelling is completed.
Forest Industries Association of Tasmania chairman Dr Julian Amos said he was disappointed all of the modules did not gain unconditional approval.
"Although most of the modules have now been approved, and this is a positive, the conditions placed on the final three modules will cause continuing doubt and delay," he said.
"These three modules relate to marine impacts, and it is my understanding that the minister has approved these in principle, however, retaining conditions based on a precautionary approach is unhelpful and will foster further doubt over the mill.
"At this time of economic uncertainty, such an approach will be detrimental to the Tasmanian economy."
- AAP
