John Gay once promised Tasmanians that the proposed pulp mill would be 100% owned by Gunns, would deliver umpteen thousand full time jobs to local Tasmanians and umpteen billion dollars into local coffers.
He also said the Mill would be built and running by 2009. Its now half way through 2010 and not only do Gunns not have the money, we now know that the prospects of even a 50% Tasmanian owned mill are remote, just as the likelihood of the project ever getting off the ground. People in and associated with the industry have already admitted that Tasmanians will be lucky to get any of the work associated with construction of the mill.
Gunns financial situation is as dire as I have ever seen it and as market continues to be unimpressed by the so called "company restructure" the share price is in freefall.
One local financial analyst said this week that building the pulp mill was imperative for Gunns as the company couldnt afford to write off the $150 million plus it had thus far capitalised on the project. I'm no economist but I would argue that it is not sound or safe for anyone involved to build a $2.5-3 Billion dollar heavy industrial project for such a reason. And that is before we even begin to talk about the existing problem of the project already being on the nose with everyone except a few politicians and lumberjacks.