Australian Paper’s Gas Conversion Brings Major Benefits To North-West -


Labor Member for Braddon Brenton Best today joined with Australian Paper’s Executive General Manager Jim Henneberry and Senator Eric Abetz to announce a $1 million Community Forest Agreement grant for the company’s Wesley Vale operation to install new natural gas-powered boilers.
“Today’s announcement represents yet another vote of confidence in the North-West economy,” Mr Best said.
“The grant will enable Australian Paper’s operation at Wesley Vale to enjoy the significant economic and environmental benefits that come from using natural gas as an energy source.
“Today’s announcement is yet another example of the benefits that natural gas has brought to the State.
“Natural gas is an important part of the State Government’s strategy for attracting investment to Tasmania and ensuring that the State has competitive and cost-effective energy sources.
“Natural gas is generating investment, saving millions of dollars and providing significant benefits for the environment by reducing greenhouse gases.
“The installation of the new gas-powered boilers, replacing the existing oil-powered boilers, will be a $4 million project and shows how willing companies in the region are to invest in Tasmania’s future.
“There is a climate of confidence in the region borne out by the fact that, at last count in September, there was around $658 million worth of investment projects in the North-West region either under construction or committed to.
“It is a significant vote of confidence by Australian Paper in not only the North-West but also Tasmania as a whole.
“There is no doubt that this project will strengthen the operations here at Wesley Vale and the future looks very bright indeed.
“Securing this level of investment is an important step in continually improving the competitiveness of the Wesley Vale pulp and paper mill against imported paper.
“It is also a positive reflection of the skills and ability of the company's Tasmanian workforce.”
Mr Best commended Australian Paper on the project and said he was delighted that work on installing the new boilers would start immediately and be completed by July, 2007.
He said the jointly-funded Community Forest Agreement had brought significant benefits to Tasmania and had secured the twin objectives of preserving more of the State’s old-growth forests without sacrificing jobs.
“It has enabled many businesses to expand whilst at the same time enabled many to purchase new, modern equipment, making their businesses more viable,” Mr Best said.
Mr Best also joined with Senator Abetz to announce 13 other grants totalling $2.2 million, taking the total for grants made under the Tasmanian Community Forest Industry Development Programme to more than $10.5 million.
The grants cover a broad range of activities in the Tasmanian forest industry, including harvesting, sawmilling and further processing of timber.
“These grants represent between 25% and 50% of the total project costs, so applicants are also investing very significant amounts of their own money in the projects,” Mr Best said.