[Greens-Media] Government's GST gift to Gunns

[Bennett, Ebony (Sen B. Brown)]

Wednesday, 16 August 2006

Government's GST gift to Gunns

As Gunns shares fall below $2.50 for the first time, the government has gifted an extra half million of taxpayers' money to its proposed pulp mill. The gift is in the form of $500,000 GST rebate on the $5 million promised to John Gay by John Howard. 

Greens Leader Bob Brown's question on the mill:

Question
Senator Bob Brown <http://parlinfoweb.parl.net/parlinfo/view_document.aspx?TABLE=biogs&ID=12152>  (Tasmania)  asked the Minister representing the Minister for Agriculture, Fisheries and Forestry, upon notice, on 12 July 2006:
(a) 
		What conditions apply to the Government's offer of $5 million assistance for the pulp mill. 
(b) 
		When is the money likely to be available.
Answer
Senator Abetz <http://parlinfoweb.parl.net/parlinfo/view_document.aspx?TABLE=biogs&ID=12216>  (Tasmania-Minister for Fisheries, Forestry and Conservation)-The Minister for Agriculture, Fisheries and Forestry has provided the following answer to the honourable senator's question:
(a) 
		The Australian Government would provide up to $5 million plus GST towards the costs of developing a best-practice pulp mill subject to the provision of evidence that the project would be economically feasible. 
(b) 
		On 16 January 2006, Gunns Limited was paid $2.4 million plus GST in accordance with the terms of the Funding Agreement between the Commonwealth of Australia and Gunns Limited of 5 January 2006. The balance of $2.6 million plus GST is subject to consideration and the provision of appropriate documentation by Gunns Limited.


Senator Brown called on Senator Abetz to explain the half million windfall for Gunns, why it wasn't disclosed in his original announcement and what other options he considered for spending half a million dollars in Tasmania, before deciding Gunns came first.

Further infromation: Ebony Bennett 0409 164 603


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Ebony Bennett
Media Adviser
Office of Greens Senator Bob Brown
Mobile: 0409 164 603
Ph: (02) 6277 3170
Fax: (02) 6277 3185
ebony.bennett at aph.gov.au