.comment-link {margin-left:.6em;}

all things tasmanian

food - wine - wilderness - culture - art - craft - accommodation - tourism - events - attractions - politics - green things - development - economy - social - mary mania -industry - news - happenings - people - weather - nature - history - creatives - thinkers - science - innovators ... et al ... and the list goes on ... & on ... anon ... in this timeless island


Monday, March 20, 2006

Greens loss means a pulp mill for Gunns - Business - Business - smh.com.au

Greens loss means a pulp mill for Gunns - Business - Business - smh.com.au

SHARES in woodchipper Gunns have been boosted by the end of fears that Tasmania would face a hung parliament or minority government.
Gunns yesterday rose 8c to $3.15, continuing price increases that started in the middle of last week when the market seemed to confirm expectations that the Lennon Government would be safely re-elected.
The Labor Party retained government, winning 14 of the 25 seats in the Tasmanian lower house, despite suffering a 2.3 per cent swing against it.
By contrast, the Tasmanian Greens, which had been tipped to be heading for a power-sharing role with Labor, took a battering. Following a fierce campaign where there were warnings that they would bring economic disaster on the state, the Greens now look likely to lose a seat and thus party status.
Despite the share price increase, Gunns remains the sixth worst-performing company in the benchmark ASX 200 index over the past 14 months.
With both major parties endorsing Gunns' proposed $1.4 billion pulp mill, the possibility of a hung parliament or more power to the Greens had emerged as a real threat to the company.
The group had threatened to take the mill to China if voters elected a minority government, providing Mr Lennon with handy ammunition to warn against voting for the Greens, which had been having an impact in the polls.
The mill is regarded as critical for the company's health, with analysts expecting its woodchip business to struggle until next year and timber products taking a hit due to a weaker housing market and manufacturers moving offshore. Gunns is now expected to go ahead with the pulp mill with Mr Lennon's government returned to office.


Post a Comment

Links to this post:

Create a Link

<< Home