ABC Finance
State Government reveals Gunns' risk deal
Monday May 5, 08:00 PM
Tasmania's Treasurer has announced his department signed a sovereign risk deal with the timber company Gunns four months ago.
The agreement provides Gunns with up to 15 million dollars compensation if future legislation disrupts the wood supply deal for its planned pulp mill in the Tamar Valley.
The Treasurer, Michael Aird, says Gunns' financier for the pulp mill project, the ANZ bank, asked for the agreement.
"The approach was made to us to provide this reassurance in the circumstances," he said.
"It's the single biggest investment in Tasmania's history. It was deemed to be appropriate to do so."
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