decision near on mill project / examiner 18/10

RECEIVERS and managers of Gunns could explain as early as today how they will try to sell the failed timber company's $2 billion pulp mill project.

KordaMentha spokesman Mike Smith said yesterday the only decision left to make was whether to put the permits up for sale, or ask for expressions of interest.

``(We're) pretty close (to making that decision),'' Mr Smith said, indicating that was most likely to happen today.

At the first creditors' meeting KordaMentha revealed there was significant stakeholder support for pursuing the pulp mill development.

Industry sources told The Examiner yesterday a number of interested buyers had recently toured the mill site at Bell Bay.

Administrators of Gunns PPB Advisory were unable to provide further detail on their work yesterday.

However, PPB must provide such a report to creditors before their next meeting - expected to be held in the next few weeks.

In State Parliament, political parties tussled over what support, if any, could and should be provided to those affected by the collapse of Gunns.

The Liberal Party moved a motion calling for immediate emergency assistance for small and medium businesses, owed money, that are struggling to stay afloat.

Opposition forestry spokesman Peter Gutwein said that could include low or interest-free loans to tide them over.

``We've got to do everything we can to keep these businesses in the game,'' Mr Gutwein said.

In the end, Labor joined with the Greens to amend that motion, which acknowledges the fall-out from Gunns but stopped short of an immediate commitment.

Instead, it noted that the government had already met with contractors to see what could be done, and asked banks and financial institutes to consider a Greens request to forego their status as secure creditors so others could get their debts repaid.

Deputy Premier Bryan Green said the government was already helping the forestry industry - primarily through the $276 million state-federal deal - and was looking into what else it could do.

``But I have not made any promises to them (those he met with). It is impossible, under the circumstances, to do that as it has not even been discussed in cabinet (as a specific proposal).

Farmers, who have plantations, and contractors are pushing for assistance.

The Tasmanian Farmers and Graziers Association is putting together a comprehensive request for assistance to submit to government within the next fortnight.

Tasmanian Forest Contractors Association chief executive Ed Vincent said he did not want to see contractors, owed up to $400,000, become casualties of Gunns collapse