Australia’s last remaining newsprint paper mill could get a much-needed shot in the arm after Prime Minister Anthony Albanese vowed to give Tasmania’s Boyer Mill $24 million to help transition to a low-emissions future and save hundreds of jobs, should he win the election on May 3rd.
Albanese – who holds a 53.5-to-46.5% lead over the wavering Peter Dutton – announced the support package in the Derwent Valley yesterday: “The Boyer Paper Mill is an iconic part of Tasmania’s manufacturing story. It was the first and is now the last and only newsprint producer in Australia.”
The funding includes $9 million over the next two years to ensure the mill’s financial viability during its transition, plus up to $15 million in matched funding for electrification investments.
Boyer Mill General Manager Patrick Dooley welcomed the announcement, noting the facility had just returned to Australian ownership: “Today’s announcement will assist in achieving our vision for the Boyer Mill, respecting our history while transitioning from a single-use site to a sustainable multiple-use facility,” Dooley said.
Described by Tim Woods, Industry Edge’s Managing Director, as “the little mill that could,” the 84-year-old mill was acquired by Melbourne-based David Marriner off Norwegian giant Norske Skog in February. The mill employs 310 workers directly and supports approximately 1,000 indirect jobs, contributing about $180 million annually to the local economy.
Jacob Batt, State Secretary of the Australian Manufacturing Workers Union, praised the announcement as evidence that “manufacturing, well-paid, good jobs in the regions are back.” This announcement, he said, “looks to the future. It looks to be ensuring that manufacturing continues here, but it thrives.”
Diana Hallam, the CEO of the Australian Forest Products Association (AFPA), welcomed the announcement, noting the facility is located in the key forestry electorate of Lyons—where Labor candidate Rebecca White holds a slim lead over the Liberals’ Susie Bower, according to AFPA-commissioned opinion polling— and a key employer in southern Tasmania.
Ms Hallam, however, noted that Australia’s $24 billion forest products industry, the country’s 6th largest manufacturing sector, was struggling with rising energy costs: “Major national solutions are required from the next Federal Government to address the problem,” she said. “Energy is a major input cost for manufacturing in our sector and has been identified by industry as the biggest single factor that increases wholesale and retail costs for the essential products our sector creates. Like other industries, energy’s price must be addressed if we want a sustainable future for climate-friendly timber and wood-fibre manufacturing.”
- To learn more about the the Australian Forest Product Associations policy demands ahead of the election, click here for Wood Central’s special feature.
