Tasmanian Premier David Bartlett has re-confirmed his government’s stance on the Gunns controversial pulp mill, declaring no more public money will be spent on the Tamar Valley development.
“The pulp mill project will now stand or fall entirely on the basis of whether the company (Gunns Ltd), the proponent, and its financiers are able to bring the project to fruition,” Bartlett told ABC Radio this week.
“It will not stand or fall on whether or not public money goes into it because there will be no more public money going into the pulp mill.”
Bartlett also ruled out any government funding for a planned 35-kilometre water pipeline to the mill, estimated to cost $65 million.
The government would not own or build the pipeline, he said.
Meanwhile, new doubts have been put on the project with Fairfax newspapers reporting on Wednesday that the ANZ Bank has withdrawn its financial backing.
Finance industry sources confirmed to Fairfax that ANZ decided to withdraw several weeks ago and Gunns was seeking a replacement to lead the syndicate of bankers.
The company are seeking $2 billion dollars to build the pulp mill after originally seeking $1.5 billion.
It is believed that Macquarie Bank has been approached by the company since ANZ have withdrawn.