Gunns today accepted a commercial settlement from the state government over the native forest contracts after an initial offer was doubled to $23 million.
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The settlement process was overseen by independent probity auditor Wise Lord and Ferguson and includes an additional $11.5 million for Forestry Tasmania, which has agreed to settle its dispute with Gunns over outstanding debts.
Premier Lara Giddings said the Solicitor General had advised that settlement is needed to remove the company’s residual rights over native forest harvesting.
``Similarly, if we did not settle these issues with Forestry Tasmania, these contracts could otherwise have been on-sold and therefore wouldn’t be available for verification of conservation outcomes,'' Ms Giddings said.
She said the resolution means the government has avoided lengthy delays and costs if the matter was pursued in court.
Ms Giddings said the settlement clears the way to progress other key parts of the intergovernmental agreement.
A copy of the auditor’s report can be found at http://www.premier.tas.gov.au/