TASMANIAN forestry and farming groups yesterday expressed concern about a monopoly situation if timber giant Gunns' bid to acquire ITC Timber Pty Ltd is approved by the Australian Competition and Consumer Commission.
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Tasmanian farmers wanted assurances from the competition watchdog that the resulting realignment of the forestry industry would not harm their position in the timber market, Tasmanian Farmers and Graziers Association chief executive Chris Oldfield said.
He said that Gunns' acquisition of the former Elders' forestry and timber company worried farmers with private forests on their land.
"Many TFGA members have invested in private forest estates as a way of diversifying their businesses so there is concern if there is reduced competition in the market as a result of this move," Mr Oldfield said.
Tasmanian Forest Contracting Association chief executive officer Ferdie Kroon said that the delay in the ACCC's review of the Gunns bid while it sought further information from the company "made one start to wonder whether this merger was the right thing for the industry".
"We urge the ACCC to be thorough in its evaluation as any major change in the industry must be in the best interest and to the benefit of the entire supply chain and the communities that depend on the industry for their livelihoods," Mr Kroon said.
"Will Tasmania's sawmillers, big and small, be able to fairly compete for logs and timber or will country sawmills be choked out of business?"
Forest Enterprises Association chief executive Andrew White said that the move would give Gunns complete market control.
He said that Elders had agreed to the bid to clear debt but it would leave only one stakeholder in the market.
Gunns spokesman Matt Horan said that the company had referred the matter to the ACCC so that it could investigate.
He would make no further comment.