A PULP mill could be built in Tasmania with federal government support, according to Infrastructure and Regional Development assistant minister Jamie Briggs.
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Visiting Northern Tasmania yesterday, Mr Briggs said the federal government was always open to looking at infrastructure projects, particularly if approached by private enterprise, and may be able to help ``de-risk'' proposals to help get them off the ground.
Mr Briggs spent yesterday visiting companies and the Launceston City Council with Bass Liberal MHR Andrew Nikolic to discuss projects set to receive funding as part of the $106 million forestry agreement's economic diversification fund.
He met the council general manager Robert Dobrzynski and Mayor Albert Van Zetten at the site overlooking the North Bank project, to which the federal government has committed $6 million.
``If a project has a significant amount of risk and it's preventing it from going ahead, we are willing obviously, to look at how we can help,'' Mr Briggs said.
``The state government can do the same sort of thing, they don't necessarily need to kick money into the can to build it but they can use their balance sheet, which I acknowledge is weaker than the Commonwealth, to de-risk the private sector to go ahead.''
Mr Briggs said ``it helps give certainty to investors who have got issues, particularly if they're contentious'' or there are environmental approval processes which may take time, or when investors could be reluctant because of historic issues.
``There may be a very good case - we are proactively keen.''
He said reform in the sector was what was required not continued doling out of money to bail out failing companies.
Receivers for the failed timber company Gunns, KordaMentha, put the proposed pulp mill permits on the market in early November and expressions of interest will close at the end of December.
KordaMentha spokesman Mike Smith said yesterday it wasn't really for his company to comment on Mr Briggs's remarks.
He said, however, that it may be of interest to those seriously considering such a venture, yet how much weight they put to them was up to them.
He said there had been ``a lot of interest'' but serious contenders would be whittled down to a shortlist by the end of the year.
Mr Briggs's comments about a pulp mill followed earlier concerns this week raised by state Infrastructure Minister David O'Byrne and federal Labor infrastructure spokesman Anthony Albanese about promised federal roads funding being held up until nearer the election.
Mr Briggs said Mr Albanese's comments were incorrect and the government was following proper planning processes to ensure the work was carried out with fiscal diligence.
He said the planning work was already under way.