The Tasmanian Forest Contracting Association, (TFCA) which represents approximately 80% of Tasmania’s forest contractors, has today expressed concerns about a proposed acquisition by Gunns Ltd of ITC Timber calling into question the impact such a merger will have on competition in the Tasmanian Forestry industry. 

“A delay in the ACCC’s review of this latest proposal, whilst they seek further information from Gunns, makes one start to wonder whether this merger is the right thing for the industry.” TFCA’s CEO Mr Ferdie Kroon said today.

“We urge the ACCC to be thorough in their evaluation of the issue, 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.

“The TFCA are looking at this proposed merger objectively, and while the ACCC review is still underway, we feel a duty to explore some of the questions our contractors have been raising, such as, will the 2000 or so private farm foresters in Tasmania still receive a competitive price for their wood?”

“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? And what will be the impact on the hard working family businesses that rely on harvesting, carting and moving this wood to sawmills and wood fibre processors?”

“These are questions coming from the little guys who plainly fear a monopoly being created in their industry,” said Mr Kroon.

“Just like many Tasmanians, the TFCA has concerns regarding big corporations decreasing competition in primary industries in the state generally. We need only look at the recent high-profile issues in the dairy industry where big corporates are tragically driving down prices paid to suppliers to unsustainable levels.”

“All of Tasmanian industries need to be aware of the risk imposed on the ability for little guys to compete openly and fairly under big corporate dominance.”

“ We need to understand fully how the proposed Gunns acquisition might impact the entire supply chain including contractors, private growers, farm foresters sawmillers, fibre exporters, and also other forestry companies who currently provide some healthy competitive tension,” said Mr Kroon.

“The ACCC is currently investigating the possibility of the Gunns acquisition as imposing decreased competition in the Tasmanian forestry industry, and it is expected to release their findings some time soon.”

“It’s vital that all questions are now raised so as to bring to light any areas of concerns before it is too late,” said Mr Kroon.

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Tagged as: ACCC, Acquistion, Gunns, Media, TFCA