Thousands of Timbercorp timber growers have been thrown a lifeline with the news that a consortium headed by a superannuation fund might buy their trees.
First Super, which covers 80,000 workers in the timber, furniture and paper industries, said last night it would head a proposed "white knight" group that would include South Australia's Penola Pulp Mill and workers formerly employed by Timbercorp's forestry division.
The consortium, known as TC Growers, will also include "a significant international investor with a long-term financial interest in Australian forestry and international forest management experience".
Representatives of the consortium said in letters to Timbercorp growers that they would meet them soon to give them three options: remain in the scheme and pay rent and maintenance until harvest; ask the manager of the scheme (the consortium) to pay rent and maintenance in return for a lien against sale proceeds; sell the trees to the consortium.
Lessors were told the consortium would ask Timbercorp liquidators KordaMentha for the opportunity to review the leases, then take them over from Timbercorp if appropriate.
"This will be important to ensure there is no legal dispute impacting on land lessors and growers to determine the rightful ownership of the trees and to also avoid the prospect of land lessors having to maintain trees on their land for the duration of any legal action," the letter said.
Last night, grower representative Chris Garnaut said the proposed deal "looks like a very good opportunity for growers, and I can imagine it might thwart the KordaMentha proposal".
DAN OAKES THE AGE
