Gunns
Encyclopedia
Gunns Limited is a major forestry
enterprise located in Tasmania
, Australia
. Founded in 1875 by brothers John and Thomas Gunn, it is one of Australia's oldest companies. It has over 900 square kilometres of plantations, mainly eucalyptus
trees. It is Tasmania’s largest private land-owner. The company employs over 1200 people and has suffered a dramatic turnaround in revenue in recent years, going from a turnover in excess of A$600 million in 2006, to a loss of over $350 million in 2011. Gunns is the largest export woodchip operation in the Southern Hemisphere
, and one of two chip export companies sourcing raw materials from Tasmanian forests. In November 2011, the Gunns Mitre 10 stores were re-branded as Beck's Home Timber and Hardware, owned by the Danks Brothers Hardware Group and Blue Mountains Hardware, both companies of which are connected to Woolworths Limited
, and are no longer connected to Gunns or Mitre 10
.
. Their nationwide product line of timber flooring includes the hardwood, Jarrah
, found in the southwest of the state. The timber is reddish-brown when hewn and is, "renowned for its beauty, warmth and durability". Their environmental initiatives include achieving certification
under International standard
ISO 14001:2004. Gunns supplies local trade and retail markets from its distribution yard in Welshpool
, near Perth
.
.jpg)
The company has been the focus of criticism from environmentalist
s, primarily for its four woodchip mills which produce 4 million tonnes of chips for export annually. Green groups claim that native forests are harvested specifically for woodchipping
, whereas Gunns claim that the majority of their chips come from residue from their sawmilling and veneer operations. Gunns' major customers are paper producers in Northern Asia, mainly Japan
, including Mitsubishi
, Nippon
and Oji Paper
. Gunns has also been criticized for its logging operations in the Styx Valley
and for its use of 1080 poison http://www.wilderness.org.au/campaigns/corporate/gunns/whatisgunn/ to kill wildlife including protected species (baiting and particularly aerial spraying of forest prior to clearfelling ).
In 1989, the chairman of Gunns, Edmund Rouse
, unsuccessfully attempted to bribe a Labor member, Jim Cox, to cross the floor, which would have allowed the pro-logging Tasmanian government of premier Robin Gray
and the Liberal Party
to resume power. A Royal Commission followed and convicted Rouse. Robin Gray is now a director of Gunns Limited.
Further allegations of corruption appeared when Paul Lennon
, Premier of Tasmania, had his heritage home renovated by a Gunns-owned company at the height of Gunns' push for the Bell Bay Pulp Mill
. Lennon refused to disclose how much he paid for the renovations.
.jpg)
The company is planning to build a $2 billion pulp mill
in the Tamar Valley
, near Launceston
. The proposed mill will use the Kraft process
, Elemental Chlorine Free (ECF) bleaching, and fed with eucalypt forest timber. The project is supported by the State Government
for the perceived economic and employment benefits which are said to include $6.7 billion in spending over 25 years and 2000 temporary jobs created during the construction phase, but opposed by environmental and social activist groups.
Federal Environment Minister Malcolm Turnbull gave approval for the project on Wednesday 3 October 2007. This decision was however challenged by The Wilderness Society and later overturned on appeal due to the flaws discovered in the approval process. It was also discovered that both the minister and representatives from Gunn held clandestine meetings in hotel rooms.
in the Supreme Court of Victoria
, against 20 individuals and organisations including Senator Bob Brown
, for over 7.8 million dollars
.
The original list of defendants was:
Gunns claims that the defendants have sullied its reputation and caused it to lose jobs and profits. The defendants claim that they are protecting the environment. The defendants have become collectively known as the Gunns 20.
Opponents and critics of the case have suggested that the writ was filed with the intent to discourage public criticism of the company, in a similar vein to a Strategic lawsuit against public participation
, commonly used in North America, and the English McLibel case
of McDonald's
Restaurants against environmental activists Helen Steel and David Morris over a pamphlet critical of the company. Gunns has maintained the position that they are merely trying to prevent parties enjoined to the writ from undertaking unlawful activities that disrupt their business.
At a hearing before the Supreme Court of Victoria
, an amended statement of claim lodged by the company and served on defendants on 1 July 2005 was dismissed. However, the judge in the case granted the company leave to lodge a third version of their statement of claim with the court no later than 15 August 2005.
The application continued before the court, before being brought to a close on 20 October 2006. In his ruling, The Honourable Justice Bongiorno, made an award of costs in favour of the respondents only as far as it covered those costs incurred with the striking out the third version of the statement of claim, and costs incurred associated with their application for costs.
In November 2006, Gunns dropped the case against Helen Gee, Peter Pullinger and Doctors for Forests. In December 2006, it abandoned the claim against Greens MPs Bob Brown and Peg Putt.
Forestry
Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...
enterprise located in Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. Founded in 1875 by brothers John and Thomas Gunn, it is one of Australia's oldest companies. It has over 900 square kilometres of plantations, mainly eucalyptus
Eucalyptus
Eucalyptus is a diverse genus of flowering trees in the myrtle family, Myrtaceae. Members of the genus dominate the tree flora of Australia...
trees. It is Tasmania’s largest private land-owner. The company employs over 1200 people and has suffered a dramatic turnaround in revenue in recent years, going from a turnover in excess of A$600 million in 2006, to a loss of over $350 million in 2011. Gunns is the largest export woodchip operation in the Southern Hemisphere
Southern Hemisphere
The Southern Hemisphere is the part of Earth that lies south of the equator. The word hemisphere literally means 'half ball' or "half sphere"...
, and one of two chip export companies sourcing raw materials from Tasmanian forests. In November 2011, the Gunns Mitre 10 stores were re-branded as Beck's Home Timber and Hardware, owned by the Danks Brothers Hardware Group and Blue Mountains Hardware, both companies of which are connected to Woolworths Limited
Woolworths Limited
Woolworths Limited is a major Australian company with extensive retail interest throughout Australia and New Zealand. It is the:* largest retail company in Australia and New Zealand by market capitalisation and sales...
, and are no longer connected to Gunns or Mitre 10
Mitre 10
Mitre 10 is the trading name of retail and trade hardware store chains, over 700 locations throughout of Australia. Operations are based on a co-operative system where the store owners are members of the national group and each has voting rights...
.
Operations
In September 2010 Gunns announced that it will end logging of old growth forests and move to plantation timber.Western Australia
Gunns operates three hardwood sawmills in Western AustraliaWestern Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
. Their nationwide product line of timber flooring includes the hardwood, Jarrah
Jarrah
Eucalyptus marginata is one of the most common species of Eucalyptus tree in the southwest of Western Australia. The tree and the wood are usually referred to by the Aboriginal name Jarrah...
, found in the southwest of the state. The timber is reddish-brown when hewn and is, "renowned for its beauty, warmth and durability". Their environmental initiatives include achieving certification
Quality Assurance
Quality assurance, or QA for short, is the systematic monitoring and evaluation of the various aspects of a project, service or facility to maximize the probability that minimum standards of quality are being attained by the production process...
under International standard
International standard
International standards are standards developed by international standards organizations. International standards are available for consideration and use, worldwide...
ISO 14001:2004. Gunns supplies local trade and retail markets from its distribution yard in Welshpool
Welshpool, Western Australia
Welshpool is an inner southeastern suburb of Perth, located mostly within the City of Canning. The area is considered to be one of the main industrial areas of Perth, along with Kewdale, Kwinana, Henderson, Malaga, O'Connor, Canning Vale and Osborne Park....
, near Perth
Perth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
.
Criticism
Environmentalist
An environmentalist broadly supports the goals of the environmental movement, "a political and ethical movement that seeks to improve and protect the quality of the natural environment through changes to environmentally harmful human activities"...
s, primarily for its four woodchip mills which produce 4 million tonnes of chips for export annually. Green groups claim that native forests are harvested specifically for woodchipping
Woodchipping
Woodchipping is the act and industry of chipping wood for pulp, processed wood products, and mulch.-Papermaking:Timber is converted to woodchips and sold, primarily, for pulp production used in paper manufacture...
, whereas Gunns claim that the majority of their chips come from residue from their sawmilling and veneer operations. Gunns' major customers are paper producers in Northern Asia, mainly Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, including Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
, Nippon
Nippon
Nippon is a native name for Japan, more formal than Nihon.Nippon can also refer to:-Company names:All of the following companies are based in Japan.*Nikon *Nippon Telegraph and Telephone...
and Oji Paper
Oji Paper
are a professional ice hockey team based in Tomakomai city on Hokkaidō, Japan. Oji is a member of Asia League Ice Hockey. The club was founded as the Oji Eagles in 1925. They have won the Japan League 13 times and the All Japan Championship 34 times...
. Gunns has also been criticized for its logging operations in the Styx Valley
Styx Valley
The Styx Valley is located adjacent to the Tasmanian Wilderness World Heritage Site on the island of Tasmania. The Styx River is the main drainage system of the valley. It lies about 100 km northwest of Hobart, with the nearest town being Maydena....
and for its use of 1080 poison http://www.wilderness.org.au/campaigns/corporate/gunns/whatisgunn/ to kill wildlife including protected species (baiting and particularly aerial spraying of forest prior to clearfelling ).
In 1989, the chairman of Gunns, Edmund Rouse
Edmund Rouse
Edmund Alexander Rouse was an Australian businessman and political figure. He spent three decades as the chairman of Tasmanian media company ENT before being embroiled in a political scandal in 1989....
, unsuccessfully attempted to bribe a Labor member, Jim Cox, to cross the floor, which would have allowed the pro-logging Tasmanian government of premier Robin Gray
Robin Gray (Australian politician)
Robin Trevor Gray is a former Australian politician who was Premier of Tasmania from 1982 to 1989. A Liberal, he was elected Liberal state leader in 1981 and in 1982 defeated the Labor government of Harry Holgate on a policy of "state development," particularly the building of the Franklin Dam, a...
and the Liberal Party
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...
to resume power. A Royal Commission followed and convicted Rouse. Robin Gray is now a director of Gunns Limited.
Further allegations of corruption appeared when Paul Lennon
Paul Lennon
Paul Anthony Lennon is an Australian Labor Party politician. He was Premier of Tasmania from 21 March 2004 until his resignation on 26 May 2008. He was member of the Tasmanian House of Assembly for the seat of Franklin from 1990 until officially resigning on 27 May 2008...
, Premier of Tasmania, had his heritage home renovated by a Gunns-owned company at the height of Gunns' push for the Bell Bay Pulp Mill
Bell Bay Pulp Mill
The Bell Bay Pulp Mill, also known as the Tamar Valley Pulp Mill or Gunns Pulp Mill, is a proposed $2.3 billion pulp mill which Gunns Limited is planning to build in the Tamar Valley, near Launceston, Tasmania.-Proposed mill:...
. Lennon refused to disclose how much he paid for the renovations.
Bell Bay Pulp Mill
Pulp mill
A pulp mill is a manufacturing facility that converts wood chips or other plant fibre source into a thick fibre board which can be shipped to a paper mill for further processing. Pulp can be manufactured using mechanical, semi-chemical or fully chemical methods...
in the Tamar Valley
Tamar Valley, Tasmania
The Tamar Valley is a picturesque valley in Tasmania. It runs north-west from the northern city of Launceston to the coast either side of the Tamar River, a distance of approximately 50 km....
, near Launceston
Launceston, Tasmania
Launceston is a city in the north of the state of Tasmania, Australia at the junction of the North Esk and South Esk rivers where they become the Tamar River. Launceston is the second largest city in Tasmania after the state capital Hobart...
. The proposed mill will use the Kraft process
Kraft process
The kraft process describes a technology for conversion of wood into wood pulp consisting of almost pure cellulose fibers...
, Elemental Chlorine Free (ECF) bleaching, and fed with eucalypt forest timber. The project is supported by the State Government
Government of Tasmania
The form of the Government of Tasmania is prescribed in its Constitution, which dates from 1856, although it has been amended many times since then...
for the perceived economic and employment benefits which are said to include $6.7 billion in spending over 25 years and 2000 temporary jobs created during the construction phase, but opposed by environmental and social activist groups.
Federal Environment Minister Malcolm Turnbull gave approval for the project on Wednesday 3 October 2007. This decision was however challenged by The Wilderness Society and later overturned on appeal due to the flaws discovered in the approval process. It was also discovered that both the minister and representatives from Gunn held clandestine meetings in hotel rooms.
Gunns 20
In Gunns Limited v Marr & Ors, Gunns filed a writWrit
In common law, a writ is a formal written order issued by a body with administrative or judicial jurisdiction; in modern usage, this body is generally a court...
in the Supreme Court of Victoria
Supreme Court of Victoria
The Supreme Court of Victoria is the superior court for the State of Victoria, Australia. It was founded in 1852, and is a superior court of common law and equity, with unlimited jurisdiction within the state...
, against 20 individuals and organisations including Senator Bob Brown
Bob Brown
Robert James Brown is an Australian senator, the inaugural Parliamentary Leader of the Australian Greens and was the first openly gay member of the Parliament of Australia...
, for over 7.8 million dollars
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
.
Gunns claims that the defendants have sullied its reputation and caused it to lose jobs and profits. The defendants claim that they are protecting the environment. The defendants have become collectively known as the Gunns 20.
Opponents and critics of the case have suggested that the writ was filed with the intent to discourage public criticism of the company, in a similar vein to a Strategic lawsuit against public participation
Strategic lawsuit against public participation
A strategic lawsuit against public participation is a lawsuit that is intended to censor, intimidate, and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition....
, commonly used in North America, and the English McLibel case
McLibel case
McDonald's Corporation v Steel & Morris [1997] EWHC QB 366, known as "the McLibel case" was an English lawsuit filed by McDonald's Corporation against environmental activists Helen Steel and David Morris over a pamphlet critical of the company...
of McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
Restaurants against environmental activists Helen Steel and David Morris over a pamphlet critical of the company. Gunns has maintained the position that they are merely trying to prevent parties enjoined to the writ from undertaking unlawful activities that disrupt their business.
At a hearing before the Supreme Court of Victoria
Supreme Court of Victoria
The Supreme Court of Victoria is the superior court for the State of Victoria, Australia. It was founded in 1852, and is a superior court of common law and equity, with unlimited jurisdiction within the state...
, an amended statement of claim lodged by the company and served on defendants on 1 July 2005 was dismissed. However, the judge in the case granted the company leave to lodge a third version of their statement of claim with the court no later than 15 August 2005.
The application continued before the court, before being brought to a close on 20 October 2006. In his ruling, The Honourable Justice Bongiorno, made an award of costs in favour of the respondents only as far as it covered those costs incurred with the striking out the third version of the statement of claim, and costs incurred associated with their application for costs.
In November 2006, Gunns dropped the case against Helen Gee, Peter Pullinger and Doctors for Forests. In December 2006, it abandoned the claim against Greens MPs Bob Brown and Peg Putt.
External links
- Gunns Limited
- Pulp Mill Project
- Gunns on SourceWatch
- Gunns Limited overview from The Wilderness Society.