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Parliamentary Questions


Question Without Notice No. 545 asked in the Legislative Council on 7 September 2017 by Hon Michael Mischin

Parliament: 40 Session: 1


NANNUP TIMBER PROCESSING MILL
      545. Hon MICHAEL MISCHIN to the Minister for Regional Development:
I refer to the minister's response to questions yesterday regarding Nannup Timber Processing Mill, advising that she and others had visited and met with various representatives of the company last week and had subsequently made an offer of a, quote, ''relatively small interest‑free loan over three years'', which had been taken to cabinet.
      (1) When did ministers and representatives of the state government meet with representatives of the company?
(2) Who was at each meeting and what was discussed?
      (3) What other discussions were conducted with representatives of the company, and between whom and when, and what was discussed?
      (4) When and what offers were made on behalf of the state, precisely how much was this ''relatively small interest‑free loan'', and when was cabinet approval for that offer obtained?
      (5) What due diligence was conducted on behalf of the government before the offer was made, and by whom, and will the minister table all relevant business cases, assessments and advices that informed the decision to make an offer and its terms; and, if not, why not?
Hon ALANNAH MacTIERNAN replied:
I thank the member for some notice of the question.
      (1)–(5) Minister Dave Kelly and I met with the management of the company on several occasions over the past two weeks to discuss the planned closure of the green mill component of the Nannup timber processing operations and the barriers to the mill continuing. We were concerned to act quickly to prevent job losses if there was a viable future for the business. The impact on the economy of Nannup at the loss of these jobs will be severe. Cabinet approval this week was given in principle to a loan, subject to a due diligence processes to ensure that securities and guarantees were negotiated to fully protect the state's interest for a loan of up to $1.5 million. Further, the loan was to be made in tranches with certain milestones to be reached before further payments would be advanced. Those negotiations were not concluded when the company made the decision that it no longer wanted to proceed down that path. The company is still hoping to be able to reopen the business sometime in the future.