Sovereign risk deal still unsigned: Bartlett
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Gunns has not requested an extension to the agreement. (ABC News: file photo)
Tasmania's Premier David Bartlett has revealed Gunns has not yet signed a new sovereign risk agreement for its planned pulp mill.
The agreement allows for compensation if there is a legislative change that affects the wood supply for the mill in the next 20 years.
It only stands if Gunns begins construction by November 30th of November but the company is yet to sign the deal.
The old deal which expired in June has a six month extension clause which would take it beyond the November deadline.
But Mr Bartlett says it is hard to say exactly when the old agreement would expire because it is very technical.
"It is a very technical issue which I need to receive some more advice on and certainly will have done by the 30th of November but what I can clearly say to you is Gunns have not requested any extension to 30th of November," Mr Bartlett said.
Mr Bartlett has hit back at opposition claims that he has changed his opinion on the wood supply agreement with Gunns.
Last week he said the publicly-owned Forestry Tasmania would need to show good reason to extend its agreement with Gunns, when the deal runs out in three months.
The Liberals claimed the Premier then performed an embarrassing backflip by saying he will not stand in the way of Forestry Tasmania's decision.
But Mr Bartlett says he has always said the wood supply agreement is a matter for Forestry.
"I've simply said I wouldn't stay in the way of that commercial decision now Forestry Tasmania have made it very clear that is the commercial decision that they intend to take and I won't stay in the way of that," Mr Bartlett said.
"Now there is no backflip here, there is no change of approach here."
Forestry Tasmania says it would reassess the agreement if Gunns turned to an overseas venture partner to finance the mill.
The company says it is still searching for finance and a partner to build the $2 billion mill.
Managing Director Bob Gordon says he would want to avoid local product going overseas cheaply.
"It would be a very illogical thing for someone to do that," Mr Gordon said.
"If the corporate entity building the pulp mill was substantially different from Gunns, then obviously we would have to look at the circumstances of that."
