Gunns

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Gunns Limited
Type Public company (ASX:GNS)
Founded 1875
Founder John and Thomas Gunn
Headquarters Launceston, Tasmania, Australia
Key people John E. Gay (Managing Director and Executive Chairman)
Industry Timber production
Revenue ▲$637.6 million AUD (2006)[1]
Profit ▲$87.2 million AUD (2006)[1]
Employees 1,662 (2006)[1]
Divisions Gunns Plantations Limited
Gunns Pulp
Entally Estate
Tamar Ridge Wines
Gunns Retail
Website www.gunns.com.au

Gunns Limited (ASX:GNS) 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 a turnover in excess of AUS$600 million. Gunns is the largest woodchipper in the Southern Hemisphere, with a monopoly in Tasmania's forest industry [2]. Gunns also runs retail stores throughout Tasmania including several Mitre 10 outlets and the Tamar Ridge winery.

Contents

[edit] Operations

[edit] Western Australia

Gunns operates three hardwood sawmills in Western Australia. 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".[3] Their environmental initiatives include achieving certification under International standard ISO 14001:2004.[4] Gunns supplies local trade and retail markets from its distribution yard in Welshpool, near Perth.

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[edit] Criticism

Anti-pulpmill rally (April 2007)
Anti-pulpmill rally (April 2007)

The company has been the focus of criticism from environmentalists, 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 [1] to kill wildlife including protected species (baiting and particularly aerial spraying of forest prior to clearfelling [5]).

In 1989, the chairman of Gunns, Edmund Rouse, attempted to bribe a Labor member, Jim Cox, to cross the floor, bringing down the Tasmanian government and clearing the way for pro-logging former premier Robin Gray and the Liberal Party to resume power. A Royal Commission followed and convicted Rouse.[6] 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.[7]

[edit] Bell Bay Pulp Mill

Main article: Bell Bay Pulp Mill
The proposed mill site taken from Kayena, Tasmania
The proposed mill site taken from Kayena, Tasmania

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 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,[citation needed] but opposed by environmental groups.[citation needed] Federal Environment Minister Malcolm Turnbull gave approval for the project on Wednesday 3rd October 2007.

[edit] Gunns 20

In Gunns Limited v Marr & Ors[8], Gunns filed a writ in the Supreme Court of Victoria, against 20 individuals and organisations including Senator Bob Brown, for over 7.8 million dollars.[9]

The original list of defendants was:

  • Bob Brown - federal Greens senator (dropped December 2006)
  • Simon Brown
  • Adam Burling - Huon Valley Environment Centre
  • Brian Dimmick
  • Doctors for Native Forests Inc. (dropped November 2006)
  • Heidi Douglas - The Wilderness Society (TWS)
  • Neal Funnell
  • Helen Gee (dropped November 2006)
  • Lou Geraghty
  • Russell Hanson - TWS
  • the Huon Valley Environment Centre Inc.
  • Geoff Law - TWS
  • Alec Marr - TWS
  • Leanne Minshull - formerly of TWS
  • Louise Morris


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.[10]

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, [11][12] and the English McLibel case of McDonald's Restaurants against environmental activists Helen Steel and David Morris over a pamphlet critical of the company.[13] 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.[14][15]

At a hearing before the Supreme Court of Victoria, an amended statement of claim lodged by the company and served on defendants on July 1, 2005 was dismissed.[8]. 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 August 15, 2005.[8]

The application continued before the court, before being brought to a close on October 20, 2006.[9] 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.[9]

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.[16]


[edit] External links

[edit] References

  1. ^ a b c 2006 Annual Report. Gunns Limited. Retrieved on 2007-06-07.
  2. ^ Schofield, Leo (October 6 2003). "Toxic avengers". Bulletin with Newsweek (Australia) 121: 11. 
  3. ^ Gunns. About Gunns (WA). Company website. Retrieved on 2007-06-07. “Gunns in Western Australia has demonstrated its commitment to product and service excellence by achieving the coveted International Standard ISO9001:2000 Quality Assurance Certification.”
  4. ^ Gunns; Max Evans - General Manager (October 2006). Gunns Limited Western Australia - Environmental Policy. Company website. Retrieved on 2007-06-07. “Gunns is committed to the United Nations definition of sustainable development; that is "development that meets the needs of the present, without compromising the ability of future generations to meet their own needs".”
  5. ^ Schofield, Leo (October 6 2003). "Toxic avengers". Bulletin with Newsweek (Australia) 121: 11. 
  6. ^ Flanagan, Richard (May 2007). "Out of control: the tragedy of Tasmania's forests". The Monthly 23: 20-31. 
  7. ^ The Australian. "Gunned down". John Lyons. October 05, 2007.
  8. ^ a b c [2005] VSC 251
  9. ^ a b c [2006] VSC 386
  10. ^ Gunns, greenies and the law by Andrew Darby, The Age, August 29, 2006. Accessed June 10, 2007
  11. ^ GUNNS 20. Senator Bob Brown. Retrieved on 2007-06-07.
  12. ^ Tasmanian action a threat to basic rights. The Guardian (2006-04-03). Retrieved on 2007-06-07.
  13. ^ Who benefits when a company sues to save its reputation? Melbourne Age Newspaper, 17 Dec 04.
  14. ^ The Law Report, ABC Radio National, 25 Jan 05.
  15. ^ Sydney Morning Herald, Middle ground views are up against battleground tactics, 7 Apr 05.
  16. ^ "Gunns abandons legal action against Greens leaders", ABC News Online, December 13, 2006. Retrieved on 2007-06-11. 

[edit] Further reading

  • Lyons, Brendan (1998). All Gunns blazing: J. and T. Gunn and the development of Launceston, 1871-1997. Launceston: Foot and Playsted. ISBN 0958599068. 
  • (2005) Woodchips, lawsuits and democracy : a discussion of issues relevant to Tasmania in 2005. Sandy Bay, Tasmania: Now We the People. 
  • Greg Ogle (2005). Gunning for change : the need for public partication law reform. Hobart: Wilderness Society.