| Type | Public company |
|---|---|
| Traded as | ASX: GNS |
| Industry | Timber production |
| Founded | 1875 |
| Founder(s) | John and Thomas Gunn |
| Headquarters | Launceston, Tasmania, Australia |
| Key people | Chris Newman (Chairman) |
| Revenue | A$628 million (2011)[1] |
| Profit | A$355 million (2011)[2] |
| Employees | 1,662 (2006)[2] |
| Divisions | Gunns Plantations Limited Gunns Pulp 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 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.[1] Gunns is the largest export woodchip operation in the Southern Hemisphere, and one of two chip export companies sourcing raw materials from Tasmanian forests.[3] 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.
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In September 2010 Gunns announced that it will end logging of old growth forests and move to plantation timber.[4]
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".[5] Their environmental initiatives include achieving certification under International standard ISO 14001:2004.[6] Gunns supplies local trade and retail markets from its distribution yard in Welshpool, near Perth.
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 [3]).
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.[7] Robin Gray became director of Gunns Limited on 21 February 2000. He retired from the position in 2010.
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.[8]
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,[9] but opposed by environmental and social activist groups. Federal Environment Minister Malcolm Turnbull gave approval for the project on Wednesday 3 October 2007.[10] 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 Gunns Limited v Marr & Ors,[11] 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.[12]
The original list of defendants was:
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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.[13]
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,[14][15] and the English McLibel case of McDonald's Restaurants against environmental activists Helen Steel and David Morris over a pamphlet critical of the company.[16] 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.[17][18]
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.[11] 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.[11]
The application continued before the court, before being brought to a close on 20 October 2006.[12] 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.[12]
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.[19]