Backing for planned Albany blue gum plantations

30/3/93

A project to grow blue gum plantations in the Albany region for the export market is to be backed by a State Agreement Act.

Environment Minister Kevin Minson said the decision by the Oji Paper Co and Itochu Corporation of Japan to establish 20,000 hectares of blue gums in the region was a major economic boost for Albany.

Speaking at a ceremony in Perth to present a letter from Premier Richard Court to Mr Amari, the Director of the Oji Paper Company, Mr Minson said the company was Japan's biggest paper conglomerate, with annual sales of more than $6 billion.

He said the Government had given a commitment to support the project through legislation and for the Department of Conservation and Land Management to manage the project.

"This project will be established over 10 years at a cost to the Japanese investors of $60 million," Mr Minson said.

"By the year 2013, it will have generated more than $300 million, including $25 million a year in returns to farmers on harvesting.

"There will be significant environmental benefits for the region as well as the obvious economic gains.

"Planting trees on already cleared farmland in partnership with farmers will prevent erosion and salinity problems.

"The trees will be integrated so there is no conflict with traditional farm production.

"In fact, the shelter from trees has been shown to increase the productivity of other crops and stock.

"Over the 10-year establishment phase, 25 million trees will be planted."

Mr Minson said the investors would not be acquiring any land.

He said plantations would be established under sharefarming agreements, with participating farmers paid a percentage of the profits.

Albany MLA Kevin Prince, who hosted a delegation from the two Japanese companies in Albany this week, has welcomed the project.

He said it would be a major economic boost for the region and was strongly supported by the community.

"It will guarantee local farmers a significant source of extra income and a project of this scale will, of course, bring benefits to local infrastructure," Mr Prince said.

Mr Minson said Cabinet's support for the project was the culmination of six years of intense negotiations between CALM and the Japanese companies.

Media contact: Diana Callander 222 9595 : 321 2222