It will be a tough 2012

What if the Premier is correct in her repeated claims that we have no money? Given that the premier is not known for telling the whole truth, perhaps the situation is worse than she says?

Will the cuts proposed in the last Budget but only now seeing the light of day restore the Budget to a sustainable basis?

The Premier, in the past, has referred to the shock of discovering the lack of hay in the barn when she assumed the top job. Let’s call it by its real name ... cash. There is very little cash in the General Government’s coffers and something needed to be done. Will the proposed changes fix this?

Prof Stewart didn't get much right

“There is a strong push to stop all logging of native forests, but is this really justified from the point of view of conservation?” asks Professor Stewart in her recent article ‘Forestry didn’t get it all wrong’ ( HERE ).

One may ask is logging really justified from a business point of view if losses continue to accrue.

Prof Stewart’s article was a sober reminder that we are as far away as ever from agreeing on a way forward for the native forest industry.

Greg's report card

Greg L’Estrange completed another semester last Friday with the release of Gunns’ latest set of consolidated financial statements for 2010/11.

Greg may be looking for a social license, but the statements highlight Greg’s progress as he staggers towards D Day, in January 2012, a date with debt and destiny when his bankers will decide whether to roll over or refinance a large part of Gunns’ debt. The dramatic decline in asset values and tight cash flows continues the pattern of 2010, a pattern that largely came to light with the abdication Greg’s predecessor.

The road to nowhere

It didn’t take long for interstate friends to offer commiserations following Monday’s Q&A.

No wonder you guys are in a mess. Is she really the Premier?

It’s actually not as bad as it appeared, I patiently explain. It’s far worse.

The time is nigh

The public transcript of the 4th July 2011 Leg Co inquiry into FT’s financial performance has now been posted on line.

In an answer in writing to a question on notice, it was disclosed that the minimum operating cash flow surplus for FT is in the order of $20 million, needed to fund necessary capital expenditure including outstanding TCFA obligations.

In 2010 the operating cash flow was $12 million negative. Bob refused to publicly disclose the cash flow deficit for 2011. He would only do it in camera. It is likely to be of similar magnitude to 2010, a far cry from what is needed.

The impact of these revelations cannot be overstated. FT is very close to insolvency.

Worth the wait? The Auditor General's Report into Forestry Tasmania.

What on earth was Auditor General Mike Blake doing?

Three years after commencing his investigation into the Financial and Economic Performance of Forestry Tasmania in April 2008 there was still no word.

The Report now tabled in Parliament hints at the reason for the Auditor General(AG)’s tardiness.

Vale Auspine

A history of Gunns undoubtedly will contain a chapter on the Auspine debacle, now edging closer to finality.