slush fund

Wesfarmers’ subsidiary Sotico already given $millions and still wants more!

Conservation groups have expressed concern about the millions of dollars paid out by the Gallop Government to the native forest logging industry since the election.

Conservation Council of WA vice president Dr Beth Schultz said, “By far and away the biggest winner is Wesfarmers’ subsidiary, Sotico Pty Ltd. It has received millions of dollars in direct payments and millions more indirectly through government subsidies to companies buying out Sotico’s sawmills in Nannup, Pemberton and now, apparently, Manjimup.

“The money has been handed out under the ‘business exit’ and ‘industry development’ schemes.

“It is notable that very little industry assistance money has gone to the development of the plantation-based sector of the industry; almost all has gone to prop up native forest sawmilling companies.

“Most of the millions paid out under business exit funds are going to companies whose 10-year log contracts were set to expire at the end of this year anyway and which had no guarantee from this or any other Government that they would receive logs under new contracts.

“This raises the question as to why they think they have a right to multi-million dollar buy outs, and why the Government feels obliged to hand out such sums.

So, who are corporate piggies with the biggest snouts?

Business Exit Assistance (BEA)

TOTAL BEA to 30/6/03: $42,890,397

Industry Development Assistance (IDA)

Total IDA to 30/6/03: $7,018,752

“On top of these payments, Sotico has received an additional $2.65 million in ‘workers assistance reimbursements’. All up, Sotico, a subsidiary of WA’s wealthiest company, has so far received over $7 million, with another $1.25 million expected in 2003-2004!

“And now it appears it may benefit from a further large government pay-out proposed to go to the companies seeking to take over the Sotico milling and processing operation in Manjimup.

“Apart from anything else, the public has a right to be concerned about the lack of openness and transparency in relation to all these payments and whether the payments are going to where they will most benefit the whole community, not just clever corporate operators.”