Ta Ann shaping up as the new Gunns: Brown

The reporting of yet another loss for Ta Ann despite massive public subsidies is raising the spectre of the company as the new Gunns of Tasmania's native forest, Greens Leader Bob Brown said today.

"Ta Ann has reported an $11 million loss in the last financial year, which follows on from losses in 2006, 2007 and 2008," Senator Brown said.

"Since it began operation in Tasmania, Ta Ann has made a net loss of about $18 million, despite receiving $10 million in direct public subsidies and being housed in premises which cost Forestry Tasmania $22 million and which it runs at a loss."

"To get itself to a profitable position the company has reported that it needs to increase its sales price by 28% at a time when markets for wood products are slow to non-existent. That won't happen. It would need a huge drop in the value of the Australian dollar."

"When public money is poured into poor business models in forestry, we have less to spend on our hospitals, schools and national parks," Senator Brown said.