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Fed: I can't kill the mill: Garrett


05 Jan 2009 8:21 PM

CANBERRA, Jan 5 AAP - Federal environment minister Peter Garrett says he can't kill off the Tasmanian pulp mill because the process just doesn't work that way.

Mr Garrett on Monday announced partial approval of Gunns' controversial $2 billion mill.

He will allow construction to start, but the mill could not start operating until more studies have been done - and the results approved - on the mill's environmental impact.

Those studies won't be ready for at least two years.

The government is under fire from environmentalists for failing to kill off the mill, while some in the timber industry are disappointed it didn't get full approval.

Mr Garrett said the previous federal Liberal government provided the basic approval for the mill in 2007, and he couldn't go back on that decision.

"I think it would be reckless of a subsequent government to completely overturn a decision-making process ... that was put in place by a previous government," he told ABC Television.

"No one would expect us to do that for this project or any others."

Mr Garrett also defended his decision to hold off on full approval, saying he needed to see the results of the detailed environmental studies before he could give the green light.

"This is actually getting the decision-making the right way round."

The pulp mill issue was causing angst among Tasmanians, Mr Garrett said, but he needed time to make the right decision.

"There is anxiety, mate, about the fact that there are people in this community that want this issue to be resolved."

Mr Garrett's decision not to grant final approval could make it more difficult for Gunns to secure finance for the mill as the global credit crunch bites.

The mill, slated to be built north of Launceston, would produce pulp for paper making.

AAP ca/jl