Closure expectedtohave spin-offeffects

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MR O’Connor said Maryvale was the only Australian manufacturer of white paper products. “The closure is likely to lead to shortages of paper supplies and increased cost of living pressures. It will impact the supply of products including A4 copy paper, medical prescriptions, school exercise books, food packaging and utility bills,” he said.

Opal had been running out of timber supplies fromVicForests sincelastNovember, when the Supreme Court, acting on a case by two environmental groups, orderedVicForests to stop harvesting because it had not done enough to protect two species of greater glider.

The mill produced its last ream of Reflex copy paper on January 21.

An Opalspokeswoman saiddespite Opal’sbest efforts the company had been unable to source viable alternative wood supplies to replace the shortfall from VicForests.

“Opal will now consult further on the impact of this decision. Following that consultation, the process will then move through redeployment considerations and into aredundancy proves in accordance with Opal’s legal obligations,” she said.

The company said it was important to re-set the Maryvale mill overthe long-term as a sustainable, profitable and focusedpackaging manufacturing site.

“Opal appreciates that the current situation is difficult for everyone,” she said.

Opal expects to take an estimated $220 million impairment loss on the mill’s fixed assets.

The write down will come on top of the loss of sales, with the operating results of the discontinuedbusiness $264 million in 2021-22.The capital valueofall Opal’s business is $2.462 billion.

Mr Chester saidhehad raisedconcerns about fibre supply to the mill two years ago in aletter to senior management.

“I don’t trust the Premier and Ididn’t believe state government assurances that jobs wouldbe secure in the proposed transition to plantation timber. The state government’s policytoabandon allharvestingofnative timber is adirect threat to jobs at the papermillalong with all other timber industry jobs in our region,” he said.

“These latest job losses were completely avoidable if Melbourne LaborMinistershad taken action to protect the hardwood timber industry from activists and secure the fibre supply over the longer term.”

Mr Chester said Opal’s decision wasalso devastating for sub-contractors who provide transport and logisticalsupport to the industry.

“The job losses don’t finishatthe mill gate,there will be truck drivers and other sub-contractors in our region who will lose incomes as aresult of this decision,” Mr Chester said.

“What is the Premiergoingtodofor those family businessowners?What is the Prime Minister going to do about Australia losing the capacitytomanufacturewhite copy paperon our own shores?”

Mr Chester said Australia needed to produce more of its own critical supplies as anation.

“Shutting downthe native hardwood timber industry in Victoria is already leaving us exposed to fluctuations in foreignmarkets, and timber harvested fromless environmentallysustainable sources,” he said.

“If the industry is shutdown, we will see less practical managementofthe fire risk in the bush with lives and livelihoods put at risk, all for the sake of Premier Dan Andrews chasing Greens votes in the city.”

The Nationals Member for Gippsland South, DannyO’Brien said the stategovernment's forestrypolicy wouldresultinmore job losses in Gippsland and worse global environmental outcomes as Australiaturnstoimports to fill the void.

“Remember in November 2019, Daniel

Andrews guaranteed the jobs at the Maryvale milluntilatleast 2050and scoffed at suggestions that Labor’s policies would cost jobs,” he said.

“The proof is now in the pudding that the Premierhad lied and unfortunately it’s Gippsland workers who bear the brunt.”

Thestate Employment Minister,Ben Carroll, said the government would work with the company, its employeesand the wider industry to support them.

"We'vealreadyactivated alot of our transition support, whetheritbecounselling, whether it be offers of free training, as we do with all our industriesthatare going through transition," he said.

"This is adifficult timefor the workers. We stand with them and we'll continuetowork with them to ensure that they feel supported and that they have other options going forward."

The Victorian Forest Alliancecalled on the state government to act and rapidly end native forest loggingand supportworkers to transition immediately.

“The Andrews government has aplan to continue logging for another seven years. The 2030 end datewas always far too late. They can andmustact now to finally end the destruction, and protect these forests," the alliance said.