*Pic: Bob Gordon and then deputy Labor Leader Bryan Green
The failed deal by Ron O’Connor and the Aprin Group to borrow $6 million from the State government to finance the purchase of the Triabunna woodchip mill was based on an extraordinary agreement negotiated by Bob Gordon between Forestry Tasmania (FT) and Aprin whereby FT effectively proposed to underwrite the loan by providing a guaranteed level of revenues.
Any risk of adverse fluctuations would be fully borne by Forestry Tasmania.
At the time Aprin was highly geared, and hadn’t made a profit for four years despite $2.6 million of recent government handouts and the most extravagant 10 years of woodchipping we’re ever likely to witness.
A highly-geared loss-making private rent seeker with limited backup security being propped up by an insolvent GBE.
Can it get more ridiculous?