State Government not to support legendary wool mill

28 May '05

2 min read

The State Government has turned off to provide any kind of financial backup for Launceston's Waverley Woollen Mills. Though, it has given assurance of jobs for the 90 workers if the situation tends company to shutdown its unit. The legendary 130-year-old mill was to be acquired by Westpac Bank, which is owed $1.4mn. On the other hand, the company stated that later than an investment of $6mn in new machinery, it is a gainful, current operation that makes an operating profit each year. The advertisement in a search of support by Westpac Bank has surprised Waverley workers. Receiver is expected to announce for sale or shutdown of the business in a near future. The workers of Waverley expected that the State Government would repay the Westpac debt for a certain period; meanwhile the company can find another investors or make its own position stronger. Lara Giddings, Economic Development Minister explained that it would be not be suitable for State government to invest, as the worse position of the mill is not going to be change in the tax office. "The State Government has no reponsibility to pay back the tax bill of a private company," she added. Her reaction has astonished the Waverley's workers, who informed that the tax bill is not State's legal responsibility. John Watson, Liberal Senator and ex-manager of Kelsall and Kemp said that it would be a misfortune to lose the legendary Waverley Woollen Mills, when it was operating profitably in the face of strong Asian competietition. Waverley Woollen mills are the leading supplier of premium blankets to Qantas, Australia's department stores and TT-Line.

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