The Nationals Member for Gippsland South, Danny O’Brien says this morning’s sudden announcement that AKD’s Yarram timber mill will close immediately costing 73 local people their jobs is a devastating blow.
Mr O’Brien said the announcement was a shock and massive hit for Yarram and the surrounding district.
“Seventy-three jobs lost in a town the size of Yarram is enormous,” Mr O’Brien said.
“These are local families, local businesses and a whole community that will feel the impact of this closure immediately.
“My thoughts are with those who have lost their jobs, their families and the rest of the Yarram and district community.
“I have been in touch with the Minister for Regional Development and will work with the government to do all we can to support those affected.”
AKD management released a statement saying the decision was driven by ongoing challenges in the sector, citing the sustained slowdown in housing construction and uncertainty within its industry.
Mr O’Brien said those pressures have been significantly worsened by the Allan Labor Government’s high property taxes and bungled housing policy.
“AKD has outlined the pressures facing the sector, but broader economic conditions under Labor are also compounding difficulties for businesses across the state.
“That slowdown in construction directly affects mills like Yarram, where demand for timber products has fallen while operating costs continue to climb.
“This is a further blow to Yarram after Labor’s decision to end native timber harvesting which also cost jobs in the town.”
Mr O’Brien said he will work with AKD, the government, affected employees, local businesses and community groups to ensure support is delivered as quickly as possible.
“This is a distressing day for Yarram and I will be doing everything I can to stand with the community during this difficult time.”