17/10/2008 - 15:07

WA timber sector to seek $20m gas compo

17/10/2008 - 15:07

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Western Australia's timber industry has voted to seek compensation of some $20 million from Apache Energy for losses incurred as a result of the gas explosion at Varanus Island.

WA timber sector to seek $20m gas compo

Western Australia's timber industry has voted to seek compensation of some $20 million from Apache Energy for losses incurred as a result of the gas explosion at Varanus Island.

The Forest Industries Federation executive director Bob Pearce told WA Business News he will meet with Apache next week after members voted yesterday to seek compensation.

Mr Pearce said the federation will try to avoid court action where possible, adding that he believed the sector has a "legitimate claim" after a report into the explosion was critical of Apache.

The federation will also seek compensation on behalf of the companies' subcontractors, such as trucking companies, which also incurred sizeable losses.

WA Business News has previously reported that the timber industry would look at joining forces with other sectors, including Prime Laundry, affected by the gas crisis and possibly launch class action.

However Mr Pearce said he will only be representing the timber industry in next week's meeting with Apache.

Industries across the state have been greatly affected by the explosion, which cut gas supplies by a third and cost Western Australian businesses an estimated $2.4 billion.

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