Questions over pulp mill design work

The firm designing Gunns' $2 billion northern Tasmanian pulp mill has not denied claims it has been asked to stop all work on the project.

Last year Launceston engineering firm, Pitt and Sherry, was looking for 100 staff to design the site infrastructure and buildings for the proposed pulp mill in the Tamar Valley.

But yesterday the firm's managing director, John Pitt, would not comment on speculation Gunns has told the company to stop all design work.

His assistant said Gunns had not authorised Mr Pitt to talk.

Pitt and Sherry's media spokesman did not officially respond to the claims from a number of sources, while Gunns' chairman, John Gay, did not return calls.

Last week Gunns' main banker, the ANZ, announced it would not fund the pulp mill.

Mr Gay is now looking overseas for finance, but some commentators say it will be hard to win backers in the global credit squeeze.