The Government has announced a settlement of a dispute with the West Coast timber industry.
The State owned enterprise Timberlands West Coast knew from 1997 it could not supply sawmills with an adequate pruned log supply, yet it continued to act as if it could for another decade.
Under the deal, four timber mills will receive an ex-gratia payment of $4 million in return for giving up the right to take legal action over the matter.
Two of the mills, West Co Lagan and Westimber, are still operating but W E Whiley and Co. and Inangahua Sawmilling closed last year.
The amount each mill will receive is not being made public, but Radio New Zealand understands it will be shared roughly according to their size.
Economic Development Minister Gerry Brownlee says he pushed for the settlement to stop a protracted legal dispute.
The West Coast Timber Association says the industry has been vindicated.
Association chair Peter Anisy says some will feel the money is too little, too late, but it's the best deal that could be done.
