Abstract
Summary Plant closures in small towns have been shown to have devastating socio-economic impacts. This study examined the economy of a small Victorian country town which had one sawmill as its major industry. This was calculated as providing about $60 000 of financial inputs to the town each week. If the major mill closed, these inputs would decrease to about $3 800 and the town population as a whole would decrease by about 10%. Few employment opportunities for redundant mill employees exist within the town. Closure of the mill would be of major detriment to the town's future.
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