Rushy “rat” with forestry plan
Rushy Lagoon
By Rachel Williams
Tasmania’s Federal Minister for Agriculture, Fisheries and Forestry Julie Collins has been asked to intervene in the proposed sale of Rushy Lagoon as anger grows over possible funding to secure the deal.
UK based investment manager Gresham House has reportedly bought the iconic property which is Tasmania’s largest farm.
It is understood the Foreign Investment Review Board is set to sign off on the expected $100 million-plus deal as soon as this week.
But there is a lack of answers on whether Federal Government initiatives, such as the Support Plantation Establishment Program and the Australian Carbon Credit Unit through the government’s Clean Energy Finance Corporation (CEFC), are being used to help fund the project.
Tasmanian Liberal Senator Wendy Askew has written to Minister Collins and Treasurer Jim Chalmers to seek intervention as revelations emerge that at least two other farming enterprises completed due diligence to buy the 22,000ha property but said they couldn’t compete on price.
Dorset Mayor Rhys Beattie and TasFarmers CEO Ian Sauer both “smell a rat”.
“At the end of the day whoever has the most money to buy the property wins but if there are Federal Government initiatives being given to an overseas firm to take advantage of subsidised federal finance then it is a national disgrace,” Cr Beattie said.
Mr Sauer said: “There may well be significant amounts of taxpayers’ money being expended here so you would think at the least there would be some transparency – you can’t hide behind the commercial in confidence barrier all the time.
“Gresham House said no one else was interested in the property. It’s not true. I have been told of two parties that did due diligence and were looking to buy but couldn’t compete because it’s an unlevel playing field.”
Mr Sauer said it was understood the other potential purchasers had plans to invest significant money updating the farm, which he said would have vast economic benefits for the region.
“It would seem as though Gresham House are able to pay above the market because they have either got the Clean Energy Finance Corporation or another Australian Government entity guaranteeing them money to plant trees,” he said.
He said the silence on the matter had been deafening. Correspondence with the Minister had been vague and the FIRB and CEFC refused to comment.
“The FIRB says it may consult with local community and local government and industry – but they have not consulted,” he said.
“At one end of the spectrum it is absolutely dodgy and the other it is outright rude treating the local community with disrespect.
“Because no one will return phone calls or respond with any substance I smell a rat.”
Minister Collins was asked for comment on whether she was aware of a final FIRB decision into Rushy Lagoon and whether there was going to be assistance through the Clean Energy Finance Corporation, but she would not respond.
Senator Askew has asked Ms Collins to exercise her Ministerial powers to intervene, urging her to consider the effect on the local community.
“Rushy Lagoon has operated as highly productive dairy and agricultural farmland for decades, and its loss would have a profound impact on the North East region,” Senator Askew said.
“This proposal is causing considerable uncertainty within the community and would reduce the land’s ongoing economic value to the region.
“The loss of this property to the local community would be devastating.Many families in the area are
employed by the farmers who operate the property, and the impact would also extend to the many local businesses that support its operations. In short, the consequences of this sale would be severe.”
Ms Collins did not respond but it is understood the Minister does not have the power to intervene in the sale.
A spokesperson for Gresham House remained unable to comment.
The Clean Energy Regulator said any approved project would be published on the public Australian Carbon Credit Unit (ACCU ) scheme register but Rushy did not appear as of Monday night.