Member for Murray Helen Dalton (right) has called on Agriculture Minister Tara Moriarty (left) to take back a $10 million grant awarded to a project at Gundaline. Photo: Helen Dalton MP.
The NSW Labor Government has defended its controversial decision to award a $10 million taxpayer-funded grant to a Chinese-owned company in the Riverina, arguing the project will create jobs and that rejecting investment based on its origin would hurt economic growth.
The NSW Department of Primary Industries and Regional Development approved the grant for Ausuntech Pty Ltd to establish what is being described as Australia’s first large-scale hemp-processing facility capable of producing linen-quality fibre at Gundaline Station, a 14,900-hectare property between Darlington Point and Carrathool.
The funding comes from the Federal Government’s Murray-Darling Basin Sustainable Communities Program, which was established to compensate communities for the negative impacts of water buybacks.
Ausuntech Pty Ltd is owned by Chinese textile manufacturing giant Zhejiang Sunrise Garment Group.
Member for Murray Helen Dalton said the grant should be returned to taxpayers.
“This money was never meant to become corporate welfare for foreign-owned businesses,” she said.
Mrs Dalton has also called on NSW Agriculture Minister Tara Moriarty to intervene and explain how funding intended to help communities affected by water buybacks ended up being awarded to a foreign-owned company.
The 14,900-hectare Gundaline Station is known for its cotton operations. Photo: LAWD.
However, a spokesperson for the Department of Primary Industries and Regional Development defended the decision.
“Ausuntech Pty Ltd’s application demonstrated evidence of strong industry backing, along with a letter of support from Murrumbidgee Council confirming the local benefits of the project, including development of sustainable agriculture, a water-efficient fibre crop and job creation,” the spokesperson said.
“The project is forecast to create up to 20 full-time jobs, injecting ongoing economic activity into the local community and helping drive continued growth in the region.
“The project will provide a hub for regional hemp growers for a market that is forecast to become a $100 million Australian industry by 2032.”
Asked why taxpayer dollars were ultimately being directed to a foreign multinational, the department said Ausuntech Pty Ltd was an Australian-incorporated company and met all eligibility requirements.
“Turning away investment based on where it comes from would limit opportunities for regional communities and hold back economic growth,” the spokesperson said.
“Many businesses operating in Australia are backed by international investors, reflecting the global nature of the economy.”
While Ausuntech is registered to an address in Victoria, company records show Hong Kong-based companies Jinsheng Textile, Siu Hong Investment and Smart Materials hold significant shareholdings in the business.
“How on earth could the minister be giving this business $10 million that should have gone to the rural towns that have lost their water, jobs and young people because of Federal Government water buybacks?” Mrs Dalton asked.
The funding decision has also raised concerns within the local government area where the project will be based.
Murrumbidgee Council Mayor Ruth McRae questioned whether the project aligned with the original intent of the fund.
“Murrumbidgee Council’s concerns relate to whether the project aligns with the objectives of the Murray-Darling Basin Sustainable Communities Fund and the extent of the broader community benefits it may deliver,” she said.
“We are disappointed that communities across the Murrumbidgee Council area, which continue to face significant impacts associated with proposed water buybacks, have not seen broader support delivered through the funding program.
“While the project is located within the Murrumbidgee Council area, council questions whether the scale of broader community outcomes, including long-term employment opportunities and wider economic benefits, reflects the intended purpose of a fund designed to support local, community-led economic development.”
Asked why council had provided a letter of support for the Gundaline project, Cr McRae said it was standard practice when businesses sought grant funding.
“Funding decisions and priorities are determined independently of councils,” she said.
A Region poll found 91 per cent of readers believe community grants should not be awarded to foreign-owned companies.
Gundaline is best known for its cotton operation and is one of the largest irrigated properties in the Riverina.
The property was owned by Twynam Agricultural Group before being sold in 2014 to Southern Agricultural Resources. It was acquired by Dutch agricultural investment fund Optifarm in 2018 before being purchased by Ausuntech Pty Ltd in 2023 for a reported $121 million.
