The Leeton SunRice mill has seen a downscale in production due to lack of production. Photo: Leeton Living.
Riverina food giant SunRice has welcomed federal government assistance being considered for its Leeton operations – but has warned the deal is not yet finalised and will not solve the fundamental problems threatening the region’s rice industry.
Appearing on ABC TV show Insiders, One Nation Farrer MP David Farley said Prime Minister Anthony Albanese had told him the Federal Government was working on a $15 million package to support SunRice.
The comments came two weeks after the company announced it would cut 78 jobs from its Leeton and Deniliquin mills due to declining water availability.
While national media reports incorrectly framed the proposed assistance as a means of saving those jobs, Region understands the redundancies are not being reversed.
Instead, the proposed Commonwealth funding would help shore up the future of SunRice’s Riverina operations by supporting investment in its manufacturing capacity.
According to Mr Farley’s office, Water Minister Murray Watt has written to SunRice asking it to submit a proposal for the rice cakes production facility directly to the Commonwealth for consideration.
The proposal could involve about $15 million in taxpayer funding to upgrade machinery, with SunRice matching the investment.
SunRice has confirmed discussions with the Federal Government are continuing, but has been notably cautious about the proposed assistance.
“SunRice welcomes the constructive engagement we have had with the Australian Government regarding the challenges facing the Riverina rice industry and regional communities. Discussions are ongoing and it would be inappropriate to comment on those discussions in detail,” a spokesperson said.
“To truly ensure a viable Australian rice industry, we need a multifaceted plan that supports more balanced water allocations and value-added manufacturing to help promote skilled regional jobs.
“We have been highlighting the need for water policy reform that balances socio-economic and environmental outcomes, and greater regional manufacturing support in the Riverina, for several years. We welcome the short-term assistance and are encouraged to see the government considering action on part of the solution.
“We remain hopeful that further measures can be progressed to support a viable level of rice production in the upcoming season and the long-term viability of the Australian rice industry.”
Mr Farley has celebrated the progress as evidence his intervention in Canberra is producing results for the Riverina’s irrigated agriculture industry.
“SunRice is asking for $15 million from government; SunRice will fund the balance. It’s a good deal for government,” Mr Farley said.
The Insiders panel noted that such a package was unlikely to have been offered had Liberal MP Sussan Ley still been the Farrer representative.
David Farley has made water his top priority since he was elected. Photo: NSW One Nation.
The One Nation MP has also stressed that the fundamental problem facing ricegrowers is access to sufficient water, which he blames in part on the Federal Government’s ramping up of water buybacks from irrigators.
He has argued that increasing water availability would deliver a much greater economic benefit to the Riverina than the proposed manufacturing investment.
“A better deal for government would be 100 GL of water as the economic multiplier across regional Australia is powerful, plus the farmers will pay for the water – no cost to government besides a bookkeeping record at the Commonwealth Environmental Water Holdings office,” he said.
Mr Farley said he was “happy with the outcome” of the discussions so far.
However, the issue of securing additional water remains unresolved.
The 100 GL sought by ricegrowers has not been negotiated as part of the proposed manufacturing assistance, with Mr Farley saying the Federal Government could not provide the water but could approach the NSW Government about whether it could be released.
That leaves the industry’s most immediate concern – having enough water to produce a viable rice crop – unresolved.
