The $10m question: 'corporate welfare' challenged as foreign firm awarded grant
Ausuntech Pty Ltd, a subsidiary of a Chinese textile giant, has been awarded $10 million in government funding to build a hemp processing facility at Gundaline Station. File picture supplied by LAWD. Calls. . .
Ausuntech Pty Ltd, a subsidiary of a Chinese textile giant, has been awarded $10 million in government funding to build a hemp processing facility at Gundaline Station. File picture supplied by LAWD. Calls have been made for federal government grant money to be taken back after a Chinese-backed company received $10 million in community funding. Subscribe now for unlimited accessto all our agricultural newsacross the nationor signup to continue readingAll articles from our website& appThe digital version ofThis Week'sPaperOur entirenetworkPart of a $300 million federal government program, the NSW program recently awarded a total of $69 million in the second round of funding to 14 projects across southern NSW communities. This included $10 million to Ausuntech Pty Ltd to establish a large-scale hemp processing facility at Gundaline Station, near Carrathool. Ausuntech Pty Ltd is a subsidiary of Chinese textile giant Zhejiang Sunrise Garment Group, which purchased the 14,916ha Gundaline Station from Dutch investment firm Optifarm for about $120 million in 2023. State member forMurray Helen Daltonsaid the decision to award Gundaline Station the grant needed to be reversed, and redirected to local projects. "The Sustainable Communities Program was set up to soften the blow to the Murray Darling Basin communities caused by the federal government'sdisastrous water buybacks," she said. "This money was never meant to become corporate welfare for foreign-owned businesses. "How on earth could NSW Agriculture Minister Tara Moriarty justify handing over millions of dollars to the Chinese owners of Gundaline. "A spokesperson for the NSW Department of Primary Industries and Regional Development said the application was competitively assessed on merit against the program's guidelines and criteria. "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," the spokesperson said. "With up to 20 full-time jobs to be created and boosting economic activity for the local community this project demonstrated it was a strong undertaking for the region. "The project will deliver a regional hemp processing facility for local growers and produce linen-quality fibre, for a market that is forecast to become a $100 million Australian industry by 2032. "The spokesperson said Ausuntech was an Australian incorporated company and met all criteria as an eligible applicant. "The NSW Sustainable Communities Program is administered by the NSW government in line with the Grants Administration Guidelines and all relevant standards. All grantees are required to comply with both Australian law and the terms of the funding deed," the spokesperson said. "Many Australian businesses are backed by international investors, reflecting the global nature of the economy and significant role of our regions in the NSW economy. "Despite submitting a letter of support with the grant application, Murrumbidgee Council mayor Ruth McRae said the council questioned whether the project reflected the intent of the program. "We believe funding should prioritise projects that create local jobs, drive regional economic growth and deliver lasting benefits to the communities most affected," she said. Cr McRae said the Murrumbidgee Local Government Area had no projects funded in the first round of the program. "While a project in the LGA has now received funding through the second round, council believes the overall benefits to our communities have been extremely limited," she said. "That is deeply disappointing given the purpose of the program and the scale of the impacts our communities face. "Cr McRae said the outcomes of the program had not reflected the level of impact on communities. "We believe communities facing the greatest impacts from water recovery should receive a fair share of the available funding, and that has not been the case," she said. The $300 million federal government Sustainable Communities Program, delivered by the states including $160 million for NSW, has previously been criticised as "nothing more than compensation" by stakeholders. NSW Irrigators' Council chief executive officer Dr Madeleine Hartley said $160 million was a "drop in the ocean" compared with the huge volume of water taken from productive use inaffected communities. "While investment that creates new opportunities for regional communities is welcome, it must ensure it's protecting the long-termviability of the irrigationindustry that these communities have been built on," she said. "The future of these communities depends on sustained investment in innovation, research and industry development. "As it happensBreaking news alertBe the first to know when news breaks.