The sale of Rushy Lagoon has focused attention on the Federal Government’s decision to bankroll a foreign buyer to purchase Tasmania’s largest farm.
But something bigger and more worrying is happening.
Government policies aiming for net zero emissions are changing the economics of productive land.
At Rushy Lagoon, taxpayer-backed finance has helped one buyer purchase a working dairy farm to convert thousands of hectares to plantation forestry. A consortium wanting to continue producing milk did not have that same financial advantage, apparently because cows fart and trees store.
I have long supported native forestry, plantation forestry and agroforestry. I want them to grow and create jobs.
But I don’t support government policy artificially driving productive agricultural land from one use to another. This is government interference in the free market.
As our former Prime Minister Tony Abbott remarked on my latest podcast, if it needs a $69 million subsidy to make it work. It’s plainly uneconomic.
Rushy Lagoon employs people and supports contractors, suppliers, transport operators and businesses throughout the North East. Losing productive farms has consequences well beyond the farm gate.
After speaking with Mayor Beattie, I was the first MP to raise concerns with Minister Gavin Pearce and seek State Government advocacy. Senator Richard Colbeck has also fought hard on this issue.
Despite widespread community concerns, that we all strongly expressed at the recent TasFarmers meeting, Canberra refuses to listen .
And adding insult to injury, it has now been revealed that the Federal Government, before any process had been completed to make the sale, gave the buyers an $8.8m grant to buy trees.
It’s an absolute farce.
Federal Agriculture Minister Julie Collins, a Tasmanian, has the power to veto the project.
Under the Australian Carbon Credit Unit Scheme, plantation forestry proposals must be reviewed by the Federal Agriculture Minister.
If the Minister believes a proposal will have an adverse impact on agriculture in the region, she can veto it.
And yet she continues to take Tasmanians for mugs.
By contrast, the Federal Opposition Leader, Angus Tayor has not only condemned the decision as contrary to Australia’s national interest but made time to visit our community to draw attention to its impact.
Our Labor MP has not helped with this issue or the closure of the Defence Nutrition Centre.
The foreign purchase process has shone a light on the problem. But stopping foreign buyers won’t stop it happening again.
The next buyer could be Australian and need no FIRB approval.
Unless we confront policies putting a taxpayer-backed subsidy on taking productive farmland out of agriculture, mark my words, Rushy Lagoon will be the first of many.
The North East knows what is at stake: productive land, employment, families and the future of our community.
Let’s keep up the pressure.
PODCAST WITH TONY ABBOTT AC
Want to know more? I discuss the Rushy Lagoon proposal, climate policy and Tasmania’s future in my recent conversation with former Prime Minister Tony Abbott on Good Company. Watch or listen at michaelferguson.com/podcast
