Rice mill cuts jobs

The reduction, which will be spread over Deniliquin and Leeton and comes into effect from next month, brings the number of positions lost within the company to about 130 since what it calls a ‘‘reconfiguration process’’ started last year.

Of those, 90 have been removed from Deniliquin. It includes 12 from next month — 10 from the mill and two from the Australian Grain Storage site.

Mrs Dalton said the ratio of the 130 positions to the district population is the equivalent of 33,000 jobs lost in Sydney, prompting her calls for something to be done.

‘‘If a big employer was forced to retrench 33,000 workers in Sydney, there would be mass protests, rallies and front page stories.

‘‘The government would initiate a rescue package, and that’s what they should be doing.

‘‘In Deni and Leeton, the government is just sticking the knife in. They’re still pushing ahead with plans to flush another 450 gigalitres of our productive water to South Australia. That will wipe out entire industries.

‘‘It’s government that has killed these jobs, not the drought. There is plenty of water being wasted in the Murray and Murrumbidgee rivers. 

‘‘Giving back farmers’ voluntary water contributions is something Water Minister Melinda Pavey can do right now, with the stroke of pen, to save jobs and families in our region.

‘‘It’s a real tragedy for these families (who are losing jobs), once again it’s happening to them as we approach Christmas.

‘‘The flow on effects will be enormous. That’s 130 families that may leave the region, meaning less business for shops and services.

‘‘I will be making this a big issue when parliament next sits, but I do need support. Every week I see National Party MPs vote against regional NSW.

‘‘In the last few weeks, they’ve voted against a cash grants drought relief package, against a water royal commission and against boosting funds for regional hospitals. All three votes were lost very narrowly.’’

SunRice announced the reduction in positions on Tuesday afternoon, saying it was prompted by the receival of the second lowest rice crop on record.

It received 54,000 tonnes from crop year 2019 (C19), which the company attributed to the continuation of drought, low general security water allocations and high temporary water pricing.

The positions will be lost across milling, packing, maintenance, paddy and warehousing operations, and will leave just 45 employees at Deniliquin after next month.

Despite the challenging conditions, SunRice CEO Rob Gordon said the company expects milling operations to continue through 2020.

‘‘While today’s changes relate to the milling of the low C19 crop, harvested earlier in 2019, we remain concerned about the ongoing impact of the low water availability and high prices ahead of planting of the C20 crop later this year.

‘‘Despite that, SunRice has been pleased with the response from rice growers to our record contracts offered in August 2019. These fixed price contracts were designed to replenish paddy and seed stocks, underpin SunRice’s Riverina milling program and assist SunRice in meeting premium demand in markets.

‘‘Given the interest we have received, SunRice expects to receive a volume of rice which will allow some form of milling to continue at its operations in Deniliquin and Leeton through 2020.

‘‘We will have greater clarity on the expected C20 crop after the conclusion of planting later in 2019. We understand that these changes have been, and continue to be, very unsettling for our employees, and we continue to remain committed to being open and transparent.

‘‘When water is available at affordable prices, the rice industry is the powerhouse of the Riverina — directly contributing more than $400 million per annum in years of historically normal production.

‘‘In those years, SunRice employs more than 500 people directly across the Riverina, and pays more than $90 million per annum in wages and salaries. We also pay more than $250 million to growers via paddy payments, and more than $60 million to over 400 Riverina companies, from transport and logistics, to accommodation and catering.

‘‘We know that the knock-on effects of these direct economic benefits are significant in the local communities within which we operate in the Riverina.’’

Mrs Dalton said the Federal Senate had the chance to underpin the next crop with a motion to release 200 gigalitres of water to farmers as ‘disaster relief’. It was voted down, with local Senator Perin Davey voting against it.

She is now encouraging everyone to write to Senator Davey, NSW Water Minister Melinda Pavey, Parliamentary Secretary to the Deputy Premier Steph Cooke,  Deputy Premier John Barilaro and Federal Water Minister David Littleproud.

‘‘If they voted for regional New South Wales instead of toeing the party line, we’d be able to save our jobs, families and communities,’’ Mrs Dalton said.