Federal Member for Farrer David Farley said according to SunRice, Federal Water Minister Murray Watt has written to the company asking it to submit a proposal for the rice cakes production facility directly to the Commonwealth for consideration for funding.
The deal could involve about $15 million in taxpayer funds to help update machinery, with SunRice matching the investment, to process rice products including rice cakes.
The potential lifeline was revealed by Federal Member for Farrer David Farley on the ABC program Insiders on Sunday, who then provided additional information yesterday.
Nothing about the deal has been officially released by the government or SunRice.
It is understood talks are underway between the Federal Government, NSW Government, the industry and the United Workers Union about how to support workers laid off by SunRice and stave off future uncertainty.
The leading food company was forced to make 78 staff redundant earlier this month, in part due to water policy impacting crop production. Of those, 68 are based in Deniliquin.
Mr Farley said the news to date demonstrates he is making inroads in addressing challenges facing irrigated agriculture and production in the Riverina, particularly those affecting the rice industry and SunRice, with encouraging progress.
But while saying the offer is a “good deal” for the government, Mr Farley said a better one would involve obtaining more water and better balancing environmental outcomes with regional jobs and the needs of our community.
“SunRice is asking for $15 million from government and SunRice will fund the balance; it’s a good deal for government,” Mr Farley said.
“A better deal for government would be 100 gigalitres 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 Holder office.”
9°C