Treasurer Jim Chalmers’ “disgraceful” approval of a Tasmanian cattle farm for a British company receiving $69 million in public funds has been condemned by the Coalition.
The Labor Party has given the go-ahead for the sale of 22,000 hectares of Rushi Lagoon dairy and beef farms to the Tasmanian Nature Asset Trust, which is managed by British investment firm Gresham House.
The Albana government’s approval follows the Foreign Investment Review Board approving the $100 million sale.
The Fund’s project is receiving a major investment from the state-run Clean Energy Finance Corporation, which the Coalition called “troubling.”
Shadow energy minister Dan Tehan said Chalmers had “sold out Tasmania” by approving the deal.
“The treasurer’s approval of the sale is a disgrace,” Mr Tehan said.
“For the Albana Labor government, this shows that net zero trumps the protection of prime productive agricultural land.”
The CEFC said the new project “combines commercial softwood plantations on marginal lands with large-scale conservation and ecological restoration and sustainable grazing.”
This will allow the company to sell carbon credits from the trees it plants.
Mr Tehan said the land should not be sold to a foreign corporation wishing to sell carbon credits outside Australia.
“Australian taxpayer dollars should not be used to help a foreign company buy an extremely productive farm and then turn it over to grow trees to offset carbon emissions in the UK or other European countries,” he said.
Mr Tehan has vowed to prevent the CEFC from funding foreign companies looking to acquire Australian farmland using carbon credits if they are in government.
He also promised to restore the Agriculture Secretary’s authority to veto projects that block agricultural land from receiving carbon credits if it would have a significant impact on water, agricultural production and regional communities.
Acting Tasmanian Premier Bridget Archer called on Prime Minister Anthony Albanese to revoke Chalmers’ approval for the sale.
“A local farmer was sidelined from the sale process while taxpayer funds were used to support a foreign company’s bid,” Ms Archer said.
“Rushie Lagoon is one of Tasmania’s most significant agricultural assets and has been a major contributor to our dairy, beef and crop production sectors for decades.
“We call on the prime minister to intervene and overturn his treasurer’s decision.”
Tasfarmers was also angry at the sale, with its president Nathan Cox saying Labor had betrayed Tasmania’s farming sector.
“This is a disgraceful result for Tasmania and Australia’s food security,” Mr Cox said.
“Rushy Lagoon has fed Australian families for generations.”
CEFC says the new project will create more than 190 new jobs and produce approximately five million tonnes of timber over its lifetime.
CEFC head of natural capital Heechung Sung said the project would strengthen Australia’s forestry industry and support sustainable timber production.
“This is a demonstration of institutional capital’s ability to drive economic development in regional communities while supporting decarbonization and positive environmental outcomes,” Ms. Sung said.