Treasurer Jim Chalmers’ “disgraceful” approval of a Tasmanian cattle farm to a British company receiving $69 million in public funds has been decried by the Coalition.
Labor gave the green light for the sale of the 22,000-hectare Rushy Lagoon dairy and beef farmland to Tasmanian Nature Asset Trust, which is run by the UK investment firm Gresham House.
The Albanese government’s approval followed the Foreign Investment Review Board approving the $100 million sale.
The Trust’s project is receiving a massive investment from the government-owned Clean Energy Finance Corporation, which the Coalition has labelled “disturbing”.
Shadow energy minister Dan Tehan said that Mr Chalmers has “sold out Tasmania” by approving the deal.
“The Treasurer’s approval of the sale is a disgrace,” Mr Tehan said.
“It shows for the Albanese Labor government, net zero trumps the protection of prime productive agricultural land.”
The CEFC said the new project will “combine commercial softwood plantations on low productive land 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 looking to sell carbon credits outside Australia.
“Australian taxpayers’ dollars should not be used to assist a foreign company to buy an extremely productive farm for it to then be turned over to grow trees to offset carbon emissions in the United Kingdom or other European countries,” he said.
Mr Tehan pledged to prevent the CEFC from financing foreign companies looking to purchase Australian agricultural land with carbon credits if in government.
He also promised to reinstate powers from the Agriculture Minister to veto projects that lock up agricultural land for carbon credits if it will have a significant impact on water, agricultural production and regional communities.
Tasmania’s acting Premier Bridget Archer has called on Prime Minister Anthony Albanese to overturn Mr Chalmers’ approval of the sale.
“A local farmer was locked out of the sales process while taxpayer funds were used to back a foreign company’s bid,” Ms Archer said.
“Rushy Lagoon is one of Tasmania’s most significant farming assets and has made a major contribution to our dairy, beef and cropping sectors for decades.
“We are calling on the Prime Minister to step in and reverse the decision of his Treasurer.”
Tasfarmers was also outraged by the sale, with its president Nathan Cox arguing Labor had betrayed Tasmania’s agriculture sector.
“This is a disgraceful outcome for Tasmania and for Australian food security,” Mr Cox said.
“Rushy Lagoon has fed Australian families for generations.”
The CEFC claims the new project will create more than 190 new jobs over its life and produce about five million tonnes of timber.
CEFC head of natural capital Heechung Sung said the project would bolster Australia’s forestry industry and support sustainable timber production.
“It is a demonstration of the power of institutional capital to drive economic development for regional communities while also supporting decarbonisation and positive environmental outcomes,” Ms Sung said.