Prawns on ice as taxpayers foot the bill to prop up project
The promised largest prawn farm in the world may have been stalled for at least three years, but the company in charge are still promoting it.
Northern Territory
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DESPITE Project Sea Dragon having been stalled for at least three years, the company’s website is still promoting what would have been the world’s largest prawn farm.
The most recent posts on the Seafarms’ website are from October 2021, outlining work in progress at Legune Station where the farm was being built and another magazine profile about the project’s vision.
Meanwhile in August there was a post about camp refurbishments and on July 26 a photo of Seafarms chairman Ian Trahar with Chief Minister Michael Gunner and Deputy Chief Minister Nicole Manison announced construction progress.
Despite the rosy forecasting, in November the company announced a project review that last week delivered findings that the project was no longer viable “in its current form” — an update that remains unspoken of on Seafarm’s website.
The review referenced “a number of challenges, as well as opportunities to de-risk the project” and that in its current form “would not generate acceptable financial returns”.
It said while the company remained committed to delivering on the promise of Project Sea Dragon, the company needed to “pilot and prove up” before prawns were ever going to successfully be farmed at Legune.
The company said it was looking at a smaller pilot project on Legune but acknowledged it would “take up to three years to complete a Pilot and assess the outcomes” before detailing time frames for that to take place.
The project — supported by both sides of government —has not been without its critics.
When it was first publicly proposed in 2012, a number of people raised concerns about its feasibility and viability. Many of those were in the public service.
Governments of both stripes supported the project, with the Country Liberal Party government led by then-chief minister Adam Giles awarding Project Sea Dragon major project status.
Company chief executive Mick McMahon, who took the helm in October last year, said he felt “significant responsibility to shareholders” who had invested in the company. “To them I apologise for what we’ve had to present today,” he said.
Meanwhile, Territory taxpayers have contributed — through commitments made by both the Territory and Federal governments — more than $100m in supporting infrastructure, primarily roads.
The NT Government has stood by its contribution to the project, $56m in roads infrastructure including duplication of Gunn Point Road. The Commonwealth contributed $63.45m, mainly also to roads, and the WA Government gave about $15m.
The NT News approached the Seafarms Darwin office for comment but was directed to a public relations firm who said they no longer represented Seafarms.
Mr McMahon and other representatives from the company’s Queensland head office have refused requests to be interviewed as has former NT Chief Minister Paul Henderson who liaised between Seafarms and the Government.
Government defends $56m road to nowhere
MORE than $30m of taxpayer money went into sealing the Territory’s road to nowhere.
Upgraded on the belief the investment would deliver jobs and economic growth on the back of Project Sea Dragon, billed as the world’s largest prawn farm, the Territory government contributed $32.2m lifting Gunn Point Rd to a two-lane-sealed standard. It was originally slated to spend $40m.
As well, $7m was contributed to provide an access road to Point Cylo and $17.5m to upgrade Keep River Plains Rd to ensure year-round access.
With Queensland-based Seafarms announcing the project is “not viable in its current form”, it’s possible the roads may never be used for the purpose that underpinned the financial investment and construction. Seafarms was approached for further comment but declined. In response to questions around the project not going ahead, the NT government tried to distance Project Sea Dragon from the roads funding.
“We have not invested in the project directly but we have invested in over $56m in public roads which serve the public and would help support this project,” a spokeswoman for Infrastructure Minister Eva Lawler said.
“The Territory Labor government support any project that creates local jobs, supports Territory businesses and expands key industries.
“We will continue working with business and industries to ensure the Territory is Australia’s best investment destination.” In a 2018 media release, before the project hit the rough, Deputy Chief Minister Nicole Manison was keen to couple the roads funding with the prawn farm.
“A key driver for this project is to facilitate Project Sea Dragon, a $1.45bn prawn aquaculture project that will generate significant economic and employment opportunities for the community,” Ms Manison said at the time.
Both main political parties backed the project, with at least 25 media releases on Project Sea Dragon posted in the NT government newsroom since 2015. In addition to the Territory’s $56m contribution, the commonwealth says it gave $63.45m and the West Australian government $15m.
The NT News understands at the time of discussions around funding to support Project Sea Dragon, some bureaucrats strenuously objected to committing money so early into the project.
There were also discussion around whether the money might not have been better served lifting infrastructure in key farming country such as the Buntine Hwy.
NT Cattlemen’s Association chief executive Will Evans welcomed the expenditure on roads and called for more spending on roads.
“Regional road funding is always welcomed by the NTCA,” he said. “However, in recent years, we’ve seen announcements go too far out over forward estimates, meaning that money doesn’t hit the ground fast enough.
“The Gunn Point road has shown that NT government can act quickly and build roads that support agricultural development. The pastoral sector needs the same dedication shown to roads south of the Berrimah line.
“Many regional roads are in a worse condition today than they were 20 years ago. We don’t need more plans on a page and stump-speech announcements. We need boots on the ground getting the work done.”
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Originally published as Prawns on ice as taxpayers foot the bill to prop up project
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