Craig Mostyn Tasmania: Abalone producer fined $30K for biosecurity breaches

A Tasmanian abalone producer failed to comply with a ministerial biosecurity order made to stop the spread of a disease that killed farmed and wild greenlip and blacklip abalone. The sentence has ended uncertainty for a related abalone farm at Dunalley.

Jade Tiger Abalone. Picture: File

A Tasmanian abalone producer has been fined $30,000 for biosecurity breaches.

Craig Mostyn Tasmania Pty Ltd, a local subsidiary of Fremantle-headquartered agribusiness giant Craig Mostyn Group, was sentenced in Launceston Magistrates Court late last month on two charges of breaching the Living Marine Resources Management Act 1995.

The court previously heard that the company failed to comply with a ministerial biosecurity direction by discharging untreated live-holding water and failed to ensure holding tanks were marked.

Both offences were detected at Bicheno on October 6, 2020.

The offences occurred in the context of the Department of Natural Resources and Environment trying to prevent the spread of abalone viral ganglioneuritis, which causes mortality in farmed and wild blacklip and greenlip abalone.

The company no longer has any Tasmanian assets, having sold its remaining interests in the period between the offence date and the sentence.

The $30,000 sentence ends uncertainty about the operation of a related company, Jade Tiger Abalone Pty Ltd, a Victorian-based company that owns an abalone farm at Dunalley.

The court previously heard that, because Jade Tiger is a wholly-owned subsidiary of Craig Mostyn Group, it would have had its Marine Farming Licence suspended for five years, putting about 10 employees out of work, if a fine of more than $36,200 was imposed upon the defendant.

This was due to a ‘demerit point’ system under Tasmania fisheries legislation that sees points that accrue to one company also be applied to related entities.

There was no allegation of wrongdoing against Jade Tiger, nor was it charged with any offences.

Earlier, July 5: An abalone farm in Tasmania’s south-east may have its licence suspended for five years if a fine of more than $36,200 for fisheries breaches is imposed on a related company that shares a common owner.

Craig Mostyn Tasmania Pty Ltd, a local subsidiary of Fremantle-headquartered agribusiness giant Craig Mostyn Group, appeared in Launceston Magistrates Court last month on two charges of breaching the Living Marine Resources Management Act 1995.

The company, which owned a number of abalone farms and seafood processing facilities – it has since sold its Tasmanian assets – is charged with failing to comply with a ministerial biosecurity direction by discharging untreated live-holding water and failing to ensure holding tanks were marked.

Both offences were detected at Bicheno on October 6, 2020 and occurred in the context of trying to prevent the spread of abalone viral ganglioneuritis, which causes mortality in farmed and wild blacklip and greenlip abalone.

While Craig Mostyn has previously pleaded guilty, there remain significant disputed facts, including over the commercial value of the abalone the subject of the breaches.

The court was told that should Magistrate Evan Hughes impose a sentence of greater than 200 penalty units – $36,200 – a related abalone farm at Dunalley would have its licence suspended for five years.

This is because the company that owns the farm – Jade Tiger Abalone Pty Ltd, which also has two farms in Victoria – is a wholly owned subsidiary of Craig Mostyn and, under Tasmanian fisheries legislation, any demerit points accruing to related companies also attach to it.

Marine farming licence holders are suspended for five years should they accumulate 200 demerit points – penalty units – in a five-year period.

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“[S246a of the Living Marine Resources Management Act] effectively means that if you have two entities that share a major shareholder, even if one of those entities hasn’t committed any offences, the allocation of demerit points to that other entity will unfortunately disqualify the other wholly owned subsidiary,” the company’s lawyer, Catherine Scott, told the court.

Jade Tiger Abalone Tasmanian manager Mike Wing at its abalone farm in Dunalley in 2021. Picture: File

She said that the Dunalley farm produced about 85,000kg of abalone per annum, accounting for about 30 per cent of Jade Tiger’s total production.

She said the Dunalley farm had 11 employees and provided “vital employment for people in regional areas”.

Ms Scott further noted that Jade Tiger “had no previous convictions” for environmental breaches and was in “good standing” in both Tasmania and Victoria.

She said it would be a perverse outcome for Jade Tiger to lose its licence for five years in such circumstances.

The charges will return to court on July 20, with the parties continuing to conference in an attempt to iron out the disputes and prevent a lengthy contested facts hearing.

Originally published as Craig Mostyn Tasmania: Abalone producer fined $30K for biosecurity breaches