Greens blast Scott Morrison’s $4.5M handout to Lark Distilling
The Coalition has defended a grant to Tasmania’s most prominent whisky distillery, amid criticism the multi-million dollar handout amounts to corporate welfare. LATEST >>
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THE Coalition has defended a grant to Tasmania’s most prominent whisky distillery, amid criticism the multi-million dollar handout amounts to corporate welfare.
The grant to Lark Distilling was one of four manufacturing grants announced by Prime Minister Scott Morrison during a flying campaign visit to Tasmania on April 29.
Lark received $4.5m to build a new single malt distillery on the Shene Estate in Pontville.
Mr Morrison toured the new facility in marginal Lyons with Liberal Candidate Susie Bower.
Other Tasmanian companies to receive grants through the modern manufacturing fund were chemical company Alcore ($7.5m), milk processor Naturo ($5.9m), and biotech company Marinova ($1.9m).
However Tasmanian Greens Senator Peter Whish-Wilson said Lark in particular should not have received a grant, given the company’s soaring profits.
The Tasmanian distiller bought the Shene Estate from the Kernke family for $40m last year.
“This doesn’t pass the pub test. This announcement has rightly raised ire and more than a few eyebrows, and rightly so. The company’s financial position looks resilient coming out of the pandemic, meanwhile other local businesses were annihilated by Covid and are struggling to stay afloat,” Senator Whish-Wilson said.
“Smaller distilleries or wineries have every right to be furious that a wealthy competitor received public funds - how is this fair?
“This issue won’t be going away any time soon, as soon as parliament resumes the Greens will be asking hard questions to the department and government on this grant; including why it was awarded and on what basis, and if any new owners or investors in the distillery have connections to the Liberal party and were involved in the grant process.”
A spokesman for the federal government said the Coalition was leveraging billions in additional investment by partnering with manufacturers.
“The Modern Manufacturing Initiative is the centrepiece of the Morrison Government’s Modern Manufacturing Strategy, designed to position Australia as a globally recognised, high-quality and sustainable manufacturing nation,” the spokesman said.
“Labor failed to back manufacturing jobs when last in government and Australians can’t risk their economic mismanagement in uncertain times.
“And the Australian Greens want to shut down Australia’s traditional manufacturers and the hundreds of thousands of Australians that are employed in traditional manufacturing.”
PM’s $50m first announcement for Hobart - April 28
PRIME Minister Scott Morrison has made a whistlestop campaign trip to Hobart to deliver his promise.
The coalition government committed $50m towards a $400m expansion of the Lutana zinc plant on Thursday.
Mr Morrison toured the zinc works with Premier Jeremy Rockliff on Thursday afternoon.
The Prime Minister and his entourage flew in from Cairns late in the afternoon.
He toured the zinc plant and met with workers whose jobs the funding will underwrite.
The expansion has been given the green light by regulators and the company was seeking the final $70m in funding from governments.
“Our economic plan is enabling this investment in Nyrstar that will secure around 500 direct Tasmanian jobs, over 1,100 direct South Australian jobs, and over 5,000 indirect jobs across both states for generations to come,” Mr Morrison said.
The Prime Minister is expected to stay overnight in Hobart and make other campaign announcements in Tasmania on Friday.
How upgrading Hobart’s zinc works is a boon for Braddon
They’re on opposite sides of the state but a $400 million expansion to the Nyrstar zinc works is good news for Braddon according to MP Gavin Pearce.
The coalition government committed $50m towards the expansion on Thursday.
Mr Pearce said Nyrstar spends around $11 million in Braddon each year with through the purchase of raw materials from the Hellyer and Rosebery mines.
“By investing in Nyrstar, we are creating a stronger future for the West Coast and supporting hundreds of jobs in Braddon,” he said on Tuesday.
“The project will help increase production by up to 30 per cent, which will see Nyrstar spend even more in Braddon as it scales up activity.
“Nyrstar also exports all of its finished metal products through the Port of Burnie, so supporting this vital upgrade will also support the Port.”
PM’s $50m handout to Hobart zinc smelter operator
A Coalition government would contribute $50m towards the $400m expansion of Hobart’s Nyrstar processing plant, Prime Minister Scott Morrison says.
The project has been given the green light by regulators as the multinational seeks $70m in funding from governments.
Mr Morrison said “making things in Australia and doing it well” was central to the Coalition’s plan to secure jobs and build a strong national economy.
“Our economic plan is enabling this investment in Nyrstar that will secure around 500 direct Tasmanian jobs, over 1,100 direct South Australian jobs, and over 5,000 indirect jobs across both states for generations to come,” Mr Morrison said.
“The new electrolysis plant will take advantage of new advanced manufacturing technology that improves Nyrstar’s performance and global competitiveness.
“This will ensure the Tasmanian facility will thrive for another 100 years and more, securing the long-term future of operations in both Hobart and Port Pirie.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the investment in Nyrstar was about securing Australia’s sovereign manufacturing capability.
“Australia and the world need zinc. Zinc is in demand because it extends the life of steel and is an essential part in almost all construction, infrastructure, transport, agriculture, communications and other everyday products,” he said.
“Together, an upgraded Hobart site and the existing Port Pirie site will act as a critical minerals hub that will sustain mineral processing skills and add significant value to Australian raw materials that would otherwise be processed offshore.”
Plans for a new electrolysis plant at the Lutana site are expected to radically improve the company’s environmental output and workplace safety – as well as secure jobs for its 500 employees.
A company spokesman said modernising the plant was required to secure “the future of metals refining in Tasmania” and shore-up not only the company’s on-site jobs, but 1600 jobs across the country plus an extra 5000 in the supply chain through contractors.
Assistant Minister for Industry Development Jonno Duniam said the investment would secure jobs and a strong economy for Tasmanians for generations to come.
“Every year, Nyrstar spends around $250 million in Tasmania, from wages, to contractors, to power and water,” the Assistant Minister said.
“This investment will secure that significant economic injection and all of the flow-on benefits that brings to families across Tasmania, today and into the future.”
The federal election is scheduled to be held on May 21.
Nyrstar zinc works gets approval on $400m redevelopment
ZINC processor Nyrstar looks set to forge ahead with a massive redevelopment at its Hobart site – said to be worth $400 million – with green lights given by both the Glenorchy City Council and Tasmania’s Environmental Protection Authority.
The ticks of approval are being celebrated across the sector, with plans for a new electrolysis plant expected to radically improve the company’s environmental output and workplace safety – as well as secure jobs for its 500 employees.
However, it is understood Nyrstar is seeking a further $70 million in state or federal government funding in order for the project to be commercially viable.
The Lutana factory was opened on the banks of the River Derwent by the Electrolytic Zinc Company in 1916.
A company spokesman said modernising the plant was required to secure “the future of metals refining in Tasmania” and shore-up not only the company’s on-site jobs, but 1600 jobs across the country plus an extra 5000 in the supply chain through contractors.
He said the redevelopment featured an “innovative ventilation system” that reduced emissions and improved air quality for workers.
“This will allow for a safer operation without the need for respiratory protective equipment to be worn every day,” he said.
The spokesman said other improvements included more automation, improved separation between people and vehicles, and protective guarding systems around machinery.
“There will also be a significant reduction in groundwater contamination risk, which will decrease the potential for contamination of soil and groundwater,” he said.
He said with all the regulatory approvals in place, all that was needed was for “Nyrstar to make a final investment decision in order to progress”.
Tasmanian Chamber of Commerce and Industry CEO Michael Bailey welcomed news the redevelopment had been approved, describing Nyrstar as “an absolutely critical powerhouse for Hobart and the region”.
“It’s important to remember zinc is critical for Australia and the western world,” he said.
“What’s really pleasing about this is the company sees a way forward for what otherwise would be a plant that would be progressively shut down.”
Tasmanian Minerals Council CEO Ray Mostogl said zinc was in high demand, with zinc and aluminium two of the major commodities exported from the state over the past 12 months.
He noted Nyrstar’s importance in the supply chain – processing zinc from a Tasmanian mine – and also said the company was important for the role it played in Hobart’s electricity grid and preventing blackouts.
Michael Ferguson, Deputy Premier and Treasurer, said he and Minister Guy Barnett would visit Nyrstar’s Lutana site on Wednesday after some “very positive conversations”.
He said the Tasmanian government was ready to support the project on the basis it also secured federal funding.
“Our government recognises the significance of the environmental, health and safety upgrade proposed at Nyrstar in terms of Tasmanian jobs and export benefits,” he said.
“We have been clear with Nyrstar that we stand ready to support the project on the basis of the company also securing a federal commitment.’’
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Originally published as Greens blast Scott Morrison’s $4.5M handout to Lark Distilling
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