Kevin Hogan, Steve Krieg push for bespoke flood grants for Norco

Federal MP Kevin Hogan has accused the Perrottet Government of not coming to the table with $50 million to support key Lismore businesses, claiming dairy corporative Norco’s ice-cream factory is at stake.

Lismore MP Kevin Hogan has lashed out at the State Government for not coming to the table to contribute to a business support package for flood-affected major employers, saying key employers could leave if help isn’t provided soon.

But the NSW Government snapped back, saying it was at the Commonwealth’s doing.

Mr Hogan, in a Tuesday press conference, said without $50 million from the Perrottet Government, Lismore employer Norco would be forced to close their ice-cream factory.

The dairy cooperative’s factory was subject to a $30m upgrade in November last year and was smashed by 2.2 metres of water during the floods.

Mr Hogan said the 230 person factory could leave the region without more support from the state government in a joint Anchor Business Support Package.

“If we don’t get the co-contribution from the state government for this program, key industries players, one example (is the) Norco ice-cream factory in Lismore will close,” he said.

Lismore Mayor Steve Krieg and Federal MP Kevin Hogan call for the NSW Government to co-contribute $50 million to flood grants for major Lismore employers, May 24,2022. Picture: Tessa Flemming

But Emergency Services, Resilience and Minister for Flood Recovery Steph Cooke said the state wasn’t asked to pitch in.

It is understood the NSW Government made a formal offer to the Morrison Government in March to cost share a large business support package but this was declined.

“The Northern Rivers Business Support Package for Large Business is solely funded by the Commonwealth at their insistence,” she said.

“The NSW Government is open to considering more flood recovery support measures in co-ordination with the new Federal Government.”

The Anchor Business Support Package was announced in March and has a $50 million dollar backing from the Federal Government.

NSW Minister for Flood Recovery Steph Cooke provides a flood and weather update. Picture: NCA NewsWire / Jeremy Piper

Mr Hogan said he was yet to see the NSW Government “walk the walk” on handing over the cash.

“I’ve been asking for the state government to co-contribute to this, not for weeks, but for quite a long time,” he said,

“I’ve written to the Premier and the Deputy Premier and I’ve spoke to them directly about this program.

“We are still yet to hear anything back about this and it’s getting quite imminent that we hear back from the State Government about their co-contribution because we need to know how much money we have.”

Lismore Mayor Steve Krieg and Federal MP Kevin Hogan said the Norco ice-cream factory’s future in Lismore could be in doubt, May 24,2022. Picture: Tessa Flemming

Mr Hogan acknowledged Norco receiving support from the program as an “interim measure” to keep them in Lismore.

He was not able to name how much the company was already receiving.

“That assistance, the way it’s been designed now, will finish on June 30, but before June 30, the program will open more widely where they can apply for more assistance to make sure they know what they’re going to do about planning their future,” he said.

Mr Hogan said he had been “comfortable” leaving State and Federal co-contribution shares unknown before going public in order to quicken the rollout.

“Things had to happen very quickly,” he said.

Former Prime Minister Scott Morrison visits the Norco Ice Cream factory, with Norco CEO Michael Hampson. Picture: NCA NewsWire/Elise Derwin

Norco CEO Michael Hampson said he had not been made aware of the press conference on Tuesday.

He said the company was “very quick to engage both the state and federal governments to seek support” following the floods.

He verified that funding would run out by June 30.

“Up to now, the funding we’ve received has enabled the continued employment and payment of salary and wages for all ice cream factory staff (including casual employees), for 16 weeks,” Mr Hampson said.

“We are grateful for this support which has provided both financial and emotional peace of mind for our workforce during exceptionally difficult times.

“However, in the absence of any further details around this funding, the future of the ice cream factory remains unclear, and we are balancing this void with the need to provide clarity and certainty to our hardworking staff.”

Mr Hampson said government support would “safeguard the future of the Lismore ice cream factory”.

“Norco is a 100 per cent farmer owned dairy co-operative, with many farmers significantly impacted by the floods, and some with repair costs in the tens of millions,” he said.

“The cost to rebuild the facility as it was operating before is expected to be around $50-60 million dollars. “Unfortunately, our farmers simply don’t have the means to raise that sort of capital on their own.”

Lismore Mayor Steve Krieg said the idea of losing Norco “scared the bejesus” out of him.

“We need people to have jobs to go to so they can rebuild their lives in Lismore,” he said.

“This program, in particular, is really important to us to be able to ensure our bigger employers that don’t fit into things like the Medium Business Grant that the support is there from the government, at both levels.

“That they cannot only rebuild, but grow with confidence.”

Mr Krieg said the decision to stand by Mr Hogan wasn’t political.

“ Our community is hurting and when there’s piles of rubbish getting moved out the CBD and there’s really good photo opportunities, everyone seems to be here and we’ve seem to have really hit a flat spot,” he said.

“We’re 12 weeks after the biggest natural disaster in NSW history and there’s still people not receiving one cent of government assistance.

“There’s talk of these industries that have held our communities together for the last 150 years who are threatening to pack up and leave – all because of bureaucratic bullying.”

As a small-business owner, Mr Krieg said big business wasn’t alone in their grant hardships.

“We’re fighting through all this criteria to be able to get a grant to try and restart our business,” he said.

“We’re 22 people that we employ and we’re really struggling with it.

“If I’m one, the whole community is in the same boat.”

Premier Dominic Perrottet and Deputy Premier Paul Toole walk through flood-devastated Lismore back in April 4.

State MP Janelle Saffin, who also wasn’t at the event, said she had fully supported Mr Hampson’s request for $75-million back in April.

Ms Saffin said she had made written representations to Treasurer Matt Kean and Agriculture Minister Dugald Saunders, and also raised the issue with NSW Premier Dominic Perrottet at the time.

“The Norco Ice Cream Factory in South Lismore is a major employer in Lismore and is of vital importance to our local economy,” Ms Saffin said.

“We have been contacted by the Australian Manufacturing Workers’ Union and the Norco Executive expressing the need for Government support. The rebuild will be major as the damage is significant.”

Ms Saffin said Minister Saunder’s office provided an interim response, saying they were currently considering the matter.