Saul Eslake suggests a royalty be paid by salmon companies for using our waterways

As the state grapples with rising debt, an economist has suggested a royalty be paid by overseas-owned salmon farmers for using our waterways. How the payments would work.

Tassal salmon pens, in Macquarie Harbour, Strahan, West Coast of Tasmania.

A leading Tasmanian economist has suggested that overseas owned salmon farming companies should pay royalties for using the state’s waterways.

Saul Eslake likened a salmon royalty to that already paid by mining companies for extracting minerals but the industry rejected the notion saying it already pays leases, license fees, rates and taxes.

“We could charge salmon farmers a royalty for using the water ways that are owned by the people of Tasmania. Why not?” Mr Eslake said

“My suggestion is that salmon farming companies should pay a royalty to the Tasmanian government for the use of waters which are ‘owned’ by the state government on behalf of the people of Tasmania, just as mining companies pay royalties for accessing minerals which belong to the Government on behalf of the people of Tasmania.

“I’m not saying you put them up so high as to kill the industry.

“They shouldn’t be set so high as to drive the companies out of business – any more than mining royalties are – but rather at a level which reflects a ‘fair price’ for the use by these companies of assets which are the property of the people of Tasmania.

“You’re not taking money out of locals (companies) anymore.”

Economist Saul Eslake speaks to the media at Parliament Square in Hobart on Monday, August 19, 2024.

The three big salmon farmers in Tasmania are all foreign owned with Huon Aquaculture run by Brazilian multinational JBS, Tassal by Canada’s giant Cooke and Petuna by New Zealand sea food company Sealord.

But Salmon Tasmania says the salmon aquaculture industry is the only industry in the state to operate under “a full cost recovery model”.

“This model ensures that the strict regulation our industry is managed and monitored under comes at no cost to the Tasmanian government and taxpayer,” a spokesman said.

“In addition, the salmon aquaculture industry pays marine farming lease and license fees on water based facilities, rates and taxes on land based facilities, and payroll and other taxes and charges through various levels of government.

“The industry is the lifeblood of our regional communities, contributing around $770m per annum to the Tasmanian economy and providing stable, well paid employment for more than 5000 Tasmanians.”

Premier Jeremy Rockliff after the motion was passed. No confidence motion moved against Tasmanian Premier Jeremy Rockliff. Picture: Nikki Davis-Jones

After the turmoil in parliament, Mr Eslake said he did not want an early election but both major parties to “be honest” with Tasmanians and make hard decisions about debt.

“What we need is prudent fiscal management,” he said

“I don’t want an early election, but there is an opportunity if both major parties are willing to be honest with the people and say, ‘we’re in a mess, this is what we’ve got to do to fix it up’ and get a mandate for some increases in taxes, some cuts in capital spending in particular.

“If they want to, go down the privatisation path, say poles and wires or ports, both of which have been done by Labor governments as well as Liberal ones on the mainland

“There is an opportunity for Tasmania to dig itself out of this hole, if either or both of the major parties are prepared to be honest with the people.”

Originally published as Saul Eslake suggests a royalty be paid by salmon companies for using our waterways