Greens backing Saul Eslake’s case for a royalty be paid by salmon companies

The major parties may have snubbed a proposal from leading economist for overseas-owned salmon farmers to pay a royalty, but it does have one backer. HAVE YOUR SAY.

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

The Greens have backed independent economist Saul Eslake’s call for salmon companies to pay royalties for using Tasmania’s waterways, with the party’s deputy leader Vica Bayley declaring aquaculture giants have “been getting an easy ride for too long”.

Mr Eslake said the state government could impose the royalties on Huon Aquaculture, Tassal, and Petuna, who are owned by multinational firms JBS, Cooke, and Sealord, respectively.

It comes as the state grapples with soaring debt, projected to climb to nearly $11bn in four years’ time.

Greens deputy leader Vica Bayley and Greens leader Doctor Rosalie Woodruff. Tasmanian house of assembly question time. Picture: Nikki Davis-Jones

Mining companies currently pay royalties for accessing minerals owned by the government, Mr Eslake said, adding that the same could apply to salmon companies for their use of waterways.

Mr Bayley said Treasurer Guy Barnett’s latest budget was “so dire that it caused a political crisis” and “meaningful solutions” to the parlous state of Tasmania’s public finances were needed.

“Given the situation we are in, Tasmania simply cannot afford to keep allowing the multinationals that run the state’s fish farms to turn huge profits without paying royalties for using our public waterways,” he said.

Salmon Tasmania, the peak body for the state’s salmon industry, has said aquaculture operates under a “full cost recovery model” in the state and companies paid marine farming lease and license fees, rates and taxes on land-based facilities, and payroll tax, as well as other taxes and charges.

Premier Jeremy Rockliff echoed the industry’s defence on Sunday, saying salmon companies “pay for the regulation and all associated costs with doing business”.

Labor leader Dean Winter also rejected the call from Mr Eslake and the Greens and said salmon was the only industry that paid “for its own regulation”.

‘Why not’: Salmon farming royalty suggested by leading economist

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 Greens backing Saul Eslake’s case for a royalty be paid by salmon companies