Mossman Mill workers owed $1.2m as unsecured creditors
Exclusive documents have revealed how much cash the beleaguered Mossman Mill owes workers amid concern $1.2m in entitlements won’t be paid and serious claims that Far North Milling “squandered” $60m in government bailouts.
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Exclusive documents have revealed the financial position of the beleaguered Mossman Mill amid strong criticism claiming Far North Milling has “squandered” a total of $60m in state and federal government bailouts.
Documents filed with the Australian Securities and Investments Commission reveal while none of the 124 mill workers are owed wages, a total of $1,277,218 was owed in superannuation and annual leave entitlements.
The workers are unsecured creditors meaning that paying out of cash to employees was a lower priority for the administrator.
Major creditors include the Australian Taxation Office in PAYG ($135,078), trade creditors ($585,157) and the Australian National Bank ($2,356,315), as well as $351,900 owed for a Business Activity Statement.
And local companies supplying services and goods to the mill are owed significant amounts, including Portsmith-based company Cement Australia Holdings that’s owed $49,006, Blackwood and Sons Portsmith is owed $17,809 and Marano’s Fuel Mossman is owed $86,245.
A simmering mill crisis came to a head on November 20 when Daintree Bio Precinct, of which Far North Milling is a subsidiary, entered voluntary administration after logging an operating loss — before government funding — of more than $5m for the year to May 31, 2023.
Providing for income tax and government funding, that figure was reduced to a loss of $286,974 in 2023.
Limited cane supply into the mill leading to poor sugar production, major machinery failures, and a critical labour shortage have contributed to the mill’s dire situation.
It can now be revealed for the first time the mill has been a beneficiary of $59.6m in grants from state and federal governments, as well as $250,000 from the Douglas Shire Council.
Australian Manufacturing Workers’ Union state secretary Rohan Webb in a scathing criticism of the mill’s financial management claimed Far North Milling had “seemingly squandered this $60m lifeline”.
“Mossman Mill has continuously put their hands out for government bailouts to keep the mill afloat, and $60m later, what do we have to show for it?” Mr Webb asked.
“The current situation raises serious questions about the company’s management and financial decisions.
“It would appear that the company has let their employees and the community of Mossman down.”
To date there has not been in-depth discussions about worker outcomes early in the administration process and the union anticipates payouts for accrued leave and redundancy pay could be delayed.
“Currently, there are no concerns about the current ability (of the mill) to pay their wages or superannuation,” Mr Webb said.
“However, employees are not secured creditors, so the payment of their entitlements and redundancy pay on termination is considered to be a lower priority for the administrator.
“It’s unjust that our members are being forced to carry the mental burden of this process simply because Mossman Mill failed to capitalise on many life rafts thrown their way to keep their doors open.
“It’s always disappointing to see good, secure, local jobs put at risk.”
Senator Nita Green said her first priority was ensuring that workers entitlements were protected throughout the administration process.
“They have slogged their guts out for the Mill and that’s the least they deserve,” she said.
Far Northern Milling administrator John Goggin was contacted for comment.
Far Northern Milling chief executive officer and company secretary was also contacted for comment.
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Originally published as Mossman Mill workers owed $1.2m as unsecured creditors
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