Huon Aquaculture lodges legal proceedings against Tassal in Federal Court

Huon Aquaculture to take Tassal to court over Macquarie Harbour breach.

Frances Bender, of Huon Aquaculture, is taking legal action against Tassal. Picture: MATHEW FARRELL

TASMANIA’S two biggest salmon producers are set to face off in the Federal Court after Huon Aquaculture launched legal proceedings against competitor Tassal.

Share prices for both companies fell yesterday after Huon lodged proceedings at midday seeking a declaration from the Federal Court that Tassal was in breach of the Macquarie Harbour biomass determination made by Environment Protection Authority director Wes Ford last week.

Mr Ford reduced the biomass cap to 12,000 tonnes — or 13 tonnes per hectare — but permitted Tassal to farm an extra 4000 tonnes of salmon if using waste capture technology.

Huon Aquaculture executive director Frances Bender said “simple maths” indicated Tassal was operating over the biomass limit in Macquarie Harbour from June 1 and would continue to be in coming months, despite a plan to trial a waste capture system.

Mr Ford yesterday approved the trial of waste capture units on two pens in Macquarie Harbour, leased by Tassal and Aquatas.

Tassal chief executive Mark Ryan hit back at Huon, saying Huon had made misleading errors in its statement to the Australian Securities Exchange.

Ms Bender said Tassal was risking jobs, the environment and other salmon farmers in Macquarie Harbour through its “deliberate failure to comply with the biomass limits”.

“We are doing this to protect the reputation of the industry and the long-term sustainability of Macquarie Harbour including the jobs it supports,” she said.

“Tassal cannot continue to ride roughshod over the decisions of the EPA or the other operators in the harbour, including Huon. This behaviour has to stop.”

In an update to the ASX yesterday, Mr Ryan said he was “correcting misleading errors cited in today’s Huon Aquaculture market release.”

Mr Ryan clarified that Tassal was not in breach of any EPA biomass determination for Macquarie Harbour, the EPA had possession of Tassal’s current production and biomass numbers and the company had approval to trial the waste capture system.

Mr Ryan said Tasmania’s three salmon farming firms — including Petuna Aquaculture — had historically worked collaboratively and “getting back to that position is critical”.

Mr Ford yesterday reissued the biomass determinations provided to Tassal for Macquarie Harbour from June 1 2017 to May 31, 2018.

EPA communications co-ordinator Sarah Graham said the information was reissued “to avoid any doubt as to the intent of the determinations”.

On May 5, Mr Ford advised Tassal the draft biomass determinations of 13 tonnes per ha was to be based on a combined total lease area of 280ha for the lease numbers 214, 219 and 266.

“This intent was clearly conveyed to Tassal at the time of making the determinations ... to make the legal instrument clearer, it has now been re-issued,’’ Ms Graham said.

Environment Tasmania strategy director Laura Kelly welcomed Huon Aquaculture’s legal action and called on Premier Will Hodgman to “end the salmon wars”.

“If he refuses to act, Premier Hodgman will be remembered as the Premier who signed off on endangered species extinction, and damage to Tasmania’s brand,” she said.

Primary Industries Minister Jeremy Rockliff said he did not comment on legal action taken by private companies but would continue to work with the industry.

Tassal shares were down 4.27 per cent at the close of trade yesterday and Huon’s had fallen 1.76 per cent.