The Albanese Government is considering a multimillion-dollar support package for SunRice operations in the NSW Riverina, following concerns over planned job losses at the company’s mills and direct discussions involving Prime Minister Anthony Albanese and One Nation MP David Farley.
SunRice recently announced plans to cut 78 jobs and restructure a further 92 positions across its operations in Deniliquin, Leeton and Australian Grain Storage, prompting fears about the impact on workers, families and regional communities.
Government
The company has linked some of the pressure on its Riverina operations to water policy settings, arguing that reduced access to irrigation water has affected rice production volumes and placed additional strain on the local industry.
SunRice chief executive Paul Serra said when announcing the restructuring that the company would continue lobbying governments over what it considers the negative consequences of water policy for rice growers and processors in the region.
The planned cuts have become a significant political issue, with Farley, the federal MP for Farrer, pushing the government to provide financial assistance to help protect jobs and maintain SunRice’s manufacturing presence in the Riverina.
Speaking on ABC’s Insiders on Sunday, Farley said he was encouraged by the progress of discussions with the federal government and revealed that Albanese had personally raised the issue with him.
Farley said the Prime Minister approached him at a Governor-General’s event earlier in the week and indicated that he was aware of the concerns surrounding SunRice and was working on a possible solution.
Food Production
The two politicians also discussed the issue again after leaving the House of Representatives chamber, according to Farley, including how a government support arrangement could potentially be structured.
Farley praised the Prime Minister’s willingness to engage directly on the matter, saying he was satisfied with the direction of the negotiations so far.
Although no final funding arrangement has yet been publicly confirmed, Farley said he had previously urged the federal government to match approximately $15 million in industry investment to support upgrades at the Riverina facilities and help prevent the loss of 78 jobs.
The issue has also renewed debate over the federal government’s water buyback policy.
Critics of the scheme, including Farley, argue that purchasing water entitlements for environmental purposes can reduce the volume of irrigation water available to farmers, affecting crop production and placing pressure on agricultural businesses.
Jobs
Farley said producers in the region were concerned that current policy settings could place too much emphasis on environmental outcomes without giving sufficient consideration to food production and national food security.
He said both objectives should be pursued together, arguing that Australia needs both a healthy environment and a strong, affordable and reliable food supply.
The federal government, however, has indicated that discussions over support for SunRice are still at an early stage.
A spokesperson for Environment Minister Murray Watt confirmed that the government had received a verbal proposal from SunRice relating to possible new investment in packaging facilities in the Riverina.
The spokesperson said the government had informed relevant parties that it would consider participating in the investment once a formal proposal was submitted.
That means no final co-investment package has yet been approved, despite growing expectations that government assistance could play a role in protecting regional jobs and supporting the future of SunRice’s Riverina operations.
Executive Branch
The proposed restructuring has wider implications for the communities of Deniliquin and Leeton, where agriculture and food processing remain major sources of employment and economic activity.
Any reduction in SunRice’s workforce could have flow-on effects for local families, suppliers, farmers and other businesses dependent on the regional rice industry.
With discussions continuing between SunRice and the federal government, attention will now focus on whether a formal investment proposal is lodged and how much support Canberra may ultimately be prepared to provide.
For workers facing redundancy and communities concerned about the future of one of the Riverina’s most important agricultural businesses, the outcome of those negotiations will be closely watched.
