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TasFarmers has raised concerns about governance issues surrounding the proposed sale of Rushy Lagoon. File.
TasFarmers has raised concerns directly with members of the Federal Coalition’s Regional and Rural Affairs Committee about governance issues surrounding the proposed sale of Rushy Lagoon and the ongoing Foreign Investment Review Board assessment.
During a recent meeting with Federal committee members, TasFarmers outlined concerns about potential conflicts of interest and the growing impact of uncertainty on confidence in Australia’s foreign investment framework.
TasFarmers CEO Nathan Calman said another extension of the FIRB review had intensified community scrutiny of the process, particularly given reports of overlapping governance roles and potential government financial involvement in the project.
“We respect the role of the Foreign Investment Review Board and the importance of an independent assessment process,” Mr Calman said.
“Our concern is that public confidence in that process can be undermined where there are real or perceived conflicts that have not been clearly addressed, there is no transparency, and the community has expressed there is no social licence for the sale of Rushy.”
TasFarmers highlighted concerns about overlapping governance roles between the Clean Energy Finance Corporation and the Foreign Investment Review Board, including reports that the Chair of the Clean Energy Finance Corporation also serves as a director of FIRB.
“If these governance arrangements are not being managed transparently, they risk undermining confidence in both institutions,” Mr Calman said.
“Farmers, regional communities and the broader public deserve confidence that investment decisions are being made independently and solely in the national interest.”
TasFarmers also raised concerns about reports that government-backed equity may be part of the project’s financing arrangements.
“If government entities have a financial interest in the project while government agencies are responsible for assessing the transaction, there must be absolute confidence that appropriate safeguards are in place,” Mr Calman said.
“Even the perception of a conflict can damage trust in the process.”
Community concern has intensified following a further extension of the FIRB review and widespread speculation within north-east Tasmania about preparations for the property’s future use.
“There are persistent rumours that significant planning activities may already be underway ahead of a final decision,” Mr Calman said.
“We cannot verify those claims, but they are contributing to a perception within the community that this is a done deal.”
Mr Calman said TasFarmers’ message to committee members was simple.
“This is about maintaining trust in Australia’s foreign investment system,” he said.
“Whatever the final decision, regional communities need confidence that it has been reached in a fair, transparent way and free from conflicting interests.”