Singleton station horticulture project unrealistic, overstated and won’t benefit Territory: New report | NT Independent

Singleton station horticulture project unrealistic, overstated and won’t benefit Territory: New report

by | Jul 12, 2022 | Business, News | 0 comments

A proposed massive horticulture project at Singleton Station will not provide the economic benefits for the Territory the company behind the project has claimed, a new study by a University of South Australia water economics professor has found.

The study, commissioned by the Central Land Council, was led by professor Jeff Connor who found Fortune Agribusiness’s Singelton project is too dependent on a massive public subsidy of free water estimated to be valued at between $70 million and $300 million and carries significant negative ecological, cultural and social costs that have not been properly considered.

The report also cast doubt on the company’s job projections of 110 permanent and 1350 seasonal jobs, suggesting a more realistic projection would be between 26 to 36 full-time equivalent jobs for Territorians, with just five to eight of those jobs going to Indigenous workers in the Barkly region.

“[The Singleton project] seeks the allocation of a large volume of water free of charge in return for employee benefits which are largely illusory, especially [with] regards [to] the creation of full-time jobs for local indigenous workers,” Prof Connor said in a statement.

Contrary to claims made by Fortune Agribusiness that the Territory will reap $110 million in annual economic benefits, the study found the realistic estimate would be only around $13 to $28 million annually.

An analysis of prices paid for water on other Australian projects, the report estimated the value of free water subsidy provided by the NT Government to Fortune Agribusiness at between $70 million to $300 million.

The study’s findings were peer-reviewed by professor Quentin Grafton of the Australian National University who agreed that the free water subsidy meant the NT is giving away “in the order of $250 million” which “is not justified from either a public interest or a cost-benefit perspective”.

Central Land Council chief executive Les Turner said the study raised serious questions about Singleton’s economic, social, cultural and environmental outlays.

“Not only has the project failed the economic benefits test, but it has also neglected to account for the damage it would do to Aboriginal communities and country,” Mr Turner said.

He added that the CLC will stand with traditional owners opposing the government’s decision to supply Fortune Agribusiness with the 40 gigalitres of groundwater annually for the next 30 years.

“We are talking about emptying Sydney Harbour twice, about giving away water worth hundreds of millions of dollars,” he said.

Company maintains its projections are ‘based on a series of detailed studies’

When contacted on Tuesday, Fortune Agribusiness said they were “unable to respond properly” to the study’s findings because they had only just received it and were not notified about the study or contacted by the university to provide any “relevant details” of its proposal.

“Fortune Agribusiness’s current business case for the Singleton farm is based on a series of detailed studies by leading Australian professionals in the areas of agronomy, farm management, horticulture, farm processing, market analysis, logistics, water management, ecology and many other disciplines,” the company said in a statement.

“These studies demonstrate the economic feasibility of the farm.

“Our current projections around employment numbers, revenue, and opportunities for NT businesses are well founded and based on the above studies, and we stand by these.”

The company added that the Singleton project is based on irrigated horticultural production which will “not only deliver more revenue, but also require 10 to 20 times more employment opportunities, compared to the same volume of water used for broadacre farming”.

The CLC study also concluded that the Territory Government missed proper consultation with Aboriginal communities reversing its guidelines on Closing the Gap and the Everyone Together 2019-2029 Strategy, as well as its obligations under the National Water Initiative.

Fortune Agribusiness said it was committed to working with traditional owners through the CLC to provide “major new employment and business opportunities” in the Ali Curung and Tennant Creek region.

Singleton Station is 294,900ha and is located in the Western Davenport region of the Territory. The station was acquired in 2015 by Fortune Agribusiness Funds Management.

The horticulture project would see the proposed development of 3,500 ha of “intensive” irrigated horticulture to be established on Singleton Station and will be established through staged development over eight years. It would produce a “wide variety” of fruits and vegetables including grapes, melons, mandarins, avocados and onions. The company has previously stated the produce would be sold nationally and internationally.

Ads by Google

Ads by Google

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

0 Comments

Submit a Comment