State Govt moves to establish Parliamentary Inquiry into Rushy Lagoon

The State Government has announced that it will move to establish a Parliamentary Inquiry into the sale of Rushy Lagoon.

The sale of the 22,000 hectare property in north-east Tasmania - Tasmania's biggest farm - has been the source of significant controversy over its $69 million Federal Government back sale to a foreign corporation planning to convert a large part of the farm to pine plantation, generating carbon credits. More recently it was revealed that the firm behind the purchase also received an $8.8 million pine plantation grant.

According to Premier Jeremy Rockliff, the proposed Select Committee will inquire into matters including the influence of Commonwealth funding on the sale, the extent to which Commonwealth funding facilitated the conversion of productive agricultural land in Tasmania to carbon sequestration, and the transparency around the process.

Premier Rockliff said the Federal Government’s role in funding and approving the sale of Rushy Lagoon needs further scrutiny.

"Rushy Lagoon has long been recognised as one of Tasmania's premier agricultural enterprises, supporting jobs, regional economic activity and food production," Premier Rockliff said.

"Our Government is a strong supporter of the forestry industry, however, there is genuine community concern about the implications of this sale, how it happened and what it means for productive agricultural land across our State.

"Tasmanians want confidence that strategic farming assets will remain available to support food production, regional communities and future generations of farmers.

"The Parliament has an important role to play in this - it is incredibly serious for the future of Tasmania."

​Minister for Primary Industries and Water, Gavin Pearce, said we have been working with and listening to TasFarmers and the broader agricultural community.

"TasFarmers, producers and regional communities have been very upfront about their serious concerns about the future of this highly productive agricultural land," Minister Pearce said.

"We need answers to questions about the impact on food production, agricultural employment, regional investment and opportunities for future agricultural ownership.

“There are serious questions that need serious answers, and it should be a line in the sand for Labor - will they keep running protection for their overlords in Canberra?

With the Liberals holding only 14 votes in the House of Assembly, the inquiry will likely need the support of the Tasmanian Labor Opposition in order to go ahead.