THE Victorian Farmers Federation has described it as a “major win” for farmers, but Nationals Senator Damian Drum has described a $200 million rural infrastructure fund as a “dud”.
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The state government announced the Agriculture Infrastructure and Jobs Funds on the weekend, designed to improve access to markets for farmers while also providing funds to asset owners.
The fund is reliant on the sale of the Port of Melbourne, estimated to bring in between $5 billion and $6 billion, with the amount likely to rise in the coming years.
The terms of the sale has been a source of contention among the opposition, the Victorian Farmers Federation and the Greens.
Mr Drum said he had a number of concerns about the proposal.
“Which ever way you look at it, it’s a bad deal for country Victoria,” he said.
“To put a private operator in control of a monopoly for 70 years to set their own rates the Port of Melbourne is going to be a disaster.
“It’s not just going to be bad for current day farmers, but it will be worse for their children and grandchildren as well.”
The Bendigo Advertiser understands VFF commodity groups are meeting today to further discuss the deal.
The Coalition and the Greens will establish an inquiry into the privatisation of the Port of Melbourne, and the legislation is unlikely to pass through the Senate in its current form should they oppose any aspects of the deal.
The government has also promised to fund the Murray Basin Rail project, with the funding expected to come from the sale of the state-owned Rural Finance, completed under the previous government.
Mr Drum said improving access to markets – one of the core parts of the $200 million fund – could just mean improving road infrastructure around Altona.
He said it was an attempt to “blackmail” the state’s farmers to support the sale.
“In reality, it’s the same amount as removing less than one level crossing in Melbourne,” he said.
“I see it as an attempt to buy off the VFF. They were reluctant to support this deal.
“As part of an inquiry, I hope I will be able to have a look at and understand the finer details.”
Having publicly questioned the sale in the past, the $200 million fund appeared to win over the support of the VFF.
President Peter Tuohey said the fund was a hard fought win for farmers and provided a “fair share”.
“The Labor Government has listened and delivered on our call for a fair share of the estimated $5 billion in revenue from leasing the port to be re-invested in rural infrastructure,” he said.
“The VFF has given its support to the sale on the condition the State Government ensures theses issue are addressed and the port remains competitive.”
Bendigo’s two lower house MPs Jacinta Allan and Maree Edwards praised the fund as “providing concrete benefits” to farmers in central Victoria.
Minister for regional development Jaala Pulford said the fund would provide “concrete benefits to the many thousands of hard working farmers in western Victoria”.
The bill will be debated in parliament on Tuesday.
