Procesesor hits out at ‘unfair’ State Government grant for rival business

THE State Government’s $348,000 grant to help establish a new live lobster holding facility in Beachport has caused unrest among Limestone Coast cray exporters, with Sky Seafoods owner Andrew Lawrie labelling it as “unfair”.

The Limestone Coast Fishermen’s Co-operative – a 25 strong group of fishers and processors from the region’s coastal communities – was announced as a successful recipient of the Regional Growth Fund.

The grant will help fund a new $600,000 facility which will allow lobsters to be held and processed in Beachport rather than transported distances of up to 180km to be prepared in Port MacDonnell.

But Mr Lawrie, who is Robe’s sole live lobster exporter, expressed disappointment at the State Government for “using taxpayers funds to help set up a business that is in direct competition to eight other businesses in the South East”.

“To me the whole reasoning of the grant is incorrect because they are financing competition,” he said.

“The co-op are not reinventing the wheel – they are just doing what other family businesses have done for years.

“We started Sky Seafoods in 1997 and we put our hands in our pockets and used loans and mortgages to get going.

“I am not disappointed in competition, but I am disappointed in the way the government is assisting that competition.

“It is an unfair grant.”

Mr Lawrie said he was not alone in his concerns.

“Our business will be directly affected because those 25 lobster licences will no longer be available to buy lobster from because they will be selling to their own co-op,” he said.

“The co-op are getting an unfair advantage because they have direct access to the resource, while we have to buy it.

“The other eight exporters might find it a little bit harder.”

Member for MacKillop Nick McBride said he had raised the region’s lobster processors concerns with Primary Industries and Regional Development Minister Tim Whetstone.