ABC pic of the abattoit
The future for 100 Tasmanian meat workers is uncertain as JBS Swift announces the immediate closure of its King Island abattoir.
In a statement, chief executive Andrew Nogueira says the abattoir has not been profitable since it was acquired from the Tasman Group in 2008.
The operation faced closure a year later, but in 2010 it was upgraded using a $12 million loan from the State Government.
The company says the meat processing business operates under small margins, and current market conditions are challenging.
JBS will continue processing meat in Devonport and is looking to expand its Longford beef and lamb operations.
The company says it is working with the Government and unions to help workers move to Longford or other processing sites, if suitable.
King Island mayor Greg Barratt says he is shocked by the sudden closure.
Read the rest, ABC Online here
• Richard Colbeck: Abattoir closure: Government’s misguided ideas are closing business, costing jobs
The Gillard Labor Government can no longer ignore the profound impact its policies are having on the
lives of working Australians, according to Tasmanian Senator Richard Colbeck.
Senator Colbeck yesterday expressed regret for the 100 workers potentially impacted by the
announced closure of the JBS Abattoir on King Island.
“This will have a terrible impact on the island,” Senator Colbeck said. “It is a stark illustration of how the
Labor Government’s failures are playing out in regional Australia.”
The company today cited a number of reasons, including power and energy prices for the closure.
“If you criticise carbon tax with this Government you are written off as some sort of flat earther,”
Senator Colbeck said.
“It is time for the ALP to accept that misdirected ideals are contributing to the closure of rural and
regional businesses, and having a devastating impact on the lives of the same people they profess to
represent.”
Today’s announcement follows news last week that Premium Fresh Tasmania went into voluntary
administration with debts of $6.5 million.
Download Hansard:
100912_Minister_has_no_answers_for_King_Island.pdf
• ABATTOIR CLOSURE A SETBACK FOR KING ISLAND
Paul O’Halloran MP
Greens Member for Braddon
Monday, 10 September 2012
The Tasmanian Greens Member for Braddon Paul O’Halloran MP today said that the decision to close the JB Swift abattoir on King Island was a terrible blow for the island’s residents.
“If a new operator can’t be found, the closure of the King Island abattoir will impact on every aspect of life there from the school to the supermarket and everything else in between,” Mr O’Halloran said.
“This will be devastating for the residents and workers, who had been led to believe that Swift would be there for the long haul.”
“For the company to cut King Island beef producers loose so suddenly, and so soon after it put its hand out for government support, is extremely disappointing.”
“King Island’s beef producers have worked tirelessly to create a premium brand based on a high quality product, and this will be a terrible setback for them.”
“It is also likely to lead to a significant increase in transport costs for beef producers, who will now need to ship their livestock to the Tasmanian mainland for slaughter.”
“The first thing we need is a firm commitment that the cheese factory will continue to support farmers on the island, because that will be the only major employer,” Mr O’Halloran said.
• CALL FOR KING ISLAND TASKFORCE
Option for Abattoir Co-Op Needs to be Explored
Paul O’Halloran MP
Greens Member for Braddon
Tuesday, 11 September 2012
The Tasmanian Greens today called for a taskforce to be set up to explore ways to maintain and stimulate employment on King Island, including the option of co-operative ownership and management of the island’s abattoir.
Greens Member for Braddon Paul O’Halloran MP said the closure of the island’s second largest employer was a potentially massive blow for the local economy, and every effort was needed to ensure jobs and skills were not lost.
“The Greens are proposing the immediate establishment of a taskforce to work with locals, along the lines of the one set up following the closure of McCain Foods at Smithton,” Mr O’Halloran said.
“One option that deserves serious consideration is for King Island beef producers to take over the abattoir under a co-operative management arrangement.”
“This option would need to be explored as a matter of urgency before the abattoir infrastructure gets sold off or scrapped by JB Swift.”
“A co-operative has the potential to not only keep jobs and skills on the island, but to deliver any profits directly back into the community.”
“There are examples in New South Wales and Western Australia of co-operative abattoirs wholly owned and controlled by farmers, which have been successful in preserving local jobs.”
“I was on King Island recently where I met with producers including dairy farmers to discuss a whole range of industry challenges, and it’s clear that a more concerted effort is needed to build capacity in the island’s economy.”
“King Island’s beef producers have worked very hard to establish one of the country’s most sought after premium beef products, and it would be a terrible shame for us to lose that.”
