Burnie-based manufacturer Elphinstone Group receives $5m in recent state budget
Blair Richards | The Mercury | June 9, 2023
A multimillion-dollar government grant to a company owned by Tasmania’s top rich lister has raised eyebrows in budget estimates.
The company owned by Tasmania’s richest man directly approached the Premier about a government grant for a new project, a parliamentary committee has heard.
Burnie-based manufacturer Elphinstone Group received $5m in the recent state budget towards a $25m facility to diversify operations and provide opportunities for defence contracts.
In February last year Elphinstone won a $1bn contract to manufacture 45 turrets and hulls for the Australian Army’s new Huntsman howitzers.
During state budget estimates Independent Nelson MLC Meg Webb asked why the grant was needed given Elphinstone was already successfully bidding for federal defence contracts.
“How on earth is that warranted to one private business that’s incredibly successful already, and could well have leveraged that money of its own accord without government assistance?” Ms Webb said.
“Is that something we would expect any other private business to come to government with a handout to get?”
Advanced Manufacturing and Defence Industries Minister Madeleine Ogilvie said the government was a keen supporter of advanced manufacturing.
“I think it’s absolutely reasonable to make sure we, as a state government, stand with and alongside these businesses that do that work,” Ms Ogilvie said.
Department of State Growth secretary Kim Evans confirmed Elpinstone Group had initially approached the government.
“It’s my understanding that the initial approach by the Elphinstone Group came directly to the Premier who asked us to engage with Elphinstone and assess the merits of their proposal,” Mr Evans said.
Ms Webb said the process around the grant was “appalling”.
“Yet again we’re seeing another example where somebody, because they know the right people and can go and knock on the door or pick up the phone, and ask for a bit of help. This is corporate welfare, plain and simple,” she said.
