Mr GEORGE (Lismore) [6.43 p.m.]: I again raise concerns about the problems experienced by the Northern Co-operative Meat Company at Casino. On 21 October I asked a question in the House about Casino Abattoir retrenchments. The Minister for Local Government, Minister for Regional Development, and Minister for Rural Affairs made some statements in his answer which I would like to clarify. He said that the total job losses of the Northern Co-operative Meat Company to this stage are 99. He also stated:

I have been advised by my department that recent engineering changes and the upgrade of the killing floor have not been successful; in fact, they have limited the abattoir’s capacity.

The number of retrenchments stated was not correct. There have been 50 retrenchments to this day. In February this year 50 employees were retrenched. However, many of them were re-employed when a flush of livestock numbers occurred at the co-operative, which purchased the Lismore abattoir and transferred the livestock to Casino. I have been to the abattoir in the last few weeks and I know what I have seen. I certainly do not agree that the engineering changes have not been successful.

In fact, the halal stunning area is now completed. The co-operative will move on to the next stage of commissioning and testing of the system. The entire upgrade has been very complex and has been carried out during normal operations. What has limited the production levels is the consequences of the Government’s assistance to Grafton. In no way is that a reflection on the owner of Grafton abattoir. He is the innocent party in the argument. By assisting one operator the Government has had a big impact on Casino.

As I have said before, this argument is not about the support given to Grafton. On one side of Casino is Grafton, which is being supported, and within two hours are many abattoirs in Queensland. For approximately the same number of employees and meatworks the premium for workers compensation in New South Wales is $18 million and in Queensland it is $11 million. Payroll tax in New South Wales is $12 million and in Queensland it is $8.6 million. Applying those figures to Casino alone, the difference is $1.7 million. That is the disadvantage suffered by New South Wales competing with Queensland opposition only two hours away. The Government supporting the abattoir at Grafton is creating an unlevel playing field.

The argument is not about Grafton; it is about industry surviving in New South Wales. I am very concerned about where the Casino abattoir is heading. The Minister has offered assistance but, unfortunately, it is not the type of assistance that is needed at this moment. I encourage the Minister to come to Casino to visit the plant. Officers of his department have been there, as stated in the Hansard of last week. Unfortunately, they have given him the wrong advice about what the problems are at Casino. I officially extend an invitation to the Minister to see the problems at Casino first-hand.