Independent Member for the seat of Murray, Helen Dalton is calling on the NSW Government to take back a $10 million grant it gave to the Chinese textile giant that owns Gundaline station.

“This grant should never have been made, and the Minns Government needs to get our cash back from this company immediately,” Ms Dalton said.

“The $10 million grant was part of the Albanese Government’s Sustainable Communities Program, which is overseen by the NSW Government.

“This program was set up to soften the blow to Murray-Darling Basin communities caused by the Federal Government’s disastrous water buybacks. This money was never meant to become corporate welfare for foreign-owned businesses.

“And why on earth would they choose Gundaline, given its appalling disregard of Australia’s biosecurity laws in the past?

“Surely NSW Agriculture Minister Tara Moriarty is aware of the whistleblowers who previously provided me evidence about illegal biosecurity breaches at Gundaline.

“How on earth could the Minister be giving this business $10 million that should have gone to the rural towns that have lost their water, jobs and young people because of Federal Government water buybacks?

“I am calling on Minister Moriarty to reverse this decision immediately and redirect that money to the locals who desperately need it.”

Ms Dalton said she was also deeply concerned how the Chinese company which owns Gundaline plans to use the large-scale hemp processing plant which would be funded by the $10 million grant.

“I will have much more to say about this in the coming days.

“But for now, I would encourage Minister Moriarty to ask Gundaline what type of seeds they plan to process at this new facility, and where these seeds will be coming from.

“I’ve recently been approached by very credible insiders who are raising serious concerns about this issue.

“Has Minister Moriarty just used $10 million of taxpayers’ money to fund the biggest biosecurity hazard the Riverina has ever seen?

“The money needs to come back immediately.”

According to Hemp Today magazine, the Chinese-backed project by Ausuntech Pty Ltd would be Australia’s first large-scale producer of linen-quality hemp fibre.

“The project would be backed by new equipment, power upgrades and supporting infrastructure,” the online magazine wrote.

“It is currently awaiting planning approvals from the state government.

“Planning documents submitted to state authorities indicate the proposed facility would process up to 20,000 metric tons of hemp annually and produce roughly 4,000 tons of fibre.

“All hemp would be grown on the Gundaline holding, according to project materials.

“The resulting fibre would be baled and shipped to China for downstream textile processing, including spinning and weaving.”

The project is one of two hemp ventures awarded under the Sustainable Communities Program a regional development initiative, with the second grant supporting Murray Industrial Hemp (MIH), which plans to establish a facility to produce hempcrete blocks for the natural building industry.

Murray Industrial Hemp at Barham is a grassroots, locally owned enterprise.

What started as a regional initiative has grown into an organisation that works across farming, research, and industry to establish hemp as a foundation for sustainable products and resilient economies.

“For our area, the opportunity is enormous,” MIH Director Leigh Fletcher said.

“We’re aiming to create a new industry where the product is grown, processed and manufactured right here.

“Irrigators can grow hemp, a different water-efficient crop, and our wider community will benefit from the jobs and economic input from a new manufacturing industry.

“We are so pleased that the NSW Government has seen these opportunities and is willing to back our project.”

Mr Fletcher thanked seed investors and other local supporters for being part of the project.

“We couldn’t have come this far without our seed investors, including the many local families who have invested,” he said.

“We’ve also had great support from local and regional businesses as we have set up governance and business structures.

“And of course, our business was kickstarted by Western Murray Land Improvement Group, who remain a major shareholder today.”

MIH plans to redevelop land on Moulamein Road, once used as a redgum sawmill.

The project will include the installation of hemp decortication equipment (to process baled hemp into hurd, fibre and fines) as well as a hemp brick manufacturing line.

This article appeared in The Riverine Grazier, 24 June 2026.