NSW Government stands by decision to not renew NORCO contract

Member for Coffs Harbour Gurmesh Singh spoke in NSW parliament last Wednesday night.

LAST Wednesday in parliament NSW Nationals Deputy Leader Gurmesh Singh moved a motion calling on the State Government to overturn a decision which removed Norco milk products from Mid North Coast and Northern NSW health district facilities.

A longstanding contract between Norco and the local health districts was not renewed in August after a government procurement process, with the new tender won by Bega Cheese Limited.

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The decision drew intense criticism from local dairy farmers and local political representatives.

The tender was awarded by HealthShare NSW, which manages the NSW Government food services contract.

“I know that this might seem to some like a trivial or minor issue, but on the North Coast we’re very proud of organisations like Norco who have been the backbone of our communities for over 127 years,” Mr Singh said.

“We understand this decision wasn’t made based on price or value, but was instead made by a faceless bureaucrat within the department.”

Mr Singh was joined by a chorus of Nationals politicians in parliament last week voicing their displeasure with the decision, including Oxley MP Michael Kemp and Clarence MP Richie Williamson.

“Stripping Norco milk from our local hospitals is nothing short of a brutal kick in the guts,” Mr Kemp said.

“In my electorate of Oxley, there are dairy farms in Bellingen, Dorrigo, Nambucca, the Macleay Valley, the Hastings Valley and Comboyne.

“Every bottle of milk represents the sweat, tears, dedication and pride of local families, who are now struggling to understand how the Government is supposed to support them.”

Mr Kemp emphasised the environmental and economic benefits of supporting the local dairy industry.

“Supporting local dairy means supporting sustainability, with fewer emissions and less wear and tear on our roads.

“The carbon cost of trucking milk from Victoria, to a processing plant in Brisbane and back to NSW is outrageous and would be the ultimate hypocrisy possible,” Mr Kemp said.

Mr Kemp further criticised the Labor Government for not adhering to its local content policies.

“The Minns Labor Government claims to back companies in NSW with its local content policies but its actions tell a different story.

“These are not just faceless farmers, they are our neighbours, our friends, and the backbone of our regional economy.”

“I wonder whether the fact that 100 percent of Oxley’s dairy farms supply Norco is even considered by the bureaucrats making the city-centric decisions.”

Despite a petition and pressure in parliament, the Labor Government shows no sign of reversing the decision.

During last week’s public interest debate, Labor Member for Heathcote Maryanne Stuart moved to amend Mr Singh’s original motion, removing any mention of reversing the Norco decision.

The amendment passed by five votes.

Mr Singh said he was “very disappointed” by the amendment.

“Typically, the Labor Party is again putting politics and Sydney bureaucrats ahead of our communities on the coast.

“While I thank the Government members for supporting Norco and saying the words, and supporting our communities and again saying the words, we need some action now.”

Ms Stuart, defending the government’s decision on the Norco tender, said an “open and competitive procurement process was undertaken”.

“The tender was released on 31 August 2023.

“All existing suppliers were invited to submit a tender.

“To ensure the decision-making process was based on merit and fairness, only suppliers that fulfilled all mandatory tender requirements were able to progress through the tender.

“An extensive procurement process was undertaken over eighteen months.”

Oxley MP Michael Kemp mentioned the impact of the Norco decision on dairy farmers in Comboyne.

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