Clarence Valley Environment Centre
Local Issues

Fruit Australia Fiasco

 

While doing research for TAFE assignment on problem soils, I stumbled across the background information on the Orara River Horticultural Development. Even though I lived in the area at the time I had no idea of the extent of the problems this particular venture presented.

Fruit Australia began developing land in the Kungala/Halfway Creek area on a massive scale shortly prior to 1986. Under the name of Johnson Farm Management they applied to the Ulmarra Shire Council to rezone their land from 40 hectare rural blocks to 10 hectare horticultural lots. The new zoning was the only one of its type in Australia at the time according to Fruit Australia's Managing Director, Mr J Shani. The aim of the company was not to operate solely as a viable agricultural interest, but to try to give income to its Investors'.

There were several ways of giving income.

  • Firstly, there were tax deductions in setting up the orchard as a going concern.
  • Secondly, the land was a future asset, (which existed according to Mr Shani) near an area that will be the Gold Coast of NSW, namely Coffs Harbour. Finally, there was the income from the trees themselves. At one time there were 800 hectares of fruit trees under irrigation and the company was applying for a Water Licence to irrigate a further 350 hectares.

So the idea was to sell the 10ha blocks to investors (mainly from the cities) as a Tax Advantage, and use the funds to establish the fruit orchards, which were then managed by a management company. All blocks were sold with irrigation pipes in place, with the promise of a permanent water supply.

At the time, several people including rate payers, concerned residents, conservationists and farmers questioned the development and made various representations.

Land degradation was a main concern, as was the state of the Orara River and the heavy use of the pesticide Malathion and Endosulphan (the spray programme consisted of up to 22 applications, per tree, per year!).

No E.I.S. had been done before the land was cleared, apparently, not necessary for Agricultural Projects.

To make a long story short the Management Company collapsed, most long distance investors have left their lots go to waste, and the resident investors are struggling along without adequate water supplies (due to the fact that most of the pumping equipment has been removed or become defunct some time ago). Furthermore, most residents now live in illegal dwellings as Building Approval is only granted in conjunction with a viable horticultural pursuit.

Of the initial 96 subdivided lots only a handful of owners have actually managed to establish viable orchids (mainly persimmons and mandarins). There is a lot of evidence of failed orchards... there are about 800 vacant lots!

Ulmarra Shire Council is now in the process of investigating approaches to integrated conservation and agriculture in the area. This involves protecting some of the vegetated areas, testing for soil contamination, running property planning workshops and exploring sustainable agricultural or forestry alternatives. Workshops have been organised with local residents to gauge interest and receive constructive input.

At the first workshop it was quite clear that most locals were more interested in receiving Development Approvals for their dwellings than anything else.

However... the Council is persevering with their workshops and it is hoped that a solution can be found in this Catch 22 situation.

 

K.K.

 

 

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