Norco Co-operative has confirmed it will proceed with standing down about 170 workers at its Lismore ice-cream factory next Friday, even though it has been offered almost $35 million under the federal–state Anchor Business Support Grants Program. The co-operative says the money falls well short of the $141.8 million it estimates the floods have cost and does not support any of the three project options it put forward. Without a broader funding solution, it has warned that up to 240 jobs could be permanently stripped from the Lismore community.
The factory sits on the banks of the Wilsons River and was smashed by floodwaters earlier this year. Initial repair estimates were put at $70 million, but Norco now says restoring the site to its pre-flood condition, paying for clean-up and damage, replacing inventory, covering workforce costs, and carrying out further flood-mitigation works have driven the total bill much higher. The stand-downs come as the government wage support that has kept the 170 workers on the books for the past 10 weeks runs out at the end of next week.
Grant Falls Short of Rebuilding Costs
Norco declined an interview with the ABC, but in a statement said the grant offer 'falls well short' of what is required and that none of the three mission options it submitted as part of its application were supported. The co-operative estimated the total cost of the flood to Norco at $141.8 million, covering the restoration of facilities to how they were before the floods, clean-up and damage, inventory and workforce costs, and further flood mitigation works.
The Anchor Business Support Grants Program is worth almost $60 million and was designed to keep some of the Northern Rivers' larger employers in the region. About three-quarters of the money comes from the Commonwealth, with the NSW government contributing $15 million. Norco was an early beneficiary, receiving two tranches of Commonwealth funding that allowed it to keep paying factory employees: $5.7 million in March and further funding in July that enabled 170 workers to be retained for an extra 10 weeks. That bespoke financial wage support funding ended on September 23, and the broader grant offer now on the table amounts to more than half of the entire program's pool.
Stand-Downs to Go Ahead
Despite the rescue package, Norco has confirmed it will go ahead with plans to stand down the 170 ice-cream factory employees next Friday. Management told staff that all major financial decisions needed to be fully ratified by the board before a formal announcement could be made regarding the factory's future.
Brad Pidgeon from the Australian Manufacturing Workers' Union said the union was seeking urgent meetings with Norco management. 'We have requested a meeting with Norco next Thursday, even though it is a public holiday,' he said. The union also plans to hold a mass meeting for all staff the following day. Many of the 170 employees are temporarily working at other local organisations while awaiting clarity on whether the stand-downs will become permanent.
Political Response and Regional Stakes
Nationals federal member for Page Kevin Hogan lobbied for funding to support Norco in the weeks following the floods. He would not be drawn on what the latest funding offer might mean for the co-operative's future in Lismore, saying he did not want to pre-empt Norco's response. However, he said he was concerned for the future of the 170 ice-cream factory workers still employed by the co-operative.
'I'm sure they feel quite anxious about their livelihoods and their jobs as they should,' Mr Hogan said. 'But I don't want to pre-empt Norco's response because I haven't officially spoken to them.' He added that if more money was needed, 'that needs to happen.'
The stand-downs carry significant weight for Lismore and the Northern Rivers. Norco is one of the region's largest employers and losing up to 240 jobs would deepen the economic scars left by the floods. Federal Minister for Emergency Management Murray Watt and NSW Deputy Premier Paul Toole both declined interview requests on Tuesday.
Other Anchor Program Recipients
While Norco has criticized its offer, other successful applicants have welcomed the funding announcement. Sunshine Sugar, whose Broadwater mill was engulfed by floodwater earlier this year, has already spent $44 million repairing all three of its flood-damaged mills. Chief executive officer Chris Connors said the $12.6 million grant had come at a critical time and would help cover a shortfall in insurance cover.
'We need these funds to keep ourselves viable,' Mr Connors said. 'We have spent the money and it is pretty tight, but with this grant now, things are going to be much easier for us.'
Other organisations offered support under the program include North Coast Petroleum ($4 million), the Williams Group Australia ($3.6 million), the Multitask Human Resource Foundation ($3.3 million), and welfare group Social Futures ($900,000). The successful applicants have 14 days to respond to the offers.
Key Takeaways
Norco estimates total flood cost at $141.8 million; the grant offer is nearly $35 million, leaving a large shortfall.
170 ice-cream factory workers will be stood down next Friday when interim wage support expires.
Norco says without another solution up to 240 Lismore jobs could be permanently lost.
The AMWU has requested an urgent meeting with Norco and plans a mass staff meeting.
The Anchor Business Support Grants Program is worth almost $60 million and includes Commonwealth and NSW contributions.
Other Northern Rivers employers, including Sunshine Sugar, have welcomed the grants.
What this means
The stand-down decision highlights the widening gap between disaster-recovery grants and the real cost of rebuilding flood-resilient industry in the Northern Rivers. For Norco, the near-$35 million offer is not enough to bankroll the repairs, mitigation and working capital needed to restart its Lismore ice-cream factory at scale. For the 170 workers and their families, the next two weeks will be pivotal: if Norco's board cannot find a viable path forward or secure extra support, the temporary stand-downs risk becoming permanent redundancies. The outcome will also test whether the Anchor Business program, while helping some employers such as Sunshine Sugar, can ultimately anchor the region's biggest dairy processor in Lismore.
Originally reported by ceesty.com. Adapted for our readers with AI assistance.
