Three-year payroll tax break offered to dissuade US company JR Simplot from shutting down Bathurst plant

This article is more than 7 years old

This article is more than 7 years old

A multimillion-dollar rescue package has been offered to the makers of the Chiko Roll, who are considering closing down a New South Wales factory where the greasy treat is produced.

US company JR Simplot says it is reviewing the viability of three of its Australian operations because of "competitive pressures" in food processing and manufacturing, the NSW deputy premier, Andrew Stoner, said.

The NSW government has offered a three-year payroll tax break to the Bathurst factory where the uniquely Australian snack is produced, in the hope this will dissuade the company from closing it down. The factory employs 195 people.

A spokesman for Stoner could not provide exact figures about the rescue package but told Australian Associated Press it was "a pretty substantial amount ... in the millions of dollars range".

The money JR Simplot saves in payroll tax would be used to "make operations at the plant a little more environmentally cost-effective", the spokesman said.

This would involve, among other things, using renewable energy where possible.

Lean Cuisine, Edgell, Birds Eye, Leggo's and John West products are also made at the Bathurst plant.

JR Simplot runs a number of food processing operations in Australia.

The company is also examining whether it will keep a factory at Devonport, in Tasmania, and a third undisclosed factory going.

Stoner's spokesman believed the tax break would be accepted by JR Simplot's board and the Chiko Roll would continue to be produced.

The move has been applauded by the peak agricultural body NSW Farmers, which says many local vegetable farmers sell their goods to JR Simplot.