A political row has erupted over a decision by HealthShare NSW to award a statewide milk supply contract to Dairy Farmers, replacing local farmer-owned supplier Norco.

Federal Member for Page Kevin Hogan released a statement today blaming the Labor State Government for the decision to dump Norco from local hospitals.

“Norco has been the long-standing milk supplier for health facilities from Tweed Heads to Port Macquarie,” Mr Hogan said.

“This is a shameful decision. Norco has been quietly dumped by city bureaucrats that have complete disregard for our community and more broadly, regional Australia.

“Norco is more than just a milk supplier. It is the last Australian 100 per cent farmer-owned co-operative which has produced high-quality dairy products for generations within the local community.

“This could have real consequences, including potential job losses and reduced income for the 191 farming families and hundreds who work for our local co-operative.

“Labor doesn’t get or care about our regional communities.”

Member for Lismore Janelle Saffin told the Lismore App, "I've talked to the minister and said that I want the decision reversed. We need to have Norco supplying our milk, particularly across the northern New South Wales local health district.

"I said to him the coalition government tried this on before, and it took quite a few months of a concerted campaign by the Health Services Union, and we got it back. I said that's what we're fighting for now.

"I know a petition's gone up now that will come to me at Parliament. I hope everybody signs that e-petition. I've been reading the comments about blaming the Labor government, I didn't see the Health Minister sitting in the Health Department signing off on contracts. However, I have asked him, as the minister, to intervene so that we can continue to have Norco delivering our milk.

"There will be no impact on jobs in this area; it has happened before. I also said, we're in recovery, and it's just a blow. We love Norco. We want Norco there. Also, didn't the health district, the health people look at a bit of history and see what had happened before? Didn't they think about the fact we're in recovery and how much we did to keep Norco with us?

A spokesperson for HealthShare NSW told the Lismore App that HealthShare NSW manages the NSW Government food services contract.

"An open and competitive procurement process was undertaken with the tender for this contract being released on 31 August 2023.

"The NSW Government considers a range of factors when awarding tenders, including support for small to medium enterprise, sustainability credentials, location (i.e. regional and rural), Aboriginal-owned businesses and other socio-economic priorities.

"All existing suppliers were invited to submit a tender. To ensure a traceable decision-making process based on merit and fairness, only suppliers who fulfilled all mandatory tender requirements were considered during this procurement process.

"HealthShare NSW works closely with suppliers and potential suppliers throughout any tender process. Any suppliers who have submitted a tender and been unsuccessful are able to participate in a debrief where feedback on their tenders is provided.

"All NSW Health tenders are managed in accordance with strict procurement guidelines and probity measures, including a robust tender evaluation process with wide representation from relevant NSW Health stakeholders."

Ms Saffin made a comment on the statement from HealthShare.

"I would say I understand. They said they wanted it supplied across the whole state, and that's changing the goalpost as I see it. And, things like that need to be run past us. I've seen health do this in another area where they gave a contract to someone who is a big company and knocked someone out locally. So it's not the first time they've done it."

Ms Saffin referred to the Health Services Union leading the call for reinstating Norco previously. A couple of hours after making her statement, the Health Services Union backed the campaign by calling on the NSW Government to intervene to prevent the farmer-owned NORCO milk company from being shafted as a supplier of milk to health facilities across the North and Mid-North Coast.

“NORCO is more than a beloved local institution,” said Gerard Hayes, HSU NSW Secretary. “As Australia’s last 100 per cent farmer-owned dairy co-operative, it also provides economic lifeblood to hundreds of families in a region that has experienced the double whammy of floods and the cost of living crisis.

“Why would we cut this off at a time like this?

“NORCO is a trusted local company with deep roots. The dairy industry has played a huge role in the Northern Rivers for many years. We’ve even heard reports of patients refusing to drink the hospital milk unless it’s NORCO.

“Health workers want this decision overturned. We insist on local milk in hospitals and health facilities throughout the Northern Rivers and the North Coast.”

As was the case in 2018, we wait to see how long it takes for the reversal to take place. You can sign the petition here.