UNITED Dairyfarmers of Victoria president Adam Jenkins has questioned the State government's new agriculture infrastructure fund, asking for guarantees the Port of Melbourne lease will not leave producers worse off.
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Victorian Farmers Federation president Peter Tuohey welcomed the $200 million Agriculture Infrastructure and Jobs Fund to be paid for by the port lease.
But Mr Jenkins said questions remained over both the lease and fund.
"There are two issues, the first is around the economics and efficiency of the port; UDV will support the lease, if we are guaranteed we are not worse off," he said.
"We, as a dairy industry, don't want added costs – which need to be absorbed by the farmer, consumer and supply chain – without getting greater efficiency and throughput."
The fund was a separate issue, as farmers needed more detail as to where the money would be spent.
"$200 million, over the life of the lease, is not substantial enough," Mr Jenkins said.
"We need the details, how did they come up with $200 million and what projects are they allocating it to?" he said.
Mr Jenkins denied his position put the UDV at odds with parent body the VFF, which endorsed the fund.
Mr Touhey said the government had listened to the VFF and delivered a fair share of the estimated $5 billion to come from the lease.
He said the VFF had also raised concerns on ensuring the sale of the port lease delivered equity, access and competitive pricing.
And VFF grains group president Brett Hosking said the government must ensure the lease terms and conditions enhanced the port's competitiveness.
"If we are going to get maximum value, we have to look at automation and the way we set pricing – it's not just an issue of capping fees and charges, not just at CPI, but less than CPI," Mr Hosking said.
Premier Daniel Andrews called on the opposition to support the lease.
"Leasing the port will create thousands of jobs, help remove our most dangerous and congested level crossings, and support our farmers," he said.
"The time for Coalition excuses is over, they should keep their promise and support the legislation," he said.
But the Nationals described it as "an attempt to bribe regional Victorians with the scraps off the table".
"It's a dud deal for country Victoria; we can't support a deal that will see just 3 per cent of the money raised from the Port of Melbourne sale spent in regional Victoria," Deputy Nationals leader Steph Ryan said.
