A $500,000 State Government loan to local milk producer Harvey Fresh will not have to be repaid.
Science and Innovation Minister Francis Logan said the company had successfully fulfilled its commitments under the terms of the original loan and was no longer required to repay the money.
Mr Logan said Harvey Fresh was one of a handful of local dairy manufacturers offered financial assistance by the State Government in the wake of national deregulation of the dairy industry in 1999-2000.
The company used the money to buy and install specialist machinery and equipment required to process UHT long-life milk.
The Minister said the money was offered as a loan that would convert to a grant, provided the company could process higher volumes of raw milk.
"The aim of the scheme was to ensure the dairy industry rationalisation in Western Australia did not adversely impact on the dairy processing sector in the State," he said.
"The five-year loans converted to a grant, subject to the successful achievement of three milestones. Harvey Fresh not only achieved each milestone but also surpassed them."
The key milestones were $150,000 for processing 20 million litres of milk per year, $150,000 for processing 25 million litres per year and the final $200,000 for processing 30 million litres per year.
Mr Logan said the first two milestones were completed in June 2003 and September 2004.
"In achieving its final milestone, the company has processed 32,574,540 litres of milk in the 12 months to December 2005, exceeding the required 30 million litres," he said.
"The company continues its successful operation by earning welcomed export revenue for the State and is now recognised as a driving force behind the WA dairy manufacturing industry.
"They deserve congratulations as their successes have brought increased employment, expansion and additional export benefits, both to the dairy industry and to WA as a whole."
