AFTER a break during the summer, the Grafton Loop of the Knitting Nannas Against Gas and Greed were out in force to protest the NSW Government's decision to shun Northern Rivers dairy co-op Norco from Northern NSW hospitals.

However the first loop of yarn had hardly hit their needles before news arrived of Health Minister Brad Hazzard's back-flip, with the contract for milk and dairy supplies for hospitals on the north and mid north coasts to go back to Norco. Mr Hazzard said the NSW Government recognised the community wanted to support the local dairy industry in Northern NSW.

"The NSW Ministry of Health has a duty, generally, to provide the best products for patients at the best possible price for taxpayers," he said.

"In that context the NSW public sector agency, HealthShare NSW, put the state-wide contract for milk and dairy supply out to tender and made a decision which precluded Norco supplying hospitals in the northern and mid north coast areas.

"It is understandable that locals would prefer to have Norco provide the milk and dairy products for local hospitals. In light of the impact on the community, which only came to light after the tender, I asked HealthShare NSW to review its decision. Accordingly, the contract will be reinstated."

Knitting Nanna Lynette Eggins said the decision was a win for people power.

"Obviously there was a great uproar about it so we're really pleased people have started to get on board and not put up with a crazy decision that impacts on the rural people of Australia," she said.

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