Questions have been asked about a $520,000 project to upgrade NBN services for a single business in the electorate of the deputy prime minister, Barnaby Joyce. 

Fruit and vegetable grower Costa Group this week reported a 2021 yearly net profit after tax of $64 million.

The business is also the sole beneficiary of a planned upgrade from satellite NBN services to a full fibre to premises service. 

The Federal Government is funding an upgrade for the company’s tomato glasshouse facility in Guyra, in the New England electorate.

NBN Co will spend $520,018 on the switch, as it involves the installation of fibre along the New England Highway to connect Costa’s facility.

It is much more expensive than NBN Co estimated average cost of $4,395 for fibre-to-the-premises. 

Mr Joyce announced funding under the program in April last year, at a time that he sat on the backbench and had no responsibility for this type of decision.

He said the Costa project would see “more residents and businesses in New England … enjoy the benefits and opportunities that improved digital connectivity brings.”

The money comes from the federal government’s $117 million regional connectivity program, which has paid for other fibre upgrade projects that cover hundreds of premises each.

A spokesperson for Mr Joyce said wrote a letter of support for Costa’s application.

“This was done in his capacity as federal member for New England and in recognition of the benefits the project could deliver to the region, of which there were plenty,” the spokesperson said.

“Any suggestion Mr Joyce acted inappropriately is off-base and only serves to perpetuate the anti-regions campaign the Labor party is running.”

Mr Joyce’s register of interests includes a disclosure of shares in Costa Group, but does not say exactly how many he holds.

This report does not suggest or wish to imply any impropriety by Mr Joyce.