FOR MEDIA 24 October 1984
The Prime Minister, Mr Hawke, and the Minis! ter for Primary
Industry, Mr John Kerin, announced today that the Federal
Government is making $ 5.5 million available to assist the sugar
industry.
The assistance is to be given under Part A of the Rural Adjustment
Scheme. This is consistent with the Government's approach to all rural
industries -policies which are an investment in their long term
security. The Rural Adjustment Scheme Part A provides debt reconstruction
and capital works assistance for producers who have the capacity
to continue farming in the long term.
It is not the Government's aim t ' o provide further aid in the form
of carry-on finance as it is clear that the current downturn in
international prices and the volatility in the marketplace will
continue for some time. Cane growers just can't afford to take on
more debt.
Any assistance should be geared to helping canegrowers with a
future in the industry stay in the industry -and not just
increase their debt burden.
As the Federal Government has said on previous occasions, the
Review being carried out by thle industry itself will provide the
best basis for a long term strategy for its future.
Therefore the Government will meet the & canegrowers immediate
difficulties by focussing on measures which will contribute to the
industry's long term prosperity.
in talks today between the State and Federal Governments it was
decided that Federal funds would be used to greatest advantage if
targetted to canegr rs who could continue in"' the industry but for
their high debt servicing commitments.
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The package reinforced the rational and long term approach to aid
to the sugar industry which has been consistently adopted by the
Federal Government.
The Federal Government has already spent $ 11 million last year on
sugar aid and in June had raised the domestic price of sugar by
$ 28 to $ 508 per tonne. 3
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