F~ OR MEDIA 23 SEPTEMBER 1985
JOINT STATEMENT BY THE PRIME MINISTER~ AND THE MINISTER FOR
PRIMARY INDUSTRY
The Federal Government has today approved a total 8sst3flcC
package for the sugar industry including price support,
adjustment assistance and research funding.
On price support the Federal Government will guarantee a
No 1 Pool price higher than that proposed by the Savage report.
The Federal Governmrent's decision recognises the serious plight
of the sugar industry and that government assistance
including price support is necessary if this important
Australian primary industry is to stand on its own feet and
prosper again.
The Cocrinonwealth's offer of assistance depends on two conditione
being met.
The f i7s t is that the Oueensland Government contributes funds
for price support.
Su~ gar is grown almost entirely in Queensland and the industry
has been structured and regulated by Queensland State legislation
for over sixty years.
Tropical coastal Queensland is heavily dependent on sugar.
The Federal Government therefore believes that the Queensland4
Government has an obligation to contribute to price support
assistance and is sure the sugar industry agrees.
The second cond. ition is that the industry iself agrees to a
significantly greater degree of deregulation than so far they
have been prepared to accept.
The Commonwealth is proposing a specific phased introduction of
restructuring measures over the next three years.
The Federal Government recognises that the industry needs time
to adjust to the changes which are so essential for its longer
term survival.
Hr Kerin will meet his Queensland counterpart Mr Neil Turner, MLA
on Wednesday, 25 September 1985, to dincuss the Savage report.
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Mr Kerin will then inform Mr Turner in more ' detail of the
Commonwealth's position and seek agreement on specific aspects
of the new arrangements, including the level of price support,
the extent of the Queensland Government's contribution and
the schedule for the phased industry deregulation.
Hie will also discuss other matters raised in the Savage report,
including adjustment assistance, research and industry
organisation. The Government hopes that Mr Turner will finally be given a
mandate from the Queensland Government to negotiate on these
issues.
The Federal Government has decided on its response and believes
the sugar industry and the people of Queensland have the right
to expect the Queensland Government not to delay any longer
in negotiating on this crisis. VI