PRIME MINISTER
FOR MEDIA 17 OCTOBER 1986
ASSISTANCE PACKAGE FOR QUEENSLAND SUGAR INDUSTRY
JOINT STATCAENT BY THE PRIME MINISTER AND THE MINISTER FOR
PRIMIARY INO~ USTRY
The Commonwealth has today endorsed an agreement reached at
officials level on the fourth and final element of the
Commonwealth/ Queensland Sugar Industry Plan thereby completing
arrangements for the plan's implementation.
The final component of the Plan covers assistance for
canegrowers. The other three components cover programs for
industry : egulation, price support and assistance for sugar
mill rationalisation.
The Prime Minister has written today to the Queensland Premier
advising of his concurrence with the agreement. He urged the
Premier to give his consent, also, to allow the final component
of the package to be implemented.
Under the Plan the Commonwealth will provide up to $ 100 million
over three years in price support and assistance for growers and
for sugar mill development.
The Prime minister said he was very pleased that all the elements
of the Pla~ n had been settled.
" It has been an extremely difficult set of negotiations, but we
have now established a framework within which the viability of
the sugar industry can be secured," he said.
" Due to the persistence of the Commonwealth Government,
canegrowers and their families can now look to a more secure
future"'. The assistance to growers will be delivered under a new scheme
although it will be based on the eligibility criteria and some
other provisions of the existing Rural Adjustment Scheme ( RAS).
The Minister for Primary Industry, Mr Kerin, said growers had
asked for a more flexible program than the RAS.
" We have gone some way to accommodating this request," he said.
" The new scheme is quite innovative.
2
" Assistance will be available either as an interest subsidy or a.
an up-front grant equivalent to that subsidy. Subsidy assistance
wiji normally be 50% but in some circumstances would go as high
as wThe Commonwealth's contribution to the assistance fund will be
around $ 18 million over 3 years."
mr gerin said that the agreement between officials cleared the
way for the finalisation of the scheme's administration.
He expected the scheme to be administered through the Queensland
Industry Development Corporation. Growers would be advised
shortly about the procedures for applying for assistance.
" The scheme is intended to help growers take advantage of the
recent deregulation of farm peaks and assignments," Mr Kerin
said. " Growers now have the opportunity to fine-tune their operations
with the acquisition/ sale of peak and assignment.
" Preference will therefore be given to proposals for farm
build-up, although there is scope for other forms of assistance."
The prime Minister and Mr Kerin both urged growers to take
advantage of the scheme.
" The sugar industry has taken a beating in recent years. The
world market is still depressed," Mr Hawke said.
,, Nevertheless, the industry is basically sound and needs only
relatively minor adjustment to see a big improvement in
profitability. " The Sugar Industry Plan is aimed at facilitating that
adjustment."