GIVE GOLDEN CIRCLE AND BUDERIM GINGER A BREAK MICKEL TELLS CANBERRA
Published Thursday, 26 October, 2006 at 12:12 PM
Minister for State Development, Employment and Industrial Relations
The Honourable John Mickel
Minister for State Development John Mickel today called on the Federal Government to waive the crippling sugar levy for iconic Queensland companies Golden Circle and Buderim Ginger.
“Golden Circle and Buderim Ginger are names synonymous with Queensland they employ between 850 and 2000 Queenslanders depending on the season and indirectly support thousands of fruit and vegetable growers throughout the State,” Mr Mickel said.
“Thanks to the federally-imposed sugar levy Golden Circle is paying some $600,000 a year and Buderim Ginger $100 000 a year on top of regular sugar costs, an amount that simply can’t be passed onto the consumer and has to be borne by these companies already facing stiff international competition.
“The bottom line is these companies can’t up the price of their products to meet the cost of the levy – passing on this cost would simply put their brands at the bottom of the shopping list when compared to cheaper imports.”
Mr Mickel said that whilst the Queensland Government understands the sugar levy is partially funding the Federal Government’s Sugar Reform Package, cases like Golden Circle and Buderim Ginger warranted special consideration.
“The fact is that when you have major consumers of sugar like these two companies under threat from international competition, forcing them to pay the levy does nothing to bolster our local sugar industry and help it remain competitive, which was one of the main aims of the Sugar Reform Package in the first place,” he said.
Mr Mickel said the levy was originally imposed for a five year period from January 2003 to help fund the Sugar Industry Reform Program. At the same time the Queensland Government provided a $33 million support package for industry from within its own resources.
“But since 2005 the price of world sugar has risen considerably and many farmers are no longer facing hardship and in need of specific assistance,” he said.
“One could argue then that in special circumstances the levy could be waived.
“Given that through the National Food Industry Strategy the Federal Government provided $200,000 to streamline systems at Golden Circle and help the company improve its supply chain, it would seem odd for them not to want to see Golden Circle and Buderim Ginger thrive as home-grown success stories”.
Mr Mickel said his predecessor The Hon. Tony McGrady MP, Member for State Development and Innovation, wrote to the Federal Government in May 2005 seeking a wavering of the levy for Golden Circle.
“Over a year has gone by and the levy remains, that’s more than half a million dollars the company has had to pay, half a million dollars it hasn’t had to invest in its own growth,” he said.
“The fact is that Golden Circle and Buderim Ginger are up against companies that are buying sugar at the world price without a sugar levy pushing up the cost.
“It seems ridiculous that an Australia label’s future on our dining tables is being threatened by a program that should have helped it prosper.
“I call on the Federal Minister for Agriculture, Fisheries and Forestry, The Hon Peter McGauran to see sense and waive the levy for Golden Circle and Buderim Ginger.
Reforming our sugar industry is absolutely essential but should not disadvantage two iconic Queensland companies.”
The Australian Industry Group is also calling on the Howard Government to scrap the sugar levy saying it is unjustifiable and a significant cost to both small and large companies.
Mr Mickel today sent a follow up letter to Mr McGauran expressing the Queensland Government’s strong support for a review of Golden Circle’s and Buderim Ginger’s case.
Media contact: Chris Brown 3224 7349 or Elouise Campion 3224 6784.
26 October, 2006
“Golden Circle and Buderim Ginger are names synonymous with Queensland they employ between 850 and 2000 Queenslanders depending on the season and indirectly support thousands of fruit and vegetable growers throughout the State,” Mr Mickel said.
“Thanks to the federally-imposed sugar levy Golden Circle is paying some $600,000 a year and Buderim Ginger $100 000 a year on top of regular sugar costs, an amount that simply can’t be passed onto the consumer and has to be borne by these companies already facing stiff international competition.
“The bottom line is these companies can’t up the price of their products to meet the cost of the levy – passing on this cost would simply put their brands at the bottom of the shopping list when compared to cheaper imports.”
Mr Mickel said that whilst the Queensland Government understands the sugar levy is partially funding the Federal Government’s Sugar Reform Package, cases like Golden Circle and Buderim Ginger warranted special consideration.
“The fact is that when you have major consumers of sugar like these two companies under threat from international competition, forcing them to pay the levy does nothing to bolster our local sugar industry and help it remain competitive, which was one of the main aims of the Sugar Reform Package in the first place,” he said.
Mr Mickel said the levy was originally imposed for a five year period from January 2003 to help fund the Sugar Industry Reform Program. At the same time the Queensland Government provided a $33 million support package for industry from within its own resources.
“But since 2005 the price of world sugar has risen considerably and many farmers are no longer facing hardship and in need of specific assistance,” he said.
“One could argue then that in special circumstances the levy could be waived.
“Given that through the National Food Industry Strategy the Federal Government provided $200,000 to streamline systems at Golden Circle and help the company improve its supply chain, it would seem odd for them not to want to see Golden Circle and Buderim Ginger thrive as home-grown success stories”.
Mr Mickel said his predecessor The Hon. Tony McGrady MP, Member for State Development and Innovation, wrote to the Federal Government in May 2005 seeking a wavering of the levy for Golden Circle.
“Over a year has gone by and the levy remains, that’s more than half a million dollars the company has had to pay, half a million dollars it hasn’t had to invest in its own growth,” he said.
“The fact is that Golden Circle and Buderim Ginger are up against companies that are buying sugar at the world price without a sugar levy pushing up the cost.
“It seems ridiculous that an Australia label’s future on our dining tables is being threatened by a program that should have helped it prosper.
“I call on the Federal Minister for Agriculture, Fisheries and Forestry, The Hon Peter McGauran to see sense and waive the levy for Golden Circle and Buderim Ginger.
Reforming our sugar industry is absolutely essential but should not disadvantage two iconic Queensland companies.”
The Australian Industry Group is also calling on the Howard Government to scrap the sugar levy saying it is unjustifiable and a significant cost to both small and large companies.
Mr Mickel today sent a follow up letter to Mr McGauran expressing the Queensland Government’s strong support for a review of Golden Circle’s and Buderim Ginger’s case.
Media contact: Chris Brown 3224 7349 or Elouise Campion 3224 6784.
26 October, 2006