Published Thursday, 23 November, 2006 at 02:29 PM

Minister for State Development, Employment and Industrial Relations
The Honourable John Mickel

FEDS FINALLY OFFER A SWEETNER TO QLD INDUSTRY

Kolkata: Minister for State Development John Mickel said he was pleased the Federal Government had finally acknowledged their crippling sugar levy was hurting many Queensland companies.

Speaking today from India where he is leading a trade delegation, Mr Mickel said it seemed the Federal government might finally be listening to pleas from the Queensland Government and business.

This morning while visiting a north Brisbane cannery Federal Treasurer Peter Costello made the announcement to axe the controversial three cents a kilogram levy from next month - more than a year ahead of schedule.

“A month ago I sent a letter to Federal Minister for Agriculture, Fisheries and Forestry, Peter McGauran expressing the Queensland Government’s strong support for a review of the tax on behalf of iconic Queensland companies Golden Circle and Buderim Ginger,” Mr Mickel said

“The two companies employ between 850 and 2000 Queenslanders depending on the season and indirectly support thousands of fruit and vegetable growers throughout the State.

“The companies were paying a total of $700,000 a year extra because of the unfair tax.

“As major consumers of sugar these two companies and many others were under threat from international competition and forcing them to pay the levy did nothing to bolster the local sugar industry and help it remain competitive, which was one of the main aims when the Sugar Reform Package was introduced in 2003.”

Minister for Primary Industries and Fisheries Tim Mulherin said from New Zealand, where he is attending the Primary Industries Ministerial Conference, it was important the Federal Government maintained support of sugar industry reform.

“I had previously asked that the Federal Government consider use un-allocated sugar levy funds to make a financial commitment to fighting sugar cane smut, but that call fell on deaf ears.

“Even with the scrapping of the levy, I would hope that they would still consider joining the State Government in the economic recovery of those affected by the smut,’’Mr Mulherin said.

Media contact Minister John Mickel: Chris Brown 3224 7349 or Elouise Campion 3224 6784.

Media contact Minister Tim Mulherin: David Potter 3239 6530

23 November 2006