Joyce to force deal on sugar
THE Federal Government will force an agreement between warring sugarcane growers and a foreign multinational miller under an intervention Deputy Prime Minister Barnaby Joyce wishes he did not have to enforce.
The Government announced yesterday it would appoint a permanent mediator to enforce an agreement following a long- running dispute between Singapore- based miller Wilmar and sugar marketer Queensland Sugar Ltd ( QSL).
Regulations will be introduced into parliament to enforce a code of conduct, that will enable Treasurer Scott Morrison to appoint a mediator to decide what a fair deal is for farmers and companies.
The draft code of conduct will ensure grower choice in marketing and that all parties have access to arbitration and mediation. It would provide certainty for the industry, the Government said.
Mr Joyce has for months warned Wilmar and QSL that he would intervene if they did not find middle ground.
The Government’s plan has three components. It provides for compulsory precontract arbitration on agreements between suppliers and the millers, a mandatory precontract arbitrary provision on agreements between marketers and millers, and ensures growers choose who markets their cane.
“They’ve always known we’ve had a code of conduct in the top drawer and now we are going to use it,” he said.
“I would have preferred for QSL and Wilmar to work this out themselves.”
Canegrowers Burdekin chairman Phil Marano said the code of conduct was “desperately” needed by growers.
He said it would give growers long term certainty and protect them and the rights they had for 100 years.
“We’re not getting any more, we’re not taking one cent off the miller. All we’re doing is ensuring growers have a choice in marketing,” he said.
Ingham cane farmer Fred Gangemi said the code of conduct was long overdue.
But he said he it was not too late for QSL and Wilmar to reach an agreement.
“It’s got to be a compromise on both sides and if ( Wilmar) is willing to compromise I’m pretty sure that growers will come to the party. Otherwise this dispute is going to be long running,” he said.
Mr Morrison said the agreement was not one that solely favoured growers.
“This code provides the same protection to Wilmar as it does to the grower, effectively, because if they are unable to form an agreement … then that arbitration can work both ways,” he said.
“It provides some certainty to this process, so you know what the rules are.”