FROM THE CHAIR By Paul Schembri, Chairman CANEGROWERS
ELECTION PROVIDES OPPORTUNITY FOR SUGAR INDUSTRY It is stating the obvious that 2022 will be an important year for the Australian sugar industry and, without question, one of the critically important events will be the Federal Election. Industries, including the sugar industry, can either thrive or decline depending on government policy. Sometimes, we can all be lured into thinking that five-star government policy is where a government, or potential government, announces billion-dollar projects. Often labelled as nation building projects targeting roads, water, transport or other public infrastructure, these announcements, while crucially important, can sometimes overshadow the need to get the basics right. I often tell politicians of all political persuasions that reducing regulations, reducing bureaucracy, and investing more in research and development would do more to boost confidence among farmers than some of the large project funding announcements that have completion dates decades away. Put simply – lower water charges, lower power prices, less environmental regulation and more research and development funding would go a long way to sustaining and growing the Australian sugarcane industry. Getting back to basics commitments will be what CANEGROWERS seeks during the upcoming Federal Election campaign. CANEGROWERS will continue to focus strongly on the economic importance of the sugar industry to regional, state, and national economies. Although the Federal Election date has not been announced, CANEGROWERS has been working with the National Farmers’ Federation to ensure there is
an agricultural focus and strong policy platform. It is also clear that Queensland is emerging as a key state in determining the outcome of the poll. In recent times, I have had discussions with the Deputy Prime Minister Barnaby Joyce and Federal Opposition Leader Anthony Albanese. The discussion with Mr Albanese, who called in to my farm, with two Labor senators was important to ensure we understood the ALP’s position on the Sugar Code of Conduct. The Code was recently reviewed by the Federal Government and found to be a net benefit to the industry and the national economy. Growers collectively have assets of more than $10 billion at risk and the Code gives growers confidence and bargaining power with sugar milling companies that is reflective of the level of risk. We will be having further discussions with the Federal ALP to nail down their position in relation to the Sugar Code.
Sugar Tax Recently, the Australian Medical Association (AMA) launched a fresh campaign for a sugar tax to be applied to soft drinks. Campaigns of this kind are not new and the sugar industry has spent considerable time and effort over the past 20 years responding to them.
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A sugar tax is poor public policy and would do enormous economic and reputational damage to our industry. It is too simplistic response to obesity levels in the population to impose a tax on a single ingredient, as it is very unclear what effect it would have in changing consumption. We accept that diabetes, heart disease and obesity are contemporary health issues that need to be addressed. However, simply demonising sugar and imposing a tax would do little, if anything, to reduce them. A wholistic approach to diet and lifestyle is much better public policy. We are very disappointed that the AMA has again taken a misinformed view that a sugar tax would raise considerable funds and do no damage to the Australian sugar industry. The AMA view does not take account of the experiences of the other sugarproducing countries that have introduced similar taxes. The South African Canegrowers Association has identified that since the introduction of the Health Production Levy (sugar tax) in 2018 there have been 16,000 job loses in the economy. These figures were arrived at by the National Economic Development and Labour Council of South Africa. Currently, Australia's Federal Government has ruled out a sugar tax. Nonetheless, as an industry, we will need to remain vigilant and maintain our advocacy against a sugar tax.
