Ord River sugar growers were this afternoon locked in frantic negotiations with the state government seeking financial support for their bid to buy the region's sugar mill, following the withdrawal of The Maryborough Sugar Factory Ltd as a potential buyer
Ord River sugar growers were this afternoon locked in frantic negotiations with the state government seeking financial support for their bid to buy the region's sugar mill, following the withdrawal of The Maryborough Sugar Factory Ltd as a potential buyer.
Growers have until the close of business today to secure government assistance for the purchase of the mill, which reportedly has an asking price of $7 million.
The failure of the region's only sugar miller, Korean company Cheil Jedang, to find a buyer by the end of today could signal the end of the Ord River sugar industry.
CJ Ord Sugar logistics manager Wayne Paul said it would relocate to Indonesia if negotiations failed.
Mr Paul indicated that even if the growers were successful, the absence of sufficient government support and its recent decision to delay stage two development of the Ord would still place the future of the region's sugar industry in jeopardy.
"The growers may buy it, but it still may not operate next year," he said.
The full text of an announcement from Opposition Agriculture Spokesman Gary Snook is pasted below
By delaying to consider expressions of interest in Ord Stage 2, the State Government has shown a lack of commitment to the regions and to agriculture.
Shadow Agriculture Minister Gary Snook said Eric Ripper, wearing both hats of Treasurer and Development Minister, once again proved Labor had no interest in rural affairs.
The crisis surrounding the impending closure of the Ord sugar mill reached melting point today.
"The future viability of the mill hinges on vital cane production from Ord Stage 2," Mr Snook said.
"However, with the State Government's delaying tactic of using a weak but convenient excuse that they were awaiting results of the Federal Government's investigation into Northern Australia as a key agricultural region, it places even more aspects of the Ord in jeopardy.
"The Treasurer wants to delay expressions of interest in developing Stage 2 which puts businesses and livelihoods at immediate risk."
Mr Snook said the Treasurer had been against the state sharing in any partnership with Ord Stage 2 but now conceded the state 'may' need to inject some money into the project to give it a kick-start.
"The Treasurer presides over $6 billion worth of surpluses since coming to government in 2001 but it has taken this crisis situation for him to consider he 'may' be able to help this vital project," he said.
"He certainly does not need to ask: 'Where's the money going to come from'
"This Government's incompetence and incapacity to partially fund Ord Stage 2 makes WA a laughing stock in the eyes of the commercial and business sector," Mr Snook said.
"This project has always required the state to be involved in assisting with infrastructure requirements for the expedient and successful development of the area.
"Any state expenditure could be recovered in time in various ways.
"The Liberal Party is committed to the establishment of the development of Ord Stage 2 and, in Government, would bring the project to fruition with an infrastructure partnership arrangement between the Commonwealth and State governments and private enterprise.
"The project's development cost is in the vicinity of $300 million and, under the current proposal of this State Government, it would be highly unlikely that a private developer or proponent would be interested in carrying all of the infrastructure costs.
"The Carpenter Government has only itself to blame for the debacle that confronts them.
"People in the Kimberley, the Kununurra community and industry participants have every right to feel let down and angry at the unnecessary delays to investment opportunity and delivery of jobs to the region.
"Mr Ripper and Agriculture Minister Kim Chance should not try to shift blame to the Federal Government for any responsibility for reasons of further delay.
"People in the north need action and certainty from the State Government - not be fobbed off."
