PARLIAMENT has rejected LNP legislation aimed at breaking the impasse between sugar miller Wilmar Australia and sugar marketer Queensland Sugar Limited (QSL).
The controversial new laws that would have reintroduced arbitration to the sugar industry were voted down when Labor turned independent member for Cairns, Rob Pyne, sided with the minority government. With that seeming backflip, the Sugar Industry (Arbitration for Mill Owners and Sugar Marketing Entities) Amendment Bill 2017 was lost.
The loss is a blow to the LNP, which with cross bench support, secured the Sugar Industry (Real Choice in Marketing) Amendment Bill in 2015.
Wilmar is the only one of seven milling companies not to have negotiated an agreement with QSL. About 1500 growers supply Wilmar’s eight mills in the Burdekin, Herbert and Central districts.
Growers say agreements to supply cane to those mills cannot be concluded until Wilmar Sugar and QSL reach an on-supply agreement (OSA). Without an OSA, growers cannot access marketing services offered by QSL denying them their right under the 2015 sugar marketing laws, they say.
Agriculture Minister Bill Byrne said the focus was now on Wilmar and QSL seek to reaching a negotiated agreement through a mediation process headed by former Queensland Supreme Court judge Richard Chesterman. (CLICK HERE to read that story.)
“Cross-bench MPs saw through the misinformation and voted on the facts,” Mr Byrne said.
“They agreed with the Palaszczuk Government that the 2015 LNP legislation had damaged the industry and been the cause of frustration, anger and distress for growers, millers and exporters.
“If the latest LNP Bill had passed it would have done nothing to resolve the current dispute.
“Instead it would have forced the parties into lengthy and costly compulsory arbitration, and put this year’s cane crush at risk.
“Mediation is a far cheaper and swifter option and with Wilmar and QSL close to an agreement it was simply madness to introduce legislation that risked them ripping up all their work and starting again from scratch.”
LNP leader Tim Nicholls said Labor had the opportunity to give cane growers certainty heading into the 2017 crush but instead chose the path of uncertainty and division.
“Our laws would have allowed formal arbitration to resolve any future deadlocks in contractual negotiations between sugar millers and sugar marketers, in the same way arbitration is available to resolve deadlocks between canegrowers and sugar milling companies,” Mr Nicholls said.
“This was the perfect opportunity for Bill Byrne to show some leadership as minister. Instead he chose more delays and bureaucracy, which is exactly what Queenslanders don’t like about politics.”
Opposition agriculture spokesman Dale Last said Labor had sided with a foreign-owned multinational instead of backing growers in Burdekin.
“Labor’s done nothing but support multi-nationals ahead of Queensland farmers, mill workers and their local communities, the LNP has been determined to end this damaging row,” Mr Last said.
“They have turned a blind eye while Wilmar holds farmers to ransom and take away grower choice.”
Member for Hinchinbrook, Andrew Cripps, said he was bemused by the actions of the Member for Cook, Billy Gordon, who voted with Labor given he supported the LNP’s 2015 amendments.
“Mr Gordon has abandoned the objectives and the spirit of the amendments that he supported in 2015 and has voted to deny cane growers in Wilmar mill areas timely access to a cane supply agreement,” Mr Cripps said.
“However, I was more shocked to see the Member for Cairns, do a complete backflip on these changes in less than 24 hours and after he had made a public declaration to support the LNP’s bill.”
Prior to last night’s vote Australian Sugar Milling Council chief executive officer Dominic Nolan said the introduction of arbitration would have further delay the likelihood of the two parties reaching agreement.
“Arbitration is a step back further into the past,” Mr Nolan said. “The legislation we have now has already cost the industry millions and all stops should be pulled out to get rid of it as soon as possible.
“The only hope of shortening the negotiation process is to allow Wilmar and QSL to agree on commercial terms.”