PM will not solve sugar industry problem

THE re-assignment of the sugar industry to the Prime Minister’s Office may help a little, but it will not solve the serious problems now confronting the sugar industry.

The comment was made yesterday by Laisenia Qarase, ousted Prime Minister and leader of the Soqosoqo Duavata ni Lewenivanua party.

Qarase said that the interim government should focus its attention on two problem areas – the upgrading of the mills and the improvement of cane farm productivity.

The upgrading of the mills is due to be completed during 2009/2010.

However, Qarase said very little has been done to reverse the drastic decline in cane farm productivity.

“Significant improvement in the tonnage of sugarcane produced can only be achieved through a huge injection of funds.”

Qarase said the $350 million grant available under the European Union aid package was vital for the survival of the sugar industry.

“But the European Union has advised on a number of occasions that the financial grant can only become available once an elected Government is in place in Fiji.”

Qarase added that the interim government had very little choice if it wanted the industry to survive.

And he reiterated that a general election this year was the only guarantor for the release of the EU grant.

“The Fiji Government simply has not got the $350 million now urgently required for the sugar industry,” said Qarase.