Federal Government aims to back canegrowers by keeping sugar code of conduct in place

The Federal Government says it will “weigh up what is best for growers” in regards to an issue stirring up farmers in key marginal seats in Queensland.

THE Federal Government is preparing to keep rules that make it easier for canegrowers to enforce contracts with sugar mills amid a backlash from farmers in key marginal seats in north Queensland.

Agriculture Minister David Littleproud said the government would “weigh up what is best for growers in the coming week” after facing requests to keep the current sugar code of conduct in place.

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The move comes after a review of the code last year left open the possibility of future changes that could make it easier for canegrowers to be locked out of price decisions by large multinational sugar mill owners.

The Federal Government’s sugar move threatens to become a major election issue in marginal north Queensland seats. Picture: Brendan Radke

One Nation leader Pauline Hanson, LNP MP George Christensen and the chairman of Canegrowers Queensland Paul Schembri have all lobbied the Government to keep the current code of conduct in place. The move threatens to become a major election issue in a raft of marginal LNP-held seats in north Queensland, which are the centre of Australia’s sugar industry and which are being targeted by both One Nation and Labor.

Senator Hanson said the Government had ignored the concerns of the industry and was planning to go ahead with changes that would leave “growers with limited arbitration powers”.

She said the planned changes would have also stopped canegrowers having a say over by-products including bio-fuels and bioplastics.

“If we’re going to bother making laws in this country, we need to consult with the people laws will affect and ensure there are no unintended consequences,” she said.

One Nation was pushing for legislation that would enshrine rights for growers but she said the Government had left this too late and she would settle for a guarantee of status quo.

Labor has previously criticised the code of conduct and could change it if it wins the next election.

Mr Christensen told The Courier-Mail he wrote to Mr Littleproud last month warning that if the code was changed it could allow growers to be hit with “take it or leave it contracts” that would harm the Queensland industry. The plan needs to be endorsed by Treasurer Josh Frydenberg.

Opposition Treasury spokesman Chris Bowen last year accused the Government of imposing the code without consultation and warned it could harm the sugar trade, while Opposition Agricultural spokesman Joel Fitzgibbon described the process as “reckless vandalism”.