Mackay councillors divided on future of Sarina Sugar Shed

One councillor has called for Mackay to leave the alcohol game after $3.4m in losses at a tourist attraction, but investment could make it profitable. Have your say.

This masthead recently revealed structural and financial woes regarding the Sarina Sugar Shed which now faces a whopping $15.8m demolish and rebuild

As one of Mackay’s major tourism assets racks up increasing losses thanks to structural issues, one councillor is prepared to sell it outright.

The Mackay Regional Council’s Sarina Sugar Shed combines a miniature sugar mill with a distillery, tastings, and tours, and traditionally bottles its own rum made in small batches.

This masthead revealed the Sarina Sugar Shed lost $3.4m in ratepayers money in 10 years as safety issues forced it to stop distilling rum from local cane sugar it sold its brand on.

A 2023 business case into Queensland’s sole miniature sugar mill and boutique distillery proposed a full ‘demolish and rebuild’ of the site priced at just under $16m to address its issues, but it has not been actioned since.

Cr Alison Jones said she had been campaigning to sell the shed for over 12 months. Photo: Luke Lay

That would also help increase tour and distilling capacity, but the report warned the price could increase to $24m if there were delays to get started.

Otherwise, council could partner with third-parties on the distilling end, either in Sarina or Mackay, and keep the Sugar Shed as a place for tours.

Mackay’s councillors were asked individually on their opinion for the future of the shed and whether it should remain as a council asset while it continues to bleed cash.

Councillor Alison Jones said while the shed was a tourism product, it should be sold.

“I have always felt, while it is a tourism product, council does not need to be a distiller of alcohol,” she said.

“I have said many times in the last 12 months.”

Deputy mayor Karen May disagreed saying the 17-year-old shed needed an upgrade, and that she would be open to the possibility of on-selling or partnering with third parties to run the Sugar Shed.

“I think that we need to invest in the capital upgrade,” she said.

“This will also help with the sustainability of the Sarina Sugar Shed into the future.”

Councillor Karen May said it should become a priority in the council’s capital works program. Picture: Heidi Petith

As a three-hour drive north of Rockhampton, Karen May said the Sugar Shed offered a unique paid tourism opportunity for visitors entering North Queensland with the Sarina Field of Dream precinct becoming a capture point for tourists.

Last year alone there were 12,700 tour visitors with 9,500 coming from outside our region generating $2.6m for Mackay.

Visitor numbers grew to 12,700 last year generating $2.6 million in revenue to the region

“In my view council has an obligation to develop and maintain assets that generate economic activity and enhanced liveability in our region,” Cr May said.

While talks are underway the current business as usual scenario — where cane spirit is purchased from third parties — cost ratepayers an extra $120,000 every year, due to missing out on a crucial tax rebate for alcohol production alone.

In a statement this week, Acting Mackay Regional Council CEO David McKendry said council was exploring costings for further improvements and a full rebuild of the facility

“Council is also collaborating with the Sarina community and stakeholders in the inquiry by design process to revitalise the broader Sarina Field of Dreams precinct, aiming to create an inclusive and attractive destination for visitors.