Draft cane agreement due any day
THE LNP continues to call for a mandatory code of conduct to govern the sugar industry.
Proserpine Canegrowers manager Mike Porter said a senate inquiry 18 months ago made the recommendation that a code of conduct be applied to sugar industry stakeholders but as yet there was not one in place.
Member for Dawson George Christensen has been a vocal supporter of an industry-wide code of conduct, which would provide "the framework to allow growers to go forward with confidence in their future dealings with millers”.
This week Shadow Agriculture Minister Dale Last weighed in on the code.
"The failure of the parties to negotiate a supply agreement means it is now clear the process needs to be guided by a formal code of conduct,” Mr Last said.
Mr Porter said Canegrowers back the code.
"We are not always confident the legislation will hold up,” he said.
"So a code of conduct for the industry is probably necessary to try and supplement what the choice legislation is supposed to do.”
It has been three weeks since Wilmar Sugar announced it "agreed in principle” to the terms of an on-supply agreement with Queensland Sugar Limited after a state-appointed mediator facilitated negotiations.
The breakthrough came 14months after the passing of amendments to the Sugar Act, which forced millers to allow growers to choose who marketed their economic interest in the miller's sugar.
Mr Porter said the "high- level agreement” resolved many issues both parties had with on-supply and cane supply agreements.
"There is no reason now why they can't sit down and draw up a contract, however in these sort of situations who draws up the contracts, Wilmar or QSL?” he said.
"It was agreed Wilmar will have the first stab at it ... but I think QSL told Wilmar 'we have wasted enough time now, we would like to see a draft quite quickly'.”
Growers are currently waiting on the first draft.
"We thought two weeks would have been sufficient to actually draw up the first agreement, I think QSL would be expecting something any day now,” MrPorter said yesterday.