FIJI: No sugar subsidies in 2007
Updated
The European Union says it won't provide this year's subsidy payments for Fiji's sugar industry. Back in May the EU said it would only pay the subsidy, worth around $US 30 million, if Suva's interim government showed it was serious about returning to democracy. Now it says this year's payment won't be forthcoming.
Presenter: Campbell Cooney
Speakers: General Secretary of the Cane Growers Association Bala Dass; Jaganath Sami chief executive, Fiji Cane Growers Council
COONEY: In December 2006, less than a week after Commodore Frank Bainimarama's coup, the then Chief Executive of the Cane Grower's Council Jagganath Sami, gave this prediction about the fate of Fiji's sugar industry, if the European Union removed subsidies.
SARNI: I think the industry would collapse, I think if we do not get this aid then the industry will collapse.
COONEY: Now Fiji's Sugar Industry is facing the real possibility its future won't include receiving millions of US dollars in annual EU subsidies. In January the EU found that the coup, and the actions of the military, including the abuse of human rights and freedoms, meant Fiji had breached the Cotonou Agreement, which set the rules under which the Union supplied financial help to aid recipient countries in Africa, the Caribbean and the Pacific. Since then the interim government has attended a number of meetings in Brussels where it's had to explain why it should still receive that European money. Earlier this year the EU gave in principal support to continuing to provide subsidies. But it made it clear the continued support would only come on the proviso Fiji's leaders showed a serious commitment to return to democratic rule, and hold elections within three years. Fiji has given in principal support to elections before the end of 2009. But at the same time it has continued a strong public rhetoric that flies in the face of that statement. At the same time there's been further reports of detentions and abuses of human rights by Fiji's military. It now appears the European Union has had enough. Fiji's media has been reporting a statement by the EU's Representative in Fiji, that it will be providing no sugar subsidies in 2007, as Fiji has not shown it's serious about returning to democracy. The ABC has contacted the EC Delegation in Suva, which has said it has released no statement. Currently the United Kingdom holds the Local Presidency of the European Union, and its High Commission in Suva has issued its own statement denying the existence of an EU statement, and saying nearly five and a half million US dollars in funding for the Sugar Research Institute of Fiji and the Sugar Cane Growers Council will continue. But other sources have confirmed to the ABC that at this stage the EU will not be providing any subisidy payments in 2007. Bala Dass is the General Secretary of the Cane Growers Council.
DASS: I'm very much disappointed in that, I don't know for what reasons we are not going to get the money but that money's very, very, very important for the cane farmers in this country.
COONEY: It's understood that at the moment, If Fiji wants industry funding in 2008, the EU expects credible evidence of preparations and commitment to elections in 2009. And any payments in 2009 will rely on there being an elected government in power. But, a final decision on both those commitments has yet to be put in place, with the EU Council meeting in mid September to make its final decision on Fiji. Bala Dass from the Cane Growers Association says his members are disappointed with Fiji's interim government.
DASS: At this moment the circumstances whether we will have elections before March 2009 is not sure. That's why my association is putting pressure on the interim government through the sugar minister that if we can have elections done before March 2009 so that we are entitled for those grants or if we don't get that grant then I'm sure I don't know what will happen to more than about 100-thousand people involved in the sugar industry producing less than 200 tons of cane.
COONEY: Have you been unhappy then with the way that the interim government has gone around this whole election process then?
DASS: Well so far I haven't seen them really serious about going for elections.
