29 Jan 2003

Fiji cane growers oppose government restructure plan

6:01 pm on 29 January 2003

The Fiji Sugar Cane Growers Council says it's unhappy with a government proposal to create a holding company and remain a major shareholder as part of plans to restructure the industry.

The Council's President, Jaganath Sami, who's asked for a twelve month deferment of parts of the restructuring, says the government's proposals defeat the purpose of working towards privatising the sugar industry.

The original plan turned the sugar mills into four stand-alone companies.

Mr Sami says the government now wants to turn the four companies into subsidiaries of a parent or holding company which will be Fiji's main sugar miller and have 51 percent shares in that.

Mr Sami says the government's proposal will only maintain the status quo of the declining sugar industry and not improve it.

"It was intended that the stakeholders would be able to not only own the company but also look at how to make it more efficient. At the moment there is a lot of confrontation among the stakeholders under the present structure and the industry hasn't been doing well."

Jaganath Sami.

Mr Sami says he's not concerned about comments from the European Union which warned that only a restructured sugar industry would guarantee preferential access for Fiji sugar.