❓ A WA parliamentary question on notice regarding the government's handling of the Ord River irrigation scheme and its impact on the state's sugarcane industry, with concerns raised about job losses and potential industry collapse. The Minister defends the government's actions, citing market forces and offers of assistance.
AnsweredQoN 297Legislative Assembly
QuestionView source ↗
SUGARCANE INDUSTRY
Before I ask my question, I welcome, on behalf of the member for Murdoch, year 12 students from Murdoch College. Given the government’s inability to manage the development of the long-awaited second stage of the Ord River irrigation scheme and its lack of commitment towards Western Australia’s cane growers in their fight to save the state’s sugar industry from collapse and environmental risk - (1) Why is the government turning its back on the state’s sugarcane industry and putting the growers’ futures at risk with the loss of at least 80 jobs and untold pain for the families involved? (2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER
Before I ask my question, I welcome, on behalf of the member for Murdoch, year 12 students from Murdoch College. Given the government’s inability to manage the development of the long-awaited second stage of the Ord River irrigation scheme and its lack of commitment towards Western Australia’s cane growers in their fight to save the state’s sugar industry from collapse and environmental risk - (1) Why is the government turning its back on the state’s sugarcane industry and putting the growers’ futures at risk with the loss of at least 80 jobs and untold pain for the families involved? (2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER
AnswerView source ↗
(1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Given the government’s inability to manage the development of the long-awaited second stage of the Ord River irrigation scheme and its lack of commitment towards Western Australia’s cane growers in their fight to save the state’s sugar industry from collapse and environmental risk - (1) Why is the government turning its back on the state’s sugarcane industry and putting the growers’ futures at risk with the loss of at least 80 jobs and untold pain for the families involved? (2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(1) Why is the government turning its back on the state’s sugarcane industry and putting the growers’ futures at risk with the loss of at least 80 jobs and untold pain for the families involved? (2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Given the government’s inability to manage the development of the long-awaited second stage of the Ord River irrigation scheme and its lack of commitment towards Western Australia’s cane growers in their fight to save the state’s sugar industry from collapse and environmental risk - (1) Why is the government turning its back on the state’s sugarcane industry and putting the growers’ futures at risk with the loss of at least 80 jobs and untold pain for the families involved? (2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(1) Why is the government turning its back on the state’s sugarcane industry and putting the growers’ futures at risk with the loss of at least 80 jobs and untold pain for the families involved? (2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(2) Given it is now five weeks past the planned start for crushing with time running out to harvest the cane and the prospect of leaving 375 000 tonnes of cane worth $25 million to be dumped if the mill is closed, will the government underwrite this season’s Kununurra sugar crop? (3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(3) Given the state’s only sugar mill was unlikely to ever be profitable without the expansion of the Ord irrigation scheme, how can the minister explain to the families and businesses involved why he has mismanaged and dragged his feet on this project to the point at which the sugar industry is now on the verge of collapse? Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Mr E.S. RIPPER replied: (1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
(1)-(3) Perhaps the member has not noticed that John Howard is spending $440 million to get uneconomic sugar growers out of the industry on the eastern seaboard. Perhaps the member has not noticed reports in The Australian telling us that the number of sugar farmers in Australia is set to fall from 6 000 in 2004 to 3 500. Perhaps the member has not noticed reports showing that the world sugar price has fallen to US9c a pound, which is below production costs even in the most efficient growing areas with the most efficient mills. Regrettably, neither the Ord growers nor the Ord mill are as efficient as their counterparts on the eastern seaboard. The issue confronting the Ord sugar industry is the very poor state of international sugar prices. In fact, there is enough land in Ord stage 1 for there to be sufficient throughput for an efficient mill. However, the mill on the Ord is not the most efficient. Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Several members interjected. The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
The SPEAKER : Order! I call the member for Avon and the member for Murray to order. Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
Mr E.S. RIPPER : Growers in the Ord have chosen to grow more profitable crops. If every grower there that could grow sugar chose to grow sugar, there would be enough sugar throughput for an efficient mill. Growers have made their own private decisions, for reasons of their own incomes and responding to market forces - as they should - to grow crops other than sugarcane. It is also wrong for the member to assert, as I think he did, that we have turned our back on the sugar industry. This is what we have offered. We wrote to C.J. Ord River Sugar Pty Ltd, the owners of the mill, and asked what conditions they would require in order to process this year’s sugarcane harvest. C.J. said to us that no amount of financial assistance would persuade it to operate the mill and process this year’s harvest. We then offered the growers $4 million of taxpayers’ money to assist them to purchase a mill valued at $7 million. It appears that the growers are unable to get banking or other financial support to proceed with that $4 million worth of assistance to buy the mill. I think a $4 million offer is a generous offer, and I do not think that the taxpayers of Western Australia would want the government to spend the entire amount of $7 million from their funds on a mill that was, under the growers’ proposal, expected to operate for only one year. Furthermore, the government offered to underwrite the processing of the crop, and C.J. rejected it. We have also offered the growers support valued at $3 million should it be necessary for the growers to dispose of their crops. We have offered that assistance because it is an environmental issue that needs to be handled properly. I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
I want a profitable, sustainable, large-scale Ord stage 2 project. I want scarce water to be used effectively and efficiently on high-value crops on the largest possible area of land. Regrettably, if we proceeded to take the existing expressions of interest process through to a conclusion, I could not expect an Ord stage 2 that would be profitable and sustainable. I do not want Ord stage 2 to be the sick man of northern agriculture - always in crisis and always coming to the government for assistance. I want a profitable, large-scale Ord stage 2. I am determined to resolve all the issues to make that happen, but we cannot do it without extending the existing EOI process, and I will talk more about that during debate on the matter of public interest.
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Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.