BANKING INDUSTRY WELCOMES SUGAR ASSISTANCE PACKAGE

Sydney, 29 April, 2004:  The Australian Bankers’ Association (ABA) has welcomed the $444 million sugar assistance package which has been announced today by the Coalition Government.

David Bell, Chief Executive of the ABA, said the assistance package will provide more certainty for the cane growers, associated businesses and rural communities affected by the difficulties being experienced in the sugar industry.

The banking industry is pleased to see that the Federal Government has provided sustainability grants for growers and mills, income support and planning help for growers and harvesters, funding for regional and community projects in sugar growing areas, re-establishment and restructuring grants for growers who want to stay in the industry and undertake on-farm improvements and succession planning assistance.

Mr Bell said banks will be studying the details of the package, consulting with their customers – cane growers, harvesters and millers - about how this package can be best implemented.

“The package is a positive contribution to the re-adjustment process that is being undertaken by the sugar industry.”

“Those leaving the industry will need to be able to preserve their equity to maximise their options post-cane growing so they can leave in the best possible financial shape,” he said.

“Those staying in the industry need to be able to implement best practice production and have optimal economies of scale if they are to maintain viability in the longer term.”

Mr Bell said cane growers will factor this assistance package into their considerations about options for moving forward and we encourage customers to fully discuss these options with their bank.

“Banks will manage customers on a case-by-case basis reflecting varying impacts and options available to individual customers. The financial position of individual customers varies and this determines the options that are available.”

For further information:

Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS