Fiji loses $70m EU sugar funding for 2009

[posted 18 May 2009, 1530]

Fiji’s sugar allocation of EURO 24 million (FJD 70m) has been cancelled by the European Commission following Fiji’s failure to hold elections in 2009.

The decision was made by the European Union and announced by its Commissioner for Development and Humanitarian Aid, Luis Michel.

“The decision to cancel the allocation was made in the absence of indications that a legitimate government will be in place in 2009,” said Commissioner Michel in a statement issued today (18 May 2009).

Commenting on the cancellation, NFU general secretary and FLP Leader Mahendra Chaudhry said, “It was to be expected in view of the political developments that took place on 10th April. The deferment of elections to 2014 and the abrogation of the Constitution by the President must have played a significant role in the Commission’s decision to cancel this huge aid allocation which would have injected new life into the ailing sugar industry.”

“The allocation for 2008 of Euro 8 million (FJD 23m) may also be lost as its release is conditional upon satisfactory progress being made before the end of 2009 towards resolving Fiji’s political problems with the agreement of all key stakeholders,” said Mr. Chaudhry.

The European Commission has also made it clear that future allocations would only be available to an elected government.

The unavailability of EU funding now places an obligation on the State to provide adequate finances to help the industry achieve the objectives under its restructure and reform programme.

“Let it be made clear that the industry will not be able to survive for long without adequate support being given to the growers to boost production and make a reasonable profit from their enterprises,” said Mr Chaudhry.