Ok for FSC to live on taxpayers, but not farmers: NFU

[posted 20 April 2011, 1400]
 

FSC’s call that the $6 million State allocation for the 2011 cane replanting programme be given to cane farmers as a loan and not a grant, is devious and mischievous.

The $6 million allocation for the cane replanting programme, is intended as a grant and not a loan, as per Budget 2011.

FSC chairman Abdul Khan is now attempting to convert the grant into a loan to operate as a revolving fund. His reason: “Farmers must realise that free assistance by the government cannot continue every year as the money given out belongs to the taxpayers which can also be used for other capital projects,” he told FSC.

What sheer hypocrisy! FSC, a bankrupt institution, has been kept afloat on taxpayers’ handouts (free assistance!) since 2002. That year the Qarase government agreed to write off a $34 million loan to FSC and  re-financed the Corporation by facilitating a $75 million loan from the ANZ Bank.

In 2005 this was converted into a government grant – bringing to a total $109 million of taxpayers funds to FSC written off until then. In Budget 2011, the State made a $111 million allocation to FSC to meet its additional loan obligations post 2005. Altogether, more than $210 million of taxpayers’ money written off for FSC!

And Mr Khan grudges the cane farmers a mere $6 million grant by the State for a cane replanting programme! He should realise they are the same cane farmers whom FSC has cheated of more than $135 million through losses incurred through its milling inefficiencies in 2009 and 2010.

In the past two seasons, the mill TCTS has risen from an average of 10 to 13.8 – meaning that an extra 4 tonnes of cane have been wasted to make one tonne of sugar! There has been no compensation to the farmer for these losses.

Had it not been for this immense financial loss suffered by cane farmers as a result of FSC’s gross failures and incompetence, cane farmers would not need to rely on the State for assistance.

So who actually is the free-rider, Mr Khan?.

MP Chaudhry