European Commission cuts sugar money
18-May-2009 09:45 AM

THE sugar industry has suffered another blow, just days away from the 2009 harvesting and crushing season.

The European Commission has taken the decision to cancel the 2009 sugar allocation for Fiji in the absence of any indications from Government concerning early elections.

Fiji’s allocation for sugar reform accompanying measures for 2009 totaled EUR 24 million.

The Commission would have made this financing available to Fiji subject to a democratic government being in place in accordance with EU Council decision of 1 October 2007.

European Commissioner for Development and Humanitarian Aid, Louis Michel said: “I encourage the Government of Fiji to fulfil its commitments to the EU so that we are able to reinstate sugar reform payments in the future.”

But Prime Minister Frank Bainimarama had indicated on many occasions that Fiji will only have an election once it has implemented changes that they want.

This includes reforming the electoral system - a system Bainimarama claims reeks of racial divide.

Following the abrogation of the country’s 1997 Constitution by the President, Ratu Josefa Iloilo on April 10, he indicated that the next elections will be held in 2014.

Two days later, Bainimarama and a caretaker government was appointed.

Recently, many farmers were facing problems receiving its cane payment last week, but this was made possible following negotiations among sugarcane stakeholders.