Growers Wait for Tobacco Exit Offer

Source from:  bordermail.com.au By BRAD WORRALL 10/23/2006

THE delivery of a Federal Government exit package for tobacco growers is a race against the clock. Yesterday, member for Indi Sophie Mirabella said she fully expected to table the Commonwealth's offer when tobacco growers met to vote on the industry's future on Thursday but not a minute earlier. She was cautious about playing up the size of any package. Mrs Mirabella and Tobacco Co-operative of Victoria chairman John Muraca spent Monday and Tuesday door-knocking federal ministers seeking support for a package to complement British American Tobacco's $10 million buy-out offer. The cigarette manufacturer's deal is conditional on the 138 growers foregoing an existing two-year contract and not planting another crop. But growers and industry experts have already made clear $10 million alone would not be enough and a Federal Government package would be needed to seal the deal. If more than 48 growers oppose the buy-out the package will be defeated. Yesterday, Mrs Mirabella accepted that tobacco farmers needed to know what the Commonwealth was offering. "I have every expectation that I will be tabling a package at the meeting," she said. "Obviously the growers need to know what, if anything, the government is prepared to offer if they are to make such a significant commercial decision. "I have expressed to the ministers, in the strongest possible terms, that we need a 'yea' or 'nay' and at the very least a skeleton of a proposed package." Mr Muraca was unconcerned by the delays in announcing the Federal Government package. "Provided we have the dollars on the table at the meeting growers will be able to make a decision," he said. "They know in their own minds what they need as a financial incentive to exit the industry. "This week's meetings in Canberra were very fruitful. "We were able to meet with representatives from the prime ministers office and a range of other ministries. "I'm confident the package will be acceptable and delivered on time - it has to be." Enditem