Tobacco Growers Vote to Accept Exit Package

Source from:  abc.net.au Friday, 27/10/2006 10/30/2006

Australia no longer has a legal tobacco growing industry. Tobacco was grown in Queensland and Victoria, but British American Tobacco and Phillip Morris have now announced they will be withdrawing from Australia by 2008 because overseas crops are cheaper. Growers in both states yesterday voted to accept an exit package made up of $15 million from the tobacco companies and $17 million from the Federal Government. That amounts to a maximum payment of $150,000 per grower, which producers say is an offer too good to refuse. Queensland Nationals Senator Ron Boswell says the Government hopes the tobacco farmers will be able to find alternative crops, but admits it will be difficult. "In the case of Merribra it's a long way from the market so it's difficult to find something they can grow commercially, but some of the farms may go over to sugar which is doing okay at the moment," he said. "Others maybe won't be able to do that. They're pretty small farms." Enditem