TAXPAYERS’ money cannot be used to subsidise the Fiji Sugar Corporation anymore.
This was the submission by chairman of the Fiji-India Business Council, Swani Maharaj, to the Standing Committee on Economic Affairs on the Reform of the Sugar Cane Industry Bill in Lautoka last week.
Under the Bill, Government intends to completely take over the FSC by turning $175 million owed by the miller into equity or shares.
Government will increase its 68 per cent stake to 100 per cent in the process.
Mr Maharaj said Attorney-General Aiyaz Sayed-Khaiyum had made strong comments in Parliament about minority shareholders free-riding at Government’s expense.
“There is a need to consult other shareholders to whether they want input,” said Mr Maharaj.
“Nobody wants to invest in a dying industry where profits will not be seen for many years.
“The taxpayer is not for remedying and subsidising the industry.
“There is so much money going into FSC and it relies on subsidies.”
Standing committee chairperson Lorna Eden informed Mr Maharaj that the reform Bill was important because it would enable the industry to be streamlined and be more efficient.
