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AUSTRALIAN MINISTER CITES NECESSITY OF GOVT SUGAR BAILOUT.
CANBERRA, Sept 2 Asia Pulse - A federal government bailout of the struggling sugar industry was necessary to prop up towns along the Queensland and northern NSW coast, Trade Minister Mark Vaile said today.
Cabinet is considering a $A100 million ($US54.95 million) rescue package which would require substantial changes within the industry, including merging small farms into cooperatives and a levy on consumers.
The National Party backbench is also putting pressure on the government to mandate the use of ethanol in fuel.
Asked why consumers should pay for an industry that had already been given assistance, Mr Vaile said that question could be posed about any industry receiving assistance.
"You might ask yourself, `why assist 6,000 farming families?'," he told the Ten Network.
"So many communities along the coast of northern NSW and Queensland rely absolutely on the Australian sugar industry.
"It is very, very significant in terms of its impact on those regional economies but also our exporting economy, so it's important we think in the national interest in this regard."
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