Parliament has unanimously agreed for the Fiji Sugar Corporation to be exempted from paying a guarantee fee, the government increase the existing guarantee of $120 million to $322 million and also extend the period to 31 May 2022.
Acting Prime Minister and Minister for Economy, Aiyaz Sayed‑Khaiyum says the increase of the guarantee will allow FSC to undertake a number of capital projects.
He says this includes agriculture mechanisation and cane development designed to increase cane production at a lower cost as well as upgrade existing rail infrastructure.
Sayed‑Khaiyum says this will also allow FSC to carry out a phased upgrade of the three sugar mills at Lautoka, Rarawai and Labasa.
He says these capital projects are going to be phased over three to four years.
Sayed‑Khaiyum has also told parliament that the projected debt of the Fiji Sugar Corporation as at 31st May 2017 is $393 million of which 79 percent is local debt and 21 percent is external debt.
Speaking on the motion, NFP parliamentarian Professor Biman Prasad called for a bi‑partisan committee on the sugar industry.
He said this is the right time to appoint a committee.
Opposition Leader, Ro Teimumu Kepa said that the increasing of guarantees was becoming a prominent feature with the government.
She called on the government to look for another option.
