POPULAR WORDS

The Howard government's decision to place a $100 million levy on sugar could cost jobs and investment in the food and manufacturing industries, Victorian Minister for State and Regional Development, John Brumby, claims. Brumby says analysis by the Department of Treasury and Finance shows a levy on raw sugar could have a detrimental impact on the state, resulting in the loss of "hundreds" of jobs. He calls on the government to scrap the levy plan and instead fund its sugar industry rescue package from consolidated revenue. "Using a levy to prop up Queensland's sugar industry has the potential to cost significant jobs in Victoria and I call on the Prime Minister to immediately review his decision and act in the best interests of all Australians," he says. "Additional costs resulting form the levy will have to be passed on to consumers, which will result in inflationary and adverse pressure on the sales of confectionery, beverages and other products containing sugar. "These increased costs will make products from Victoria far less attractive than those produced overseas where the levy does not apply. "Another side effect could be the widespread use of sugar substitutes which would have a detrimental impact on Queensland's sugar cane industry – the very industry the levy is designed to protect." Comparisons between the sugar levy and the levy introduced for the dairy industry in 2002 as part of the deregulation of the milk sector are rejected by Brumby. He asserts the dairy levy was not passed on to food manufacturers and so did not damage their costs or international competitiveness. "It's time the Howard government got its Budget in order so it can fund much needed industry assistance programs from consolidated revenue rather than wrecking one part of an industry to prop up another," he says.