No help for Fiji sugar this yr: EU
Tuesday August 21, 2007

The European Union says Fiji will not receive any European Union money for its ailing sugar industry this year unless credible steps are taken towards democracy.

An EU statement released yesterday stated that aid would be considered in 2008 granted if there is evidence of credible and timely preparation for elections.

"Fiji will be informed that the 2007 sugar allocation will be zero, and the 2008 sugar allocation will become available subject to evidence of credible and timely preparation for elections in accordance with agreed commitments."

The statement was a surprise since EU programme coordinator for the sugar sector; Xavier Conton-Lamousse had said last week that about $US5 million would be channelled into Fiji's sugar industry, with the first funds to be released within two months.

The statement further says that "the 2009 sugar allocation will become available subject to a legitimate government being in place."

It is understood that Fiji stands to lose $US165 million from the EU unless it returns to the rule of law and democratic principles by 2009.

A reaction from the interim regime is expected shortly.