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Queensland Sugar Limited is unhappy at having to sack its board of industry directors in its dispute with Wilmar. (ABC Rural: Marty McCarthy)
Embattled sugar marketer Queensland Sugar Limited
(QSL) has been forced to sack its board of industry directors, as its
dispute with Australia's largest sugar miller drags on.
The
announcement came within hours of QSL and Wilmar reaching an in
principle agreement over a long-running dispute about sugar marketing.QSL's Board will no longer feature six directors appointed to represent growers and sugar millers, following an appeal judgement by the Federal Court in Brisbane on Thursday.
"Although our industry directors have only been in place for the last three board meetings, their involvement has brought added industry experience and perspective to the board," QSL chairman Guy Cowan said.
In 2016, QSL made changes to its constitution to allow the appointment of industry directors, including representatives from Queensland sugar millers Bundaberg Sugar, Isis Central Sugar Mill, and Mackay Sugar.
The changes prevented a director being appointed by foreign-owned miller Wilmar, which is withdrawing from QSL's marketing pool arrangement.
Wilmar challenged that decision, but was initially unsuccessful, with the Federal Court in October ruling in favour of QSL, declaring the constitutional change was "not oppressive to, unfairly prejudicial to, or unfairly discriminatory against [Wilmar]".
However, Wilmar successfully appealed that decision on Thursday, forcing QSL to sack its industry directors and revert to the old board structure of three independent directors and managing director.
Lobby group Canegrowers is scathing of the decision, arguing Wilmar's legal challenge is proof the company wants control of the Queensland sugar industry.
"Wilmar is interfering in a company it sees as a threat to its plans. This is about control and not performance," Canegrowers CEO Dan Galligan said."To go to court to challenge an industry-backed board restructure under these circumstances was another tactic in a campaign for control by Wilmar and the court ruling in Wilmar's favour is regrettable.
"The grower directors are collateral damage in Wilmar's big picture objective to remove other Queensland milling company directors from QSL's Board."
Sugar marketing dispute nearing resolution
Mediation between Wilmar and QSL that began yesterday morning ran into the late hours of last night.
The Palaszczuk Government supplied the services of former supreme Court judge Richard Chesterman to mediate negotiations between the parties.
Wilmar said it was now satisfied that the three issues that were obstacles to finalising an agreement with QSL have been agreed to in principle, although a contract is yet to be signed.
The miller said both parties had committed to concluding a formal agreement as soon as possible.
The resolution came following threats of political intervention from the State Parliament and Federal Agriculture Minister, Barnaby Joyce.
There are calls for a national code of conduct to be developed to ensure similar disputes can be resolved more quickly in future.
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