Monday, 12 October 2009

Governments picking winners

Millions of your dollars and mine have been spent over the last decade giving tax breaks to encourage the planting of grape vines. Government in its wisdom had decided back in the nineties that was the thing to do so that the Australian wine industry could continue its phenomenal export growth. Now the inevitable has happened and we have a glut with the Adelaide Advertiser this morning reporting Wine Grape Growers’ Australia executive director Mark McKenzie as saying ‘“We have at least 20,000ha of vineyards more than we need”. In Mr McKenzie’s view the wine industry needs to cut at least 10 per cent of Australia’s 177,000 hectares of vineyards from production.
Already the representations have begun to get the same Federal Government which paid for the glut to pay for the reduction. A Wine Industry Restructuring Action Agenda has been presented to the Federal Government by four major national wine organisations. As the lobbying builds in intensity in the run up to the next election. wine drinkers can at least take advantage of some excellent value as desperate wine makers seek to survive.
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