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<\/p>\nAustralian Prime Minister Anthony Albanese has reneged on his promise to support the struggling wine tourism sector, announcing this week that he will phase out the Wine Tourism and Cellar Door grant package, effectively wiping AU$10 million from the programme.<\/p>\n
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On Tuesday 12 May Labour Prime Minister Anthony Albanese quietly announced that he was axing a three-year Wine Tourism and Cellar Door programme across Australia, meaning the support package will come to an end after just two years.<\/p>\n
The initiative allowed Australian producers to apply for grants of AU$60,000 to AU$100,000 to put towards staffing their cellar doors with employees to welcome guests and run tastings. This financial support has been propping up wine tourism in more remote agricultural regions as an already struggling sector was further hit by the fuel crisis triggered when Israel and the US attacked Iran. Rising fuel costs mean that tourists are often unwilling or unable to spend out on filling up the car to drive hours outside of major Australian cities, where many wineries are based.<\/p>\n
\u201cFor many producers, this [the grant programme] is essential to maintaining cashflow and profitability. Ending it now effectively pulls the rug out from under businesses already facing enormous pressure,\u201d said Lee McLean, CEO of Australian Grape & Wine, which represents producers.<\/p>\n
\u201cThis budget is a bitterly disappointing outcome for an industry under significant and sustained strain.\u201d<\/p>\n
Continuing, McLean stressed: \u201cWe did not ask for a handout. We put forward practical, targeted measures to support an orderly transition, reduce long-term costs, and minimise the impact on regional communities. Once again, the Government has chosen not to act.\u201d<\/p>\n
Fuel crisis<\/p>\n
Local MPs have also voiced outrage at the policy change, saying that the fuel crisis is chipping away at the country\u2019s wine tourism sector with no resolution in sight.<\/p>\n
\u201cThis [wine tourism] programme helped with cashflow and profitability, but Labour\u2019s decision to end it will only increase the pressure wine growers are already facing,\u201d said Matt Canavan, leader of Austalia\u2019s National party.<\/p>\n
\u201cThe Government has dismissed calls that the glut of wine sitting in vats could be turned into ethanol during a fuel crisis \u2013 Labour should heed the industry\u2019s calls and review whether Australia\u2019s excess wine stores could help alleviate our fuel supply crisis.\u201d<\/p>\n
Ben Small, Liberal MP for Canberra suburb Forrest was even more forthright in his response.<\/p>\n
\u201cTo show how nasty this mob are to regional communities, they canned the AU$10m wine tourism and cellar door programme, originally announced with fanfare and applause,\u201d he said.<\/p>\n
\u201cOur wine industry is crucial to the region because of the employment, investment, and the tourism draw that it provides\u2026Of course, the Government found AU$3.7 billion to funnel into Victoria\u2019s Suburban Rail Loop.\u201d<\/p>\n
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TWE speaks out<\/p>\n
Treasury Wine Estates CEO Sam Fischer told Australia\u2019s The Daily Telegraph that he sympathised with the financial pressures on the government, but the scrapping of the cellar door programme would be a \u201cblow\u201d to communities.<\/p>\n
\u201cWe acknowledge the significant global and economic pressures shaping this budget and welcome the government\u2019s continued focus on trade, market access and supply chain resilience, particularly measures supporting fuel and fertiliser stability,\u201d said Fischer.<\/p>\n
\u201cThat said, it is disappointing that funding for the Wine Tourism and Cellar Door Grant programme will be phased out, despite Australia\u2019s wine industry being a major regional employer and export contributor.\u201d<\/p>\n
Last month db reported that a spate of recent hirings, firings and retirings across Australia\u2019s leading wine companies<\/a> reflect the ongoing turbulence in the region.\u00a0 A major restructuring of TWE was also announced on 22 April that will see the Penfolds owner cease to operate by brand group and instead be reorganised into four geographical divisions: the Americas; Australia and New Zealand; Europe; and Greater China, with a combined emerging markets business covering the rest of Asia, the Middle East and Africa.<\/p>\n According to Fischer, this will \u201cdrive clearer accountability for performance and enable faster, more market-connected decision making as a foundation for consistent depletions growth\u201d. Each division is expected to handle its entire product range \u201cas appropriate to their markets\u201d.<\/p>\n \u00a0<\/p>\n Related news<\/p>\n \n \n
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