A New Chapter For STL Governance

Paul Schembri's election as grower-director to the Sugar Terminals Limited (STL) board has been met with strong approval from grower advocacy organisations CANEGROWERS and Queensland Cane Agriculture and Renewables (QCAR). This milestone highlights the increasing demand for transparency, accountability, and grower-focused decision-making within the sugarcane industry.
CANEGROWERS Chairman Owen Menkens hailed Mr Schembri’s election as a victory for growers, emphasising the significance of his leadership.
“Paul Schembri’s election is a win for growers and the industry as a whole,” he said.
“Paul’s decades of experience and dedication make him an invaluable addition to the STL board. His presence signals a renewed focus on ensuring the voices of growers are not just heard but respected.”
QCAR Chairman Christian Lago also acknowledged the overwhelming support for Mr Schembri, describing him as a “bona-fide grower” and expressing optimism about his contributions.
“We congratulate Paul on his election,” Mr Lago said.
“He’s a bona-fide grower who QCAR wholeheartedly endorsed, and we look forward to working with him and fellow G Class director Steve Kirby, who are well-placed to represent the interests of G Class shareholders.”
The election outcome follows a contentious period for STL. Delays in finalising the voting process after the Annual General Meeting (AGM) were compounded by growing frustrations with STL’s leadership and its decision-making approach. CANEGROWERS and QCAR were among those critical of STL’s controversial 2023 move to insource terminal operations, which many growers view as unnecessary and poorly communicated.
“Most farmers do not support the plan—it’s a business model STL has no track record with,” Mr Lago said.
“STL’s claims that it can outperform Queensland Sugar Limited (QSL) are unsubstantiated, and we are yet to see any proof.”
CANEGROWERS also pointed to the rejection of STL’s remuneration report for the second consecutive year at the AGM as evidence of shareholder dissatisfaction. While a motion to spill the board was ultimately defeated, the result underscored the demand for change.
“This election is more than just a win for Paul—it’s a wake-up call for STL,” Mr Menkens said.
“Growers are demanding a change in leadership style and decision-making. They want transparency, accountability, and a commitment to the industry’s long-term interests.”
Both organisations have called for reform to address diminishing grower representation within STL. Mr Lago highlighted the decline in voting power among active G Class shareholders, which has dropped from 64% in 2000 to just 36% in 2024.
“Active growers must make up the majority of shareholders as was intended in STL’s founding charter,” he said.
“STL must focus on fixing the share registers and deal promptly, decisively, and fairly with dry shareholders.”
As Mr Schembri steps into his new role, there is cautious optimism that his leadership will help bridge divides and refocus STL’s priorities.
“These terminals represent generations of growers’ hard work and investment,” Mr Menkens said.
“Unilateral decisions that ignore grower input erode trust and unity. Paul’s election is an opportunity for STL to rebuild trust and honour the legacy of the sugarcane industry while preparing it for a sustainable future.”
The industry now watches closely, expecting STL to address concerns, restore grower representation, and provide clarity on its contentious insourcing model.
“This is a critical moment for STL to prove it can genuinely act in the best interests of the growers who built its foundation,” Mr Lago said.
A full STL update is available online: nsx.com.au/ftp/news/021744120.PDF.

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Former CANEGROWERS Chairman Paul Schembri's election to the STL board is a powerful step towards accountability and collaboration say cane growing advocacy groups. Photo supplied
QCAR Chairman Christian Lago

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