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Wine row leaves sour taste

Wines of WA Larry Jorgensen. Picture: Mogens Johansen/The West Australian

One of the Barnett Government's most senior MPs has lashed out at the decision to axe a rebate scheme for WA winemakers, saying it had "sideswiped" the industry and should be reversed.

Barry House, the Legislative Council President who is also South West Liberal MP, criticised the decision to scrap the so-called cellar door subsidy to save $11 million over four years.

The subsidy is paid as a top-up to wine producers once they have exhausted their maximum entitlement of $500,000 under a Federal rebate scheme.

The decision was announced in last month's State Budget but Mr House said there had been no consultation with the industry, which he said deserved the assistance after a "tough" six or seven years.

Mr House said he would take up the issue with Premier Colin Barnett, Treasurer Mike Nahan and Racing, Gaming and Liquor Minister Colin Holt.

"It has come out of the blue, not just for the vignerons operating cellar-door facilities, but the businesses associated with the industry - the restaurants and galleries, the wine tour operators," Mr House said.

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Mr House's disquiet comes amid a growing backlash against the Government's move by the industry, which said the reasons given for axing the subsidy were inaccurate and misinformed.

Industry body Wines of WA said the decision would directly hit 80 per cent of the State's wine production and indirectly affect all of it.

It also said the decision was at odds with the Government's pro-agriculture and tourism claims.

Group chief executive Larry Jorgensen said axing the scheme would hurt the industry and the Government should defer a decision at least a year.

Mr Holt said just 20 out of about 540 producers were getting the subsidy.

He defended the Government's record of investing in agriculture and tourism, saying money was being dedicated to both through the Royalties for Regions program and this benefited the wine industry.