Sale of land touted as GuySuco’s lifeline

Dec 24, 2010 News

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By Gary Eleazar

Minister of Agriculture Robert Persaud yesterday informed the National Assembly that the Government will continue to assist the Guyana Sugar Corporation (GuySuCo) and stressed that the industry is critical to the country’s development.
The Minister said that the company faces several significant challenges which are not only unique to Guyana but, “we have seen a genuine commitment to ensure that steps be taken to guarantee the sustainability of the industry.”
He said that when the preferential price for sugar heading to the European Union was established many “countries came out of sugar but we didn’t”
Persaud pointed to the fact that Guyana decided to build a modern factory, along with other related investments throughout the country.
In indicating assistance for the company, Persaud drew reference to the $4B land sale when the company was at a critical juncture.
The Agriculture Minister emphasised that GuySuCo will benefit from investment, pointing to the US$12M packaging plant in Enmore so that the industry can obtain better prices for a value added product.
According to Persaud, ever since 2005, “we have seen a number of challenges…GuySuCo’s ability to increase production is being hampered.”
He reiterated that as part of the steps taken by the government to alleviate the situation, the government has taken several steps such as the termination of Booker Tate and the reshuffling of management
“For first time this year we will face the full impact of a sugar cut,” pointing to the fact that GuySuCo will lose $9B, “but due to investments being made we are committed and look to 2011 as a landmark year.”
He said that they were able to provide four billion dollars to GuySuCo and a further two billion will go to the entity through sale of land.
Persaud said that this is just the initial assistance, and there “will be more support soon to take industry to where Guyana needs to be.”
Following the opening statement by the Agriculture Minister, Alliance For Change Chairman Khemraj Ramjattan sought to have the Speaker rule for them to have a debate on Sugar Company.
He also sought to have an adjournment of the sitting on definite matters of urgent public importance so that they could debate what he called “the present untenable and deplorable situation in the sugar industry”.
Ramjattan opined that the situation has caused the company to be in belligerent confrontation with its workers.
“The objective of my motion is to call upon the Ministers responsible, namely, the Agriculture Minister and Labour Minister, to provide adequate and credible explanations to the people of Guyana on the true state of affairs in the Sugar Industry, (and industrial relations therein), which is one important pillar upon which the entire economy of Guyana rests, and on which the livelihoods of more than 20,000 or more families depend,” he told the House.
In seeking to make an appeal for his case, Ramjattan noted that “there have been over 200 strikes in the industry; big shortfalls in projected targets for 2010; there is now a public admission that there are major design flaws at the Skeldon Factory; massive sums of taxpayers’ monies being given to bail out the incompetence of Guysuco; there are tactical manouvrings to threaten de-recognition of the sugar workers union, GAWU, as well as the fact that there are colossal adverse financial and social impacts that this state of affairs will have on all Guyana”.
The Speaker of the House ruled against having the debate, and consequently, the Alliance For Change Member of Parliament walked out of the sitting.
He subsequently told media operatives that he was disappointed with the ruling and that the situation in the sugar industry is dire.
When asked if the political landscape within the ruling party may be illustrating itself as a result of the workers’ plight, Ramjattan answered in the affirmative.
He suggested that it is clear that there are now factions, in speaking to the fact that Moses Nagamootoo’s statements reflects one faction then there were the utterances of the General Secretary, which the Presidential Candidate says represents another.
He opined that there were several persons running the company who are incompetent and inexperienced.
The Agriculture Minister subsequently fired back at Ramjattan saying that he wants to make the Parliament a circus.
“In fact, I don’t think he should have been allowed to speak…Another clear case of shedding crocodile tears for the sugar industry.”
Persaud made reference to what he called Ramjattan’s objections to GuySuCo getting $4B from the government in 2009.
“His party in fact favours the shutting down of the industry rather than the government assisting through this difficult period…Ramjattan’s ploy is to use sugar workers to gain political traction which the workers will not tolerate.”
In addressing Ramjatttan’s talk of factions in the ruling administration, Persaud dismissed it as “a figment of his imagination and irrelevant to the turnaround of the sector…Non-recognition of GAWU will never happen so it is a non-issue…The head of state has made it clear.”
According to Persaud, Parliament has extensively deliberated on the sugar industry.
He added that Ramjattan is a member of the Economic Services Sectoral Committee of the National Assembly and is fully aware of the ample Parliamentary deliberations.

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