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Govt pegs GUYSUCO debt at $82B

Nov 08, 2015 News

Government has pegged the Guyana Sugar Corporation (GUYSUCO) debt at $82B and noting that a further bailout is anticipated for 2016, has declared that any further strike action would finally bring sugar to its knees.
This is in view of the strikes that the corporation has been experiencing in recent times. The major labour unions are up in arms over Government’s delay to begin effective collective bargaining for 2015 wages and salaries.
GUYSUCO has been receiving massive bailouts over the last five years- some $28B- despite its insolvent status over the years. This is coupled with the fact that an expected $5B is needed for capital investment.
“The Coalition did not create the problems affecting the sugar industry. The blame ought to be placed elsewhere,” the government said in a statement. “It is government’s view that any industrial action at this time will place the industry into further jeopardy. Government is regrettably unable to increase the bailout package above the $12B for 2015 and strike action will not change this reality.”
“In the meantime Government is analyzing the interim findings and recommendations of the Commission of Inquiry,” the statement went on to state. “Guyana Agriculture Workers Union (GAWU) as an integral part of the COI ought to know that industrial agitation is not an option at this time.”
”Government once again implores all sugar workers to steadfastly remain committed to the industry and to partner with management for its recovery,” the statement said.
“It is critical that sugar workers know the following pertinent facts. Production slumped from 327,000 metric tonnes in the 1960s to an average of below 250,000 tonnes between 2008 and 2014. Under the former (administration), the sugar industry never came close to realizing the promised 500,000 tonnes target.”
It noted that between 2009 and 2015 GUYSUCO not only failed to make a profit but suffered estimated total losses of $67.8B.
“When the previous administration left office, GUYSUCO’s debt burden stood at $82B. It is therefore irrefutable that under that administration, GUYSUCO had lost its way.”
The release went on to note that the interim report from the Commission of Inquiry (COI) into the sugar industry had confirmed the poor and declining state of GUYSUCO was as a result of “political interference, poor management and squander mania.”
“The Government is seeking to put a Ten Year Road Map and Action Plan in place, aimed at returning the industry to viability,” the release said.
“It would therefore be ill advised and indeed premature to commence wages talks before this plan is considered. Unions that seek to drag the sugar corporation to the table to do so are obviously pursuing a political agenda which unfortunately is not in the interest of sugar workers.”
“The Government has, for the first time, allowed management to run GUYSUCO independently and to make it a top priority (to find) a lasting solution to secure employment and also to make the industry profitable,” the release said, ending with an appeal for sugar workers to stand committed.

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