Berbice chambers set conditions for GuySuCo’s privatization

Apr 20, 2017 News

A shutdown of the country’s sugar industry is unacceptable at this time.

Enmore estate’s future looks bleak as government is reportedly considering what to do with it.

This was the assertion of Berbice business persons during a high-level meeting late last month with a team of Government officials, including Minister of Finance, Winston Jordan.
The meeting was initiated by the Central Corentyne Chamber of Commerce and included executives of all the chambers in Berbice, according to the body in a statement this week.
Also present at the meeting were Junior Finance Minister, Jaipaul Sharma, Commissioner-General of the Guyana Revenue Authority (GRA), Godfrey Statia and Dr. Gobind Ganga, Governor of Central Bank.
The current crisis of the Guyana Sugar Corporation was a major issue on the agenda for the chambers. There are four estates in the East and West Berbice areas – Skeldon, Albion, Rose Hall and Blairmont.
“Our members expressed the view that sugar is still viable industry in many parts of the world and in spite of its many problems we do not want the industry to be shut down. We will support privatization of the industry once…conditions are met,” the chambers said in a statement.
The Berbice businesses want the privatization transaction to be done in an open, free and transparent manner. The chambers also want any buyer to continue the production and sale of sugar, so that the present employees can continue to work in the industry.
“During the period leading up to the privatization, the Government will not close any factory and or send home workers. We told the minister we do not want another Wales estate scenario in Berbice.”
Another condition set forth in the event of privatization is that the manufacturing and sale of sugar should be open to any individual or organization who wants to invest in the sector.
“We have noted also that whilst Government is spending billions to support GuySuCo, a significant portion of it, in the form of wages and salaries, is spent in the region, and it helps to develop the economy, moreover deduction in taxes and NIS contributions go back to the government and NIS respectively.”
In recent days, Government has named three estates it believes that it should keep out of the seven. These are Albion and Blairmont in Berbice and Uitvlugt on the West Demerara.
The chambers had arranged the meeting with the officials to raise several matters of concern.
These included decisions this year by the administration to introduced VAT on water, electricity and education. The latter, which has sparked protests, was described as “mean spirited and should be urgently reviewed”.
Government has already said that VAT on education will remain for this year but several taxes will be reviewed for next year’s budget.
According to the chambers, the taxes have a negative effect on the psyche of the ordinary man and will only service to discourage and de-motivate people.
The issue of the SARA bill and the state of the Guyana Sugar Corporation as well as more services of GRA in Berbice were also raised, as was the seeming slowdown in lending by commercial banks which signals that new investments by the private sector have reduced significantly, the chambers argued.
Leading the delegation from the Berbice businesses were Mohamed Raffik, President of the Central Corentyne Chamber of Commerce. Also present were its Vice President, Imran Hamid, and Secretary, Poonai Bhigroog.
Representing the Upper Corentyne Chamber of Commerce and Industry was K. Jaichand. While R. Ramroop represented the Berbice Chamber of Commerce and Development Association. Others in attendance were the CEO of Nand Persaud Company Limited, Mr R Persaud, and Pradeep Bachan representing the West Berbice Chamber of Commerce, together with other members.

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