– for exposing PPP and cohorts in GAWU

Dear Editor,

MY attention was drawn to a letter by Mr. Seepaul Narine, using the appellation “General Secretary GAWU”, which appeared in the media on January 23 instant.

Being a PPP party candidate, it is easy to see how Mr. Narine has allowed his political bias to cloud his interpretation of what I said at a huge coalition mini-rally in my home village, Whim. Context is important. I told my villagers, (many of whom including my family members, worked in the sugar estate) that the PPP (Jagdeo) regime knew that the sugar industry was dying. By 2013, sugar production had fallen to 200,000 tonnes (FAO report).
The decline set in after the guaranteed price for sugar in the European market was discontinued. The sugar industry in Guyana and other Caribbean countries were “not restructured to improve competitiveness” (ECLAC Report 5th May, 2008-Impact of Changes in the EU Import Regimes for Sugar, Banana and Rice). In anticipation of this crisis Guyana had retained Booker Tate on a management contract for services which included preparation of plans for “rehabilitation and rationalization” of the sugar industry. It was noted in the National Development Strategy that while repairs and upgrades were done, —the sugar mills in Guyana are not only old, by obsolete”.

The ECLAC Report cited above, had warned that the EU price cut would have a harmful impact on the sugar industry as it was not restructured “to improve competitiveness”. Later, it was reported that the cost of production of sugar was three times the world market price (Kaieteur News 2/7/17), and it was generally the situation that we were producing sugar at just under 50 cents per pound, and selling for 16 cents per pound.

It was in that context that then President Jagdeo grabbed and estimated $50 Billion allegedly to modernise the Skeldon factory, saying that without Skeldon “sugar is dead”. The EU was also pumping monies into Guyana under its sugar programme ‘to improve competitiveness or to diversify out of sugar’. The EU disbursed between 2007 – 2013 a whopping $34.8 billion, but PPP regime is yet to say how much of those funds had been used to modernise operations in the sugar industry.

Besides, Guysuco had chalked up debt of some $85 billion.
These facts are known to Mr. Narine who knows that the Jagdeo – Ramotar PPP regimes had bankrupted the sugar industry and had placed the livelihood of 17,000 sugar workers and other families in jeopardy. When GAWU protested against management incompetence and the “square pegs in round holes”, it was served with notice of de-recognition in 2010. It was then that I made a public statement “light a candle for sugar workers” for which the Jagdeo Stalinist cabal threatened to expel me from the PPP.
Sugar workers are dear to me. Over many years I had fought for the recognition of the union of their choice. I will not be silenced for exposing the PPP and cohorts in GAWU for betraying sugar workers.

Since taking office in 2015 our coalition government made all reasonable efforts to ensure that the sugar industry does not collapse. We gave some $38 billion in bailout money to pay sugar workers, which amounted to one billion per month. Our coalition took the decision to close non-profitable estates thereby saving the jobs of 10,000 sugar workers. Those workers who were affected by the closure were given almost $6 billion in redundancy payments and some of them opted for alternative work.

Our government has rescued the sugar industry and even though production remains low, Albion, Blaimont and Uitvlugt factories are grinding sugar cane from five cultivation areas. The sugar industry is not dead as Jagdeo had expected, through the Skeldon factor became a white elephant.

However, re-opening of the closed sugar factories is not the answer to job –creation in the sugar belt.

Even the Stabroek News (23\1\20) conceded this in its editorial in which dubbed as ‘pipe dream’ the suggestion to re-open those estates. It stated the obvious that ‘slashing, the red into which sugar had dipped had been necessary for a long time’. When the Coalition returns to office after March 2 elections, it will continue to support the sugar industry and to ensure diversification that would enlist involvement of sugar workers. Sugar workers will be given plots of land on the estates to pursue farming, aquaculture and rearing of livestock, and will receive assistance to make them productive partners in Guyana’s development. In the meantime it is heartening to know that the discredited and corrupt PPP is running scared of me, as I hit the campaign trail in the sugar belt! Sugar workers must know the truth!

Yours sincerely,
Moses Verasammy Nagamootoo
Prime Minister of the Cooperative Republic of Guyana