By Fareeza Haniff

PRESIDENT David Granger does not believe that his administration has mishandled the situation regarding the Wales estate closure. He has, however, admitted that Government should have reached out to the Wales estate workers following the announcement of its intended merger with the Uitvlugt estate.Government’s approach in regard to the situation has been criticised in certain quarters, with veteran trade unionist Lincoln Lewis, in a statement, saying, “The manner in which the announcement of the Wales proposed merger was made has contributed to polarisation in the society, and this will deepen and widen if a process is not arrived at to bring stakeholders to the decision-making table.”

Asked by the Guyana Chronicle about the issue during his weekly programme, the Public Interest, President Granger expressed a divergent view: “No, I don’t believe that the Government mishandled (the situation). I do believe that enough information was in the public domain, and the public ought to have been aware of the fact that serious decisions had to be implemented in the sugar industry,” the President said.

He also believes that sugar workers ought to be properly informed in the future if such a decision is to be taken. “And I do believe, too, that in the event of another closure — it’s unlikely that (closure of another estate) is contemplated — that people should be given longer notice; but in this particular case, it was a fact that the Wales factory was underperforming in a serious way,” the President affirmed.

Since the impending closure of the Wales estate was announcement in January, Government officials are yet to meet with those sugar workers who are going to be affected, and this is something which the President believes Agriculture Minister Noel Holder should undertake.

“I am not aware that (Minister Holder) did not go ‘to the ground’ at Wales, but this is something that can be rectified. I would agree that the workers need to be engaged by State officials face– to–face,” the President said.

CABINET DECISION
Upon assuming office in May 2015, Government launched a Commission of Inquiry (CoI) into the operations of the Guyana Sugar Corporation (GuySuCo). That CoI report recommended that GuySuCo be privatised in three years’ time. As such, the administration came in for criticisms after it decided to go ahead with the merger.

President Granger has revealed that it was Cabinet, and not the Board of GuySuCo, which ultimately made the decision to merge the estates.

“Yes, a decision was taken to close Wales, and it’s a decision which the Cabinet is responsible for; and I think (that) in the fullness of time, it will be shown that the money saved from attempting to keep a dysfunctional factory working is better spent improving other areas. That is: improving the field, rather than the factory,” the President explained.

According to the President, the question of the state of GuySuCo has been in the public domain for several years because of the decline in production, problems with the factory at Skeldon, poor labour turnout, high production cost and low international market prices for sugar.

The President made it clear that there was no immediate plan to privatise GuySuCo. He pointed out that the CoI report would be discussed in the National Assembly, after which there would be a national consultation on the state of the sugar industry.

Government has noted that the Wales Estate was projected to make losses of between $1.6B and $1.9B in 2016, and requires extensive repairs to remain operable after suffering years of neglect.

The Ministry of Agriculture has revealed that the investment required to refurbish Wales estate remains significant, and the finances are simply not available. “Diverting funds from the other estates to keep Wales afloat would seriously jeopardise the future of these estates. This cannot be allowed to happen,” Government had said.

Wales estate will be merged with Uitvlugt estate at the end of the 2016 second crop; and with effect from 2017, farmers’ canes will be milled at the Uitvlugt factory. During this year, the routing of the farmers’ cane to Uitvlugt would be determined to ensure the least additional cost; agricultural workers at Wales will be absorbed by Uitvlugt up to the extent of suitable vacancies on that location. Surplus labour would have to be made redundant, and the same principle would apply to the other departments.