–Gov’t to lay out plan during budget debates

By Ariana Gordon
EVEN as a group of West Bank Demerara (WBD) private cane farmers are desirous of making an official pitch to government for support in running the Wales Factory, government is standing firm that it does not have the financial strength to support such a venture.Speaking with Guyana Chronicle yesterday, Agriculture Minister Noel Holder said while there are lots of discussions and views on the situation at the Wales Sugar Factory, persons are yet to present a financial plan in support of farmers running the factory.
Government, he said, simply does not have the money required to support Wales Factory.

FUNDING REQUIRED
“These proposals require funding for another five years,” Holder told this newspaper, noting that government does not have the money, and so any proposal to be put before government has to have a clear cut financial plan.
“There is no money and it doesn’t make much sense,” the Agriculture Minister stated. Not wanting to appear dismissive on the issue, he said government has plans in store for the workers and the estate.

PLANS IN STORE
“We have plans,” said Minister Holder, who informed this publication that those plans will be revealed during the upcoming budget debates. He said too that government is in discussion with stakeholders with the aim of making the Wales Estate profitable. Guyana Chronicle understands that several feasibility studies are being conducted in this regard.
“These plans will come out soon,” said the Minister, who noted that some level of discussion is still ongoing.
On Tuesday, a group of eight cooperatives from the Wales area met at Bel Vue, West Bank Demerara (WBD) to discuss the proposal that will be put to the government. Within the proposal, there will be plans aimed at cultivating the land and operating the factory.
Farmer Derick Venture said the group wrote President David Granger, requesting a meeting to discuss its plans. He said the farmers are requesting to be allowed a two-year period to cultivate the estate, and the setting up of a Board is among the proposals. The Board can comprise farmers and members of the Guyana Sugar Corporation (GuySuCo) and would be responsible for managing the factory and cultivation during a transition period. During the two-year period, the group will request funding to operate the factory.

SENTIMENTAL
GuySuCo Chief Executive Officer (CEO) Errol Hanoman told Guyana Chronicle yesterday that those who are offering their opinions and suggestions on what they term ‘closure’ of the Wales Factory are sharing their “sentimental and emotional” views. He said of all the discussions ongoing on the issue, no one has addressed the question of cost and funding.
“They haven’t addressed the question of cultivation and the amount of money needed… these are sentimental and emotional statements being made,” said Mr Hanoman. He said not many persons have taken the time to study the situation at the Wales Estate.

COST IS CRITICAL
“Cost is critical to any proposal. Any ideas for Wales have got to address the question of cost, market, sugar prices and funding,” he said, pointing to the fact that the Government of Guyana (GoG) has been investing billions of dollars into GuySuCo to keep it afloat. Since taking office, the APNU+AFC Coalition government has allocated a total of $21B to the sugar industry. Like Minister Holder, the GuySuCo CEO said plans are afoot for the Wales Estate and workers.

PROFITABLE BUT WITHOUT SUGARCANE
Not divulging specifics, he said there is a plan to utilise the Wales Estate so that it can be profitable but not sugar-wise.
“Once achieved, Wales will become the first profitable estate but not using sugarcane,” said Mr Hanoman. He told Guyana Chronicle that there are lots of ongoing discussions about the future of the estate and noted that the primary goal is “to make Wales a profitable business not using sugarcane or sugar.”
“Sugar and sugarcane are unprofitable…we want to make Wales profitable,” he remarked.
In January, government announced that it is no longer in a position to finance the operations of the Wales Sugar Factory.
“Diverting funds from the other estates to keep Wales afloat would seriously jeopardise the future of these estates. This cannot be allowed to happen,” a statement from the Ministry of Agriculture had said.
It added: “It is impossible to make sugar production at Wales viable. This is made worse by the gloomy outlook for sugar prices for the foreseeable future. Wales Estate is projected to make a loss of G$1.6 – $1.9 billion in 2016. This coupled with the extent of refurbishment needed render this estate prohibitively costly to maintain.”
The Wales factory will operate throughout 2016, milling both the estate’s and farmers’ canes, but will be closed at the end of the 2016 second crop. In 2017, farmers’ canes will be milled at the Uitvlugt factory while agricultural workers at Wales will be absorbed by Uitvlugt to take up suitable vacancies at that location. Surplus labour will be made redundant.
The government noted that Wales is in the poorest shape in comparison to other estates, pointing out that 60 per cent of its drainage and irrigation is rundown, 75 per cent of the bridges are in poor shape, cultivation is also poor and the factory is old and in need of major investment.