HEAD of the Presidential Secretariat (HPS), Dr Roger Luncheon, has reiterated Government’s concern about the sugar industry, and the importance of the turnaround plan.

The Cabinet Secretary was responding to questions about ‘concerns about the direction of the sugar industry’, at his weekly post-Cabinet press briefing, at the Office of the President, Shiv Chanderpaul Drive, Georgetown.

He told reporters not to dismiss what are significant challenges in putting in place the ‘strategic turnaround’ plan adapted by the interim board under the management of Dr Nanda Gopaul.

“Events have, indeed, taken place that whilst they did not threaten the principles on which the turnaround plan was based, they certainly have caused difficulties with implementation of aspects of the plan,” the HPS observed.

“The GuySuCo (Guyana Sugar Corporation) problem, essentially, we would agree, has to do with production,” Dr Luncheon underscored.

“We are trying to sustain a level of expenditure that is historical on declining production, so the turnaround plan, in all of its facets, leads to getting back to the level of production that can sustain its expenditure profile,” he explained.

He pointed out that the difficulties that have arisen now are difficulties associated with the ‘mismatch’.

Adding, “Here is your historical trend of cost in the industry, and here is your more recent trend of production in the industry.”

He stated that the unit cost for sugar exporting has fallen as well as the volume, noting, “We want to impress on all the stakeholders this reality, and to get them to recognise that things are not going to be as usual. Things are not going to be the same (as) it used to be as we move to implement the turnaround plan.”

Dr Luncheon stated that as aspects of the turnaround plan are implemented, “we can anticipate the situation rectifying itself.”

“I am certain that 350,000 to 400,000 tonnes at a decent level of expenditure would certainly obviate the kind of difficulties that we have now,” he maintained.

“It is how we manage this period that is a stressful one, than how the different stakeholder interests are satisfied by the ongoing process,” the HPS insisted.

Recently, Minister of Finance Dr Ashni Singh told the Government Information Agency that recent investments of large sums of resources in GuySuCo are reflective of this Government’s steadfast and longstanding concern for the sugar industry, and in particular, for the welfare of the workers of that industry.

Minister Singh stated that, at a time when many of the other countries of the Caribbean had taken the decision to exit the production of sugar and close their sugar industries, this Government identified emerging opportunities from those developments, and took a conscious decision to invest in a major modernisation and expansion programme for the Guyanese sugar industry.

This programme was designed to achieve the specific objectives of enhancing the industry’s competitiveness and securing its long term viability, in the interest of both the workers of the industry and the economy as a whole.

The Minister explained that Government recognised early that certain critical investments would be required by the industry to ensure its ability to compete in the global marketplace and to adapt to changes taking place in its main destination markets.

Specific objectives included reducing the average cost of producing sugar, and diversifying the product base into higher value, branded, and premium products.

At the same time, Government recognised that, if GuySuCo was to meet the cost of these major investments itself, the implications for the corporation’s operations and cash flows would have been significant, with inevitable and obvious consequences for workers.

As a result, and in order to ensure that the long term interests of the workers were protected, the Central Government injected large amounts into the industry by way of onlending and other financial arrangements.