…calls for EU disbursements to be fully released to the industry

THE Guyana Agricultural and General Workers Union (GAWU), yesterday, weighed in on the increasingly controversial comments by A Partnership for National Unity’s (APNU) Anthony Vieira on the sugar industry.And while the Union has acknowledged that the statements made have triggered a new round of debate on sugar and the future of the industry, the organisation made it clear that the focus on the industry reflects its importance to Guyana’s economy.
In a statement. GAWU said, “This continuing focus on the industry is reflective of its importance to our economy and our country and, certainly, to thousands of workers and their families who depend on it directly or indirectly.”
The union also expressed concerns that “jockeying for political advantages” could very well affect a serious and comprehensive assessment.
It said, “We are also most certainly concerned that proffered “solutions” may not be well thought out or how they will impact the lives and livelihood of our members or, indeed, all workers who rely on the industry.
“We have taken note of what seems to be a contradictory stance taken by APNU’s spokesperson, Mr. Anthony Vieira, who is now saying,‘Actually, we are coming out of cane because even if we are doing ethanol, we are not going to be a competitive producer’.”

QUESTIONABLE
GAWU questioned why Guyana must plunge into ethanol, which would require capitalization and then back out of it shortly afterwards because it (ethanol) would not be competitive?
The union said, “Aquaculture is also mentioned. We have heard such an idea before and believe, to some extent, it is being pursued in the country.
“But, we ask: why should the sugar industry be purposefully destroyed or drastically miniaturized and be replaced by aquaculture?
“We do not dispute that there is a place for aquaculture in our economy, or its value, but this can and should go on without the destruction of sugar. There is scope in our country for this. The GAWU is not unaware of the trials and trying times facing the sugar industry.”
According to the Union, its views on the state of the sugar industry have been publicly aired, but the ongoing debate must take into consideration some salient points related to this industry in more recent times.
GAWU said, “We need to note that since the arbitrary 36 per cent price cut in 2006 for our sugar sold to the European Union, the industry’s challenges became real and challenging.
“It took almost a whole year before the EU Accompanying Measures came on board with the disbursement of support funds to the ACP sugar producing countries, Guyana being one. The toll of the price cut on the sugar industry was significant. Factories have been starved of important and costly components, certain field operations and infrastructural work have had to be shelved or only partly undertaken.
“This and other related factors saw lower sugar production and inadequate yields of canes per hectare. EU funding from the price cut commenced in 2007 to the Guyana Government.”
Recently the EU Commission in Georgetown summarized that from 2007 to 2011, €91.5M or G$21.5B has been disbursed to the Guyana Government. For the years 2012 and 2013, the disbursements are said to be about €45M or about G$10B.
The Union pointed out that only a small portion of the total disbursements had been received by the sugar industry for the financing of the Enmore Packaging Plant and a few budgetary support.
“GAWU holds the view that all the disbursements ought to be fully released to the sugar industry, even belatedly, so that the industry’s capitalization and other field programmes will not continue to suffer and put a brake on the industry’s rejuvenation,” it said.

RENEWED CALL
The Union, on that note, renewed its call for the exclusive use of the EU disbursements to contribute to sugar’s recovery and also additional support.
The Union stressed that public discourse on the future of the industry should not downplay the fact that even at this time the industry continues to serve our country in a multifaceted way.
GAWU has also since called for the appointment of a new Board of Directors with an able Chairman as soon as possible, without further procrastination.
It said, “This professional leadership is crucial and we are certain that there are competent persons with the requisite skills to draw from.
“Such leadership must also be able to inspire and instill confidence in the managerial personnel to discharge their responsibilities in a co-operative spirit and motivated to want to turn the industry around. With such measures, in addition to others, we see no reason why the industry’s output in under three years’ time cannot be once again significant and the industry becoming viable.
“After all, between 1992 and 2004, the industry demonstrated its resilience and ability to come out of the doldrums.”
The sugar industry employs about 16,000 workers during its peak periods and also facilitates about 1,500 cane farmers. In one way or another, tens of thousands of Guyanese depend on the industry’s operations.
The industry is also the nation’s largest net foreign exchange earner and a large proportion of the industry’s multi-billion dollar revenue is circulated, thus enhancing many business enterprises.
Many villages and communities surrounding the sugar estates also benefit from the industry’s expansive drainage network.
The Union said, “As an important political entity in our midst, we expect its positive approach motivated by the need to make sugar a thriving industry once more. GAWU would still like to believe that all responsible political groupings have Guyana’s socio-economic development at heart.”
To that end, GAWU made it clear that the Opposition, as well as other stakeholders, may want to review its positions on scaling back the operations of the industry and use sugar lands to advance with ethanol and aquaculture.