THE Government yesterday announced the closure of the Wales Sugar Estate, which is projected to make losses of between $1.6B and $1.9B in 2016, and require extensive repairs to remain operable after years of neglect.

Through the Government Information Agency (GINA), the Ministry of Agriculture revealed yesterday 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,” the statement noted.

The statement further 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 (between) G$1.6B and $1.9 B in 2016. This, coupled with the extent of refurbishment needed, renders this estate prohibitively costly to maintain.”

NO ALTERNATIVE
To protect the other estates, the Corporation said, it has no alternative but to take the following course of action with immediate effect: No further land preparation and planting; as the estate’s cultivation is harvested, the land would be retired and held for other diversification ventures; the Wales factory would operate throughout 2016, milling both the estate’s and farmers’ cane. It will be closed at the end of the 2016 second crop; 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.

According to the Government release, it was felt for many years — moreso over the past 10 years — that the Corporation was diverting scarce resources from the estates to assist with the financing of the new Skeldon project.
Additionally, the Corporation said, GuySuCo was denying the high productive estates funding as it propped up the poor performing estates. The result was a general decline in performance, production and finance across the industry.

The practice of diverting scarce funds from the good estates to keep the poor performers in operation can no longer be tolerated, as the survivability of these estates could not now be guaranteed.

RUN DOWN
Wales is by far the estate in poorest shape. The details of its performance include 60 per cent of its D&I infrastructure is run down; 75 per cent of the bridges are in poor shape; the cultivation is also in poor condition; and the factory is old and in need of major investment.

It was noted that the Guyana Sugar Corporation (GuySuCo) will be exploring the feasibility of alternative ventures utilising the lands at Wales.

“The important criteria for such projects would be wealth creation and employment generation. It is hoped that the first of such projects could commence by October 1, 2016,” the release said.

It was further noted that such a course of action has nothing to do with the recommendations of the Commission of Inquiry (CoI) into the sugar industry, though the CoI report does make reference to the Corporation’s plans for 2016.

Contacted by the Guyana Chronicle, Head of the Guyana Agricultural and General Workers’ Union (GAWU), Komal Chand, disclosed that the union was aware only of the declaration made by Minister of State, Joseph Harmon, on December 23, 2015, that the cane from Wales will be transported to Uitvlugt.

Nevertheless, Chand highlighted that the union is awaiting a meeting with the Guyana Sugar Corporation (GuySuCo) on Wednesday to hear if what it has heard is true, and what is the position with the factory and field workers, who number approximately 1600; and also whether or not GuySuCo would still have the cultivation in operation.