GOVERNMENT is set to make a major announcement on its plans for the sugar industry and the future of the Guyana Sugar Corporation (GuySuCo). This announcement will no doubt be anticipated by many- not least the families of those who have benefitted from the industry. The administration so far has shown no inclination in totally closing down the industry and will more than likely announce plans to restructure it and at the same time make it more viable. When Minister of State, Joseph Harmon makes the announcement later this week, we are more than likely to hear of plans to lease sugar lands to cane farmers and other workers of the industry among other initiative. Such a move cannot be downplayed in the context of the struggles of the industry.
Finance Minister Winston Jordan during his budget speech back in November had made it clear that the status quo of the sugar industry can neither be sustained nor maintained. He said then that as currently structured, the industry would require Government’s support to the tune of $18.6 billion and $21.4 billion for the years 2017 and 2018, respectively, he told the House in his budget presentation on Monday.
This, Minister Jordan said is an untenable position, pointing out that it would seriously jeopardise the fiscal stance of the Government, while compromising resource allocation to other critical and important areas. “Radical re-organising of the sugar industry is required as a matter of urgency, for the continued postponement of the hard decisions on GuySuCo’s future would result in the corporation incurring even more debts (estimated currently at $80 billion) and an escalation of the demands on the Treasury.”
As a national entity, GuySuCo is interwoven into the structural development of Regions Three, Four, Five and Six. Examining the industry’s present status and decision as to its future cannot ignore this framework. Sugar also has its historical development dating back to slavery and indentureship, two systems that have shaped our political behaviour.
The divide and rule policy that characterised the culture of the plantation society and relations among diverse groups must only serve as lessons to avoid, not repeat. Recent debates in the press, on GuySuCo’s future even after several rounds of consultations which the government initiated with stakeholders including the opposition have seen the emergence of sharp views by both the opposition and the sugar unions. It would have been better for this nation’s diversity and simmering divisive political culture had it not happened.
Admittedly, GuySuCo’s financial and economic performance, its structural development, and activities cannot be dealt with separately, given the interlinked relations. In the regions mentioned above,this company has developed and maintained community centres, play grounds, and healthcare infrastructures. These serve not only the workers but the general public within the communities and adjoining areas. Several canals along the coastland that are managed by the company are interlinked with major canals and rivers managed by central, regional and local governments.
However, over the years Central Government has been giving GuySuCo significant financial assistance (tens of billions) to meet its operational cost. For 2017 the Government allocated $9 billion to support the financing of GuySuCo’s operations, bringing the amount of resources that would have been provided to the corporation since August 2015 to $32 billion.
None can honestly deny the company has made some bad decisions and also the Government (e.g. the Skeldon Factory). The consequences of these continue to see scarce dollars being diverted its way at the expense of pushing other national projects. That being said, it is to Guyana and every Guyanese interest having arrived at where we are today to recognise that finger pointing and emotive arguments will not deliver solutions, which are badly needed.