THE coalition government is expected to present a White Paper in the National Assembly soon, as it relates to the future of the Guyana Sugar Corporation (GuySuCo), Cabinet Secretary, Joseph Harmon, has noted.
The issue was discussed extensively at the ministerial conference held on February 28, at State House, when Minister of Agriculture, Noel Holder, made his presentation. The conclusion of consultations between government, the unions and the opposition on GuySuCo’s future, along with the options advanced by the government and the proposal made by the Guyana Agricultural and General Workers Union (GAWU) will form the basis of the White Paper.
When asked if any sugar estates will be closed down, Harmon said that proposals were made to that effect, along with diversification of several estates. He however emphasised that the welfare of the sugar workers and their families is the top priority of the APNU+AFC government.
“The welfare of the workers and their families is of primary concern. The other economic concerns and so on will of course be dealt with but the workers’ interest is at the forefront of whatever policy we’re going to embrace with respect to the sugar industry,” Harmon told reporters at a post cabinet media briefing on Thursday.
The White Paper will also deal with the Commission of Inquiry (CoI) into the sugar industry, the proposals by GuySuCo, the consultations held with stakeholders and GAWU’s presentation, the decisions facing government relating to the recovery of drainage and irrigation charges of the National Drainage and Irrigation Authority, diversification of the Skeldon Factory and the leased lands.
In a report which was presented to the Parliamentary Economic Services Committee in January by GuySuCo’s Chairman, Clive Thomas and Chief Executive Officer (CEO), Errol Hanoman, it stated that the outlook for Guyana’s sugar industry continues to look grim as the officials declared that funds injected into sugar industry at this time will be funds “wasted.”
The industry has received criticisms from all levels; with a debt of $77.3B and consecutive losses, officials are advising that the industry is one not worth investing in unless plans for the reorganisation, restructuring and diversification of the industry are present. Figures based on 2015 audited accounts show, GuySuCo recorded a profit once in the past six years, which was recorded in 2013 due to the tax adjustment.
Thus, “radical reorganisation, contraction of sugar and major diversification are urgently required for better predictability and planning,” stated the report. The Corporation’s performance deteriorated after having invested its own funds in the SSMP project (2005 onwards) which did not yield returns as expected, causing cash flow difficulties, coupled with declining sugar prices and increased costs, particularly employment costs, affecting capital and maintenance projects required to sustain and improve production levels.
The report stated that there needs to be validation of GuySuCo’s head office/ central services; with the proposed plan of retaining only three estates, Albion, Blairmont and Uitvlugt.
It was suggested that GuySuCo’s agriculture research centre be delinked and merged with the national research centre being developed with IDB funding. And, the corporation’s training centre be developed as an independent technical school. But, according to the report, in order to rationalise the sugar industry from seven estates, it requires specialist expertise because the sugar industry lacks skills and experience.
The report indicated that GuySuCo’s state of affairs must not remain the same because time is of the essence and decisions need to be made as $18B would be required in 2017 and a further $21B in 2018, to run GuySuCo.
