…Gaskin says private sector should buy GuySuCo if they want it to survive

OUTSPOKEN economist and Russia-trained attorney, Raymond Gaskin, has said that the private sector should pump money into the Guyana Sugar Corporation (GuySuCo) if they want it to survive, rather than just making statements for the government to delay transforming the industry.
Gaskin, who recently called for the immediate closure of designated sugar factories across the country, is of the opinion that the Private Sector Commission (PSC) can play a more meaningful role in helping to address local sugar industry woes.
In an invited comment, the former presidential advisor and financial analyst spoke specifically to the PSC’s call for government to “hold its hand” on the downsizing of the industry. In a public missive just days ago, the major contention of the PSC was that some $10B in income would be removed if the estates are closed, leading to economic issues such as reduced consumer spending in communities, with greater negative effects on commerce. The PSC said too that as a major foreign exchange earner, closure of sugar estates will also negatively impact the availability of foreign exchange.

However, Gaskin who has kept a keen eye on the industry is adamant that government cannot continue to pump billions of dollars into a non-competitive sector. He in fact suggested that the government immediately close the estates designated in their ‘White Paper’ and commence industrial-type activities at the locations. This is where the PSC could be very useful. “They should be encouraging the government to create industrial estates,” Gaskin pointed out, “manufacturing jobs and other types of production.” The economist repeated his idea that instead of completing 2017, the government should invest the billions expected to support the industry for the remainder of this year, in areas such as the manufacturing of construction materials, processed foods and automotive activities among others. Gaskin said it is clear that the private sector is currently reluctant and even scared to invest, given the current climate, but they could partner with the government in helping with training and apprenticeship programmes for example. “If they (PSC) believe so much that the industry could be turned around, they could buy it,” Gaskin charged.
The economist explained that according to a document in his possession sent to the Ministry of Agriculture by the PSC, ‘The brief on GuySuCo from the PSC’ dated February 24, 2017, they noted that poor management of the industry and poor yields were major contributors to the issues facing the industry. The PSC document, he continued, offered that GuySuCo’s management should be replaced, that yields should be improved, that the significant multi-billion dollar GuySuCo debt should be turned into a government loan at five percent interest and the infamous Skeldon plant debt be separated and negotiated between private investors for its purchase.

This Gaskin has nonetheless rubbished, saying that more intricate situations are being faced by the industry. He pointed out that the almost 36percent cut in sugar prices by the European Union, the G$40B failed Skeldon plant, the $US75M used to repair it and the more than 3000 strikes by the Guyana Agricultural and General Workers Union (GAWU) representing workers in the last 15 years have great roles to play in the current sugar dilemma.
“That is 200 strikes per annum. When they [workers] are out striking, the cane spoils,” and this has been happening even under the PPP, Gaskin related. He said too that it has been found that the relationship between GuySuCo and its workers is “acrimonious”, where workers don’t feel obligated to work “because the big man upstairs don’t treat we good,” while management appears to have little regard for the workers.
Gaskin said government cannot continue with its billions a month programme, “but it must have a plan for the people who will lose their jobs.” He said that once government goes ahead with closure, there should be a phased closure of estates instead of doing it all at once at year-end since, “the problem for government right now is what will happen to those people [workers],” Gaskin opined. Minister of Agriculture Noel Holder told the Guyana Chronicle earlier this month that the ministry and relevant stakeholders are working on a plan to address laid-off workers. This, he said, would soon be made available. Initially, the Agriculture Ministry spoke of leasing land to workers for production of goods designated by the ministry and GuySuCo.