–Min. Holder tells Crabwood Creek residents

AGRICULTURE Minister Noel Holder said government has made the decision to privatise the Skeldon Estate, work to diversify Albion, Blairmont and Uitvlugt and lease the lands and assets of the other estates to return GuySuCo to profitability.
He conveyed the information to residents of Crabwood Creek during a community outreach on Wednesday.

Some residents led by opposition Members of Parliament picketed the community outreach, calling on the government to re-think their decision to close some of the sugar estates, as well as, voice their concerns over the challenges confronting farmers and residents.
The minister explained that sugar is important to the economy but the industry has been in decline over the years.
He noted that the cost of production more than doubles the selling price per pound which is not sustainable.

Minister Holder said in order to maintain the infrastructure at Skeldon Estate alone, it would cost some $400M without planting a single cane.
“We are selling sugar at US 15 cents per pound and are producing at a national average of US 38 cents per pound, this is not sustainable. If we look at Skeldon alone, we are talking about 20,000 acres of drained and irrigated lands that has been drowned with the sweat of our ancestors, at Skeldon we have over 217 miles of drainage canals, 750 miles of irrigation canals, 190 miles of access dams, we have 80 bridges, 21 aqueducts, 3847 drainage tubes… now this is massive infrastructure and if you do nothing, just to maintain it in this area, it will cost Skeldon $400 million.”

The minister explained that with such massive infrastructure, it is nonsensical to suffer a loss of 300 per cent at Skeldon since the cost to produce a pound of sugar at Skeldon is 60 cents as opposed to the national average of 38 cents.
“So we cannot as a nation using that kind of infrastructure and assets to get 15 cents per pound when you are producing at Skeldon 60 cents per pound, while the national average is 38 cents per pound. The national average is 38 and Skeldon is 60. Comrades I do not want to get into the investment at Skeldon and who invested, I am here to state facts as a Minister of the Government to the people. I think we can all agree that producing at 60 and earning 15 with this tremendous amount of assets, billions of dollars in assets can’t make it.”

SIGNIFICANTLY LOWER
Minister Holder went to explain that the costs of production of the three remaining estates are significantly lower than that of Skeldon.
Being in the region of the 22-26 cents per pound and with a little diversification it can get the cost of production below 15 cents per pound.

“Albion is producing at 25 cents per pound and selling at 15, Blairmont is producing at 22 cents and selling at 15, Uitvlugt is producing at around 25-26 cents per pound and selling at 15. Now the government’s take is that by doing some diversification within those three estates, like co-generation at Albion and co-generation at Uitvlugt and sourcing of packaged rice and so on out of Blairmont, we can cut the total return or cost of production to below 15 cents per pound … Now with regards to Skeldon the government has decided that it is going to privatise it. We realise it cannot turn around 60 cents per pound to 15 cents per pound.”

The minster made it clear that while there are numerous proposals from investors who are interested in Skeldon and other estates, any agreement that is made will be done in the interest of the people and there is no intention of selling the assets but to lease them.
“There is no question of the government selling these assets to anybody, we are prepared to lease it… this is where we stand in a nutshell, privatisation of Skeldon and leasing of the assets, and a proviso is that whatever, whoever, moves into Skeldon must be producing a commodity that earns foreign exchange, and of course, provides employment to the people of this area.”

There have been several protests by sugar workers over the closure of the Rose Hall, Wales and Enmore factories. They have accused the government of neglecting the cries of the people.
Holder is hoping that his explanation would help the people to better understand the reason for the closures of the estates and assured them that government remains committed to their welfare.

Also present at the meeting were National Drainage and Irrigation Authority (NDIA) Chief Executive (CEO), Fredrick Flatts; Guyana Rice Development Board (GRDB) General Manager, Allison Peters; representatives of the Guyana Marketing Corporation (GMC); Guyana Livestock Development Agency (GLDA) CEO, Nigel Cumberbatch; Prime Minister’s representative Region Six, Gobin Harbajan; and National Agriculture Research and Extension Institute (NAREI) CEO, Dr. Oudho Homenauth, among others.

All the representatives fielded questions on numerous topics on regional and national interests including rice, cash crops, drainage and irrigation from the packed audience gathered at Crabwood Creek Primary School.