PPP was on path to kill sugar
Minister of State, Joseph Harmon
Minister of State, Joseph Harmon

— but gov’t committed to saving industry, says Harmon

THE former People’s Progressive Party (PPP) government was on a path to “killing” the sugar industry, Minister of State, Joseph Harmon, said on Friday.

Harmon was responding to a question on the allocation of GY$348.5 billion in budgetary support, which Guyana received from the European Union (EU) between 2006 and 2017 to compensate for the cuts in preferential market price.

Speaking at his weekly post-Cabinet press briefing at the Ministry of the Presidency, Minister Harmon noted “clearly” the monies provided by the EU went elsewhere and would be through an inquiry into the sum.

He said when the Opposition and groups close to the PPP meet with sugar workers, the former should explain to the workers where the monies went.
“Why is it is now our sugar industry produces sugar with a cost of production higher than world market prices?” he asked.

Harmon said that under the former administration, there were trends in the market and when the APNU+AFC government assumed office in 2015, it made some hard decisions.

“The decisions the PPP were afraid to make, we decided to make those decisions”, he said, noting that they were made primarily to benefit the country.
As regards the industry, he said that “the PPP were on a path to killing it”, noting that the government is working to ensure there is still a sugar industry in the future of Guyana.

On Thursday, EU officials told the media that it is possible on the request of the government, that Guyana can receive funding from Europe to assist in reviving the country’s sugar industry.

The EU officials were asked whether the body has received requests for assistance from the authorities here regarding the production of plantation white sugar.

In theory, it was noted that it is possible that the EU can assist once the request comes from the government; however, it was noted that no such requests were made.

The decision by the EU to cut sugar quotas from the African Caribbean Pacific (ACP) countries was made in 2005.

According to the EU, for technical assistance projects, such as those relevant to the sugar industry, funding is provided on a request basis.

Head of the Delegation of the EU to Guyana, Ambassador Jernej Videtic told reporters that the EU has been supporting the sector here.

However, such support was not geared for policy design which he noted is the sole responsibility of the Government.

The sugar industry has encountered its fair share of financial and other setbacks, requiring over $38 billion in annual bailouts since 2012.

This has seen tax revenues being diverted away from critical social and infrastructural development projects, even as the demand for sugar on the global market continues to diminish.

The government has pledged to ensure that effective actions are taken to address the difficulties of the ailing industry and foster the best solution for all stakeholders and the country as a whole.

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