– but wants input into revitalisation of sugar industry

THE Guyana Agricultural and General Workers Union (GAWU) said it is in full support of the move by the Special Purpose Unit (SPU) to secure a $30B syndicated bond to aid in revitalisation of the country’s sugar Industry.
However, the union is calling on the SPU to reveal the strategic plan that would guide the utilisation of finances.

The SPU, an important arm of the National Industrial and Commercial Investments Limited (NICIL), through its head Colvin Heath-London, disclosed that the $30B bond will be made available within two weeks, and will be repaid within a period of five years.
In an interview with the Guyana Chronicle on Thursday, GAWU President Komal Chand endorsed the move. However, the veteran trade unionist said they are important questions to be answered, and the SPU or the Guyana Sugar Corporation (GuySuCo) should make its plan of action known to the public.

Chand noted that while the industry has been equipped with the necessary resources in recent years and benefited from in excess of $32B in government subventions between 2015 and 2017, it still fell on tough times.
As such, he said a strategic plan is important.

“You enjoyed a good crop that was planted in 2014, you reaped 231,000 tonnes of sugar in 2015, 2016, you slumped to 183,000 tonnes, and then contrary to their own assessment, they just produced in [the] last year, 138,000 tonnes which is just about 9,000 over the lowest set of production that was made in 1990, when the industry produced 129,900 tonnes. So the plan is important,” Chand explained.
If a strategic plan has already been drafted for utilisation of the $30B syndicated bond, Chand said GAWU would be disappointed that as a key stakeholder in the sugar industry, its input was not sought. However, if the plan is still being drafted, he said GAWU is willing to help.

INPUT

“We would like to be aware of the plan, if it is not fully in order, we would like to have our views taken on board and it is important, so that you feel that you are part of this thing,” Chand posited.

Heath-London, in making the announcement, said that major focus will be placed on co-generation, a move that would see GuySuCo raking in significant sums of revenues to produce electricity for the national grid.
Chand said expansion of the co-generation programme was among the proposals put by GAWU to the corporation during a meeting last February. He posited that such a move would bring in much-needed finance.

“It is in keeping with the green economy, and in fact, in 2016, the industry sold Skeldon to the national grid $9.5B in electricity with only 30,000 tonnes in cane production. That estate is designed to produce 110, 000 tonnes and even if that is not attainable because of whatever reason, if you produce 2/3 of that [it] would be very profitable,” he posited.
Private Sector Commission (PSC) Chairman Edward Boyer told the Guyana Chronicle that the commission is consulting on the $30B, positing that there was need for clarity.
However, PSC Executive Member Ramesh Dookhoo said that the move by the SPU was a “positive one”.

“I think it is a very positive move. Thousands of people are without jobs, and it shows you that with government’s help, GuySuCo’s assets could still be leverage to raise money,” Dookhoo told this newspaper.

Speaking on his own behalf, Dookhoo said he is “impressed” with the work of the SPU, positing that it has adopted a businesslike approach in managing the sugar industry.

LONG-TERM SUSTAINABILITY
However, the People’s Progressive Party (PPP) said any attempt to fix GuySuCo must cater for the long-term sustainability and viability of the industry.
“We are confident that a proper feasibility study, coupled with prudent management, fiscal responsibility and transparency can achieve these objectives,” the parliamentary opposition said in a statement on Thursday.

It also reiterated confidence in the sugar industry, saying that it is of the firm view that the industry has a viable long-term future.

“We are prepared to partner with the government to make this a reality. However, we insist on a scientific and transparent approach,” the party said.