— Minister Mustapha blazes opposition for ‘neglecting’ sugar workers

By Navendra Seoraj

SUGAR had “lost its taste” under the former APNU+AFC administration, but the “sweetness” will return under the new People’s Progress Party Civic (PPP/C) government, said Minister of Agriculture, Zulfikar Mustapha, as he rolled out government’s plan for the resuscitation of the industry, starting the reopening of three shuttered estates.
Minister Mustapha, in defending his ministry’s plans for sugar during the Budget 2020 debates, clashed with Opposition Member of Parliament (MP), Khemraj Ramjattan, who sought to criticise the new government for “casting aside” the former government’s ‘rightsising’ of the industry.
In 2017, the APNU+AFC Coalition Government had announced the closure of several sugar estates across the country, leaving thousands of persons without a job or source of income. The move described as “rightsising” by Ramjattan, saw four sugar estates being closed and 7,000 sugar workers losing their jobs, said Minister Mustapha.

The minister argued that the closure of those estates created an unprecedented economic situation, depriving the economy of billions; reducing sugar production by nearly 60 per cent, losing nearly the same amount in foreign exchange; and created a multitude of social problems.

“The closed estates were simply abandoned, machinery and equipment sold; billions of dollars of sugarcane are now permanently destroyed; vital infrastructure has fallen apart; equipment in good condition, worth millions, was sold as scrap at certain locations; and money was withheld from GuySuCo,” Minister Mustapha lamented.
Contrary to where it is today, GuySuCo, “in its glory days,” was referred to as the backbone of Guyana’s economy, as the company employed roughly 16,000 employees, was a major source of foreign, and a major provider of community healthcare, drainage services, and welfare facilities.

The industry has since been reduced to a level of insolvency and instability, but the new government believes there is still hope although there are production challenges; low productivity; high cost of production; lack of competitiveness and poor management.

Mustapha told the National Assembly that the PPP/C is confident about returning GuySuCo to profitability, through re-tooling, product diversification and retraining where necessary.

“This PPP/C Government will make GuySuCo profitable again,” said the minister, as he pointed to government’s allocation of $3 billion for the recapitalisation of GuySuCo, which includes the reopening of estates, and an additional $2 billion for the operations of the company.

Ramjattan, however, said that industry will become a “black hole,” noting: “Cane sugar days are over and the rightsising we (APNU+AFC) did was very much in order…we deliberated on it long and hard…the sugar industry was resulting at the time when we made the decision, in billions in bailouts.”

He further argued that the government’s aim is to ‘reward’ its political base, but in responding firmly to Ramjattan, Minister Mustapha said: “Providing jobs for Guyanese must not be as seen political. A government must provide jobs so that workers can provide for their families in an effort to reduce poverty and to allow the growth of the local and national economies.”

BEYOND THE BALANCE SHEET

The minister argued that GuySuCo is more than just the profitability of sugar estates, so it must be considered beyond the balance sheet and be seen for the socio-economic entity it is.

A common practice worldwide is for the government to provide subsidies to key economic sectors of national importance – to sustain the livelihoods of its people. For example, in the United States, the U.S Department of Agriculture expended about the US $22 billion in 2019 and spending another US$37 Billion in 2020 in subsidies for farm businesses.

“Therefore, why would APNU+AFC feel budgetary support to the largest employer of labour, deserves any less? Is it that they do not value these Guyanese workers? Is it that they do not care about them? APNU+AFC actions towards GuySuCo over the past five years exposed their unconscionable attempts,” Minister Mustapha argued.
As part of reversing these “unconscionable measures,” government will not only be reopening three estates, it will be establishing the Wales Development Authority.
Minister Mustapha said the Wales Sugar Estate was destroyed far beyond repair, but government, through the Wales Development Authority, will work with former sugar workers and others from the Wales catchment area, to set up start up agriculture value chains which will utilise agriculture production from the catchment area and process them into value added products.

These products will be used to replace the large quantities of agriculture based products that are currently imported into the country. It is envisaged that 3,000 persons will be employed directly in this venture.

“This must not been seen as a bailout, it is taking care of the needs of the people,” said Minister Mustapha, adding that: “By reopening the estates and creating the Wales Development Authority, much-needed jobs will be provided…that is what the PPP/C will do! That is what a caring government will do!”
Government, he said, is not only committed to the resuscitation of the sugar industry, but also the revitalisation of agriculture in Guyana, as it is one of the pillars that sustains the Guyanese population and provides economic stability.

In the next five years, starting with Budget 2020, government plans to implement measures to promote a diversified agriculture-based economy; create more jobs; and increase the income of farmers.

This, Minister Mustapha said, will be achieved through modernising and upgrading infrastructure; strengthening support services; robust marketing systems at local and international levels; and increasing Guyana’s market share by tapping into the US$5 billion food import bill of the CARICOM Region.