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Former Member

Decision to close Wales Estate taken ahead of CoI report – Harmon

January 21, 2016 By GuyanaTimes

… Estate was “economic nightmare”

In light of accusations that it has discarded recommendations from the Commission of Inquiry (CoI) into the sugar industry, Government has justified its decision to shut down the Wales Estate, saying that it was taken during the preparation of the Guyana Sugar Corporation (GuySuCo) 2016 Budget even before the findings of the Inquiry were submitted.

Minister of State, Joseph Harmon and Agriculture Minister Noel Holder

This is according to Minister of State, Joseph Harmon, at this week’s post-Cabinet briefing on Wednesday. The CoI report, which is currently before a parliamentary committee for review, had advised against the closure of the sugar estates given the current state of the country’s economy.
However, Harmon explained that the decision was made, taking into consideration operational factors. “The decisions with respect to Wales Estate were contained in GuySuCo’s Budget and the 2016 Action Plan, which was developed in 2015 and, therefore, did not bear any specific relationship to the Commission of Inquiry into GuySuCo,” he said.
Harmon pointed out that the Corporation’s management and Directors were on board with the decision. “The fact that the factory itself has become such a major issue for maintenance and repairs, and the funds that were required to be pumped into it, it became an economic nightmare to really continue doing things the way they were doing it before,” he said.
The Minister of State went on to say that this decision was also part of the Sugar Corporation’s plans to stand on its own feet by improving its economic conditions and not having to rely on the treasury for financial support, a step Government fully supported.
On the other hand, Agriculture Minister Noel Holder said that the decision was taken in efforts to boost the efficiency of the sugar industry, pointing out that the Wales Estate was projected to incur a loss of $1.6 billion this year. However, he noted that the Estate would not be shut down before December 31, 2016, as Government was still working out the arrangements.
“This is not anything new, they closed LBI (La Bonne Intention) and Diamond and moved then to Enmore. There will be adjustments all over the industry to increase efficiency and this is basically what we are doing, improving efficiency in the industry and West Demerara,” he said.
While it was not disclosed how many workers will be affected, the Agriculture Minister explained that the Wales factory workers would be relocated at Uitvlugt to fill vacancies there and the remaining workers would be given severance packages.
Moreover, Holder stated that the closure of the factory would not affect cane farmers since their crop would be taken to the Uitvlugt Estate for grinding. “So what is being done is to get (the canes to) Uitvlugt – which is a far more modern factory in far better condition, with 95 per cent efficiency compared to Wales’ 85 per cent or less efficiency,” he said.
The Minister outlined that while GuySuCo would cease cultivation on the 3000 acres of cane fields at Wales, the farmers’ canes would not be in jeopardy. As it relates to the transportation of the canes from Wales to the West Coast factory, Holder noted that this was being looked at and they were hoping to come up with a “water-borne” solution.
“We have one year to put the new arrangements in place,” he said.
The Minister further pointed out that while the cane farmers may have to bear transportation expenses, they could get high prices if the quality of sugar cane produced was better.
In light of these steps taken to financially stabilise the sugar industry, Holder was asked how soon it would before GuySuCo was back on track, enjoying profits. The Agriculture Minister said that the Corporation would never be profitable on its own and would have to diversify in order to be profitable.
However, he explained that the diversified path would have to be an area that was a foreign exchange earner. “Why this country has to hold onto sugar, certainly for the short term, is because it is a big block of foreign [exchange] earner. Sugar might be making a loss on the financial point, but as this nation is concerned, it is making a profit on the economic account,” he stated.
Moreover, Harmon said that the Government was open to talks with the Opposition, but it would have to be genuine consultation with the interest of sugar workers as priority and not to gain political points.

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Former Member

There is nowhere is this report done by professionals (and which costs the Guyanese Tax Payers maybe over one hundred million dollars,) which says that the Wales Estate should be closed.

1/21/168:23 AM

Former Member

This maybe a gimmick by the PNC/AFC to close other estates, it is only the start of more to come.

1/21/168:25 AM

Former Member

Jagdeo outlines course of action to save sugar industry

January 20, 2016 By GuyanaTimes

Wales Sugar Estate closure

By Kristen Macklingam

Opposition Leader Bharrat Jagdeo has outlined avenues through which the sugar industry can be saved while addressing hundreds of sugar workers who will be on the breadline when the closure of the Wales Sugar Estate, West Bank Demerara (WBD), takes effect later this year.

The opposition leader is also calling for a public debate with the A Partnership for National Unity/Alliance For Change (APNU/AFC) coalition Government on its decision to close the estate.

The move to close the Estate will also adversely impact on the livelihood of thousands of persons living in Region Three (Essequibo Islands- West Demerara) as well as the economy of that region.

Jagdeo, during a meeting with the affected sugar workers on Tuesday at Wales Market Square, stated that the sugar industry remained one of the largest employers of the Guyanese population and was still one of the largest foreign currency earners.

The meeting was attended by hundreds of sugar workers who will be on the breadline when the closure takes effect later this year.

According to the former President, Guyana’s sugar industry cannot be looked at purely from a financial perspective as consideration has to be given to the economic aspect also.

“Many of the villages, their entire drainage and irrigation system rely on the Guyana Sugar Corporation (GuySuCo). Some areas – the rice farmers depend on the drainage and irrigation by GuySuCo because we live on a low-lying coastland and a lot of canals for drainage and irrigation…the difference is it has many other impacts outside of the financial impact of the industry and this is why you have to keep sugar alive,” Jagdeo pointed out.

He went on to say that if the sugar industry plummeted, the entire country would also ‘go down’ and the APNU/AFC Government simply did not understand this.

“We want the Government to come out too; why don’t they come out and face us in a debate? If we can’t debate in Parliament, let us come to Wales and face off in a debate. Let us come to Wales because then we wouldn’t have anyone to stop us from talking and then we wouldn’t have to wait until 2 am in the morning to get our views across. Let us have a debate. If Nagamootoo talks all the time about how wonderful he is, let him come and face me here at Wales…,” the Opposition Leader challenged.

He believes many persons in the Administration “think they are hurting the sugar workers”; however, in making such decisions not only will the supporters of the People’s Progressive Party/Civic (PPP) be hurt but the general public.

According to Jagdeo, the Party stands firm against the move to close the Wales Sugar Estate and will do whatever it takes to oppose such a decision.

“The intent of the Government had been laid bare some time back, but in spite of all that they say, in spite of the so-called Commission of Inquiry (CoI) that they had, they were hell bent on closing some of the estates in the sugar industry. And so it came to pass swiftly, Parliament has not even considered the CoI report, that report itself does not recommend any closure of any estate,” he explained to the gathering.

He reminded the workers that eight of the 10 Commissioners voted against any closure.

The Opposition Leader contended that it was the APNU/AFC coalition, which had commissioned such a report and touted the claim that it would pave the way forward for the country’s failing sugar industry.

However, the Administration has moved “swiftly to disregard” the recommendations that the CoI which the Government of the day itself had put together by making a shocking announcement that it would be closing the Wales Sugar Estate, he said.

“The callous way in which they did it speaks a lot about this Government; they just did it through a press release from the Ministry of Agriculture. One would have thought that they would have come on the ground and talked to the workers and the cane farmers and the others if they had to pursue this path, but no… they have double standards, they talk about not being able to afford one thing, but pumping billions of dollars in another,” the former President noted.

On Monday, the Administration declared its intention of closing the Wales Sugar Estate by October this year. The canes which are planted by private cane farmers and GuySuCo would be transported to the Uitvlugt location, West Coast Demerara (WCD).

About 1700 workers are employed at the Wales Sugar Estate and factory, and they have now been put on the breadline with such a decision by the Government. (kristenm@guyanatimesgy.com)

1/21/168:51 AM

MarsSenior Member

Jagdeo bruk up the sugar industry in the first place now he has plans to save it. Poetic justice.

1/21/169:13 AM

Former Member

The Indo KKK continue to post Jagdeo's "solutions", but all that we can see is Jagdeo screaming "blackman a starve ahbe".

Pity he laughed at Linden when he sale of Guymine displaced THOUSANDS of them.

It is a joke when we see the Indo KKK screaming that Linden isn't relevant to this discussion.

1/21/164:36 PM

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Topics

Decision to close Wales Estate taken ahead of CoI report – Harmon

… Estate was “economic nightmare”

Jagdeo outlines course of action to save sugar industry

Wales Sugar Estate closure

By Kristen Macklingam

Opposition Leader Bharrat Jagdeo has outlined avenues through which the sugar industry can be saved while addressing hundreds of sugar workers who will be on the breadline when the closure of the Wales Sugar Estate, West Bank Demerara (WBD), takes effect later this year.

The opposition leader is also calling for a public debate with the A Partnership for National Unity/Alliance For Change (APNU/AFC) coalition Government on its decision to close the estate.

The move to close the Estate will also adversely impact on the livelihood of thousands of persons living in Region Three (Essequibo Islands- West Demerara) as well as the economy of that region.

Jagdeo, during a meeting with the affected sugar workers on Tuesday at Wales Market Square, stated that the sugar industry remained one of the largest employers of the Guyanese population and was still one of the largest foreign currency earners.

The meeting was attended by hundreds of sugar workers who will be on the breadline when the closure takes effect later this year.

According to the former President, Guyana’s sugar industry cannot be looked at purely from a financial perspective as consideration has to be given to the economic aspect also.

He went on to say that if the sugar industry plummeted, the entire country would also ‘go down’ and the APNU/AFC Government simply did not understand this.

He believes many persons in the Administration “think they are hurting the sugar workers”; however, in making such decisions not only will the supporters of the People’s Progressive Party/Civic (PPP) be hurt but the general public.

According to Jagdeo, the Party stands firm against the move to close the Wales Sugar Estate and will do whatever it takes to oppose such a decision.

He reminded the workers that eight of the 10 Commissioners voted against any closure.

The Opposition Leader contended that it was the APNU/AFC coalition, which had commissioned such a report and touted the claim that it would pave the way forward for the country’s failing sugar industry.

However, the Administration has moved “swiftly to disregard” the recommendations that the CoI which the Government of the day itself had put together by making a shocking announcement that it would be closing the Wales Sugar Estate, he said.

On Monday, the Administration declared its intention of closing the Wales Sugar Estate by October this year. The canes which are planted by private cane farmers and GuySuCo would be transported to the Uitvlugt location, West Coast Demerara (WCD).

About 1700 workers are employed at the Wales Sugar Estate and factory, and they have now been put on the breadline with such a decision by the Government. (kristenm@guyanatimesgy.com)

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