Debunking Nagamootoo’s claim, Jagdeo states - Sugar industry alive because of substantial government support
Written by Vanessa Narine
Thursday, 10 November 2011 02:16
Source - Guyana Chronicle
PRESIDENT Bharrat Jagdeo has debunked a claim by Alliance for Change (AFC) candidate, Moses Nagamootoo, at a Canje meeting, that sugar workers are being screwed.
Speaking at a Whim, Corentyne public meeting, also in Berbice, Tuesday evening, the Head of State told a crowd in Nagamootoo’s home village that many of those peddling ‘promises’ to sugar workers have no respect for them. Nagamootoo had charged that sugar workers and their rights have been trampled upon but Mr. Jagdeo shot back that the industry is alive because of the substantial support that has been given by the Government.
The capital expenditure for 2010, which was critical to the industry producing enough canes to push production closer to the 400,000 tonnes mark in the coming years, was only made possible after Government provided $4 billion through a land sale agreement.
“We put the $4 billion into sugar… (Khemraj) Ramjattan opposed it in Parliament and they are saying that we do not do enough for sugar workers in Guyana,” the President observed.
Jagdeo said Nagamootoo can “gaffe good” but his understanding of economics is lacking.
The President pointed out that, when other countries pulled out of sugar because of the many challenges, Guyana stayed and the current administration invested heavily to ensure that the sector remained viable.
Primary of these challenges was the 36 per cent price cut by the European Union (EU), in keeping with rulings by the World Trade Organisation, which cost the Guyana Sugar Corporation (GuySuCo) some $9 billion each year.
Apart from this, Jagdeo said the corporation had:
* racked up a debt of some $7 billion to suppliers;
* seen an increase in costs, for example, from 1993 to now, labour cost for one tonne has increased from $24,000 to $71,364;
* experienced problems getting the canes out of the field and
* had to deal with wastage, strike actions and a low turnout recorded around 48 per cent.
Cake shop
According to the President, Nagamootoo could not run a “cake shop”.
People’s Progressive Party/Civic (PPP/C) Presidential Candidate, Donald Ramotar, at the same campaign forum, also referred to the massive investments made towards ensuring that the new, relevant and robust industry is built.
“We haven’t screwed sugar workers, we have done all we can to save sugar,” he concurred.
Ramotar said, in the new industry being built, the needs and welfare of the sugar workers will be addressed and the sector positioned to make a meaningful contribution to national development.
Currently, no levies are collected from the sugar corporation. In July 2003, the Government successfully piloted legislation in the National Assembly to phase out the Sugar Levy Act, taking less and less each year until none was paid.
However, GuySuCo makes its contribution to national development through the taxes that are paid on the basis of their profits, the employment opportunities generated and the social service programme advanced.
Ramotar said: “We will expand the sugar industry, not restrict it.”
The PPP/C Presidential Candidate contended that development of the Guyanese people is paramount on the current administration’s agenda, a goal which can be achieved through the development of sectors that support national development.
Written by Vanessa Narine
Thursday, 10 November 2011 02:16
Source - Guyana Chronicle
PRESIDENT Bharrat Jagdeo has debunked a claim by Alliance for Change (AFC) candidate, Moses Nagamootoo, at a Canje meeting, that sugar workers are being screwed.
Speaking at a Whim, Corentyne public meeting, also in Berbice, Tuesday evening, the Head of State told a crowd in Nagamootoo’s home village that many of those peddling ‘promises’ to sugar workers have no respect for them. Nagamootoo had charged that sugar workers and their rights have been trampled upon but Mr. Jagdeo shot back that the industry is alive because of the substantial support that has been given by the Government.
The capital expenditure for 2010, which was critical to the industry producing enough canes to push production closer to the 400,000 tonnes mark in the coming years, was only made possible after Government provided $4 billion through a land sale agreement.
“We put the $4 billion into sugar… (Khemraj) Ramjattan opposed it in Parliament and they are saying that we do not do enough for sugar workers in Guyana,” the President observed.
Jagdeo said Nagamootoo can “gaffe good” but his understanding of economics is lacking.
The President pointed out that, when other countries pulled out of sugar because of the many challenges, Guyana stayed and the current administration invested heavily to ensure that the sector remained viable.
Primary of these challenges was the 36 per cent price cut by the European Union (EU), in keeping with rulings by the World Trade Organisation, which cost the Guyana Sugar Corporation (GuySuCo) some $9 billion each year.
Apart from this, Jagdeo said the corporation had:
* racked up a debt of some $7 billion to suppliers;
* seen an increase in costs, for example, from 1993 to now, labour cost for one tonne has increased from $24,000 to $71,364;
* experienced problems getting the canes out of the field and
* had to deal with wastage, strike actions and a low turnout recorded around 48 per cent.
Cake shop
According to the President, Nagamootoo could not run a “cake shop”.
People’s Progressive Party/Civic (PPP/C) Presidential Candidate, Donald Ramotar, at the same campaign forum, also referred to the massive investments made towards ensuring that the new, relevant and robust industry is built.
“We haven’t screwed sugar workers, we have done all we can to save sugar,” he concurred.
Ramotar said, in the new industry being built, the needs and welfare of the sugar workers will be addressed and the sector positioned to make a meaningful contribution to national development.
Currently, no levies are collected from the sugar corporation. In July 2003, the Government successfully piloted legislation in the National Assembly to phase out the Sugar Levy Act, taking less and less each year until none was paid.
However, GuySuCo makes its contribution to national development through the taxes that are paid on the basis of their profits, the employment opportunities generated and the social service programme advanced.
Ramotar said: “We will expand the sugar industry, not restrict it.”
The PPP/C Presidential Candidate contended that development of the Guyanese people is paramount on the current administration’s agenda, a goal which can be achieved through the development of sectors that support national development.
