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PPP/C Gov’t will keep sugar alive - President Jagdeo tells Region Six sugar workers

Georgetown, GINA, November 25, 2011
Source - GINA

President Bharrat Jagdeo addressing sugar workers from the various estates in Region Six at the Albion Community Center, Region Six.

President Bharrat Jagdeo today met with sugar workers from the various estates (Blairmont, Albion and Skeldon) in Region Six at the Albion Community Center where he assured them that the future of the industry is and, will continue to be a priority of the PPP/C Administration.

The meeting is in response to the workers’ request as they needed to clarify a number of issues with the Head of State, particularly as it relates to the future of the industry.

He said that recently much hype has been created about the economy of the future that comprises sectors such as Information Communication Technology (ICT), eco-tourism, oil and gas, environmental sustainability and mining (gold, manganese and bauxite).

This he said has led many people to wonder about the future of agriculture and in particular the sugar industry.

“The way we see it, agriculture has to change; we are working aggressively now to look at livestock growth because we are already self-sufficient in food,” he said.

Making reference to the recent attainment of seven billion in the world’s population, he said that not only is there more mouths to feed but, people are also changing the way they eat because as they become more prosperous they consume more meat. As such, the global demand will be great and so agriculture will be extremely profitable

“We still have to make sugar viable; we still have to find a way of keeping the sugar industry alive and strong even if people find opportunities elsewhere in the economy,” the Head of State said.

He recalled that the industry took a huge blow with the European price cut, which resulted in a loss of US $45M a year. This led to many Caribbean countries including Barbados, St. Kitts, and Trinidad and Tobago among others, closed down their sugar industries as they did not think it was viable anymore.

In Guyana however, Government has struggled to keep the industry alive because of its contribution to the national economy as well as the thousands of citizens that it employs. As a result, Government made the largest investment in the country’s history, the Skeldon factory at the cost of US $200M. However, since its commissioning in August 2009, the factory has not delivered as expected.

The President explained that when the factory was built, the intention was to shift more production to Berbice (where the soil is also of a better quality) and increase production to 400,000 tonnes, then the average cost will allow for the industry to remain profitable.

However, this target has not been achieved and therefore ‘economies of scale’ (reducing capital cost as a result of higher production) are not achieved.

“We have not reached there as yet, the Skeldon factory is not performing as it should but we cannot give up we have to fix that because too much is invested there,” the President affirmed.

To this end, Government is now looking at contracting qualified personnel to ensure that this problem is rectified in order to boost viability.

Another significant sum was invested to establish the Enmore Packaging Plant, as it is seen as a way of earning much more in value-added products to upkeep the industry.

As a result of the big EU price cuts over the last few years, the Guyana Sugar Corporation (GUYSUCO) has been running at a lost, so much so, that it has now incurred about $5B in debt, for this reason, Government has given close to $6B in subsidy.

“When you look at the total transfers to GUYSUCO for the Skeldon factory and the Packaging Plant it is over US $200M,” the Head of State reminded.

He reminded too, that when the PPP/C assumed Office, the sugar levy was $3B (25 percent of Government’s revenue at that time), today it’s zero. Further, the only industry whose workers enjoy a benefit for overtime is GUYSUCO.

President Jagdeo said that once the industry is making sugar it will go return to a state of profitability which could be achieved within the next year or two if the production increases. He assured of Government’s continuous support to ensure that this happens.

Responding to a promise made by one political party to give a 20 percent per annum salary increase, the President said that an increase by one percent costs $150M. When the three percent increase is added on to five that was previously given, Government will be giving GUYSUCO $450M (eight percent works out $1.2B) which is added on to workers’ salaries.

He said 20 percent will translate to about $3B and this, coupled with the $5B loss and inability to cover costs if anything, will eventually result in closing down of the industry.

The President reminded the workers that both the PNC and the AFC voted against Government when it was seeking the Parliament’s approval of the $4B for the sugar industry.

“Now these same two Parties are saying how wonderful they want to make the industry. If we didn’t put in the $4B, it would have probably been collapsed by now because it cannot borrow as it used to… it takes slow progress to move the economy forward but we are getting there… sugar is important to the future,” President Jagdeo said.

Workers also had the opportunity to raise their concerns and seek clarifications with regards to the One Laptop Per Family (OLPF) Programme, National Insurance Scheme benefits, old age pension, access to treated water, and street lights, all of which the President addressed.

Replies sorted oldest to newest

quote:
Originally posted by Rahmah bin Jabr:
quote:
Originally posted by Demerara_Guy:
Everyone has an opinion.


Profound. You must be a very educated man. clever

Hahaha...bai, you wutliss no ass. lol
FM
Where is Ramotar? Will he develop a "medical" condition so that Jagdeo ha sno chopice but to replace him? Should it not be Ramotar talking about his plans?

After all jagdeo will have no role in this....or will he?
FM
quote:
Originally posted by Apollo:
The Smart man keeps the Foolish man guessing...

Rub head, rub head...


we already know. jagdeo will still rule Guyana. He just cant tell you that yet.
FM
quote:
Originally posted by caribj:
Where is Ramotar? Will he develop a "medical" condition so that Jagdeo ha sno chopice but to replace him? Should it not be Ramotar talking about his plans?

After all jagdeo will have no role in this....or will he?


This is Jagdeo's election. Every now and again he move Ramotar's lips with his hands thru Ramo's rearend, allowing him to speak a few token words.
Jagdeo is too power hungry to give up that easily and the scenario of Ramotar having a 'medical' condition for Jagdeo to take over, will most likely happen.
Tola
quote:
The President reminded the workers that both the PNC and the AFC voted against Government when it was seeking the Parliament’s approval of the $4B for the sugar industry.



Is this true?
FM
quote:
Originally posted by caribj:
Where is Ramotar? Will he develop a "medical" condition so that Jagdeo ha sno chopice but to replace him? Should it not be Ramotar talking about his plans?

After all jagdeo will have no role in this....or will he?

Why should he be there, he not running.
FM
YES, it is TRUE but dem Cunumunu and Lamatas will tell you differently. Snakeoil Salesmen, Thieves, Liars are all one.
quote:
Originally posted by TI:
quote:
The President reminded the workers that both the PNC and the AFC voted against Government when it was seeking the Parliament’s approval of the $4B for the sugar industry.



Is this true?
Nehru
Ramoutar is not Houdini, he cant be everywhere at the same time.
quote:
Originally posted by baseman:
Why is Ramotar not showing up at a sugar workers' event? Is he not the candidate and was he not on the board of Guysuco for some 20 years? Would it not be logical to have him?
Nehru
quote:
Originally posted by Nehru:
Ramoutar is not Houdini, he cant be everywhere at the same time.
quote:
Originally posted by baseman:
Why is Ramotar not showing up at a sugar workers' event? Is he not the candidate and was he not on the board of Guysuco for some 20 years? Would it not be logical to have him?

Yea, we notice, he slipping out all dem hot potatoe meetings! The man betta dann Houdini. Wink
FM

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