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GAWU will never tire repeating we stand with workers.

September 2,2017

Source.

Dear Editor,
THE Guyana Agricultural and General Workers Union (GAWU) refers to Mr Gobin Harbhajan’s letter which appeared in the August 24, 2017 edition of Stabroek News. We fully agree with the letter writer’s contention that social and economic development should be the foremost responsibility of any Government. This is a notion which, we believe, should not be lost, but for some inexplicable reason is not taken into account by those who currently control the levers of power.

Mr Harbhajan goes on to blame the sugar industry’s current state to mismanagement by the previous administration. While we agree that all was not perfect in those times, at the same time, we recognise that no estate was closed nor were thousands of Guyanese thrown into a life of uncertainty and misery as we see happening presently at Wales. Added to that the author, for reasons best known to him, refuses to draw attention to the pervasive mismanagement taking place in current times. We hasten to remind that sugar production has fallen from 231,000 tonnes in 2015 to an expected 174,000 tonnes in 2017, a 25 percent drop assuming this year’s target is met.

While the author speaks about the monies provided by the European Union (EU) for the sugar industry, he fails to tell Guyanese that the last $5.4B which was transferred to the Government in the latter part of 2016 is still being withheld from the industry. Perhaps, Mr Harbhajan is unaware of such facts. Or, maybe, he just didn’t consider it suitable for his purposes. Mr Harbhajan argues also that the ‘turnaround plan’ was not a success with which we beg to differ.

We recall production rising from 186,000 tonnes in 2013, to 216,000 tonnes in 2014, and then to 231,000 tonnes in 2015. Such performances in those years were obviously encouraging and welcoming trends. Mr Harbhajan’s assertion that the “Skeldon Modernisation Project was the death knell of the industry” requires that he separates the fact from fiction. In the last months, we have heard and read about several parties who have expressed unsolicited interest in acquiring Skeldon.

Certainly, if the estate were in such a bad state as the author implies then those interested clearly do not believe his fiction. Furthermore, the author who signs his letters, among other things, as a “Former Member of the Board of Directors (Skeldon Energy Inc)” should be well aware of the value of the Skeldon Co-Generation plant and must be au fait with the huge sums garnered by SEI through the production of the plant. He ought also to be aware of SEI’s recommendation to the Parliamentary Economic Services Committee of having co-generation plants established at other estates in view of the substantial income potential.

Then after all his confabulations, Mr Harbhajan tells Guyanese that “sugar is profitable” but for such profitability to be realised the industry must be placed in private hands. Well, this is really a mouthful. The letter writer argues that the Government should uphold the Sugar Commission of Inquiry (CoI) recommendation in this year. The privatisation of the industry was one of the one hundred and fourteen (114) recommendations made by that costly CoI.

The author should be reminded that the CoI also said no closure of estate should be pursued, but already Wales is closed and Rose Hall and Enmore/LBI are likely destined to suffer the same fate. Several other positive recommendations were also made by the CoI including diversification and that non-sugar agricultural diversification should be done on lands outside of sugar.

All of those, it seems, are ignored by Mr Harbhajan and we daresay that the CoI report is destined to sit on a shelf to gather dust. While Mr Harbhajan like another of his ilk, Mr Abel Seetaram, sought to take a swing at GAWU, again the attempt suffers from not providing relevant, substantiated facts. We repeat and we will never tire of repeating, as some would wish, that we stand with the thousands of workers who are and will be affected by the plans being cooked up for sugar. Such plans are tantamount to condemning thousands to joblessness and their families to an existence of severe deprivation. We cannot subscribe to such betrayals of our membership.

Regards
Seepaul Narine
General Secretary
GAWU

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Guyana gets $5.4B for sugar …as part of EU’s support measure.

October 26, 2016

https://guyanachronicle.com/20...-eus-support-measure

THE European Commission on Tuesday handed over to Guyana the sum of twenty-four million, four hundred and twenty-four thousand euros (€24,424,000) — the equivalent of five billion, four hundred million, one hundred and fifty-three thousand, five hundred and twenty-seven Guyana dollars (Gy$5,400,153,527) — for the Action Programme adopted by this country under the Accompanying Measures Programme (AMP) for sugar.The disbursement comes at a time when the sugar industry is in deep financial crisis and is seeking a Government bailout of eighteen billion dollars (Gy$18B) next year to keep it afloat.

In addition to a twelve-billion-dollar (Gy$12B) subsidy received from the Government in 2015, the Guyana Sugar Corporation received another nine billion dollars (Gy$9B) in 2016, and has said it is seeking an additional $3.5 billion as subsidy for this year.

Django
Last edited by Django

Narine and his union should supply the solutions for GuySuCo.

Source

September 4,2017

Dear Editor,

It is always productive to have proper debate on issues affecting our economic development, especially the current state of the sugar industry. However, such debates must be objective and factual and supportive evidence must be proffered. However, this is dismally lacking in the case of GAWU General Secretary Seepaul Narine’s reply to my letter.

He began by defending the previous administration when he implied that it is only this government which has erred in fulfilling its social and economic responsibility. If I could recall the former President at one time ignored the leaders of the union when he met with the union’s representatives at the Guyana International Convention Centre in December 2010. Mr Jagdeo had the sense at that time to recognize that the leaders of the union only cared about themselves and not the workers. He had warned about players within the union who had “other motives”. I was more to the point when I said in my letter that GAWU was more interested in self-preservation and that they do not have and never offered solutions to the myriad of problems affecting the industry.  Yet, despite accusing me of “confabulations”, Mr Narine has once again failed to provide solutions to the sugar problems in his letter. GAWU just kept on agitating for unreasonable wage increases and other unsustainable “customs and practices”. They are always part of the problem and not the solution.

What Mr Narine has failed to acknowledge is the fact that I accepted the fact that the CoI did not recommend closure and I further said that if the Wales Estate was privatized then “many jobs would have been saved and many controversies avoided”. So it is useless for Mr Narine to build his argument on that premise. I fully agree that GuySuCo should be fully privatized and that Skeldon should be a pilot project.

Furthermore, private investors have shown interest because sugar is profitable as I have said, and these investors have the ability to make it profitable. No government should be involved in running a business and I have made this clear in my letter. Does Mr Narine feel that any government has the ability to do so? Should GuySuCo be kept and taxpayers’ dollars continue to be uselessly pumped into it to keep it afloat?

Mr Narine spoke about an increase in total production from 186,000 tonnes in 2013 to 231,000 tonnes in 2015 but failed to mention that the losses increased from $$7.1 billion to $17 billion in 2015. Can Mr Narine explain why despite increased production the losses increased in such huge proportions?

Moreover, as at July 2015 the debt burden of GuySuCo stood at $82.5 billion moving from a liquidity position of $4.2 billion in 2004. This was a direct result of the Skeldon Modernization project which malnourished the entire industry. Today, the supposedly automated Skeldon factory is now operated manually with more labour being employed in the operations. The operation costs continue to climb.

This was compounded by the fact that labour costs driven by GAWU’s demands continued to climb to an unsustainable level of 65% of total production costs. The closure of Wales is a direct result. However, Mr Narine knows this better than I do, unless he wants to live in denial.

Mr Narine is talking about the other recommendations (114 of them) made by the CoI yet GAWU has failed to identify which ones are workable. The CoI has recommended full privatization by 2018 and this is the best solution and one which I subscribe to. But GAWU does not want to lose the political stranglehold they have on the workers as well as the lucrative income which they envisaged that they may stand to lose should sugar be privatized. But let’s hear what plans GAWU has for the industry.

Mr Narine also spoke in glowing terms about the Skeldon Co-Generation Plant but he should be cognizant of the fact that since I am a former member of the Board of Directors of SEI that when we took over in 2015 this entire structure was falling apart and it is this government’s intervention which resulted in its profitability.

Having accused me of taking “a swing at GAWU” by not providing “relevant and substantiated facts”, he then repeated the platitude that “GAWU will stand by thousands of workers” and will not “subscribe to the betrayal of our membership”. This type of rhetoric by GAWU has created and sustained an atmosphere of hostility between the workers and the management of GuySuCo. It has forced the previous government to continue to waste subsidies with no solution in sight and has forced this government to do so until now, but this simply cannot continue and GAWU knows this fully well. Let Mr Narine and his union provide the solutions rather than just be interested in keeping their livelihood intact. They have already ‘betrayed’ their membership by not being open and honest with them.

Yours faithfully,

Gobin Harbhajan

Regional Democratic Council

APNU+AFC

Former Board of Directors Skeldon Electricity Inc

Django

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