Dear Editor,
One of the first acts of the APNU/AFC regime was to begin the destruction of the sugar industry. In so doing, they have revealed several aspects of their true nature. The massive closure that they have started has so far left more than 7000 people jobless, and has led to great hardship, including hunger in the sugar belt.
They took this step primarily because of their profound hatred for the sugar workers, whom they tend to blame for everything, including the loss of power in 1992.
In the APNU/AFC Government’s White Paper — stating why the industry was shutting down estates — the following is stated on page four: “Most of the employees of GuySuCo are supporters of the Opposition political party, the People’s Progressive Party (PPP). The main unions of the sugar workers are affiliated to the PPP…” So the main consideration was not economic, but political.
Having come to power, and discovered that oil was found in massive quantities in Guyana, they felt that here was their chance to deliver a massive blow to the sugar workers. It is clear that they took that action in the belief that whatever revenue they would lose from a revived sugar industry would be made up when oil begins to flow.
In this regard, sugar is the first victim of oil. The rest of agriculture will follow.
As I have argued before, the revival of sugar was not ‘mission impossible’. The industry had experienced worse difficulties before, and overcame them.
Indeed, in 1990, sugar production had fallen to a mere 129,000 tons. The PNC was planning to sell it for a pittance. However, the PPP/C, taking office in 1992, saved the industry. Production went up to more than 300,000 tons.
Under the PPP/C Administration, the problems in the industry were being overcome. Just recall that, in 2015, all the targets were met. Clearly, the disaster for the industry was the APNU/AFC regime’s doing. That regime reversed the turnaround and turned it into a reversal.
The regime has since borrowed thirty billion dollars ($30B) from the commercial banks at substantial interest. The pretext that they used is that they are going to invest that money in the other estates to save the industry. That is a false argument. It is a smoke screen for total closure. What that is actually doing is saddling the industry with a huge debt, to ensure that they stifle the industry and make it impossible to repay the debt. I say this because an examination of their actions will show that this regime continues to take action to kill the industry. They have removed many experienced and skilled managers from the industry. Almost all of those senior staff members that were removed are Indian-Guyanese, and they were all highly qualified, efficient and competent. They have imposed on the industry a large amount of old PNCites. Those gentlemen are each receiving salaries well above one million dollars ($1M) per month. It is apposite to note that those are persons in their 80s, and one is in his 90s. Those persons are without energy, and their knowledge of the industry is obsolete.
If their intentions were to revive the industry, I ask why borrow $30 billion, instead of accepting the offer from India to assist in recapitalising the sugar industry?
India was prepared to give not only credit at favourable conditions to fix the factories, but technical assistance in field and factory. In 2014 and 2015, the then management of GuySuCo was testing liquid fertilisers in the field.
Using that would have allowed us to cut cost of procuring fertilisers by more than half. This regime, while talking about a ‘green economy,’ has damaged the best hope for having a green economy. All the plans for developing new revenue streams to compensate for the cut in the prices of sugar from Europe have been dashed by this regime. Their actions are most callous.
The PPP/C was making this industry into a complex. We had already begun producing electricity from bagasse. That project could have been expanded to Albion and Enmore estates. GuySuCo should by now have become a major producer of power. It would have satisfied a large amount of the country’s needs. Packaging was to be expanded; and refining sugar, with some joint venture, was also very feasible. Plans for production of ethanol and for establishment of another distillery have all been cast aside. In the meantime, we can see no evidence of where the thirty billion dollars ($30B) are being utilised to help the industry.
Instead, we are hearing of the construction of a modern, lavish entertainment complex at La Bonne Intention. What is this for? Would it be an exclusive club for GuySuCo’s big boys and those of the APNU/AFC regime? What revenue would this generate to revive the industry?
The regime has no intention to revive the industry. The truncated industry cannot sustain the huge bureaucracy that it has to upkeep. It will be incapable of repaying the huge debts with which it is now being saddled.
What is taking place now is the ‘milking’ of the industry by the regime — to extract for themselves as much as possible for their own enrichment, while workers and communities are pauperised. The wanton and criminal destruction of sugar would come back to haunt us!
Sincerely,
Donald Ramotar
Former President
