Dear Editor,
As the GAWU is finalising its preparations for its one-day conference, titled “Sugar – too big to fail,” on September 04, 2018, our Union recognises that President David Granger, at his inaugural press conference for the year, addressed the sugar industry, among other things.
According to a report in the September 02, Guyana Times, President Granger is quoted to have said “[s]o there is a future for sugar, a very clear future”. The statement by the President, which on the surface appears to be rational, is, however, far from the reality. Since President Granger became our country’s leader, his Government’s approach to the sugar industry has been the furthest from clear.
The nation will recall that, weeks after being sworn into office, the APNU/AFC Government established a Commission of Inquiry (CoI) into the sugar industry. That CoI — which cost millions of dollars and spent hundreds of man hours to review voluminous information — was to receive testimony and submissions from several individuals and organisatons; to have a firsthand look at all the estates; and to interact with workers and managerial personnel.
The Commission came to the unambiguous conclusion that no estate must be closed, taking into account the social fallout. Furthermore, the CoI went on to identify several sugar diversification initiatives that could turn the industry around.
It seems that the Sugar CoI report, findings and recommendations were not seriously considered, and before the report had an opportunity to gather any dust, the Granger Administration, in January 2016, announced that Wales Estate would be closed at the end of that year.
Not too long after the Wales closure announcement, in early 2016, President Granger, on his now defunct Public Interest programme, had said he didn’t believe that any more estates would be closed. Within weeks of the President’s statement, the GuySuCo informed GAWU and NAACIE that LBI Estate had to be closed, to consolidate and make viable the operations of East Demerara Estate.
But then, on the last day of 2016, the Government told the workers unions and the political opposition that it had to close the very East Demerara Estate (Enmore) which, weeks prior, it was said to be viable through the closure of LBI Estate.
As history now records, the Government, at that time, indicated that it also wanted to close Rose Hall Estate and would divest itself of Skeldon Estate, but wanted to hear from the unions and the opposition first, before committing itself to a decision.
Though our Union had doubts about the sincerity of the Government’s commitment, we nevertheless provided a submission which took account of empirical information from several studies and the CoI report, and demonstrated that the industry could be saved, and closure and divestment were not necessary recourses.
Our submission also warned about the social consequences that would befall thousands of Guyanese and scores of communities, and we strongly endorsed the Opposition’s position that a credible socio-economic study should be pursued.
The ‘Good Life’ Administration nevertheless adamantly pressed ahead with nothing less than a disastrous policy to minimise the sugar industry. On to this day, it has never explained why it did not endorse the GAWU submissions, something the Caribbean Court of Justice recently opined should have been done. Our Union reiterates that the administration would be hard pressed to provide a reasonable explanation for its rejection, especially noting that GuySuCo itself is now advocating similar ventures to make it viable.
Then, at the end of 2017, unbeknownst to the public, the Administration substantially stripped the GuySuCo of its assets relating to the closed estates and transferred them without liability to NICIL. The shares of the Corporation were also transferred to NICIL. Around the same time, the Government then announced it had decided to divest the estates identified for closure.
Interestingly, the Administration has never shared what influenced the change of course, though we suspect the workers’ strong actions and the criticisms from many organisations and individuals must have been influencing factors. It is interesting, too, that the Administration subsequently announced it received over 70 expressions of interest for estates that were previously deemed unviable and irretrievable.
The clear confusion regarding sugar continued when we saw musical chairs being played by the Ministers of Agriculture and Finance, with both gentlemen denying they had ministerial responsibility for the industry. Then suddenly and without any forewarning, the Agriculture Minister announced he was in charge of GuySuCo, though no explanation, as far as we recall, was ever provided as to how the contradictions were resolved.
Then the public was told that NICIL-SPU, on behalf of GuySuCo, had entered arrangements whereby it secured $30B in financing towards making the industry viable and sustainable. While GAWU welcomed the financing, we expressed, at the same time, our serious concern that no clear plan had been advanced to guide the expenditure of the large sum that is repayable with interest.
Then, most recently, we saw Minister of State Joseph Harmon saying that the Government was giving consideration to the sale of the three (3) operable estates along with those which have been closed. The Minister’s announcement stands in stark contradiction to President Granger, who is quoted in the Guyana Times’ report as saying “[w]e want to see the sugar industry survive… we feel… that the industry and the corporation can survive”.
Clearly and obviously, the administration’s approach to sugar, like it has been to many national matters, has been far from clear. It seems to us that a shooting-from-the-hip approach has been adopted, and there is no thought-out policy regarding the sugar industry. Such an approach can never be helpful, and can never provide answers to the pressing questions that would arise. If this is what the President defines as clear, then the Guyanese people should definitely shudder when the Administration says it’s not clear on a matter.
Yours faithfully,
Seepaul Narine
General Secretary
GAWU
