Downsizing sugar
In providing more reasons why the Government has moved to begin downsizing the sugar industry in Guyana, President David Granger maintains that it is a necessary decision and his Administration is trying its utmost to “limit the damage” in executing this process.
The Head of State was adamant that widespread consultation had taken place at
all levels of society to include the input of all stakeholders before the white paper on sugar was presented to the National Assembly by Agriculture Minister Noel Holder.
“As far as the sugar industry is concerned, we had months of consultation and a Commission of Inquiry (CoI). We actually published a draft paper, the unions were invited and the Opposition as well. So, consultations are taking place,” he said during a recent “Public Interest” programme.
While acknowledging that workers have been actively involved in massive protest action across the country, Granger said that sugar was contracting and it was highly impossible to sell sugar at very high prices on the world market. It, therefore, means that downsizing has to take place.
“So, we have no choice. What we are trying to do is to limit the damage by
establishing three mega estates – one in East Berbice, West Berbice and one in West Demerara,” he said.
According to him, Government will also try to save as many jobs as possible while simultaneously trying to maintain sugar production at a high level/quality. Granger also recognised the need for engagement with the European Union and Britain about market availability.
“So, yes, there have been consultations. We are spending billions of dollars on the Guyana Sugar Corporation (GuySuCo). Let the union make presentations on how it could be saved without bleeding the bag and depriving the other sectors of the economy from billions every year,” he posited.
However, Guyana Agricultural and General Workers Union (GAWU) President
Komal Chand has said repeatedly that when Government met with them to discuss its plans to downsize the industry, they had presented a paper which provided several options to help save the industry.
While the recommendations by GAWU have not been made public, Chand had told this newspaper that the Government did not take any of them into account and they were disappointed that Government moved quickly to announce its plans without looking at the social and economic impact this might have.
Chand has also claimed that the Government is not prepared to have the white paper debated in the National Assembly. He also highlighted that the Speaker of the National Assembly, Dr Barton Scotland denied a Parliamentary Committee from holding consultations in various administrative regions.
And most recently, the GAWU official stated that it was the moral responsibility of
Government to hold a referendum to determine whether the sugar industry should be downsized or not.
On the other hand, Government has said that its plan for the industry includes creating a small sugar sector with reduced losses and cash deficits. According to the Administration, this, coupled with diversification, is a much-needed ingredient to keep the industry afloat and profitable.
Opposition Leader Bharrat Jagdeo had highlighted the dangers that lay ahead for the 10,000 workers who stood to lose their jobs and the hardships this would put on their families.
He believes that the closure of the industry has the potential to affect about 50,000 people, and in his view, it was a “political, discriminatory decision on the part of the Government”.
Jagdeo reiterated that the sugar industry could be sustained and become viable if more attention was placed on fixing the current problems.
The Agro-Industrial Workers’ Union (AIWU) of the Russian Federation; the Amalgamated Trade Union of Swaziland (ATUSWA), and the Hindustan Unilever Ltd (PPF) Workers’ Union Doom Dooma in India have all come out and pledged their support in the fight against the downsizing of the sugar industry.