$2B sub­si­dy for GuySuCo

Times of Suriname - - ENGELS -

De­spi­te be­ne­fit­ting from $9B at the start of the year, on­ly to de­li­ver a dis­ap­poin­ting per­for­man­ce in less than eight months, the su­gar in­du­stry is poi­sed to re­cei­ve yet ano­ther bil­li­on-dol­lar bailout. Mem­bers of the Na­ti­o­nal As­sem­bly ap­pro­ved so­me USD 2B for the Gu­y­a­na Su­gar Cor­po­ra­ti­on (GuySuCo). The sta­te-ow­ned en­ti­ty had ini­ti­al­ly sta­ted that it des­pe­ra­te­ly nee­ded USD 3.5B. Kai­e­teur News un­der­stands that the ap­pro­ved sub­si­dy is what the Govern­ment can af­ford at this ti­me. The bailout was sup­por­ted du­ring the con­si­de­ra­ti­on of Fi­nan­ci­al Pa­per No. 3/2016 – Sup­ple­men­ta­ry Esti­ma­tes (Cur­rent and Ca­pi­tal) to­ta­ling USD 9,518,122,347. This pa­per was pre­sen­ted to the Hou­se by Fi­nan­ce Mi­nis­ter, Wins­ton Jor­dan. Mi­nis­ter of Agri­cul­tu­re, Noel Hol­der fiel­ded ques­ti­ons on the su­gar sec­tor from the PPP. He was as­ked by Op­po­si­ti­on Mem­ber, Irf­aan Ali what pro­vi­si­on was ma­de in the said sub­si­dy for wa­ge in­crea­ses and in­cen­ti­ves for the su­gar wor­kers. Ali al­so as­ked if sub­se­quent to the El Ni­ño ef­fect on the su­gar in­du­stry, if the pro­duc­ti­on tar­get for the sec­tor was re­vi­sed. Hol­der said that the tar­get was in­deed amen­ded. He said that the tar­get ca­me down by 194,000 ton­nes, which it is still ho­ping to achie­ve by the end of the year. The Par­li­a­men­ta­ri­an said that this USD 2B sub­si­dy is to help meet rou­ti­ne ex­pen­di­tu­re and it is in re­la­ti­on to the se­cond crop for the sec­tor. The Agri­cul­tu­re Mi­nis­ter said that the­se sums are re­qui­red to pay wa­ges in the sum of USD 1.2B; fu­el cos­ting USD 160M, fer­ti­li­zers peg­ged at USD 464M and USD 176M for cre­di­tors. Hol­der was al­so as­ked by the Op­po­si­ti­on to gi­ve a break­down of the mo­nies go­ing to­wards wa­ges. He said that the USD 1.2B is go­ing to wor­kers in both the fac­to­ries and field. He un­der­took to pro­vi­de fur­ther in­for­ma­ti­on in this re­gard in a week’s ti­me. The Op­po­si­ti­on ac­cep­ted this. The al­lo­ca­ted sum sub­se­quent­ly re­cei­ved the sup­port of the mem­bers of the Hou­se. Ac­cor­ding to sta­tis­tics from the Mi­ni­stry of Fi­nan­ce for the first half of the year, the Gu­y­a­na Su­gar Cor­po­ra­ti­on re­cor­ded an ope­ra­ting sur­plus of USD 2.9 bil­li­on, down from an ope­ra­ting sur­plus of USD 3.0 bil­li­on for the sa­me pe­ri­od last year. This sur­plus, it said, was in­fla­ted by a USD 9 bil­li­on trans­fer from the Cen­tral Govern­ment to fi­nan­ce ope­ra­ti­ons. Wit­hout this trans­fer, the Mi­ni­stry of Fi­nan­ce no­t­ed that GuySuCo’s true po­si­ti­on would be a de­fi­cit of USD 6 bil­li­on.


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