Cane fields need substantial rehabilitation

Dear Editor,

The GAWU has obtained a copy of the responses of Minister of Finance, Winston Jordan to questions posed by PPP/C Member of Parliament, Mohamed Irfaan Ali regarding the utilization of the $30B bond secured by GuySuCo.

The Finance Minister advised that the bond is aimed mainly “…to acquire two co-generation plants; to upgrade existing factories to produce plantation white sugar; to build storage and packing facilities; and to contribute to two years of general operational costs…”. Interestingly and conspicuously absent, was any mention of investments in the cane fields to improve productivity. In April, this year, then GuySuCo CEO, Paul Bhim in a GuySuCo/SPU engagement with GAWU told us that $11B would be spent on capital works across the three estates with about 70 per cent of that sum being utilized in the fields. While we are supportive of initiatives in co-generation and white sugar, their success is largely predicated on having sufficient quantities of canes available. We, therefore, ask what is the purpose of having shiny, new plants but inadequate canes?

The Minister next informed that the GuySuCo has presented a plan to the Administration to engender its viability. This is indeed noteworthy news from the Honourable Minister. We recognized that President David Granger in his address to the National Assembly on October 18 said “[a] plan is being developed to boost production in the remaining East Berbice, West Berbice and West Demerara estates”. We hasten to ask that between October 18 and 31, a span of 14 days, GuySuCo was able to develop its plan and present it to the Administration, using the Minister’s term, “…for consideration”. That plan, we may add, according to the Minister was “[u]nderpinned by a 10-year supporting cash flow projection…”. This is simply an amazing feat and we urge the Government to quickly share the plan with the stakeholders and the public.

The planners must also be complimented recognizing that our Union, among others, for some months has been speaking about the absence of a plan. We also wonder whether it is that the Administration has, at this time, approved the plan for implementation. Bearing in mind that it took nearly half a year to appoint a GuySuCo Board, we wonder when the Government, given that we expect the plan to be technically-oriented, will give its seal of approval.

The Minister also said that feasibility studies found that white sugar and co-generation plants were viable. This is pleasing news. On the white sugar matter, in April the GAWU was told that the feasibility study was yet to commence but it seems, from all appearances, that empirical work has now been concluded. While not wanting to throw cold water on the ideas, we ask, like we did in April, whether the CET will be applied to extra-regional imports of white sugar. As far as we recollect, no announce-