National Assembly approves Gy$6B for sugar industry

After intense grilling by the combined parliamentary Opposition, the Gy$6 billion subvention for the Guyana Sugar Corporation (GuySuCo) was approved by both sides on Wednesday evening as the National Assembly commenced consideration of the Gy$220 billion 2014 Budget Estimates.

In addition, the House approved the entire Agriculture Ministry’s budget, but not before scrutinising the National Drainage and Irrigation Authority (NDIA). Allocations to other agencies under the Ministry were also approved. These include the Guyana School of Agriculture, Guyana Livestock Development Authority, Guyana Rice Development Board, Guyana Marketing Corporation, and Hope Coconut Estate.

Focusing on the troubled GuySuCo, A Partnership for National Unity (APNU) Vice Chairman, Dr Rupert Roopnaraine, opened the floor, questioning Agriculture Minister, Dr  Leslie Ramsammy about the reconstruction of the GuySuCo Board of Directors and the criteria used to appoint the new members, as he believes there needs to be “serious reforms” within the industry at all levels of management.

“We would like, really, some cast iron assurances about the industry… we want to be reassured, in relation to this Gy$6 billion subsidy, that we are presented here in the National Assembly with a credible programme for resuscitation and revitalisation of the industry,” he stated.

New board

In response, Minister Ramsammy pointed out that the new board is currently being appointed with the aim of having it functional by July 1. He noted that there have been several recommendations for members, and President Donald Ramotar is currently engaged in talks with those persons recommended. The Minister assured the Opposition that Government was looking for persons who have the necessary knowledge and experience to resuscitate the drowning sugar industry.

On the topic of mechanisation, Ramsammy highlighted that this process will not be displacing any jobs, adding instead that the labour pool will complement the process allowing the industry to meet its 2014 target.

Alliance For Change (AFC) members also grilled the Agriculture Minister. Party Leader Khemraj Ramjattan, along with Dr Veerasammy Ramayya and Moses Nagamootoo, questioned the gravity of the failure of the Skeldon Estate and Factory. Nagamootoo explained that every time the Government goes to the National Assembly for money, it is being granted; however, that does not stop them from saying that the Opposition is killing the industry.

“What I am asking the Honourable Minister is to tell us what extent this industry is ailing and how much it owes, because we cannot be accused of committing ethnic cleansing of Indian workers, while we are supplying money to the sugar industry to help those workers. We are concerned about those workers and their welfare that is why we give the bailouts, but we don’t know how deep the trouble is,” Nagamootoo stated.

The Agriculture Minister disclosed to the House that of the Gy$6 billion allocated for sugar, Gy$1.1 billion will be directed towards mechanisation and cane production each, while Gy$2 billion will go towards factory upgrades and the remaining funds will be used to purchase equipment and improving the field infrastructure, which includes the transportation of cane from the fields to the factory.

The Minister was also questioned about the NDIA, particularly with emphasis on the acquisition of equipment, construction of sluices, and even the finances for this agency.