GAWU questions Government on steps to have Production and Financial Review for the Guyana Sugar Industry

GAWU is bewildered that the Government has sent out requests for Tenders for Production and Financial Review for the Guyana Sugar Industry. This occurred on August 22, 2008

The Union views this exercise as a waste of money, time and effort, since it allows the current mismanagement of the industry to be extended for a longer period, instead of taking a decisive and immediate step to halt the further decline of the industry.

Consultants have been too many in Guyana. A Consultancy report on the sugar industry, we are sure, will be impregnated from what has been learnt by the Consultants speaking to stakeholders in the industry after which a cleverly-worded Report would be produced. The Report will then be studied by the Government then released to the stakeholders and action/s taken based on its recommendations. It could take many months to have the costly process completed.

There might be one likely satisfaction arising out of the exercise – a submission for the less productive estate/s for closure, albeit that the poor well-being of the estate/s is as a direct result of poor management; purposeful action of neglect to pave the way for closure. Thus GAWU is of the view that the Study could justify the call for the closure of estates.

Climate change, industrial action and worker-absenteeism are the reasons given, repeatedly, for the woes facing the industry over the past three years. Work stoppages and absenteeism are not new phenomena. Against similar situations, the industry produced an average of 320,000 tonnes in the years 2002-2004; the average has slumped to 257,000 tonnes in the years 2005-2007.

The decline in field production has led naturally to the decline of the financial fortunes of the industry. This year there is simply not enough cane in the fields to produce 260,000 tonnes of sugar. Earlier this year it is understood that a senior Booker-Tate official, among others, submitted a Report that stated the industry’s production would be about 285,000 tonnes of sugar. The quantity of canes required to produce the estimated target has never existed. In fact, the Corporation’s production this year will be inclusive of 14,000 tonnes of sugar not reaped in 2007 and 6,000 tonnes sugar from ‘brought forward’ canes due to be reaped in 2009. Thus the actual quantity of canes for this year is expected to yield no more than 240,000 tonnes of sugar. If this prediction holds, it will be the lowest production of the Corporation since the industry’s recovery, started in 1992 with a production of 243,010 tonnes.

For a Production-oriented Industry, an enquiry regarding the Production and Financial Review of the Industry, we wish to emphasize will be time-wasting and a mis-spending of dollars. The reasons for the poor production performance of the industry are there for all to see, even the myopic bystanders. Suitable growing canes do not dominate the fields. Poor husbandry results in sparseness of growing canes, poor cane stalks, etc, as is evident on the East Demerara Estates and some others.

GAWU says let us save the industry from further decline. The time for action is now. Let our Guyanese fully manage this lynchpin industry, lest it crumbles more, not only to the peril of the main stakeholders – the workers – but also to the nation.