Address by Cde Komal Chand, President of GAWU on the Occasion of the Commissioning of the New Skeldon Factory

Allow me on behalf of Guyana Agricultural and General Workers Union (GAWU) and its thousands of members and my own behalf to congratulate the Guyana Sugar Corporation Incorporated on the commissioning of what is appropriately described as a state-of-the-art factory. Events such as these are rare and are hardly witnessed in one’s lifetime.

This is one of the dreams of Dr Cheddi Jagan, Honorary President of GAWU for many years, who had envisaged our sugar industry being transformed from a producer of raw sugar to a diversified industry within sugar.

The Corporation’s foresight in the Skeldon Sugar Modernisation Project (SSMP) was reflected in its Strategic Plan 1998 – 2008 taking into account the lower revenue which would follow from the EU Sugar Reform. It was a positive and decisive decision by the Corporation, supported by expert studies which confirmed the viability of the decision. Our Union unconditionally supported the project from the onset, we saw that it would have impacted positively on the stakeholders. There were many doomsayers and detractors who did not spare the use of the media to question the investment in the project and even suggesting it is a white elephant. The early performance of the project is proving them wrong.

We are all proud of this factory. Industrial technology of this type is one of the hallmarks of the 21st century. Today this technologically developed factory is a reality in Skeldon. We in GAWU acknowledge the high cost of its construction but, hopefully, in the end, the expenditures will prove to be wise, visionary and well spent. Now that the project is functional, we need to attend to other major relevant issues to achieve optimum results. After all, we are fully aware that the Corporation has a timetable in which to repay the loans. The factory has an enormous capacity and it needs an adequate supply of canes for its full operation. It is, therefore, disquieting to learn that sufficient supplies both from the estate’s extended cultivation and individual farmers will only be attained fully in 2012.

Comrades, this is not a time to allocate blame but it is regrettable that according to the latest timetable an adequate supply of cane would not be possible before 2012.

With everything put right, the cost of production would result in the industry’s cost of production being much lower than it is at the moment and expected at US 13 cents per pound across the industry thus making the industry competitive.

I must emphasize “everything put right,” and, this includes proper functioning of the punt dumper to facilitate the factory to grind 350 tonnes of cane per hour. It would be necessary, therefore, that steps be taken to ensure that the twin punt dumpers function satisfactorily. Similarly, we urge Guysuco to identify and attend to, as a matter of urgency, those other shortcomings which can affect the fulfillment of the goal of processing 1.2 million tonnes of cane yearly.

Comrades, the industry remains the mainstay of our economy and plays a significant role in our country’s social and economic development. As I said at the recently concluded 19th GAWU Congress “I wish to emphasize that the sugar industry ought not to be seen only from a bottom line dollar position, but from a comprehensive, macro and holistic position of what it contributes to our nation. Just imagine if the Industry is to be done away with what will be its replacement to avoid the social consequences that will certainly attend its closure. The sugar industry remains an intrinsic component of the economy. Many developed and developing countries continue to maintain their vital agricultural industries through appropriate interventions and support. These interventions are not premised on solely narrow financial factors, but they also take into account economics generally and the social and national relevance of the industries.”

This Skeldon II Project serves to renew hope in the workers that they have a future within the industry. This is important. The workers are indeed an important stakeholder. The President of the Republic, His Excellency Bharrat Jagdeo observed just a week ago that the progress of the sugar industry hinges on the support of the workers.

Workers’ confidence in the industry is further enhanced with the new Packaging Plant at Enmore which in the long run would be capable to produce 80,000 tonnes of direct consumption sugar. The Plant is scheduled to be completed during the last quarter of next year. We, in GAWU anxiously await the Plant as it represents a key component of the Plan to make the sugar industry viable in our times.

The role and support of the Government of Guyana to this project is worthy of high praise. We look forward to and have confidence of the Government’s continued positive role in this industry and in the well-being of the thousands of families who depend on it for their survival.

The Skeldon II Project is a start and a major start. We see it as venturing along a new and correct path for a healthy industry. We in GAWU, as we have done, will do our part. We urge the authority to steadily fulfill the commitments by the European Union (EU) to the Guyana National Action Plan.

This is a big day for Guyana. This is a big day for sugar. We congratulate all the stakeholders of this project.

Thank You.