HAMPDEN SUGAR factory has ground to a halt with debt of over a billion dollars, and the cane farmers, upset at the loss of an outlet for their cane, are pressuring the government to lease the facilities to them.
George Fray, president of the Hampden Cane Farmers Association, has accused the government of dragging its feet and, almost to be expected in the current ethos of protest blackmail, there are threats to disrupt the industry. These underground tremors, like an approaching earthquake, have reached the ears of the Prime Minister who has called for calm, pointing out that any such disruption would be another blow to the national economy.
All this brings to mind the government's previous attempt in 1994 to divest the island's main sugar factories to consortia of private sector investors, some of whom had friends and influence in the administration. This brought some $1.2 billion into the national coffers but the government, in its haste, had not ensured by any legally enforceable mechanisms that the beneficiaries of the divestment would put up sufficient working capital to rehabilitate the factories and bring them into efficient operation.
In a short time the divestment failed and to preserve employment and prevent a shutdown of the industry, the government was forced to absorb the debts incurred. The Sugar Company of Jamaica was placed in receivership in December 1999 to recover the outstanding debts.
We note that Mr. Seaga, Leader of the Opposition, has indicated some optimism about the future of the sugar industry but given our low average yields, uncompetitive by world standards, only experienced, hard-headed businessmen like the McConnells at Worthy Park estate and the Henriques of Wray and Nephew are likely to be able to make it work.
We doubt that the Hampden cane farmers have the expertise or the capital to bring the Hampden factory back into profitable production. In considering the lease proposal now before it the government should make haste slowly. Once bitten, twice shy.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
