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Stabroek News

Government not closing sugar factories - Heaven
published: Thursday | October 13, 2005

John Myers Jr., Coordinator

AMBASSADOR DERICK Heaven, executive chairman of the Sugar Industry Authority (SIA), has dismissed claims that the Government is considering a proposal by the European Union (EU) to close three sugar factories in an effort to reduce costs.

The proposal to close the factories was made following an assessment carried out by consultants on behalf of the EU on the island's sugar industry.

Opposition spokesman on agriculture, Senator Anthony Johnson, at a press conference last week, said the Government was considering to close Monymusk in Clarendon and Long Pond and Bernard Lodge in St. Catherine, based on this proposal. Senator Johnson expressed reservation that this would further deepen the crisis facing the industry.

ABSURD CLAIM

But Ambassador Heaven described Senator Johnson's claim as absurd, arguing that the Government would be formulating its own policies and develop its own strategies to address the current problem facing the sugar industry.

"It has nothing to do with the Government of Jamaica," he emphasised. "The Government of Jamaica is doing its own assessment and will make its own decision and formulate its own policies."

Agriculture Minister Roger Clarke said all the factories will be in operation when the 2005/06 cane crop starts. "I am sure that they will be there for the next crop," he said.

Parliament on Tuesday approved a guarantee for a US$30 million loan for the sugar industry, but already there are concerns that the money will be used to pay debt instead of being spent on improving the industry's infrastructure. Prime Minister P.J. Patterson is expected to unveil a slate of new measures to combat the problems facing the industry by the end of this month.

WORST CROP ON RECORD

The three factories, which have a combined capacity to produce over 180,000 tonnes of sugar annually, only managed to put out a mere 55,000 tonnes of sugar all together last year. That year's sugar crop was the worst on record with 124,000 tonnes, 60,000 tonnes short of the targeted amount.

Senator Johnson also expressed concern about preparations at the five government-owned sugar factories for the 2005/06 sugar crop scheduled to begin in December.

Cane farmer Lucius Jackson said he was particularly disturbed with preparations at the Frome sugar factory in Westmoreland. According to him "Most of the repairs are being done from salvaging things from the scrap heap. This is not the first time it is happening and it has proven that the factory does not hold up."

Senator Johnson insisted that the Government immediately provide the resources to adequately prepare the five publicly owned sugar factories for the upcoming reaping season. He also recommended that the General Consumption Tax (GCT) be removed from agricultural equipment to assist with preparations for the 2005/06 sugar crop.

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