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Stabroek News

A dollar for sugar
published: Tuesday | November 1, 2005

Omar Anderson, Gleaner Writer


Sugar cane farmers in Moneymusk Clarendon. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER

THE LONG Pond and Bernard Lodge sugar factories are up for sale for $1 each, but Prime Minister P.J. Patterson yesterday warned that money, and not 'sweet talk', would influence their divestment. The prime minister, who left the island last night for the Fourth Summit of the Americas in Argentina, said he would also stop in Brazil, to discuss with officials there how that country could take over some of the Sugar Company of Jamaica (SCJ)-owned factories.

Speaking at a post-Cabinet press briefing at Jamaica House, St. Andrew, Mr. Patterson said his administration welcomed anyone who did not want the Long Pond and Bernard Lodge sugar factories closed in two years.

BE MY GUEST

"Anybody who wants to acquire an SCJ factory, be my guest," he offered. "Put up a proposal and the Cabinet will order the transfer of that factory to the investor for $1, provided they have a sound financial plan that does not depend on recourse to the Government, either in the form of capital, loans, or Government guarantees."

The Gleaner was unable last night to contact Alan Rickards, chairman of the All-Island Jamaica Cane Farmers' Association (AIJCFA). He told The Gleaner last week that cane farmers were prepared to take over the two factories with the support of foreign investors. Responding to criticisms of his speech to Parliament a week ago on the future of the island's sugar industry, the prime minister said local and foreign studies on the industry have all pointed to rationalisation given its inefficiency.

'LONG-TERM VIABILITY'

He added that the injection of capital in inefficient sugar factories slated for closure "would be wasteful", compared to the directing of those funds into factories which he said had "long-term viability".

It was calculated that some 4,000 jobs would be lost if the factories were to close, according to the All Island Jamaica Cane Farmers Association.

But Mr. Patterson yesterday specifically invited cane farmers to, if they desire, to assume control of Long Pond in Trelawny and Bernard Lodge in St. Catherine.

He insisted however that the Government would not allow SCJ factories to again fall into private hands without the necessary financial backing to sustain them.

"We must be satisfied that those who come with investment proposals not only come with eloquent speeches, but with money in their pocket [that] they are prepared to invest.," he said.

Mr. Patterson said Long Pond and Bernard Lodge would be kept open for two years for what he said was "a proper phasing out period."

In regards to Bernard Lodge, he said although it would be closed for sugar production, it could be upgraded to produce ethanol.

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