Opposition, gov’t in bitter clash over sugar industry

Last Updated on Friday, 9 August 2024, 22:07 by Writer

The opposition A Partnership for National Unity+Alliance For Change (APNU+AFC) parliamentarians and Agriculture Minister Zulfikar Mustapha on Friday clashed over government’s request for parliamentary approval of GY$4 billion that was spent on the ailing sugar industry.

Mr Mustapha, in response to APNU+AFC’s Khemraj Ramjattan, said GY$397 million was spent on fuel for irrigation, GY$81 million on other aspects of drainage and irrigation, GY$45 million on excavators and tractors, and other amounts for materials and other expenditures that would total GY$4 billion that he planned to hand over to the National Assembly. He said despite the shortfall in sugar production, the Guyana Sugar Corporation (GUYSUCO) still paid salaries amounting to GY$3 billion to the more than 8,000 workers.

GUYSUCO’s annual wage bill is GY$12 billion, the minister said.

APNU+AFC parliamentarian, Annette Ferguson’s request for a percentage breakdown of wages and salaries paid to each category of workers is expected to be fulfilled through the parliamentary office.

Opposition lawmaker, Vinceroy Jordan questioned whether a previously mentioned plan to plant 2,000 hectares of cane were planted and whether it was sufficient at Rose Hall. In reply, the Agriculture Minister explained that during the last crop, the prolonged dry spell caused “stunted growth” of canes that forced authorities to invest heavily in irrigation. “We had to use water pumps to continue watering the cane. We had to contract small contractors to use their pumps to water canes in the field. All those systems we had to put in place to get a crop,” he said. Mr Mustapha said a lower sucrose content resulted in 15,000 tonnes of cane to yield one tonne of sugar.

Looking ahead, Mr Mustapha said almost 45 percent of the sugar industry’s cultivation system was now mechanised and GUYSUCO has already begun planting sugarcane at Skeldon, and planting continues at Rose Hall and Albion. Mr Jordan’s question about steps that were being taken to open the other estates and whether it had made financial sense to invest GY$9 billion to rehabilitate the Rose Hall estate drew fire from the Agriculture Minister. “Could the Honourable Minister say how much revenue was garnered since the opening of that estate and the total amount of sugar produced since the Rose Hall estate was opened?” Mr Jordan asked.

The minister told the House that he would have been “ashamed” to answer such a question if he were an APNU+AFC parliamentarian because it was the coalition that had closed several sugar estates and put thousands of workers on the breadline. Touching on the Rose Hall estate, Mr Mustapha said actually GY$11 billion was spent on rehabilitating the Rose Hall estate whose factory and field were in a terrible condition. “Tree was growing in the factory, coming out of the roof. The entire cultivation was in forest. The entire field operation equipment was in disarray. We had t0 put new things in place,” Mr Mustapha said.

The Agriculture Minister said since the Rose Hall estate was reopened, more than 2,000 tonnes of sugar has been produced. That estate factory also crushed cane from the Albion Estate beset by a mechanical problem.

Mr Mustapha did not immediately provide the cost of sugar production across the industry or specifically at Rose Hall, when asked by Mr Jordan. APNU+AFC parliamentarian, Sherod Duncan also weighed in on the failure of the Minister to provide the cost of production. “Why is the Minister of Agriculture, who is here for more appropriations for his ministry, so ill-equipped on questions of production cost at GUYSUCO?” he asked.

Mr Jordan and Mr Mustapha were also at odds over the cost of rehabilitation at the Albion factory’s powerhouse following a fire. Mr Mustapha said the cost was GY$600 million, but Mr Jordan, read out a list of items that was burnt and that would have cost GY$50 million, based on a GUYSUCO report. “I can itemise it and give them the cost that I itemised just now so that they can see the amount that it cost us to repair that powerhouse,” he said.