Although the present model of operation of the Guyana Sugar Corporation (GuySuCo) has failed, with major changes there is still a chance to make some parts of the industry profitable, according to President David Granger.
Speaking to reporters on the Public Interest interview programme, which was broadcast last week, Granger said GuySuCo, as Guyana’s oldest institution, has been operating under a failed model.
“It [GuySuCo] is haemorrhaging and government cannot afford to keep bailing it out. There has to be change; the very nature of the change is something that is still to be decided.
We are now looking at a modern model because we want to protect the livelihoods of the working people and we feel that there are some parts of the industry which can be made profitable,” Granger said, before adding that for this to occur major changes must be implemented this month.
The President’s comment followed a presentation to Cabinet by team from the corporation.
The team, which was led by Chairman of the Board of Directors Dr Clive Thomas, presented to Cabinet on the state of the sugar industry as well as the available options for the future.
Minister of State Joseph Harmon had told reporters at last week’s Thursday’s post-Cabinet press-briefing that these options ranged from maintaining the status quo at GuySuCo to a point of a limited form of diversification. He explained that GuySuCo’s position was that maintaining the status quo was the worst possible option as this would have serious implications for the National Treasury.
“It will require $18.6 billion in 2017 and $21.4 billion in 2018 just to maintain the status quo. This is in addition to the current debt in excess of $80 billion which GuySuCo has,” he said.
Harmon stressed that after hours of consideration, it was clear that that some decisions would have to be made about GuySuCo before the end of December and therefore a sub-committee, including Minister of Agriculture Noel Holder, Minister of Finance Winston Jordan, Minister of Natural Resources, Raphael Trotman and himself, has been established.
This sub-committee will consider the information and craft Cabinet’s approach to the issue. It is expected to present its report within two weeks.
