Stating that he is seeing signs that both the Rose Hall and Skeldon sugar estates are heading for closure, Region Six Chairman David Armogan on Wednesday made an impassioned plea to the government to keep them open otherwise he said it would be a serious blow to Berbice.
He said he believes that the sugar industry can be saved and the closure of estates can be avoided if the Government is willing to put funds into the industry.
“We need to inject money into the sugar industry to bring it back to a level of profitability. The government needs to make an initial injection into the industry, strengthen the management of the industry, cut the excesses and make sure that we can bring it back to a level of making a profit”, Armogan said.
He stated that he is aware that the industry will not improve immediately even if funding is added. However, if the industry is managed properly there will be a positive outcome in a few years to come.
“I believe we can bring it back to profitability”, the chairman stressed. He highlighted that while the government may argue that it would make economic sense to close down the estates, since they are not making a profit, it is also important to look at the citizens of Guyana, when making such an important decision that will affect their livelihood.
“It’s not only about economics, you have to look at the people. People are more important than policies. The people should come first,” he stressed.
With the Guyana Sugar Corporation deep in debt and requiring billions annually in subventions, the government appears to have decided to dispose of or close down the Skeldon and Rose Hall estates in addition to Wales where sugar production ended on December 31st last year. There are also reports that the Enmore sugar estate will also be shuttered.
On several occasions, Armogan has spoken out against the closure of the sugar factories, contending that it will have a tremendous effect on the people of Region Six and the country at large. During an interview with Stabroek News at his New Amsterdam office, he spoke about the consequences surrounding the possible closure of the Rose Hall Estate, and how the citizens of Canje and surrounding areas will be affected.
“Already a number of works that does be undertaken on the estate in the beginning of the year has been cut back. I understand that Rose Hall Estate is not doing fertilization right now, neither are they doing planting of new cane. These things gives the indication that they are now actually in the process of closing down the estate.
Almost the entire Canje area working at that estate and people from New Amsterdam as well, so if that estate is closed, it also means that Canje and New Amsterdam will become a ghost place,” he said.
Touching on the Skeldon Estate, Armogan stated that he has been informed that two investors are interested in that specific estate.
“A set from Trinidad and another set from India, we don’t know what are the level of discussion taking place between the government and the investors.”
However, according to the chairman, he has been told that the Skeldon Estate, “will not be grinding for this entire first crop. It seems to me as though that estate is being prepared now for privatization or closure.”
Major hardships
He stated that if the Skeldon Estate is closed, the residents of that area will be facing some major hardships.
“It will be a bad thing not only for the Skeldon area but the Berbice area too. If Skeldon Estate is going to be closed this will impact severely on the workers. A lot of them have already started to move out and do farming and so.”
While the chairman noted that privatization would be the better option, he stressed that the terms of the agreement are still yet to be seen and accepted.
“But if it is going to be closed we are in real, real trouble in this region.”
Meanwhile, on the issue of the Co-Generation power plant at the Skeldon location not working adequately, Armogan said this issue can be fixed, as it has been done in the past.
“That can be fixed easily, I think that’s just an excuse the government is making to prepare the estate for closure.”
He further pointed out that the closure of these two estates in Region Six will result in unemployment, which might then result in citizens of the region turning to crime.
“You may have more crime because once people are not employed and if they can’t find alternative employment they may turn to the life of crime,” Armogan stated. He further noted that the regional authorities are worried about the young generation now growing up in the region.
“You know we are talking about education for children and opportunities for children. If people cannot afford to send their children to school because if they are out of employment it means the children will also be suffering. It’s an impact (that will fall) very heavily on the children. Everything so far points to negativity in terms when you talking about closing down these estates,” Armogan noted.
Armogan stated that if the estates are closed, the Government of Guyana should be responsible enough to bring forth other alternatives for the workers, who will be affected. He further added that the closure of these two major estates in the region, “will kill Berbice”, noting that the region’s economy depends heavily on sugar and rice.
Private cane farmers
According to Armogan, the private cane farmers on the Corentyne who have invested large sums of money following the establishment of the new Skeldon Factory will also be affected severely.
“The fear is that they will definitely have overrun cane because if the factory not grinding, a lot of these canes will run over and a lot of farmers will suffer severe losses. Even if they start in the second crop they still will have overrun canes. Every day the farmers have been bombarding Skeldon Estate as to when the factory is likely to get going”.
Workers attached to the Rose Hall Estate have held several protests, voicing their discomfort at the thought of the closure of the estate. According to the workers, many more picketing exercises will be held, since for most workers the estates are their sole source of income.
According to information gathered, the New Amsterdam and Corentyne hire car drivers will be holding several strikes in solidarity with the estate workers who will be affected if the estates are closed.
