Dear Editor,
I have always considered that Jagdeo and the PPP could have done much more for sugar workers through any of a variety of approaches to the economic restructuring of the sugar industry to avoid what has become a financial and economic disaster for both sugar workers and the industry. This is a cruel twist of fate, considering that Dr. Cheddi Jagan’s parents themselves landed in Guyana as infants, children of indentured immigrants, who themselves went on to suffer the abuses of indenture at Port Mourant and Albion Estates. According to Dr. Jagan, his mom explained, “Bhaiya, ahwee proper punish.” (Pg 12; The West on Trial) Jagdeo and many ministers of the PPP with connections to Indian indenture following slavery exposes their cruel inhumanity, the savage nature of their minds, that they, being descendants of indentured Indians themselves, could continue to suffer sugar workers as they do.
On reflection, I suppose Jagdeo’s decision to continue to oversee the decimation of the sugar industry, GuySuCo and sugar workers was due to his Icarus flaw, his perceived political invincibility, that the PPP could never be removed from office, that he and the PPP would remain in control of government forever, that government would continue to finance GuySuCo’s losses in some ill-conceived attempt it seems, to keep sugar workers as a voting farm come election time. The economic reality however was much harsher than he probably envisaged, as even under the PPP, the operations of at least one estate had to be wound up. Guyana happened to be one of the ACP countries affected by the EU’s changes to its sugar regime, with St. Kitts & Nevis being one of those which opted to close its sugar operations in 2005.
Sugar workers, their union and government are reminded the sugar industry had been birthed and built on slave labour, that cheap labour is essential to its survival, so that rising costs, inclusive of higher wages, rendered Guyana’s sugar production increasingly uncompetitive over the years as cost of production overtook and remained well above the world market price for the commodity. This increasing uncompetitiveness would have, and did translate into financial losses over the years for GuySuCo as neither its board nor government appeared to have developed a strategic plan to either restructure the organization towards any profitable agricultural ventures, or as I have proposed, divide GuySuCo’s land amongst sugar workers and embark on a program of agricultural support for animal/crop husbandry.
Today, the impoverishment of sugar workers and the sugar industry continues to be dragged out interminably by the administration, and probably stands among the greatest of disasters of the Peoples Progressive Party. Recent hand-outs of $250,000 to sugar workers very probably did little to alleviate their financial straits since much if not all of this money would likely have been used to retire financial obligations and address pressing family commitments, leaving sugar workers in exactly the same place before they received their hand-outs. I urge the government to divide up GuySuCo’s land among sugar workers and provide counseling, retraining and financial support to re-engage them successfully back into the economy while preventing much financial harm to their families. This happens to be one of the DNC’s proposals for resolving the problems in the sugar industry which we are proposing to assist sugar workers.
Governments, through the years, are liable for the financial disaster in which GuySuCo now finds itself because they ignored warnings by the European Union of impending reforms which included a 36 percent cut in the price it paid countries under its preferential arrangements, phased over the four-year period 2006-9. Output of sugar which stood at 259,588 tons in 2006 contracted to 88,889 tons in 2020, declining 81.9 percent from 2006 to 47,049 tons of sugar in 2022. The corporation’s financial operations, with 2020 being the most recent available data, reflect the dire straits, and completely unsustainable position in which the organization now finds itself. Revenues contracted 69 percent from $32.5 billion from 2006 to $9.9 billion in 2020. Total assets contracted 64 percent, from $115.6 billion in 2006 to $41.9 billion in 2020. Retained earnings of negative $1.8 billion in 2006 grew into an accumulated loss of $118.8 billion at the end of 2020. All of this excludes Jagdeo’s approval of the notorious 2008 Skeldon Sugar Factory, the debt of which he saddled on the backs of taxpayers. But Guyanese don’t mind. We love him.
If for the sake of argument, government, under the advice of the EU had proceeded to wind up GuySuCo in 2006, it would have had around $60.3 billion to put towards assisting sugar workers, retraining re-engaging them in the economy. With liabilities growing to $131.4 billion in 2020, winding up GuySuCo then would have cost government $89.5 billion. The auditor’s report of 2020 clarified in no uncertain terms that with an accumulated financial loss of $118.8 billion, the corporation’s continued operations was dependent on continued financial support from Central Government. Further, the EU’s approximately 136 million Euros or G$32 billion, were apparently never applied towards any restructuring program. Instead, it seems to have been included in the total of G$58.8 billion central government disbursed to GuySuCo from 2013 through 2023.
The sugar industry’s dilemma places government and GAWU in positions of conflict of interest. For government, this would be how to address the terminal issues of the sugar industry while maintaining its voting farm, for the Union, how to properly advise and represent sugar workers knowing that GAWU will very probably cease to exist when GuySuCo is fully restructured or closed. Taxpayers enjoy VIP seats at ringside.
Sincerely.
Craig Sylvester
