GuySuCo seeking additional $3.5B from Gov’t for 2016; Predicts Billions in losses
The Guyana Sugar Corporation (GuySuCo) provided production and financial data from 2010 to year 2025, in which it projected losses of approximately G$14.195 Billion in 2016.
The data was presented by the Corporation’s team to representatives of the Guyana Agricultural And General Workers Union (GAWU), National Association of Agricultural, Commercial & Industrial Employees (NAACIE) and Guyana Labour Union (GLU) during a meeting yesterday (Thursday, September 29, 2016).
The information presented indicated a very discouraging future for the sugar industry, where the Corporation is projecting losses of approximately G$14.195 Billion in 2016 and further losses of G$13.758 Billion in 2017.
In addition to G$12Billion subsidy received from the government of Guyana in 2015 and G$ 9Billion in 2016, the Corporation is seeking an additional subsidy of G$3.5Billion for this year.
Further, the Corporation has projected a cash deficit in 2017 and will be seeking a cash injection of G$18.59 Billion for 2017 from the government if the status quo remains.
According to a statement from the Corporation, the participants at Thursday’s meeting “were advised that this situation was unsustainable and re-organisation of the sugar industry was inevitable and absolutely necessary at this time. The Unions’ representatives were encouraged to submit their thoughts on how the industry could secure the future well-being of the approximately 17,000 employees and their families as well as ensuring the profitability of the Business.”
The participants listened attentively and posed a number of questions/ comments on the data provided. A number of suggestions were made which would improve production, but which unfortunately would not make any significant impact on the operating and cash deficits, GuySuCo further stated.
It was agreed that a team comprising representatives from the three Unions would meet with a team from GuySuCo to get a deeper appreciation of the financial and other data which were provided.
It was also agreed that a committee which was established some years ago, comprising representatives of the workers and management on each estate would be re-established to address constraints to production.
Seepaul Narine, Kenneth Joseph and Carvil Duncan led their respective Unions’ team.