GUYSUCO Commission of Inquiry report handed over to National Assembly and recommends Privatization.

Billions of taxpayers money was pumped into Guysuco to ensure its survival under the previous government and the new government has already indicated that it will have to pump more money into the industry to ensure it stays afloat.

The Final Report of the Commission of Inquiry into the Guyana Sugar Corporation (GuySuCo) was on Thursday laid in National Assembly with Agricultural Minister Noel Holder declaring the government’s commitment to bringing the industry back to profitability.

 The report has recommended that the government examines the possibility of privatizing the state owned sugar company which has been operating at a financial lost for several years.

Billions of taxpayers money was pumped into Guysuco to ensure its survival under the previous government and the new government has already indicated that it will have to pump more money into the industry to ensure it stays afloat.

Though the report and the recommendations therein will have to be considered by the Assembly, the government has already indicated its intention to turning the once collapsing industry around.

In a statement to the House, the Agriculture Minister said the industry which provides employment for some 17,000 persons had reached a point where it was difficult to keep it open for business.

He reminisced on the options available which were either to offer annual government bailouts with tax payers’ dollars or increase borrowing and indebtedness.

Holder said too that despite the other challenges plaguing the industry, the government intends to facilitate widespread national consultations with all stakeholders on charting GuySuCo’s future.

He also told the House that other difficulties that sugar was experiencing included the decline in sugar prices; particularly from the European Union, declining skills and experience base, labour shortages, dependence on government for cash infusions.

All these, the Minister believes, constituted an “untenable” situation.

Updating the Assembly on the government’s efforts since taking office in May, Minister Holder explained that he Interim Management Committee (IMC) will continue to function with priority on cost control and cash management and firmly dealing with unions.

He said when he took over management as Minister in May, “morals among workers was low, staff felt threatened and insure, a climate of fear existed, there was an uncertainty about right from wrong and workers were told to do what you’re told or find another job…”

According to the Agriculture Minister, the industry was suffering from poor marketing decisions but said there was a great feeling of relief with the appointment of the Interim Management Committee.

For the first time in 11 years, Guysuco surpassed its production target and the new management of the company indicated that the result came because of the government allowing the management to manage the company without interference. (Kurt Campbell)

Original Post
Cobra posted:

Is this the beginning of the end for Guysuco? Granger should heed to the opposition leader's advise and don't privatize the sugar industry.Dr. Jagdeo has a wealth of knowledge in the agricultural and financial sectors. 

de daktah . . .

lol

Cobra posted:

Is this the beginning of the end for Guysuco? Granger should heed to the opposition leader's advise and don't privatize the sugar industry. Dr. Jagdeo has a wealth of knowledge in the agricultural and financial sectors. 

The dacta and his wealthy friends should have no problem taking it over and run it privately for a profit.

DEMERARA WAVES, NEWS

GAWU named as major contributor to downfall of GuySuCo

Mitwah posted:
Cobra posted:

Is this the beginning of the end for Guysuco? Granger should heed to the opposition leader's advise and don't privatize the sugar industry. Dr. Jagdeo has a wealth of knowledge in the agricultural and financial sectors. 

The dacta and his wealthy friends should have no problem taking it over and run it privately for a profit.

This is not an option for the honorable leader of the PPP. Howevet, if Dr. Jagdeo and his friends were to buy over the sugar industry, they would definitely make it profitable as a privatise company. This will be done by successful businessmen that runs many other business entities in Guyana. 

@Gil

Bother Gil,

I recalled you criticizing Yuji in the past for stating that Unions are a destructive element in society and lack relevance.

Looks like the you are finally getting a grasp on how capitalism works since your are a pro Union man.

Anyway, the decision to privatize Guysuco may not be a bad idea but if it is politically motivated and friends of the administration are given first priority in eating Guysuco's pie, then I have a problem with it.

The government should first consider diversification of Guysuco and modernization before the Privatization route is taken. It will backfire on this administration if it privatizes Guysuco. They are playing right into the hands of the PPP.

This administration always seems to be picking the wrong fights.

yuji22 posted:

@Gil

Bother Gil,

I recalled you criticizing Yuji in the past for stating that Unions are a destructive element in society and lack relevance.

Looks like the you are finally getting a grasp on how capitalism works since your are a pro Union man.

Anyway, the decision to privatize Guysuco may not be a bad idea but if it is politically motivated and friends of the administration are given first priority in eating Guysuco's pie, then I have a problem with it.

 

yuji, thanks for remembering what I said about unions.

Let me take the opportunity to remind you what I had said about GuySuCo a few months ago. I had stated that I am in favour of privatization. I had pointed out that the sugar industry in Guyana was privately owned for over 300 years. It came under State ownership only 40 years ago, ie, since 1976. 

Bhai, Gil is realistic. We live in a capitalist world but workers' rights must be upheld, thus the need for trade unions.

yuji22 posted:

Gil:

"It came under State ownership only 40 years ago, ie, since 1976."

Gil,

You intentionally left out that PNC dictator Burnham was responsible for this.

Yes, yuh rass, because I would have had to intentionally state the fact that Jagan encouraged and supported Burnham's nationalization. 

Cobra posted:

Is this the beginning of the end for Guysuco? Granger should heed to the opposition leader's advise and don't privatize the sugar industry. Dr. Jagdeo has a wealth of knowledge in the agricultural and financial sectors. 

You have to be kidding.  Guysuco is in a mess because of Jagdeo!

yuji22 posted:

Gil:

"It came under State ownership only 40 years ago, ie, since 1976."

Gil,

You intentionally left out that PNC dictator Burnham was responsible for this.

The move was welcomed and supported by the PPP and the cane cutters. It was considered a successful policy that benefited the country and the workers. So thank you for giving praise and credit to Burnham.

Unfortunately jagdeo saw the success of GuySuCo as a good way of helping himself and his friends to large amounts of its wealth, which has now turned the company from a success into a failure.

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