By Calvin Marshall
Guyana Chronicle
June 3, 2001

PRIME Minister Sam Hinds yesterday told workers of the Berbice Mining Enterprise (Bermine) opposed to the proposed takeover of the operations by an American firm, that the country does not have the expertise and the financial resources needed to restore the ailing company.

Mr. Hinds is leading a team into the Bermine bauxite sites and communities this weekend to explain the proposed takeover by the U.S. firm Alcoa.

At a meeting at the Bermine Management Club in New Amsterdam yesterday morning, he sought to give the employees "a fair picture" of the situation in the industry. He said the arrangement being considered for the privatisation of Bermine dates back to 1990 and was nothing new.

"This issue of the bauxite situation was with us since 1975," Mr. Hinds said, referring to the state of near collapse of Bermine and the Linden Mining Enterprise (Linmine).

He said the government subsidy required at this juncture to keep these entities going could be around US$18M which it cannot afford.

As the Prime Minister and team swung into their visit, support for the proposed takeover by Alcoa came from leading businessman, Mr. Ramdial Bhookmohan, Chairman of the Association of Regional Chambers of Commerce (ARCC).

Bhookmohan threw his support behind the proposed privatisation of Bermine, noting that since the operations were nationalised under the previous government, the entity has not fulfilled expectations in development, improvement and expansion.

According to the Prime Minister, Bermine is run down, poorly managed and is not held in good respect by purchasers.

"We are concerned about the workers, and the situation at Everton," he said, suggesting that new employment opportunities will have to be found for persons who may be affected if the proposals come on steam.

Mr. Hinds, stressing the urgency of finding an amicable solution to the dilemma in the bauxite industry, noted, "Our days in bauxite have brought us much pain."

He said many persons over the years have given their lives and their all to protect the industry which has produced the best bauxite in the world, but to no avail.

He also referred to a 1993 World Bank report, which pointed to the operational cost being 70 per cent over profits.

The Prime Minister lamented the decline of living condition of bauxite workers, who were once ranked among the highest income earners locally.

Among the economic realities affecting the industry is that the companies have to deal with the low prices other people set, he said.

Instability in the country over the last three years in dealing with elections petitions and protests also did not help, he noted.

"We are ready, willing and able to consider other feasible proposals in the ensuing weeks," he said, explaining that mid-June has been set for agreement on the proposals.

Mr. Hinds said, however, that the government will maintain its commitment to the termination benefits and suggested that "if we open our minds to new opportunities, we will find them."

The Prime Minister told the gathering too that the enterprises have to be run profitably in order to provide jobs and this is not the situation with the bauxite operations.

Calling for understanding of the situation, he noted that people all over the world have to face up to the economic changes taking place.

Some of the workers opposed to privatisation remained outside the meeting place bearing placards, some claiming the Alcoa takeover will put workers on the breadline and close down Bermine.

With the Prime Minister on the visit are Minister of Human Services, Social Security and Labour, Dr. Dale Bisnauth, Head of the GOINVEST agency, Mr. Geoffrey Da Silva and Bermine Chief Executive Officer, Mr. John Lewis and other top managers of the company.

Bhookmohan said that while the ARCC is sympathetic with the workers position, "it must be noted that the only way forward is privatisation of the industry."

The ARCC is urging all stakeholders to map out a comprehensive privatisation programme that can make Bermine sustainable so that all workers can enjoy the necessary benefits.

"The time has come for the refurbishing and replacement of equipment and tools which are in dire need of replacement, but the government does not have the finance readily available to invest", Bhookmohan said.

The industry is in a precarious state and can collapse at any time, resulting in massive loss of jobs, he argued.

He said that on a recent visit to Linden, he and other ARCC members were told a government subsidy was needed to maintain staffers of the Linden Mining Enterprise (Linmine).

He said he further noted a one-month demurrage cost of US$5,270 a day for a vessel, which was delayed at Linden in loading bauxite.

"ARCC is willing to work with the local government systems there and central government in developing a strategic investment plan for the development of Linden", Bhookmohan said.

He noted that Linden is suffering economically and socially because of poor bauxite production there.

He suggested that the ARCC be considered for membership on the committee looking at the bauxite industry.

President Bharrat Jagdeo said Friday that the non-acceptance of the proposal from Alcoa might result in the shutting down of the bauxite operations in Berbice.

He said if the committee that was recently established with a mandate to examine the possibilities of resuscitating the ailing bauxite industry can come up with a "better, practical and immediately implementable proposal", he is willing to listen and discuss it.

The committee was one of several set up after agreements reached during the ongoing dialogue process between President Jagdeo and Opposition Leader, Mr. Desmond Hoyte.

This committee is tasked with looking at the options available for the long-term survival and viability of the industry, including the proposal from Alcoa.

Unions in the sector are against the Alcoa proposal and Friday said they have an alternative proposal to put to the President.

"If the committee can come up with a practical, immediately implementable proposal that differs from the existing one before us and that will not cost the Treasury and therefore take people's money away from paying wages and salaries in the public sector, or take money away from fixing roads and water supply...then fine," President Jagdeo said.