PNC/R slams Alcoa proposal
Accuses government of bad faith
By Daniel DaCosta
Stabroek News
June 8, 2001
The PNC REFORM (PNC/R) says it will have great difficulty in
supporting Alcoa's proposal for restructuring Bermine and has accused
the government of bad faith for attempting to promote acceptance of
the plan.
According to the Chairman of the PNC/R Robert Corbin, the Alcoa
document is not a proposal but a concept and, therefore, it does not
constitute the basis for any negotiations between the Government and
Alcoa.
However, he said that the impression given by the Government is that
it seems to be committed towards negotiating the future of the bauxite
industry on the basis of this document.
Prime Minister Sam Hinds disagrees and maintained yesterday that the
Alcoa document is a proposal. The government has said it favours the
Alcoa proposal but is amenable to considering other eligible
proposals.
In a statement at a press conference yesterday, Corbin noted that
there was an understanding that the Government would make all
information it possessed available to the Committee responsible for
examining the options for resuscitating the bauxite industry.
He further noted that all negotiations were supposed to be placed in
abeyance until the Committee had completed its report and submitted
its recommendations to President Bharrat Jagdeo and PNC/R Leader
Desmond Hoyte who had agreed on the establishment of the committee.
Yet, even as the Committee was being formed, he said, the Government
was holding discussions with Alcoa, outside of the ambit of the
Committee, with regard to the future of the Aroaima Bauxite Company
(ABC) and Bermine."
Corbin said that the Party was "disturbed by the bad faith which
inspired the public pronouncements and visits by the President and
Prime Minister to promote the acceptance of the Alcoa concept."
"The Government seems bent on giving the impression that
acceptance of the Alcoa proposal is a done deal. If this is so, what
is the need for and the purpose of the Joint Committee?" he
enquired.
Acceptance of the Alcoa concept, Corbin said, would result in the
loss of 554 jobs at Everton and Kwakwani within 2 to 3 years.
ABC is reported to have incurred a debt of US$57 million to Reynolds
during the period 1991 to 2000 despite having exported 16.4 million
metric tonnes of dried bauxite valued at US$434.6 million. The company
also showed losses each year during the period 1997 to 2000 amounting
to a total of US$25 million although it exported 7.7 million metric
tonnes of dried bauxite valued at US$195.4 million.
Corbin noted that Reynolds which managed ABC and sold the bauxite
mainly to itself did not provide any details to satisfy the Committee
how the losses had arisen.
He pointed out that the government which should have been looking out
for the interests of the nation did not even exercise the prudence of
conducting its own due diligence on ABC even though Alcoa had done one
on Bermine.
He concluded that "the Alcoa Concept document leaves no doubt
that they are simply seeking to "package" ABC, which they
own as a result of their takeover of Reynolds, for resale to another
interested buyer."
He added that party intelligence had revealed that the expected buyer
was none other than Reynolds. "Given these facts," Corbin
said, "PNC REFORM will have great difficulty in supporting the
Alcoa proposals."
Alcoa has proposed to shut down Everton immediately which would
result in the loss of 269 jobs. ABC presently employs 468 persons and
Kwakwani 217. The expectation is that total employment would be
reduced to 618 and within the next three years to 400.
The Committee to examine the various options for the resuscitation of
the bauxite industry had been requested by the Government to give
priority consideration to a proposal contained in the Alcoa concept
document dated April 23, 2001.
The original time frame for the Committee to complete its examination
was three months but this was subsequently amended to one month.
Corbin cited other actions by the PPP/Civic government which the
PNC/R considered to be "serious breaches of good faith and appear
to be calculated to undermine the negotiations that are taking place
between the PNC REFORM Leader and Mr. Bharrat Jagdeo."
One of these was the recent proposal by Prime Minister Sam Hinds for
owners of television stations to pay licence fees and for the content
of programmes to be regulated.
Noting that another Jagdeo/Hoyte group was already working on this
area, the PNC/R, he said, was calling upon all owners of television
stations to "ignore Mr. Hinds' ultimatum and await the
recommendations of the joint committee."