Diversify to address EU sugar reforms
-PNCR
Stabroek News
July 16, 2004
There are no alternatives to a major diversification of the agricultural sector to address the likely loss of preferential markets for sugar.
So said the PNCR in a prepared statement read by Deryck Bernard at the party's weekly press conference yesterday.
The PNCR said it has noted the proposals in the EU Commission staff working paper for the reduction in the internal price of raw sugar and also that guaranteed to African, Caribbean and Pacific (ACP) producers.
The party said reliance on preferential conditions and markets based on historical association and political obligation would decrease in their importance and countries like Guyana must base their development strategies on that reality.
It was pointed out that the EU Commission staff paper projected that fourteen of nineteen countries with an internal sugar price of euro 290 per ton would likely cease their exports to the EU. This included Guyana, said the party.
The PNCR argued that the entire 1999-2008 Guysuco Strategic Plan would be threatened since it requires US$85M self-generated over a nine-year period.
Moreover, the EU plan would result in a loss of over US$90M between 2005 and 2008.
This would impact on plans for the new factory at Skeldon and the securing of the other estates. The significant impact on the East Demerara Estates and Uitvlugt and Wales will amount to losses of US$19.2M by 2007, said the PNCR.
This is after the Agricultural Improvement Plan (AIP) is undertaken without which subsidies from a modernised Skeldon estate would need to go back to the drawing board to maintain the viability of the Demerara Estates.
The restructuring of the sugar industry must be realistic and transparent giving Guyanese the true version of what they can expect.
The party said that the EU Working Paper was out since September 2003 and the PPP/C government failed to inform the nation of the situation.
As a result there was no mobilisation for a broad-based national consensus to lobby the EU Commission.
The PNCR conveyed its support for ACP sugar- supplying states for an equitable quota system and remunerative price for all stakeholders, a long time-frame for stability and predictability for development and investment and the maintenance of the preferential system to guarantee at least the present level of benefits.
At the press conference, the party also made a presentation of US$150 to Marcus Semple of No 9 Village, West Coast Berbice who was born with a skull defect and needs surgery in the US.