As the Government seeks to repair GuySuCo, it is yet again seeking billions of dollars from the contingency fund. Only 50% of the rehabilitation work is already done to get GuySuCo up to standard again.
Financial papers presented to the National Assembly by the Minister with responsibility for Finance, in the Office of the President, Dr. Ashni Singh, shows that the Government with a majority seating in the house, is seeking an additional sum of monies totaling $5B for the period July 22, 2021, and December 9, 2021.
On the other hand, it is seeking supplementary provision on the Current and Capital estimates totaling $21,5B for emergency use.
Out of the said $5 billion, the Ministry of Agriculture is set to receive some $3.8 billion to cater for a one-off grant of $250,000 each to 5263 severed sugar workers, and out of crop support to GuySuCo.
The money is also for operational expenses for the National and Drainage Irrigation Authority.
Out of such estimates, $2.3 Billion is set to go towards GuySuCo directly. The parliamentary opposition is questioning why the Government continues to pump money into an industry that is not profitable.
Minister of Agriculture, Zulfikar Mustapha, replied to the question posed by the Opposition that while the government is aware of the contribution of the industry to locals and to the economy, work has to be done to rebuild the company.
“When we took over last year GuySuCo was in need of critical support both capital and in the field. The capacity of GuySuCo was just 40%.
“We have recapitalized a number of areas including factories and fields. And, as it stands today we are over 50%. That work will continue over the years to ensure that we bring Guysuco to breakeven point and eventuality bring it to profitability, Mustapha.
Over the years, there has been a question as to whether Guysuco, which continues to run without making a profit, still remains to be subsidized to the tune of billions of dollars by the Government.
In response, the Government over the years has noted that most communities depend on the industry and that cutting the production from some communities can mean that thousands of jobs will be lost and the income of families will be cut.
The PPP/C Government after coming into power back in 2020 continues to pump more monies into the industry, while the former APNU-AFC Government when in power, scaled-down production and jobs.
In identifying that the industry needs to continue to work to support the families, Minister Mustapha said that Guysuco will remain a work in progress and will in the future break away from the public purse.
“That is a work in progress. We will continue to put funds to ensure that Guysuco breaks even and as the price of sugar improves, Guysuco will make a profit. It will break even at some point.” Mustapha added.
The former Government however believed that the industry needs to be phased out and other agriculture moves have to be made in tune with the ongoing needs of the world.
