It is now confirmed that the proposed sale of the government-owned sugar factories to Infinity Bio-Energy is off the table. We are told by no less a person than the prime minister that his government will not be putting another cent in those factories after this crop is taken off. We are told that the factories will once more be offered for sale, presumably with the Petrojam ethanol plant thrown in this time for all to consider.
The strategy of announcing that the Government does not intend to continue in sugar beyond this crop must certainly weaken the position of the Government's negotiators even before they reach the bargaining table. The worst thing that could happen is not a low price but another unsuitable entity getting these factories.
Unsuitable means any entity that lacks the liquidity to pump the capital required to modernise the factories and the overall operation to increase its efficiency, production and its productivity. Remember, if the buyer turns out to be to a 'bruk pocket' entity the result will be catastrophic. Can anyone inform Prime Minister Golding that the withdrawal of Government from sugar industry before there is a replacement has very serious social and economic consequences.
Jobs, jobs and more jobs
No doubt, he has jobs, jobs and more jobs awaiting for those who will be displaced from sugar. Maybe, he considers the foreign-exchange earning from sugar to be insignificant enough to be easily replaced by vast increases that Tourism Minister Ed Bartlett will be bringing in from tourism despite the global recession. Some of us are familiar with the saying 'half a bread is better than none at all'. Those who have long advocated for the termination of sugar production will have their wish and the society will experience the consequence of shallow thinking.
Jamaica needs the sugar-cane industry. For many years, we have had an inefficiently operated undercapitalised industry. We spent more time and effort trying to get out of sugar than we did trying to improve its efficiency. We will soon come face to face with reality and recognise that the only thing worse than an inefficiently run sugar industry is no sugar industry at all.
'Plan B'
If it is not too late or outside the boundaries of their divestment commitments, then the Govern-ment needs to take a serious look at a 'plan B', which should be about modernising the industry in its entirety, from field to table. What is our potential for growing the cane required for our ethanol industry? Have we started to look at producing corn for our livestock and poultry industries as yet? Could it be that we are awaiting a foreign expert to come and tell us that it is simply not good enough to end sugar production and we must replace that effort with something else? Then I am afraid at this time casino gambling will not be able to do it.
The tightening of the international money market is just a signal to us that we must produce something for our survival. Thousands of people in Jamaica go to work not because working conditions or wages are satisfactory, but because they have commitments to honour and often children to feed. I am therefore beseeching the Government to rethink its strategies. Can we afford to cease the production of sugar at the end of this crop?
I am, etc.,
LUCIUS C. WHITE
luciuswhite@hotmail.com
Kingston