EU withholds sugar industry funding

Sector leaders say Jamaica's sugar industry appears to be slipping further into limbo because billions of dollars due from the European Union to pay sugar workers have been withheld.

Reports emerged Thursday that local EU officials have informed the government that it would not release $7 billion in critical funding because of the delay in the divestment of sugar assets.

Agreement clause
The EU has apparently invoked a clause in its agreement with government which allows a cash freeze on promised funding.

This means bad news for thousands of sugar workers who were anticipating redundancy payments by month end.

The EU had stipulated that in order for the government to get the well-needed cash, it must meet the September 30, 2008 deadline to wrap up the sale of its sugar assets to the Brazilian firm, Infinity Bio Energy.

Industry leaders contacted Thursday, say the freezing of funds by the European Union is not what they wanted to hear at this time.

Stakeholders call on government
President of the All Island Jamaica Cane Farmers Association, Allan Rickards is urging the government to address the matter urgently since the fate of sugar workers now hangs in the balance.

"I don't believe that we should be waiting for any longer to have a definitive word on that because we cannot plan properly in this industry if we don't know whether we are coming or going,"

"Workers who are now employed at the factories to be divested are employed until the end of the month because they don't know, we don't know what happens to the work, what is going to be put in place at the end of the month if the divestment doesn't go through," said Mr. Rickards.

Call for a Plan B
In the meantime, President of the National Workers Union (NWU) Vincent Morrison said the government has been caught in a bind because of its failure to secure an alternative plan if the sugar negotiations fail.

"We would want to urge the government to quickly sit down with the EU...the fact of the matter is that we have been asking the government to put in a Plan B whereby if they do not have an agreement with Infinity Bio they could continue to operate the industry and this can be done," said Mr. Morrison.

He is urging Minister of Agriculture, Dr. Chris Tufton to immediately formulate an action plan to save the sugar industry if the divestment package fails to entice a buyer.

There has been no official response from the Bruce Golding administration about this latest development.
SOURCE:radiojamaica