Sugar industry won't be allowed to die, says PM

THE Government has dismissed suggestions that the sugar industry will be allowed to die a natural death but has warned that the sector when revitalised will not be the large employer it was.

Several setbacks have dogged the attempts of the Sugar Enterprise Team established by the previous People's National Party administration in 2005 to divest the five state-owned sugar factories, the latest being the breakdown of takeover negotiations with Brazil's Infinity Bio-Energy last month.

Tuesday, Prime Minister Bruce Golding in responding to questions posed by Central Westmoreland Member of Parliament Roger Clarke during the monthly prime minister question-time session in the House, said while the Government would no longer have a stake in sugar it had no intention of letting the industry die. Clarke served as agriculture minister in the former People's National Party administration.

"We are still optimistic we will be able to arrive at successful privatisation of the sugar industry. There are some interesting developments that have taken place since we indicated that the deadline of the 31st of January would not have been met. I don't even want to allude to what those developments are except to say we are encouraged that it may be possible for us to achieve the original objectives in relatively short order," he told the House.

In the meantime, the prime minister said there was "reason to believe sugar can still be viable" the sector "will not be able to absorb the level of labour it used to".

"We are going to have to reduce the number of factories. Some will have to be able to operate on a stand-alone basis," the prime minister noted.

He further rejected suggestions by Clarke that the government was trying to save face in not admitting that "sugar is on its way to its final death and on its way out".

"If the Government was of the view that there was no hope in sugar I would have stood up today and said so. All is not lost. None of us on this side have anything to gain, none of us will be better off, none of us have any political advantage to gain from allowing the industry to die," the prime minister argued.

"We are not calling it quits for the sugar industry, we are only calling it quits for the Government's involvement," he added.

He further noted that the Government would not be allowing any investor to "cherry-pick" the industry and leave it worst for the wear.

The Sugar Company of Jamaica (SCJ), which manages the five Government-owned sugar factories - Bernard Lodge, Frome, Long Pond, Monymusk and Duckenfield - has racked up huge losses every year for the past 28 years.

Over 7,000 employees were given notice payments last December in preparation for the divestment of the ailing company.