Bitter end - Gov't considers alternatives to divestment of SCJ
Published: Saturday | January 31, 2009
The Jamaica All-Island Cane Farmers' Association is among local entities gearing up to make a bid for a percentage of the SCJ assets, Chairman Alan Rickards told The Gleaner; but he declined to divulge the percentage farmers were hoping to purchase.
"We have written to the minister of agriculture expressing our interest along those lines. As it emerges, we are now about to talk with our union brethren to see whether that approach would not include workers, as well as the farmers," Rickards told The Gleaner yesterday, following a press conference at Jamaica House.
A meeting to discuss the association's interest in the company is yet to be determined, but Rickards says he is hoping the association would be among the first to be considered.
Prime Minister Bruce Golding told journalists yesterday that Infinity Bio-Energy indicated to the Government that it was unable to source the portion of US$25 million required to honour its part of the agreement.
Infinity's failure to meet the deadline follows two consecutive postponements since September, when the deal should have been originally consummated. Golding admitted yesterday that the company had fallen upon hard times following the start of the global economic downturn in September.
"I am disappointed that we have not been able to announce today that the agreement has been concluded and that the transfer of assets has taken place immediately," Golding told journalists during yesterday's press briefing.
Sale still possible
He says there is still a possibility the five state-owned factories and Petrojam Ethanol Limited could be sold to Infinity Bio-Energy if it comes up with the funds in time; but the Government would, in the meantime, consider alternatives.
Among the alternatives Government would be looking into at its weekly Cabinet meeting on Monday is more reliance on the domestic market.
"We can support the industry with 65,000 tonnes of raw sugar," Golding said. This would provide support for 50 per cent of the industry.
He added that the industry could be further supported by refining an additional 75,000 tonnes of raw sugar to meet domestic demand, as well as refining for export. He cautioned, however, that the economic feasibility of such a move would have to be examined carefully.
"It is possible for us to support an industry that can seek to supply a wider CARICOM market into which we have free, unrestricted access, that between Haiti and the rest of CARICOM another 210,000 tonnes of refined sugar is required for consumption each year," Golding pointed out.
Rickards welcomed the alternatives announced by Government yesterday, saying it was a move in the right direction.
"I don't see he had any option. I think he has handled it exactly right," he said.
