Tufton

Minister of Agriculture Dr Christopher Tufton has confirmed a delay in the draw-down of funds from the European Union (EU) towards the Sugar Transformation project. This development coincides with a review of the project now being undertaken by the EU and a team of local consultants.

The review is expected to last until the end of August, effectively pushing back Government's plans for the industry by approximately four weeks.

"If we don't draw down, it may slow down the trans-formation project and, in particular, resources which may be important to the adjust-ment," Tufton told The Gleaner yesterday.

He was responding to revelations made by trade unionist Lambert Brown in a column published in The Sunday Gleaner that there was a delay in the draw-down of funds, which could adversely impact the Government's plans to address communities that will suffer from the divestment of sugar estates.

The minister said such adjustment involved the re-engaging of workers who have been affected by the plans now in place for the sugar industry.

"We would have preferred for it to be on schedule, bearing in mind we have made progress," he added.

However, Tufton said while the delay might retard the transformation project, it would not substantially change the Government's plans for the sector.

PROMISE ABANDONED

Brown, president of the University and Allied Workers Union, in his article entitled 'A house on shaky ground', seemed to suggest the delay was a punitive measure because the Government had abandoned its promise of an ethanol-focused sugar-cane industry.

"The EU wants answers before making further payments to the ministry," Brown wrote in his column.

However, Tufton dismissed any notion of penalties being incurred by the Government.

"I am not aware of any link between the review and a hold on the draw-down, although they (EU) request a complete transformation before the draw-down. It (the draw-down delay) should, therefore, not be considered punitive, if that is what he (Brown) was suggesting," Tufton said.

Tufton explained that like any other African, Pacific and Caribbean country benefiting from EU assistance, Jamaica was required to have periodic reviews of the agreement.

He said, also, that one requirement of the draw-down was that progress was being made with the transformation of the sugar industry.

"We already committed to the sale of two estates - one in St Thomas and one in Trelawny - and I will be announcing additional changes this week," he said.

Last month, the Government announced it had reached a deal to sell the two companies to separate bidders for a total of US$2 million.

While the figures are considered way below the commercial value of the factories, Tufton said then that the move would save the Government billions of dollars.

Under the agreement between Jamaica and the European Union, the EU would provide a line of funding of €5 million per annum from 2006-2013, with part of this going towards the Sugar Transformation project.