The Editor, Sir:

Re: Supplementary Estimates: Financial Year 2009/10

Arising from your front-page article in the Financial Gleaner of September 25, it might be construed that the Government of Jamaica has allocated its own resources to finance the operations of the Sugar Company of Jamaica Limited.

The true position is that funding in the amount of J$306.31 million has been allocated in the First Supplementary Estimates for F/Y 2009/10 to the Ministry of Agriculture and Fisheries for use by the Sugar Transformation Unit to commence rollout of the Economic Diversification Component. These funds are from the EU Accompanying Measures Programme of the Sugar Area Development Programme, approved by Cabinet in September 2008.

It is important to note that the use of the EU funds is earmarked for social programmes for displaced sugar workers and small cane farmers.

These funds from the European Union are released, based on the achievement of criteria agreed on with the EU. The ministry's programme for social transfor-mation is proceeding apace.

I am, etc.,

Donovan Stanberry

Pemanent Secretary