PRIME Minister Bruce Golding has sought to assure sugar workers that Government would meet delayed redundancy payments as soon as negotiations are completed with Brazilian company Infinity Bio-Energy on the sale of the sugar factories.

"We are very close to an agreement," Golding emphasised, adding that the funds for payment to the sugar workers were already in place. "The European Union has assisted us in having that capacity," he said.

Golding was, however, uncertain about a probable completion date of the negotiations with the Brazilian company that would result in the payments.

In August, the prime minister announced a transfer of Sugar Company of Jamaica assets to Brazilian company, Infinity Bio-Energy and $2.7 billion in redundancy payments to affected sugar workers to be made by September 30.

On the scheduled date sugar workers turned up at factories but were unable to collect their payments, spawning speculations about the soundness of the Government deal and its ability to pay off the workers.

"The ability is there," Golding declared last week. "We have the capacity to meet the redundancy payment to sugar workers," he said.

The prime minister was speaking at the handing over ceremony of J$360 million from the European Commission (EC), the second tranche of a budget support grant to Government under a sugar adjustment agreement.

Under the EC deal, approximately $8 billion has been made available to the Government for the 2006 to 2010 period to offset the effects of a reduction in sugar prices in the European market, with $495 million already paid in 2007.

In the meantime, Golding said that he understood the concerns of sugar workers and the country and explained that the delay in completing negotiations with Infinity was due to minor details, that when added up, became significant.

"I know there are reasons, there is concern that it has yet been concluded," said Golding. "I appeal to the country to appreciate the technicalities that have to be addressed," he added.

"We are seeking to do this at a very challenging time, something that in the best of times would be a formidable assignment to take on," Golding remarked.

A power purchase agreement between the Jamaica Public Service Company (JPSCo) and Infinity Bio-Energy was one example given by the prime minister that extended the negotiations.

"Much progress is being made here, we are well advanced in agreeing on the framework," he said.

The inclusion of the Petcom ethanol plant in the sale to the Brazilians was another critical factor, however, Golding said that has been resolved.

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