AGRICULTURE Minister Dr Christopher Tufton said the next three months would be critical in terms of arrangements for the takeover of the government’s five sugar factories, on September 30, by the Brazilian-owned Infinity Bio Energy Limited.

These arrangements include: legislative amendments; surveys and transfers of lands; and those involving the ministries of Finance and the Public Service, Energy and Transportation and Works.

He said that given the intensity and scope of the activities, the Cabinet appointed banker, Aubyn Hill, to head an implementation team made up of representatives of the ministry’s Sugar Transformation Unit (STU), the Sugar Industry Authority (SIA), the Development Bank of Jamaica (DBJ), the Attorney General’s Department and the Sugar Company of Jamaica (SCJ).

Tufton paid particular attention to the social aspects of the transition, especially in terms of how it would affect the current employees of the SCJ.

He said that the STU would intensify its work with the various stakeholders, particularly the workers, to put in place appropriate programmes to deal with the social implications of the privatisation.

He said that during the transitional period it would become clearer how many employees the new company would engage after September 30.

“Our commitment is to work with those who will be displaced to address such matters as counselling, retraining, assistance with housing, as well as helping to channel them into alternative livelihoods,” the minister said.

He added the ministry had also designed programmes for existing cane farmers to take advantage of increased cane production.

Outlining the agreement with Infinity, an essentially bio-fuels firm, he noted that the recent signing of the Heads of Agreement represented only the beginning of the process of transition. The SCJ would continue to manage the government’s five sugar estates – Bernard Lodge, Frome, Hampden, Monymusk and St Thomas (Duckenfield) – and the employment of the workers would remain intact during the transition period.

“The Government expects that, at the end of September, we will be in a position to formally hand over the assets to the new company and it is at this point that redundancy payments will become relevant,” Tufton said.

“I also want to hasten to assure all workers that all the necessary redundancy payments will be made on time, consistent with our labour laws and the contracts signed between the unions and the SCJ,” he added.

He said that representatives from Infinity would begin arriving in Jamaica shortly to join the transition team.

“It is essential to involve Infinity in the operations of the sugar industry, at this time, to ensure that the transition of ownership is smooth and that preparations for the next crop are done in a timely and orderly manner,” he explained.

Some of the key elements of the agreement, as stated by the minister, are:

. The government and Infinity will enter into a joint venture through a company to be established named Newco. Government’s equity in Newco will be 25 per cent. This equity represents the value of SCJ’s assets and Petrojam Ethanol. The Government and Infinity will have directors on the board proportionate to their equity in the company.

. The Government will lease sugar cane lands to Newco for a term of no less than 50 years, with an option for another 25-year lease;

. The factory lands, comprising the factory compound and an additional area of not more than 100 acres immediately surrounding the factories, will be sold to Infinity;

. Government will enter into an implementation agreement with Infinity within 30 days of the transition date confirming its commitment to support and ensure the smooth implementation of the transaction.