$2.1b Gov’t help for sugar-producing communities
The government will be spending $2.1 billion over the next five years to assist sugar-producing communities to survive the divestment of its sugar factories.
Minister of Agriculture Dr Christopher Tufton told the House of Representatives Tuesday that the Sugar Area Development Programme (SADP) will mitigate the anticipated economic, social and environmental fallout from changes to the European Union’s Sugar Regime (EU-SR) inclusive of reductions in the price of Jamaican sugar exported to the EU and the privatisation of the public assets.
“The initial planning period for the SADP is five years, starting financial year 2008/09 and ending financial year 2012/13,” the minister informed the House. He said that proposed budget for the SADP is $2.1 billion.
Dr Tufton was making a statement to the House after tabling the agreement between the government and Infinity Bio-Energy for the sale of its sugar factories – Bernard Lodge, Frome, Monymusk, Long Pond/Hampden and St Thomas Sugar Company – effective September 30.
Tufton also tabled a Ministry Paper (number 69/08) which outlined the SADP for sugar-dependent areas. It noted that the target areas are the specified areas of influence around the sugar estates which includes the five government-owned factories plus Appleton and Worthy Park.
“The main source of funding for implementation of the SADP will be the European Union Accompanying Measures for Sugar (AMSP) funds, using the budget support deliver system,” the minister explained.
“Funding for the SADP will be channelled from the Ministry of Finance and the Public Service to the Ministry of Agriculture, which is the agency responsible for coordinating the implementation of the Jamaica Country Strategy for Adaptation of the Sugar Industry: 2006-2015,” he added.
The transition of ownership to Brazilian firm Infinity Bio-Energy will include the creation of a new joint venture company, Newco, with a 25 per cent participation by the Government of Jamaica.
Other key elements of the agreement include the lease to Newco of sugar cane lands for no less than 50 years, with an option to renew for a further minimum of 25 years. The factory lands are to be sold to Infinity.
