Gov’t enters into sugar agreement with Italian company

[Lazie]

The Government has entered a multi-million US dollar arrangement with one of the two entities bidding for control of the three unsold sugar factories.
Agriculture Minister Dr. Christopher Tufton made the announcement during this afternoon's sitting of the House of Representatives.
Dr. Chris Tufton tabled a Minsitry Paper detailing Cabinet's approval on the interim financing arrangement to undertake the necessary preparatory work at the factories in the upcoming crop.
According to the minister Eridania Suisse, an Italian conglomerate, will provide US$15 million to carry out production activities at Frome, Moneymusk and Bernard Lodge which are up for sale.
Under this interim arrangement, the Jamaican government has guaranteed to supply Eridania Suisse some 79,000 tonnes of raw sugar in the 2009/2010 sugar crop.
"The US$15 million is a proponent on the supply of this quantum of our sugar that will be sold to Eridania Suisse at a minimum price of 335 euros per tonne and that is base price as outlined in the adjustments that are currently taking place in relation to the price of sugar. Additionally Eridania Suisse will share with the government on a 50-50 basis any profits made on the final sale price less agreed cost," Dr. Tufton said.
The Minister was quick to point out that this interim arrangement should be seen as independent to the ongoing negotiations to sell the three sugar factories.
He said the arrangement will be will be effected through the existing Sugar Company of Jamaica Holdings, which will be staffed with a compliment of employees necessary to effectively run the estate and deliver the targets.

[Lazie]

US$15 mil from Eridania not enough – Clarke

Concern has been raised about the billion dollar deal involving the Government and the international firm, Eridania Suisse, which is one of the bidders for the three remaining sugar estates.
Agriculture Minister Dr. Christopher Tufton told Parliament on Wednesday that Eridania will provide US$15 million to carry on production activities at the estates.
He said it was a stand alone deal and would not compromise negotiations for their sale.
But Opposition Spokesman on Agriculture Roger Clarke says he is uncomfortable with the arrangement.
He told RJR's Financial Report that it appears to have been hastily negotiated and this could have implications for the sugar industry.
"It is going to be difficult for them to produce much sugar this year because a large number of the estates have almost been abandoned and it hardly matters to apply fertilizers at this late stage as some of the fields have been overgrown. It's going to be difficult to make any meaningful improvement with that amount of money," said Mr. Clarke.

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