The Frome Sugar Factory in Westmoreland, (Photo: The Gleaner).
The Government has taken the final step in divesting the country's sugar factories.
The sealing of the deal means that the control of three major factories, Monymusk in Clarendon, Frome in Wesmoreland and Bernard Lodge in St. Catherine will be handed over to the Chinese company Complant.
With Monday's [August] signing, the Government has relieved itself of an industry it termed loss making.
Under the divestment deal, the new company will be leased sugar lands for a period of 49 years and will own factories and the lands immediately surrounding them.
Prime Minister Bruce Golding pointed out at Monday's signing that the deal was inked only after considerable negotiations.
"We have been very careful to ensure that the critical assets of Jamaica are protected and therefore, the hundreds of thousands of acres of lands, which have been earmarked for sugar, will be leased to the company, they’re not being sold," he said.
And the Prime Minister added that the divestment of the countries sugar assets is significant as it marks a new approach to governance being embarked on by his administration.
"It fits neatly and perfectly into Government’s overarching policy regarding the management of the economy, which is that Government must concentrate on those functions that are intrinsically and essentially Government and to leave space, encourage and facilitate private investment in those areas that are best suited for private investment. For that reason, producing sugar, mining bauxite and producing alumina are not, in our view, part of the core essential, intrinsic responsibilities of Government," Mr. Golding stated.
The Government has taken the final step in divesting the country's sugar factories.
The sealing of the deal means that the control of three major factories, Monymusk in Clarendon, Frome in Wesmoreland and Bernard Lodge in St. Catherine will be handed over to the Chinese company Complant.
With Monday's [August] signing, the Government has relieved itself of an industry it termed loss making.
Under the divestment deal, the new company will be leased sugar lands for a period of 49 years and will own factories and the lands immediately surrounding them.
Prime Minister Bruce Golding pointed out at Monday's signing that the deal was inked only after considerable negotiations.
"We have been very careful to ensure that the critical assets of Jamaica are protected and therefore, the hundreds of thousands of acres of lands, which have been earmarked for sugar, will be leased to the company, they’re not being sold," he said.
And the Prime Minister added that the divestment of the countries sugar assets is significant as it marks a new approach to governance being embarked on by his administration.
"It fits neatly and perfectly into Government’s overarching policy regarding the management of the economy, which is that Government must concentrate on those functions that are intrinsically and essentially Government and to leave space, encourage and facilitate private investment in those areas that are best suited for private investment. For that reason, producing sugar, mining bauxite and producing alumina are not, in our view, part of the core essential, intrinsic responsibilities of Government," Mr. Golding stated.
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