Money available for cane farmers, says Finance Minister

FUNDS for the local cane farmers are available, says Minister of Finance and Economic Affairs, Christopher Sinckler.

He stated that as far as he knows, they were paid some of the money government had promised them for the last two previous crops in 2016 and 2017.

However, he said the current issue is for payments for 2018 and next year. He noted that Government still has to find the resources to work with the farmers since there are not a whole lot of investors out there keen on lending for the industry.

His comments came against the background of calls by private cane farmers to make promised funds available so that the 2018 sugar crop can be started, and the level of financial support which government has injected into the industry.

Sinckler said that the Barbados sugar industry is very complicated and one of the most highly subsidised operations in this country.

“I do not think there are any other industries as subsidised as the sugar sector and the Barbadian taxpayers are keeping the industry alive,” the Minister pointed out.

He highlighted that the price Barbados gets for sugar sold on the world market is lower than the cost of production, something which is not sustainable and which has to change radically.

The Minister added that in the meantime, as the country moves to a new solution for the operation of the industry, the issue is how to hold the current space together without causing a calamitous collapse that would affect more than 3 000 sugar workers and others who interface with the industry.

According to him, the average Barbadian may not know that it costs close to $80 million a year to run the sugar industry. “That money comes from the taxpayers of Barbados,” he said.

Sinckler also said that included in that amount is a figure of more than $15 million yearly to service the sugar bonds/loans incurred in the past.

“So in the financially constrained economic circumstances where revenues are not performing at their absolute best and then there are other critical priorities, the Government has to find a way to fit all of these things into the mix of things to be financed by Government,” the Finance Minister remarked.
(JB)