Sugar concession bill passes; Opposition says it’s not sweet

Government today introduced and passed, in one sitting of the House of Representatives, a bill that provides major tax breaks and exemptions as part of the sale of the Belize Sugar Industries to the American Sugar refinery.  Copies of the bill which repeals a previous law, were only circulated on Monday afternoon.  Cane Farmers who got hold of the bill on the same day have written to the Prime Minister asking for consultations and for similar concessions which gives BSI retroactive tax exemptions, partial exemptions up to 2016, environmental tax exemptions and a monopoly on the export of sugar and molasses’ for ten years . After Prime Minister Dean Barrow introduced the Sugar Industry and Cogeneration Project, the debate got underway. 

Jose Sanchez, Reporting

The Sugar Industry and Cogeneration Project Development Incentives Bill was presented as the American Sugar Refinery rescue of the industry.

Prime Minister Dean Barrow

Dean Barrow

“It is part of a development now which represents the rescue of the sugar industry in this country and which guarantees the long-term viability and prosperity of that industry and of the six thousand cane farmers that are the principal drivers of the industry. American Sugar Refinery, in return for assuming the entire debt, will become the beneficiary of additional shares issued by B.S.I so that at the end of the day there will be something like a seventy-eight percent to twenty-two percent ownership structure of B.S.I. under which arrangement, ASR will hold majority shares to the tune of this roughly seventy-eight percent and the Government of Belize, Booker Tate and, of course, the Employees Trust representing the actual workers at B.S.I. will together hold the other twenty-two percent.”

The current B.S.I. debt and the investment promised by ASR would amount to one hundred million U.S., sixty million alone to pay the current B.S.I. debt. But the Opposition Leader says that the cane farmers are unsettled by the ASR concessions.

Francis Fonseca

Francis Fonseca, Leader of the Opposition

“We have no quarrel with incentives, Mister Speaker, in principle. We recognize that these things are part of a difficult, but necessary part of the global economy; of doing business in that global economy. Our problem and our concern—and every member of this side has raised it—is that there has been an absolute lack of opportunity for those who, you say you are acting in their interest, the cane farmers, but for them to have an opportunity to properly discuss this matter and for our representatives to engage and consult with them. I heard the Deputy Prime Minister talk about Mister Aban, Ramon Aban, calling Mister Novelo last night. It is Mister Aban, Deputy Prime Minister, it is he who has sent a letter to the Prime Minister; it is Mister Aban who has sent a letter out to the Belizean people, to the members, the media to say that we have learned through the media that you intend to present a bill entitled, “Sugar Industry and Cogeneration Project Act 2012,” at the sitting of the House of Representatives—through the media. Why is it that the government not informed these people that you intended to table this legislation today?”

Prime Minister Dean Barrow

“The letter that the Leader of the Opposition took to read and recite from is what it is. I won’t get into a back and forth with the chairman of the B.S.C.F.A. I will say this; somebody over there asked about what is in writing. The cane farmers met with us when we met with ASR. At some point after that, I believe I did have a conversation with somebody indicating that were concessions—it might have been at that meeting because we met with them confidentiality; that these people would be asking for concessions. the only think I undertook to do was to tell them how matters would progress as to whether the Government of Belize could agree to the concessions in order for the project to go through. I never undertook to consult with the cane farmers as to the extent to which we could go. The concessions don’t hurt the cane farmer in any way.”

John Briceño

John Briceño, Area Representative, Orange Walk Central

“So we do understand, Mister Speaker, the need for investment in the sugar industry; especially with B.S.I. and BELCOGEN who are in desperate need of additional capital or fresh capital. Therefore, we on this side of the House Mister Speaker, look at this bill with much interest—interest on how the passage of this bill will attract new capital investments into the sugar industry. But before we can support this bill, Mister Speaker, there are several issues of concern and would like some answers and clarifications.”

Marco Tulio

Marco Tulio, Area Representative, Orange Walk East

“After having met and discussed this bill with many cane farmers from Orange Walk, Mister Speaker, their first question was why were we not consulted. That’s an echo that most of the cane farmers are saying; why were we not informed of all these tax exemptions and gifts being given to ASR.”

Mark King

Mark King, Area Representative, Lake Independence

“Mister Speaker I rise to support this bill; but not just o support this bill, but to educate the opposition on why this bill is excellent to attract capital investment into the sugar industry of this country that they couldn’t do, Mister Speaker, for the last ten years in government.”

Pablo Marin

Pablo Marin, Area Representative, Corozal Bay

“We the nortenos that are sitting down in this honorable House will support a bill for the sake of the cane farmers and if there is anyone not supporting this bill, can only be seen as someone that does not care for its people.  As the opposition, they only want to see this industry collapse so that they have something to talk bad about this government.”

Ramiro Ramirez

Ramiro Ramirez, Area Representative, Corozal South West

“The member of Corozal Bay the beat his chest saying that he knows about this business. He noh know nothing about this sugar industry. I could bet to him that I know more, more than him. So one, let us be realistic on this honorable House.”

Michael Peyrefitte, House Speaker

“Members of the gallery, one more and I will ask you to leave.”

Francis Fonseca

“They are saying that we oppose the granting of this unrestricted right to export raw sugar and molasses for ten years. They are saying that we are concerned about section eight of the Bill and we would like the government to grant the farmers the same duty exemptions for the same period. It is only fair and just that our farmers receive the necessary assistance to enable them to expand their cane production at a low and reasonable cost and not be displaced by ASR. You see; that brings me to the fundamental point; they are afraid that they will be displaced by American Sugar Refining.”

Prime Minister Dean Barrow

“Absent ASR, the sugar industry in this country would have collapsed; that the bottom line. The price, if you want to see it in those terms, the price that we have to pay by way of these fairly standard concessions to ASR is well worth paying so that not only can the industry survive; so that it can grow and prosper. That time bomb with respect to the call from INC Bank for their money to be paid; the additional grace period that extended, runs out at the end of this month. ASR will pay them off—as it will pay off the government—first week of next month, but in order to do it, this bill needs to be passed. And that is why we are trying to do it all at once today and have the senate meet on Friday. Nothing should stand in the way of our effort to ensure that the extinction that the sugar industry was facing is in fact removed. I have a friend who will no doubt be pleased to hear me say, Mister Speaker; this was an existential threat and it is a existential threat that has now be deemed its quietus as a consequence of the actions of the Government of Belize.”

The bill went through its three readings and was passed by the house. Reporting for News Five, Jose Sanchez.

In the letter to the prime minister, dated September twenty-fifth, the cane farmers complained that despite assurances by the PM in May, they were not consulted on the terms and conditions, which are being granted to ASR. The Belize Sugar Cane Farmers Association also describes the package to ASR as unfair and excessive and that the exemptions are, “aimed at making the rich richer and the poor poorer and will not advance the government’s pro-poor policy.” The B.S.C.F.A. also expresses concern over the government’s decision to provide the unrestricted right to B.S.I. to export raw sugar and molasses for ten years. It calls for a marketing committee to be established to deal with the issue.