THE ALL-ISLAND Jamaica Cane Farmers Association (AIJCFA) has proposed a take-over of the closed Hampden sugar factory in Trelawny, as a first step towards resuming operations there this crop.
In a release yesterday, the AIJCFA said that it was making the move, "as a first step towards returning the facility to an operative state." The association added that attorneys acting on its behalf, have made formal application to the relevant authorities for lease the factory, attendant lands and distillery, on Tuesday.
The application stated that the lease should be a long-term one and that the intention was to effect the necessary upgrading of the fields, machinery and facilities. It also specified that it was "imperative that the removal of any fittings, equipment, or parts" should be stopped immediately.
The association said it had the full support of its membership and the farmers served by the Hampden factory and that it intended to operate the factory during the current crop.
Minister of Agriculture, Roger Clarke, announced in mid-December that the government would close the Hampden factory, resulting in the loss of some 200 jobs. He said that the decision was taken after an assessment team determined that it would not be economically feasible for Government to invest between $370 million and $400 million to keep the factory operating at minimum levels of efficiency. The closure will cost the Government $66 million.
Mr. Clarke said too, that all the Trelawny sugar cane would, henceforth, be milled at the Long Pond factory, which was being extensively repaired to ensure that it was in the best condition possible, for the start of the 2002/2003 crop.
He said that farmers, who will be affected by the closure, will be compensated for the increased transportation cost to move their cane to Long Pond. The cost would be absorbed by the Trelawny Sugar Company for three years, beginning with the 2002/2003 cropping period.
But, the cane farmers have rejected the plan and the AIJCFA started working on a proposal for the reopening of the factory under the ownership of cane farmers in the area.
Acting chairman of the association, A.C. McDonald, told The Gleaner that after meeting with Mr. Clarke, they started working on a proposal to save Hampden.
The AIJCFA said yesterday that overseas engineers had visited the factory and reported on the status of the facility and that, based on this and other intelligence obtained, its leadership has confidence in the potential viability of Hampden.
The AIJCFA has maintained that one of the main problems in the Government-owned sector of the sugar industry is ineffective management which, "together with poorly maintained canefields, factory machinery and equipment have adversely affected the cost-efficiency of production."
The association says that it has already identified overseas expertise which would be contracted to manage the facility, while instituting the required training of Jamaican management and technicians.
The association says that it expects the proposal will be favourably considered by the Government, "especially as the closed entity would be an on-going cost to the Government and taxpayers, while devastating the economic life of several communities in the Hampden area."