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'Keep tabs on sugar'

Published:Wednesday | October 6, 2010 | 12:00 AM

The Sugar Industry Commission of Enquiry has recommended that the Government retain its role as the regulator of the sector despite the divestment of its interest in the industry.

However, the commission has suggested several other changes to reflect the Government's movement away from its hands-on operation of cane fields and sugar factories.

The commission has also urged the Government to rethink its approach to the granting of incentives to players in the sector.

The Professor Alvin Wint-chaired commission, which was mandated to develop a new framework for the sugar sector, completed its work late last week and submitted its report to Governor General Sir Patrick Allen.

After nearly three months and $7.5 million, the three-member commission has not suggested any radical changes.

However, the commission says its recommendations - coupled with the appropriate investment and operational decisions - provide the best opportunity for the sustainability of a private sugar industry operating within the parameters of the national interest.

SIA should continue role

According to the commissioners - Wint, Wilfred Baghaloo and Marjorie Henriques - the Sugar Industry Authority (SIA), headed by a non-executive chair, should continue to function as the regulator of the industry.

"The SIA should place a greater focus on using its statutory authority, where necessary, to adjudicate in disputes between farmers and processors," the commissioners recommended.

"It should also engage in regular reviews of cane payment formulae and implement a clear bilateral obligation framework for farmers and processors."

The commissioners argued that if the SIA is functioning effectively there should be no further need for commissions of enquiry into the sugar industry.