Good News – the sale of the sugar factories and more

Two bits of good news crossed my path recently and I thought it would be good to reflect on something positive for a change.

The first was the announcement of the sale of the three remaining sugar factory to a Chinese company.  This helps us in several ways –

The government collects US$9m for the sale of the factories;

There is a commitment to upgrade the factory and to possibly expand the acreage of lands under sugar to twice the existing level;

The government no longer has to find funds to subsidise the sugar operations;

There will be continued employment for persons in the sugar industry beyond the end of this year although we do not know as yet how many.

Last year I asked the question of whether the sugar industry was dead and with the dilapidated factories and the low price of sugar on the world market, it seemed so.  Now there appears to be a little life but it is still too early to say if there will be a full recovery of this sector.  One obvious advantage of this deal is that the Chinese are buying so as to ensure a supply of sugar for their country i.e. as food security.  It does not mean that they will produce no matter what but there is certainly more incentive to remain in production.

The second announcement is the proposed reopening of the Windalco factory.  This is going to mean that the country will see an increase in revenues from the bauxite levy and much needed foreign exchange for the country.  In addition many jobs will be restored, putting more people back on the payroll.  This will mean increased tax revenue for the government both from income taxes and from the General Consumption Tax that will be collected from items purchased by both the bauxite workers and the sugar workers.

There is still a long way to go to improve Jamaica economic situation but I am reminded of that old Chinese proverb that says that a journey of one thousand miles begins with a single step.  I believe that these are two steps on our long journey ahead and for that we should give thanks.