$1.75B Supplementary provision for severance payments laid in National Assembly

DPI, GUYANA, Friday, January 19, 2018

A supplementary provision on the budget estimates totalling $1.75B to facilitate the payment of severance to sugar workers was yesterday laid in the National Assembly by Finance Minister Winston Jordan.

The estimated cost of the severance is $4.24B of which 50 percent will be paid by the end of January. The balance is expected to be paid before the end of 2018.

Minister of Finance, Winston Jordan.

It was noted in the supplementary provision that $0.5B dollars of the $6.3B to be transferred to the Guyana Sugar Corporation (GuySuCo) in 2018 is earmarked for severance payment

The estimated amount to be paid by the end of January stands at $2.25B dollars. This move is in keeping with Government’s commitment to ensuring the best interest of the workers is considered.

On Friday, January 19, 2018, the supplementary provision will be debated during the 85th Sitting of the National Assembly.

The decision to down-size comes after years of struggling to support the ailing sugar industry. This Administration has said that on a monthly basis, $1B was being invested in GuySuCo to manage the recurring issues.

According to Government, it became clear that the constant applications of GuySuCo to the government for bailout sums needed to be addressed.

Minister Jordan disclosed recently that Government may have to resort to programme cuts at Ministries and other government agencies to facilitate the payment of the remaining severance payments.

 

By: Stacy Carmichael

 

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