Commission of Inquiry approved to review Sugarcane Industry

By Rubén Morales Iglesias: The Commission of Inquiry established by Prime Minister of Belize John Briceño on Monday is to review the present state of the Belize Sugar Industry and make recommendations for its improvement.

Prime Minister Briceño appointed the following persons to the Sugar Industry Commission of Inquiry: Wayne Piper, Robert Marriette, Vinod Ramharai, Jeffery Joseph, Andy Church, and Simon Gibbons. Piper was appointed Chairman of the Commission.

“The commission is expected to review the entire value chain of the sugarcane industry to establish the benchmark costs, determine efficiencies and recommend measures to increase efficiencies,” a press release by the Government of Belize Press Office said on Monday.

“Specifically, the commission is to determine the cost of sugarcane farming, harvesting and transporting, as well as sugar manufacturing, operating, transportation and logistics costs.”

According to the Government’s Gazette, dated March 19, the Commission of Inquiry was set up after “protracted industrial disputes between the farmers and manufacturers” over issues such as the revenue share.

According to the Government of Belize’s Gazette, a Commission of Inquiry is established “to inquire into the conduct or management of any department of the public service, the conduct or management of any public or local institution, the conduct of any public officer in Belize or any other matter in which an inquiry would, in the opinion of the Prime Minister, be for the public welfare.”

‘The appointment of the Sugar Industry Commission of Inquiry was set up considering ‘the sugar industry is one of Belize’s primary socio-economic pillars’ and has had ‘protracted industrial disputes between the farmers and manufacturers over issues, inter alia, the revenue share for sugar cane’.

According to the Government’s Gazette, the Commission of Inquiry has been set up to:

“a) to establish benchmarks to measure the efficiency of both factories/mills in Belize (BSI and Santander) and compare with regional sugar factories/mills;

1. b) to identify measures that can address any inefficiency in the sugar factories/mills;
2. c) to assess the cost and efficiency of sugarcane cultivation, harvesting and transportation in Belize by among other things comparing these operations to regional benchmarks;
3. d) to assess planting practices in Belize, the cane varieties used in Belize, the distribution of varieties across farms, the risks posed by such varieties and distribution, and to identify measures to mitigate such risk and improve productivity through different planting practices and the use of new varieties;
4. e) to present a reform and influencing strategy to improve the viability of small-scale cane farmers;
5. f) to determine manufacturing cost of products such as raw sugar and direct consumption sugar at both factories/mills and compare with regional industry standards;
6. g) to assess the handling, storage and transportation efficiency and cost of sugar and molasses and the opportunities for improvement in the handling, storage and transportation of both products;
7. h) to assess the potential for development of other by-product and derivatives investment, and other revenue streams;
8. i) to assess the revenues generated from the sale of molasses and recommend a pricing mechanism for molasses;
9. j) to consider the possibility for setting up of a distillery for the optimal use of molasses for the production of ethanol and/or potable alcohol for direct consumption;
10. k) to review the Cogeneration scheme at both BSI and Santander and compare it with other cogeneration plants with a view to optimize the use of bagasse fuel for electricity generation for the benefit of Belize at a larger scale;
11. l) to review marketing and pricing arrangements;
12. m) to compare cane payment system of BSI and Santander with a range of other sugar industries/countries and recommend an alternative;
13. n) to assess the impact of climate change on sugar cane farms in Belize, including the adequacy of farm and road drainage and the remedies required to address the climate change challenges and the timing of the implementation of such remedies.”

The members of the Commission of Inquiry are to sign ‘an oath or affirmation before a Magistrate as required by law and having deposited the same with the Secretary to the Cabinet’ and are to ‘hold your meetings with due urgency and expedition at such place and at such time as you the said Commissioners may appoint’.

Once the inquiry is completed, the Commissioners are to submit a unanimous report with comments and recommendations as they see fit. However, if they, for whatever reason, can’t file ‘a unanimous report’ they are expected to submit separate reports with their own conclusions and recommendations.

Though a timeline for the presentations of a report is not specified, the Commissioners are directed to submit a report ‘as soon as may be practicable’.

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