IS HON. JIMMY FLETCHER RIGHT ON BANANA PRIVATIZATION? In a recent speech the Hon. Jimmy Fletcher postulated that the privatization of the Banana industry was instrumental in saving it from demise. He presented as a true scientist, a body of facts on production levels within the Windward islands which showed the proportionate decline. The conclusion drawn was that the only distinction was the privatization within St. Lucia, and thus this is the core reason for St. Lucia still being the highest producer. We need to go back to the formation of the St. Lucia Banana Growers Association which was set up as a statutory body, with farmers responsible for the management. It was in its working a toxic hybrid of privatization. The privatization of the industry only removed the contingent liability of Government associated with the banana industry. Going forward the injection of cash into the banana industry was now an option of Government. The farmers who were part of the then SLBGA now had to improve on their commercial management skills to survive. History has proven that these skills did not exist and the company is now in receivership. Privatization also allowed other entrants into the market, they have been of little effect and most are not in operation at this time. The core reason for St. Lucia being the highest producer within the OECS is primary due to the fact that we have always possessed a higher number of efficient farmers, whose yields per acre allowed them to survive the turmoil within the industry. Privatization may have helped the industry by accelerating the out-movement of the low yield farmers. Privatization may have been the metaphorical tourniquet of the public finances, but I humbly wish to state that the case has not been made that it saved the Banana Industry. JOHN PETERS
Posted on: Tue, 10 Sep 2013 09:57:09 +0000
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