Speaking after the House Meeting yesterday, the Prime Minister spoke in a little more detail about the mediator, and an auditor, who will review the production costs that BSI charges farmers as part of the profit-sharing calculations.
The PM made the point that these two agreements have to be considered a breakthrough:
Hon. John Briceno, Prime Minister
"What we've been discussing and something that we have proposed to both teams is for us to have a mediator, a mediator that can sit with both sides and try to see what are the sticking points and see how we can walk them through to find an agreement. Both sides are prepared to do that and so I see within the next week or so that mediation will start."
Reporter
"How effective has the input of Mr. Florencio Marin Sr. been over the few months?"
Hon. John Briceno, Prime Minister
"It has been very effective. Because of his experience and having the ability to speak with both sides, he has managed to keep things calm and that it does not get out of control, the animosity between the two sides. And remember he is not only working with these two, but he is also keeping inform the other 3 associations, so I do believe that him coming on board we have manage to keep things calm and keep things going and that there are still dialogues between the two sides."
Reporter
"We've seen where the two sides they don't seem to be moving away from their position. BSI/ASR is making the case that BSCFA wants to transfer some 20 million dollars in value from the millers over to them the farmers and they're saying that will drive us out of business. The BSCFA is saying look these people aren't budging on what is the cost of production and that is hurting our farmers."
Hon. John Briceno, Prime Minister
"That is why the mediation can step in to assist. To be fair, no company will give up twenty million dollars, and I've been saying that to the Belize Cane Farmers Association, that if you give up twenty million dollars from revenues of what, they end up with about sixty million - you're driving them to bankruptcy. And we need both sides. We need the miller and the need the farmers, so we need to find a compromise from both sides. A number of issues have already been addressed. The issue now is the cost, production of the direct consumption sugars, where they're saying that they're charging a manufacturing cost of a hundred and fifty dollars per ton. I have pointed out to the farmers at the beginning of the negotiations - the cane farmers wanted the right to be able to audit the costs that are charged at the top what is called the net value and B.S.I. was resisting that. Now because of the negotiations, B.S.I. has finally said okay, we are prepared to allow the cane farmers to have professionals to come in and audit that."
This evening, reports started reaching our newsroom that police in Orange Walk are bracing for a demonstration from members of the Belize Sugar Cane Farmers Association. They are reportedly not pleased with the PM's interventions in the dispute. We'll keep following the latest developments in this protracted commercial disagreement.
