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BU understands the Minister of Finance & Economic Affairs Chris Sinckler will play hardball with the sugar industry deal unless Minister of Agriculture David Estwick appoints BNB Capital Corporation to provide the financing for the new sugar factory. It is being discussed in certain circles that the minister of finance arranged for BNB Capital Corporation to handle the financing for the new sugar factory but Minister Estwick is not going with the flow.

Directors of BNB Capital Corporationย  incorporated on 17 September 2014 are:-

  • Senator Jepter Ince
  • Timothy D. Joseph
  • Jung Yun
  • Sir Trevor Carmichael, QC

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234 responses to “Chris Sinckler and David Estwick Saga Continues – Money is Sweeter than Sugar”


  1. Nuffin but a tragicomedy in full flight!! I soon run out of popcorn.


  2. What is the opportunity cost of forex that would be forgone if we discontinued production of sugar?

  3. millertheanunnaki Avatar
    millertheanunnaki

    @ David | November 17, 2014 at 3:38 PM |

    Not only the opportunity cost of not earning the forex from sugar exports but also where would the country find the additional forex to pay for all its imported sugar requirements both industrial and domestic.

    Don’t you think it would be better for policy and decision makers to look towards increasing production and reducing unit cost of production?
    it is obvious that an industry with large fixed costs and rapidly declining output, both at the level of cultivation and refining, massive subsidies would have to be given to the industry to keep it in ICU and not the morgue.

  4. John Hanson 1781-1782 i serve Avatar
    John Hanson 1781-1782 i serve


  5. Millertheannuaki
    Do you support restructuring the sugar industry now or waiting ( as the PM said) until they have a better economic wicket to bat on before doing the restructuring?


  6. millertheanunnaki | November 17, 2014 at 3:15 PM |

    Does that include making the Queen tell a whole lot of lies on behalf of a political party? Does the following extract sound familiar?

    With respect to sugar cane, my Government will implement the Cane Industry Restructuring Project to bring the sugar cane industry to at least a commercial break-even position.โ€

    ………………………………………………………………………………………………………

    in respect to your post,,,,

    firstly let me emphasize that mr EStwick is not the leader,,, and in the final analysis given all that ESTWICK had proposed , (in the final analysis) the PM who is the leader of govt have the responsibility to the people and country first and to make decisions that would not hurt or comprise or further weakened the financial structure of the economy. if mr, Estwickl is a man of principal he would understand that the counties interest must come ahead before his pride and can make amends to his constituents by being openly honest as to the Why;s and what changes were necessary going forward that would impact the sugar industry and to put some of his proposalson hold peopl;e would forgive and understand… however,if he chooses another route to” act out: and misrepresent govt intentions it would do him absolutely no good,,he should read OSA hand book “how to lose friends and gain enemies at the same time”

  7. millertheanunnaki Avatar
    millertheanunnaki

    @ Port In A Storm | November 17, 2014 at 6:17 PM |

    First let me commend you for the choice of handle aka moniker you have made for yourself . the moniker โ€œPort in a Stormโ€ reminds me of a line from the songโ€ Somebody Loves You Babyโ€; or something close to that.

    Let me say that without the sugar cane industry- in whichever form or incarnation- there isn’t a hope in hell for any form of commercial plant-based agriculture in Barbados.
    Jesus Christ man, can’t we see that the island was designed and developed for some kind of ‘grass’ crop cultivation?

    If the sugar cane industry is allowed to endure a slow grinding death because of a lack of care and consideration of its importance to the ecological existence (as a tourism destination) of the little coral island then in the very near future many rural parts of the same atoll will look just like when the Portuguese first stumbled upon it; as Nature intended.

    The PM is just a two-bit lawyer of intellectual misguidance totally out of his league and blinded by the vision that leadership requires. If the idiot of anything of a economic or business nature can say that the current pricing of finished petroleum products is a true reflection of what is going on in the international oil markets for the last few months and indeed in Trinidad then you see what your country is up against when it comes to the quality of economic management and political leadership.

    Wait for what? Further downgrades? Time is of the essence. Why not grab the bull by the horns? You either dump the industry once and for all or support it through radical transformation in its managerial structure and financial support as has been demonstrated with the tourism business. Why not treat the sugar cane industry as an export industry and foreign exchange saver?


  8. millertheanunnaki
    Can’t fault the logic there my friend. This is a tragic change of trajectory by the PM but it seems to support the views of many, which is ………the PM will not give against Chris Sinckler even if it means disappointing Estwick.


  9. GG’s Throne Speech 2014

    My Government will also increase fiscal support for investment in agriculture technologies aimed at augmenting production; increase fiscal support to national farmersโ€™ organisations to facilitate higher yield in agricultural production for the domestic and export markets and restructure the Land Lease programme to attract more young people to agriculture. With respect to sugar cane, my Government will implement the Cane Industry Restructuring Project to bring the sugar cane industry to at least a commercial break-even position – See more at: http://www.nationnews.com/nationnews/news/33328/gg-8217-throne-speech


  10. @ David | November 17, 2014 at 3:38 PM |

    โ€œWhat is the opportunity cost of forex that would be forgone if we discontinued production of sugar?โ€

    To measure the opportunity cost you need to compare sugar production with the manufacture or production of other products for export. Letโ€™s compare sugar and rum as an example. Barbados is using its resources to produce rum and sugar. Bear in mind resources are scarce, and we will have to produce more of one than the other.
    We also have to factor into opportunity cost the cost of financing both products in terms of loan term loans, sourcing capital, or issuing shares, etc., as areas in the analysis of comparative advantages.

    Hence, what would be opportunity cost [forex] forgone if we reduce or discontinue the production of sugar and concentrate more/all resources on producing rum?

    Therefore, taking these factors into consideration, what is the cost benefit of borrowing large sums of money to support the sugar industry, when sugar production in the long term will not realize an adequate return on investment?
    In other words, since Barbados has been producing sugar for a number of years, we don’t want to let go of the past, even though it is feasible to do so.

    ………………………………………………………………………………

    @ millertheanunnaki | November 17, 2014 at 3:48 PM |

    โ€œNot only the opportunity cost of not earning the forex from sugar exports but also where would the country find the additional forex to pay for all its imported sugar requirements both industrial and domestic.โ€

    Good question and it supports the opportunity cost theory. If Barbados were to discontinue sugar production and use all the resources previously used in its production to produce other products, these products would have to earn the forex to satisfy investment and to pay for the importation of sugar to satisfy โ€œboth industrial and domesticโ€ requirements.


  11. Really don ,t know what is the big deal about forex when the industry is being substituted at a loss.seems to ac like another set of political foul shit being brought to table by political yardfowls.


  12. @Artax

    To keep it simple we have to add the forex cost of importing sugar plus the forex we lose from not producing. sugar and establish the cost of forex of establishing a new source of forex. Now which is it?


  13. ac
    But what you gine do about the 4,000 workers, pelt them one side like garbage?


  14. Port In A Storm | November 17, 2014 at 11:00 PM |
    ac
    But what you gine do about the 4,000 workers, pelt them one side like garbage?
    …………………………………………………………………………………………….
    And we can’t even integrate them into the various BIDC Industrial Parks across the island, as they too are gradually being closed down. So you will have 4000 people out of work, and 5000 recent graduates seeking work.


  15. It was interesting to hear all the talk this past week about sugar and its proposed multimillion-dollar revitalization plan, especially since it would have seemed obvious the majority, including the noted Barbadian economist Professor Hilbourne Watson, had already written off the industry as dead.

    But then again, we can always count on Dr David Estwick โ€“โ€“ for as long as he remains Minister of Agriculture at least โ€“โ€“ to keep hope alive.

    Dr Estwick has made it pellucidly clear over the past week that sugar will not die under his watch. The first occasion was in an exclusive interview with Barbados TODAYโ€™S Emmanuel Joseph, published on Friday, November 7, in which he made the startling revelation that all the major backers, including the Inter-American Development Bank, the World Bank and the Japanese, had all pulled out of the Governmentโ€™s proposed US$250 million Sugar Restructuring Programme over concerns about the islandโ€™s investment ranking, following its downgrade by Moodyโ€™s in June.

    The good news, which Dr Estwick also disclosed at the time, was that another agency, the United States-based National Standard Finance, had jumped on board and offered to put up the necessary loan financing.

    But the bad news was that both Dr Estwick and the financiers had been left in the lurch and were quickly running out of patience, as Cabinet appeared to be dragging its feet on the matter.

    Not hiding his frustration over the situation, Dr Estwick would speak out publicly again about his concerns. This time, at a St Lucy constituency branch meeting of the ruling Democratic Labour Party, where he also lashed out at critics of the Governmentโ€™s plan for the revitalization of the sugar industry, saying it was nonsense to suggest that the island should abandon sugar altogether and grow other produce.

    โ€œIt is rubbish to believe that Barbados can turn all of its plantation land into vegetables and root crops,โ€ the minister said, further arguing that โ€œif you take ten or 15 plantations in Barbados and they grow root crops and vegetables alone the market will be flooded with every single product. There would be massive gluts in Barbados and the farmers would not make one centโ€.

    However, with the agriculture industry as a whole currently haemorrhaging, there are those like Professor Watson who simply do not share Dr Estwickโ€™s point of view. In fact, many donโ€™t see a long-term future for sugar at all.

    Delivering the Patrick Emmanuel Memorial Lecture last Thursday night on the topic The Caribbean At The Crossroads In The Crisis Of Capitalism, Watson warned that there was scarcely any Caribbean country today producing sugar for the world market at less than 25 to 33 cents per pound โ€“โ€“ and the world market price hovers around 11 to 13 cents.

    โ€œWhy would anybody want to buy sugar at 29, or 23 or 30 cents, if it is sold on the world market at 13?โ€ he asked, adding that reverting to a lower cost of production now was impossible.

    Ironically, around the same time the goodly professor was delivering those remarks, Cabinet was locked in a marathon session that ended around 9 p.m., and which we understand had been dominated by the same issue.

    It begs the question: where does Prime Minister Freundel Stuart stand on this and what would Dr Estwick do if he doesnโ€™t get his way?

    Asked by reporters last Friday to provide a deadline for the proposed multipurpose sugar factory at Andrews to be up and running, Stuart said: โ€œI donโ€™t want to do that because, quite frankly, we are going through some challenges. We have been going through some challenges for the last six years and we do not know when these challenges are going to effectively come to an end. And, therefore, we have to concentrate on wrestling present challenges to the ground before we can be too ambitious about fixing deadlines for that transition from a sugar industry to a sugar cane industry.โ€

    Based on that answer, it would seem the jury is still out on sugarโ€™s future.

    As for Dr Estwick, will this be simply another UAE episode or will this be the proverbial straw that breaks the camelโ€™s back? Only time will tell.


  16. @ David | November 17, 2014 at 10:50 PM |

    โ€œ@Artax: To keep it simple we have to add the forex cost of importing sugar plus the forex we lose from not producing. sugar and establish the cost of forex of establishing a new source of forex. Now which is it?โ€

    Good point, David.

    Okay, you have to determine the forex earned from producing sugar. But, you must also take into consideration the forex used in its production. For example, loans from international sources have to be repaid in foreign currency; the purchase of capital assets which also requires forex have to be included in opportunity cost, as well as the fluctuation in market prices.

    Subtracting the forex disbursed as a result of producing sugar, from the forex earned, will give a better understanding of whether or not itโ€™s feasible to produce sugar. If the forex earned is more, then letโ€™s produce sugar, even if for sentimental reasons.
    Conversely, if forex disbursement is more, taking into consideration there will be no long term benefits to be derived and the prospect of a progressive decrease in the yield of sugar, then it would be financial madness to continue producing sugar โ€ฆโ€ฆโ€ฆ unless, of course, the by-products of cane production can be utilized or processed into making new products, or other derivatives of cane are produced, which can be sold to earn forex.

    Taking all these variables into considerations will determine if the cost of forex used to establish new sources of forex is viable.


  17. @ ac | November 17, 2014 at 10:43 PM |

    โ€œReally don ,t know what is the big deal about forex when the industry is being substituted at a loss. seems to ac like another set of political foul shit being brought to table by political yardfowlsโ€ฆโ€

    Reminds me of Bob Marley’s song, “Rat Race” – โ€œIn the abundance of water, the fool is thirstyโ€.

    Hahahahahaha….. wuh loss……


  18. What shall Estwick do, shall he stay or will he go?


  19. Port In A Storm | November 17, 2014 at 11:00 PM |

    But what you gine do about the 4,000 workers, pelt them one side like garbage?
    ………………………………………………………………………………………………………

    what you say PINS,,if govt keep them employed and raised taxes on the few employed ,, you think that would be a better deal, people are survivors and 99% of the time people when caught in dire circumstances forged ahead , the only obstacle that keeps people held back is politics,’
    look if these hard issues were tackle many years go when barbados was in a better financial and economical state and agriculture was restructured replacing sugar with a viable alternative which was long term and economical with relevancy attached to global economies this issue would have been resolved whereby these 4,000 people would have been engaged and reemployed in a different area of agriculture,,but as the old adage say “where there is no vision the people would perish” now looking back it is so true,


  20. Estwick if he is a man of principle would not be misguided by political banter and rhetoric but would refocus his time and energies to restructuring agriculture not only from a singular base but in a realistic and pluralistic manner whereby the nation and country benefits overall. Yes he has is work cut out for him to do ,in his case he might have been thrown lemons and his task would be for him to make lemonades,


  21. @Port in a Storm

    He will do what is politically expedient and at the moment his best hand is to remain, if he moves he become as irrelevant as the trash heap at Mangrove.

    This is a government who wants to build a society why would you think they care about 4000 workers?


  22. It is unlikely this government will be able to turn around the economy in a couple years leading to growing jobs etc. Read the tea leaves.


  23. FOR GODS SAKE!!!!!
    Barbados does not have an AGRICULTURAL INDUSTRY or any bloody Industry come to that,
    What it has is a “Clutter” of itinerants(moving from growing willy nilly any crop with the hope of Scoring).YES there are exceptions,few and far between, mostly Indian or white run.
    We have a building that houses the “Ministry of Agriculture” WHAT A MISNOMER!
    More a Hostal for the Homeless and useless, ignorant of all things Agricultural and have only ever had DIRT under their nails after scratching their ARSES.
    Offering little else but obstruction.
    Some years back , a good friend ,whilst planning for the years crops enquired to the said MIN of AG as to what the projections were for the planting of Sweet potatoes. Who, how many acres, in what areas.
    Seemed eminently sensible to me.
    The reply was “NO IDEA” and when asked what if 100 people are planting sweet potatoes at one point, same time.
    ANSWER from Min of AG.” Well we have plenty of sweet Potatoes, wont we.”
    Seems to me to about sum up anything done in Barbados ,that is even slightly affected by Government.

    DONT ask questions about Sugar, NO ONE in Government KNOWS or Cares.


  24. David
    But not being the traditional/standard kind of politician, I suspect he will one day just say f–k it and resign from Stuart’s cabinet.


  25. One reason Barbados does not have a full scale agricultural industry , the govt of the past fourteen years was busily selling off the land to the highest bidder instead of refocusing time and energy educating the society on the importance of agriculture to economy and food security


  26. ac
    Wait to when wunna kill off the sugar industry in Barbados and then wunna see fun bout Barbados.


  27. @Port in a storm

    Estwick is a Dem at heart and he will do nothing to hurt the party.


  28. This whole thing reads like an old time fairy tale designed to show why education is important, and what could happen to a society when so many complete idiots dominate the place…
    …somewhat like a cross between Animal Farm and the Emperor’s New Clothes….

    Hard to believe that this is a place where EDUCATION has been the most expensive national undertaking for the last sixty years…

    Rather than RELISH the various challenges as we leverage our myriad range of skills and talents and build on our national CHARACTER to overcome ANY CHALLENGES…and build a future for our children….

    We are crying like women at the (relatively minor) challenges that confront us; looking for benevolent outsiders to come to our aid with grants and loans; and holding fire-sales of anything of value that has been acquired by the tears, sweat and blood of our forefathers.
    The ULTIMATE pimps….

    Led by an obvious idiot, and with a collection of even more blatant retards waiting in opposition, Bushie DARES anyone to come with a better analogy of our collective character – than ‘gutless, rusty, useless, dirty, brass bowls….”


  29. @ ac | November 18, 2014 at 7:33 AM |

    โ€œOne reason Barbados does not have a full scale agricultural industry , the govt of the past fourteen years was busily selling off the land to the highest bidder instead of refocusing time and energy educating the society on the importance of agriculture to economy and food security..โ€

    Your above comments are utter rubbish and are reflective of the political diatribe you usually present to BU in the guise of sensible contributions. You cannot post to BU household and the wider Barbadian public a list of land the previous BLP administration sold to anyone.

    However, it is on record for all to see, the government owned plantations your precious DLP sold to Leroy Parris and CLICO, which now remain undeveloped after so many yearsโ€ฆ.. no cropsโ€ฆ no houses. And you talk about food security.


  30. The biggest injustice is the Clico farming lands in St. John especially now bush.


  31. For Estwick his best bet would be Commitment to country first ..a teachable moment and model for aspiring politicians to follow which means sacrificing politics and adressing the hard issues that have been troubling the country with a confortational spirit of truth and honesty ..and at the end of the day when the dust has settled coming out of the ashes would be a truthfulness and transparency the country yearns for
    The ball is in his court he can make a difference in change and transformation

  32. are-we-there-yet Avatar

    ac; re your 8:29 post

    True True! Good post!
    But his truthfulness and transparency might not accord with yours.


  33. Dr. Estwick could redeem himself by forming a new political party and leading a coalition with his friend Owen along with about 4 other DLP MPs and ten BLP MPs to go and have a word with the GG.

    …and no need for any lotta subterfuge a’ la the “Eager Eleven” …
    Pick his people, talk with them about what the plan will be and leggo one of his big speeches fuh bout two hours or so….
    be sure to APOLOGIZE to Bajans for having been part of the DLP shiite for the last six years…
    PROMISE openness, honesty…and that “heads will roll” …because THIEVES ARE INDEED LEPERS. Finally, prove that you are genuine by appointing a senate with balls, and Caswell to chair an oversight Committee on Public Integrity.

    …and MOST IMPORTANTLY, deny ANY knowledge whatsoever…of ac ๐Ÿ™‚


  34. @Bush Tea

    Given the rising unpopularity of the government now is as good a time as ever for those who want to promote change is now. The unions seem to have awaken to the opportunity.


  35. Bushtea re. your 9:57 post. Sounds good!

    But the PM may be holding some good cards that could trump your suggestion to Estwick “be sure to APOLOGIZE to Bajans for having been part of the DLP shiite for the last six yearsโ€ฆ”

    There must be some good reason why, despite all the long talk, He always ends back up supporting his comrades at arms?


  36. @ are-we-there-yet
    steupsss …..man – he just like Caswell
    …has NO idea of his potential value to the damn country. Imagine he stop talking because ‘people telling him how he destroying the party….”
    Party shiite…. His focus MUST be the country. Right now BOTH parties want destroying…..

    @ David
    Even a blind man sitting backwards on a trotting horse…(or a blind woman sitting in the senate) can see that there is a CRITICAL need to take serious steps to bring things back on track….
    …and that the incumbents are INCAPABLE of doing so…

    Unions?
    ha ha ha LOL …ohhh shirtttttt!!! unions…. waloss!!


  37. Awty. .ac would reference Estwick to return to Barrow model,aphilosophical and ideological formula chock full of solutions necessary for joining and forging a society together.if the Blp understood Barrow formula of goverance through self empowerment most of the pain and suffering being endured by globalisation would be of naught as through the release of education a sceanario one which who have built a country from its natural resources with a final result of selfempowerment


  38. ac
    You obviously did not just see the governance 101 lesson administered by the leader of the opposition to the MOF and the DLP government generally in the Parliament of Barbados.
    Estwick need not do anything now, he has warn them time and again so all he has to do is sit back and wait for the END to come, comforted in the knowledge that the he warned them verbally and formally, in private and in public.


  39. “The tactician must know what to do whenever something needs doing; the strategist must know what to do when nothing needs doing” -Ksawery Tartakower


  40. The leader of the opposition is correct about all government departments are cash strapped yet new vehicles are being purchased. Why not extend the amortisation on vehicles and use the savings to fund an aggressive maintenance program?


  41. The Dems embraced the illogical idea of Barbados being a society instead of our forefather Errol Walton Barrow idea of the country being an economy with educational opportunities that will uplift our disadvantaged people. However, the late Prime Minister, although he was mimicking Barrow’s philosophy whilst at Combermere, strayed after becoming PM. Unfortunately, the present administration, not understanding the role of managing a country since taking over by default, continue with this failed idea of a society instead of focusing on economic matters.
    In relation to Mr Estwick leading the search for funding for the overall economy and for the Andrews Factory upgrade, I have a fundamental problem with the present Finance Ministry who keep failing in sourcing adequate finance for our economic problems. Based on Mr. Estwick grouse with the tardiness of the Government in speeding up the process and finally loosing the funding, it shows without doubt that the wrong person is the MoF and for us to move away from a depress society, we must show balls and have a cabinet reshuffle with haste. The country is waiting after the slumber ends.


  42. Jason!Estwick does not have the time and luxury to do nothing.If his pet project has been taken away he must find ways and means for alternatives ….. influenced by Fact that is not about himself but for love of country.


  43. ac
    Estwick has both the luxury of time and the benefit of facts. The PM himself is the one who has now taken FULL RESPONSIBILITY for the fiasco that is the cane industry restructuring project. He now owns it politically and when the layoffs come, as they certainly will, then Estwick can afford to simply smile to the heavens.


  44. David. Can you give your BU family the heads up when Estwick come to speak in Parliament.


  45. Jason..i belive the PM made a decision to expedite after careful analysis and the slow nature of resonsiveness due to certain financial challenges in moving the project to a another level..however that does not in anyway negate or dismiss his role as minister of agriculture .


  46. @Tell me Why

    The House adjourned until 28 November.


  47. A STRIKE BY workers at Rotherley Construction has affected work on several sites across the island, including Sandals Resorts. – See more at: http://www.nationnews.com/nationnews/news/59475/strike-rotherley#sthash.GcRiuyhH.dpuf


  48. Hants

    When I drove by Sandals last week, it looked like there was a lot of work to be completed for Sandals to meet its January 15 open date


  49. DD has a suggestion for Government to reduce its non-essential expenses.

    Stop wasting money on the boutineers/corsages that Ministers seem to think they have to wear to every event they attend.

    It’s only a drop in the bucket, but they’ve got to start somewhere..


  50. Imagine that you are in a position of authority with a young family; yet you struggle to pay the exorbitant school fees for your childrenโ€™s education. During a conference you pass some small talk with a business man whom you are acquainted with. He gets to hear of your problem and suggests helping you out. You accept his offer. This pattern continues a number of times until sometime later he calls in the โ€œdebtโ€ that you owe him by asking you if you could facilitate a business transaction for services rendered.

    How would you defy this relationship? Is this what you would call corruption? I would prefer to say that this individual has been โ€œcompromisedโ€.

    There-in lays the problems that we face in Barbados. Some of you are puzzled as to what appears to be a government that appears to be acting in a highly illogical way. Land seemingly given away; corporate taxes waved; overseas investors offered unlimited opportunities to make hay. Why should this be?

    Well, there is a simple reason. I believe that are Prime Ministers and politicians over the last twenty years have been โ€œcompromisedโ€. They are in effect performing their duties under duress. There is an almighty special interest group in the shadows who have built up a portfolio on these various characters who have made it known that they have evidence that may be used against them. I suggest that we should declare an amnesty on are politicians and liberate them. Indeed they should declare all their interests and to whom they are indebted or compromised to.

    I would suggest that they โ€“ the politicians – reveal all. They should be asked to return any monies and material possessions that they may have acquired during this period. They should be abolished from ever taking part in politics on the island. However they should be spared serving a jail sentence.

    What of those individuals or groups who may have compromised these politicians? I suggest that if these individuals are Bajan citizens they should be given a minimum jail sentence of fifteen years. Any assets and profits that they may have gained during this period should be frozen and confiscated. If they are foreigners they should receive the above sentences and then deported on their release.

    This may seem excessive however I believe that it is the only way to stop the rot.

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