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-Says,Argentina National Soccer Team Jerseys, “PPP just wrecked the sugar sector from top to bottom” By Kiana Wilburg The infrastructural problems plaguing the US$200M Skeldon Sugar Factory have left some viewing it as a ticking time bomb that will detonate soon; unless tough but necessary decisions are taken.GuySuCo Chairman,Dr. Clive ThomasSharing this opinion recently was Chairman of the Guyana Sugar Corporation (GuySuCo), Dr. Clive Thomas.Dr. Thomas was reminded that Skeldon’s sugar production of 39,158 tonnes in 2015 surpassed 2014’s and is now the highest production since the new factory was commissioned in 2009.According to GuySuCo’s annual report for 2015, the factory performance has improved considerably. In fact it has shown a15% improvement in the sugar recoveries.Dr. Thomas acknowledged that while this may be the case, he said that it is still not enough to make Skeldon competitive.Members of Cabinet have since been informed that the best solution to the disaster that is Skeldon is to make quick moves to put an end to its production of sugar and seek to use it for diversification purposes.Dr. Thomas concurred that he does not believe that it is wise for Skeldon to continue with the production of bulk sugar.A DISASTER!To further cement his point regarding Skeldon, Dr Thomas shared that there are disturbing infrastructural problems within the $200M factory.“If you only knew the cost to refurbish the factory, it would blow your mind,” added the GuySuCo Chairman.Asked to say whether he agrees with suggestions to divest Skeldon, Dr Thomas answered in the affirmative.He said, “Skeldon needs to be divested. We thought it would have been saved or salvaged by a mechanization project and that was not helpful. Then to get the costs down to competitive levels, moves were made to involve private cane farmers in supplying cane to Skeldon. That, too, did not work. The reality before us is that the factory has lots of faults; it is badly designed and poorly constructed.”The economist added, “The factory is deteriorating. New steel is needed, some of the furnaces don’t work, some of the boilers don’t work…, The factory is just not properly built. The cost for the repairs needed is about if not over US$60M ($12B). It is that big of a disaster.”Just recently the sugar sector received a whopping $2B in assistance from the national purse. This $2B financial support is to help meet routine expenditure and is in relation to the second crop for the sector. The cost to repair Skeldon alone would be six times that bailout.The amount needed to fix the problems facing Skeldon is also more than the $11B ploughed into the sugar industry for the entire year.The GuySuCo Chairman also revealed that an international firm was hired recently to do an assessment on the Skeldon Sugar Estate. He said that the firm in its report documented the troubling state of the factory.“The company said that that serious action has to be taken where Skeldon is concerned. The team, too, suggested that it has to be divested if not, the whole thing will eventually collapse on our hands and we won’t be able to produce any sugar. We have to make a decision. We either divest or watch it collapse.“The PPP just wrecked the sector from top to bottom and we are trying to salvage what we can,” expressed the economist.He continued, “We are trying to find a way out but that is like trying to find a way out of a minefield. That is what the PPP left us with. Everything is in a nerve-wracking state. The sugar industry is a minefield and a crumbling edifice. But it must be made known that we don’t want to put people on the breadline. The Skeldon factory alone employs 1,789 workers. Hence we are working on finding the best possible solution to turning the factory and the sector around.”PRODUCTIONAccording to statistics from the Ministry of Finance for the first half of the year, the Guyana Sugar Corporation recorded an operating surplus of $2.9 billion, down from an operating surplus of $3 billion for the same period last year.This surplus, it said, was inflated by a $9 billion transfer from the Central Government to finance operations.Without this transfer, the Ministry of Finance noted that GuySuCo’s true position would be a deficit of $6 billion.In the future,Nike Air Vapor Max Flyknit On Sale, the Finance Ministry said that all Central Government transfers will be shown as financing, instead of being included as part of revenues.Furthermore, it was noted that by the end of the first half of this year, GuySuCo’s production was 56,645 tonnes. This was recorded as a reduction of 23,Marlon Humphrey Jersey,624 tonnes from the budgeted 80,269 tonnes and also down from 2015’s half-year production of 81,143 tonnes.The Ministry of Finance said that this shortfall was reflected in a decline in ex