$22M in More Govt Assistance for Banana Industry Recovery

Contact: Prime Minister's Press Secretary

May 9, 2001 - More help is under way for the banana industry, with the start of disbursement of what will eventually turn out to be a $22 million package of government assistance for farmers’ recovery efforts. The Government of St. Lucia has made available the first tranche of a $3.5 million package of further assistance for banana farmers, releasing $2.5 million to the Banana Industry Trust (BIT) for on-lending to farmers.

The funds, which are aimed at helping banana farmers replant fields devastated by a prolonged drought and leaf spot disease, were originally promised in the April 5 Budget Address by Prime Minister and Minister of Finance, Dr. Kenny D. Anthony. In that address, the Finance Minister recalled that the Government of St. Lucia had already pumped over $100 million in direct support for the banana industry, since it was returned to democratic farmers control.

He underscored the current plight of banana farmers, resulting from low prices and adverse conditions and announced a new package of remedial assistance for the industry, the first phase of which would be an initiative to supply inputs to farmers to improve production and quality.

To this end, the Prime Minister announced the $3.5 million would be made available to the BIT “for on-lending to banana companies, to be used to establish a credit line for farmers for the purchase of fertilizer.”

The Chairman of the BIT, Mr. Brian Louisy, has been informed, said the Prime Minister, and the remaining one million dollars will be disbursed later in the current financial year.

He also revealed that the second phase of this latest package of government support for the banana industry involves an allocation of a suitable amount from an allocated (but still unutilised) $4.5 million worth of European Union (EU) funds. The second phase, he added, will eventually cater for land preparation, soil amelioration, replanting, introducing superior tissue culture varieties and additional training of farmers.

The third phase, the Prime Minister said in the Budget Address, “will involve a comprehensive irrigation and drainage programme, to be funded through an allocation of $14 million”, which will be made available under yet another EU banana recovery assistance programme. The third package, he explained, will fund drainage works, construction of reservoirs for irrigation, purchase of irrigation equipment and establishment of agronomic support units.

With the budget process now complete, the Treasury has been this past week disbursing funds to various agencies in government’s continuing efforts to improve the country’s liquidity position.

Only last week, some $15 million in government payables were disbursed to private sector institutions and companies, out of a $20 million payment the Prime Minister also promised would be paid within a month of the presentation and passage of the budget.

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