PM Unveils Further $28M Assistance Package for Banana Industry

September 27, 2001 - Government has announced another $28 million capital injection for the banana industry to assist the recovery efforts of farmers and help cushion the deepening effects of the worsening world recession on the local economy.

Prime Minister Dr Kenny D. Anthony, who is also Minister of Finance, told Parliament last Tuesday that "government will inject, on a phased basis over a period of twenty months, a further sum of $16 million to finance operating costs, including inputs, packing sheds and a team to manage the recovery programme."

In addition, the Prime Minister said, "another $12 million being provided under the Special Framework Assistance Programme (SFA) is now available and will be

utilized to implement the banana Commercialization and Agro Diversification Programme.

The revelations were made while the Prime Minister delivered a special statement on September 25 on the state of the economy and measures the government intends to take to fortify it in the face of the challenges that will come with the deepening world recession and the added effects of the aftermath of the terrorist attacks on America.

The Prime Minister recalled that government had "previously allocated an additional $3.5 million in the budget from local revenue to establish a revolving credit scheme to allow qualified farmers access to credit for purchasing vital inputs."

To date, he reported, some $2.4 million has already been disbursed and the remainder will be provided."

The Prime Minister told parliament his government continues to help the banana farmers just as it did when it took office. He recalled that over $100 million has already been poured into the industry over the past four years, including the payment of $46 million in debt incurred by the former St, Lucia Banana Growers Association (SLBGA).

Dr Anthony said the economic difficulties the country faced in the 1990’s were largely related to "adjustment dynamics in the banana industry." But today, he added, farmers have to make the best of the "five years breathing space" allowed by the current European Union regime.

During this period, full advantage must be taken of this breathing space," the Finance Minister warned.

He said this period should also be used “to ensure that a competitive core of efficient farmers emerges."

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