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BSI Says Cane Farmers Should Have Signed
posted (December 31, 2014)

All eyes are on Escuela Secundaria Technica Mexico in San Roman village for Sunday morning when a special membership meeting of the Cane Farmers Association will be held to approve or disapprove the full 19 page agreement with BSI.

If approved, the long delayed crop season could start early next week. But, if they don't approve, no one is quite sure what will happen in the fragile industry.

Today, BSI's financial controller invited the media to an interview where he lamented that the two sides had reached an agreement – and all that was needed was a signature.

Belizario Carballo - Financial Controller, BSI

"Having responded to the BSCFA on Monday, that we accept fully there last proposals they sent us last week Wednesday. We felt that it cleared the way for an agreement to be signed, by Monday or latest Tuesday and then to set the date for the start of crops. The crop could have started as early as Friday or Saturday. We have now lost that opportunity of starting the crop this week."

Michael Young - Attorney, BSI

"The agreement that is there to be signed has been approved in principle by the general assembly of cane farmers. What then is really happening? Some who didn't agree with it want a second bite at the cherry."

Another factor that's fuelling uncertainty amongst the cane farmers is the power of the government controlled Sugar Industry Control Board. The Trade Union Congress of Belize and the Rod Of Correction movement have issued releases saying that the SICB can declare the season open, even without a signed agreement. Farmer Lucilo Teck and his attorney Audrey Matura Shepherd are seeking a writ of mandamus to compel the SICB to do so.

Government sent out a release yesterday calling that position "outrageous" because, quote, "the successful operation of the sugar industry requires free consent and voluntary participation of both the grower and the miller of the cane." End quote.

Today, BSI held a similar position. Their attorney Michael Young explained the practical limitations of a writ of mandamus:…

Michael Young

"All of the access is that the function of the SICB are ABCD. Some how from that they're contending that the SICB has the power to simply impose a commencement date upon the farmers and BSI; And it has to be understood that implicit to what they're doing is seeking to have the court recognise on the part of the SICB a power to order the farmers to deliver their cane."

Belizario Carballo

"Any notion that we can some how start the crop without an agreement or any notion the SICB can dictate to either party to start doing business, is in our view not accurate, not correct and is a misleading notion that is being put out there."

Michael Young

"Can you imagine that if the financing had dried up, so that there was no money to provide for equipment maintenance, for personnel and what is required to operate the factory. Can you imagine in that situation the SICB ordering that crop commence? When not even the capital is there to run the factory. There not simply just reading those words literally and maybe putting too much to them."

And while he says there are practical limitations, Young also explained that getting court ordered mandamus is not a speedy process – and it's one that is just starting.

Michael Young

"The application that they have made is not an application from mandamus. Mandamus of course is I mandate you to do something. There application is for permission to file mandamus. That is a fairly summary procedure. But if they succeed and the courts say you have permission to file the application, then the application is files. In the meantime, the sugar cane is in the fields waiting to be delivered. When they file that application, they have to get an order, they have to perfect the order, file the order, server it and then the court calls up the parties for trail procedures. Mines you they can put it on an urgent track. At the best we are talking about weeks, if not months and what we are in now is that the crop really needs to start."

And while that unfolds in court – on the ground, the industry's five thousand farmers are weighing the 19 page proposed agreement with BSI. What happens if they say no? It's a possibility the BSI executives did not even want to readily contemplate:..

Belizario Carballo

"We don't know what can happen if there is a no vote. If those who really want to derail this process and frustrate the efforts to reach an agreement succeed; We don't know what will happen, they can be so many scenarios and to be really speculative for us at this stage to be saying, how will we respond to any of those scenarios. I would want to keep optimistic that the membership will, for the second time, gratify what is being presented."

Michael Young

"Is this going to be an endless process whilst the cane is there in the ground and the factory is waiting for it to be received. It's already daunting prospect."

But a "no" vote could also change the dynamics in the industry and encourage some branches to abandon their association and simply sign independent contracts with BSI. IT's not actually that simple, but Carballo said it is doable:…

Belizario Carballo

"We heard there was this indication by the directors that depending on how things go they might pursue that option. That is sort of the scenarios I mentioned because we don't know what will play out after Sunday. There are different scenarios that can play out and I can't tell you for sure how we will be responding in terms of other associations or directions or individual farmers who wanted to sign that is their clear right and it's one we will have to give recognition to."

Apart from legal technicalities, the biggest hurdle to independent agreements would be that BSI has to have six thousand tonnes of cane guaranteed daily to start operation – which would likely require the joint commitment of a number of Branches.

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