Stick to your guns
The Solidarity Election Action (AWS) led government did a surprising thing last week it showed some backbone. And for that, it deserves praise.
The government said that the law on sugar privatization does not allow for the creation of a Polish-style cooperative. The government also said that it plans to follow through on its initial plan to privatize at least some of the sector through direct sales to foreign investors. By making these two statements, government officials stepped directly on the toes of many supporters of a Polish-led privatization, the creation of a national cooperative called Polski Cukier. Many AWS deputies have pushed, cajoled and even threatened to blackmail the government with a vote of no-confidence for Treasury Minister Emil Wasacz if Polski Cukier was not created. The government took a stand against this pressure and should continue to show resolve on the sugar issue.
The sugar sector has debts of upward of zl. 1.7 billion ($414.6 million) and suffers from inefficient, or at least less-than-efficient, production. While the idea of maintaining a Polish identity for the sector may be valid in some respects, sacrificing the future of all sugar makers in pursuit of that aim is irresponsible. A good number of sugar beet growers and even trade unionists do not support the Polski Cukier plan because they think that it is not financially viable, and that for the industry to strengthen, it needs outside capital. They are right.
At the same time, the business plan put together for Polski Cukier showed just how flawed the idea is. As the WBJ reported last week, projections for Polski Cukier's future profitability were based on a cost structure that is two years out of date. That brings into question the plan's claim that some sugar mills could pay off their short-term debts with relative ease. If Polski Cukier cannot even put together a solid business plan, then the idea should be abandoned. This sector has no more time to waste before it modernizes.
Long live paczki
We at the WBJ were pleased to see that Carl Richardson is trying to bring Poland's great paczki tradition to the United States, as reported in the Wall Street Journal last week. Battling against cultural prejudices, mispronunciation and overall lack of education, Richardson is trying to get U.S. food retailers to begin selling the Polish doughnuts, which are heavily consumed here just before Lent. For those who may question what Polish paczki could add to the U.S. doughnut tradition, we suggest that next Fat Thursday they simply drop by any one of the number of bakeries frantically pumping out paczki to taste for themselves.