Venezuelans oppose Chávez attempt to nationalize private food company

[cali]

By Juan Forero
Washington Post staff writer
Friday, July 9, 2010

As in all major government takeovers of private companies in Venezuela, President Hugo Chávez declared that seizing beer-and-food giant Polar's facilities here would mark another victory for the poor in the country's march toward socialism.

"Why is it that Polar has so much money?" Chávez asked in a February speech made in this city in northwest Venezuela. "I say to the owner of Polar: Start making plans, because you are going to be out of here."

Weeks later, a decree expropriating Polar's warehouses and offices in an industrial zone of Barquisimeto was signed. And Venezuelans, after nearly 12 years of state interventions under Chávez, expected the government to quickly sweep the company's facilities in the country's fourth-largest city from their current location and replace them with apartments. Chávez suggested that he might even nationalize the entire company, which has plants and distribution points nationwide.

Except this time, the president's plans went badly awry, exposing mounting national opposition to a policy under which oil companies, supermarkets and factories have been taken over by the state, only to founder under the control of government functionaries.

Not only did Polar fight back by taking its case to the Supreme Court, but its employees have risen up, too, rallying in opposition to Chávez's edict and holding all-night vigils to prevent a takeover. Among those who joined the uprising was Henri Falcón, the popular governor of Lara state, a former ally of Chávez's who says the president has not considered long-term consequences when nationalizing companies.

<snip>

http://www.washingtonpost.com/wp-dyn/content/article/2010/07/08/AR2010070802795.html

[NHLrocks]

1. what's wrong?

[zeemike]

2. And Americans opposed the civil rights act too.

And so if Americans opposed it it must be wrong.

[cali]

3. I don't know if they're right or wrong but I do know

the comparison you make is absurd.

[zeemike]

5. Not if you are considering the headline.

which implies that the people of the country are against it.
In 1964 there were many in this country against the civil rights act but we don't call Johnson a dictator because he passed it against the will of (some) Americans.

[tiny elvis]

4. versus non commercial news reporting:

The Venezuelan President had particular words for the owner of one of the nation’s largest food and beverage producers and distributors, Lorenzo Mendoza. One of the wealthiest men in Venezuela, and a Forbes billionaire, Mendoza runs Empresas Polar, which produces and distributes products such as Polar beer, PepsiCola and all kinds of juices, vinegars, sauces, ice creams, cereals, canned and frozen foods.

Chavez responded directly to Mendoza’s claims that the Venezuelan President is destroying the country, stating, “I accept your challenge. Lets go. You with your millions and me with my morals. Lets see who lasts longer, you with your Polar and your riches, or me with my people and the dignity of a revolutionary soldier”. Chavez also warned Mendoza that if his company continues to hoard products, speculate and violate price regulations, Empresas Polar could be nationalized.

“I’m not afraid to nationalize Polar, Mendoza, so be careful. The law is the law”, declared the Venezuelan head of state.

Polar has been one of the principal companies propelling product shortages in the country during the past few years, by hoarding the consumer goods in its hundreds of warehouses nationwide until enough panic and descontent has been generated in the country. Then the products are released at higher prices, violating financial regulations, causing inflation and attempting to cripple the economy.

http://www.chavezcode.com/2010/06/we-are-in-economic-war.html

One of the first companies to be put under intervention was Primor (part of the Polar group), in Calabozo, Guárico. The Vice-Minister of Agricultural Economy, Richard Canán, pointed out that this rice plant was working at less than 50% of its capacity. He explained that, "it has a capacity to process more than 7,500 tonnes a month and has been producing less than 3,000 tonnes. Furthermore, it is producing artificially flavoured rice rather than regulated rice".

On Sunday, March 1, in the weekly Aló Presidente TV programme, there was a live connection with Minister of Agriculture Jaua, who was at the Primor plant in Calabozo. Jaua explained, "The reason for this action is that the companies had created a mechanism of producing artificially flavoured rice in order to divert the raw material towards non-regulated products." On this, Vice-Minister Canán commented that, "artificially flavoured rice is a swindle." President Chávez commented: "I am tired of the situation where regulated rice is not being produced and for this reason I have ordered these plants to be put under state intervention. If they try any tricks we will expropriate them and these companies will go from being private property to social property," and added that "we should be moving towards socialism, not capitalism. We must build up social property, in which small and medium sized producers have a place".
On Monday, March 2, Guillermo Bolinaga, Director of Legal Affairs and Regulation of Empresas Polar, declared that the measures of state intervention were "disproportionate, illegal and unconstitutional", and that they would appeal to the Supreme Court of Justice against state intervention in their rice plant. With the usual cynicism of the capitalist representatives he alleged that, "the right of property, the right of food security and the sovereignty of the consumers to choose what they want to consume, have been violated." Bolinaga declared that his company has only a 6% share of the market (despite the well known fact that Polar is the main company in the food sector) and rejected the claim that they were producing 90% artificially flavoured rice in order to avoid price regulation. He said that the main problem in the rice sector was the low level of production of the raw material and that the government-regulated price was "not enough to cover production costs."

Minister of Agriculture, Elías Jaua, replied that Empresas Polar has a monopoly control of the market, and assured that Venezuela currently produces more than 300,000 tonnes of this cereal. "They say that there is not enough raw material while at the same time they are producing artificially flavoured rice. So, it is clear that they do have raw material, but they are using it to produce different varieties other than the regulated price rice." He added that, "when they are producing 90% artificially flavoured rice, they are in fact forcing the consumer to buy what they want".
arlos Osorio, the National Superintendent of Silos and Warehouses pointed out that, "if any company wishes to trample on consumer rights with the aim of getting higher profits, we will take action," and emphasised that "for the government, access to basic foodstuffs is a question of national security".

http://www.socialistappeal.org/content/view/692/72/

reading only commercial news gives one a deranged world view
how is lindsay holding up?

[tech9413]

6. Not that I think Chavez is some hero or villan, just consider

the source. Can you point to one article or news story from US media that hasn't tried to depict Chavez as some sort of dictator? The owner of Polar is on the Forbes 500 and their facilities are producing less than 50% of their capacity. If there is a need for the products, why not ramp up production to fill the need? Could it be political gamesmanship? Why else would you decline profits when you have the capacity to supply the demand?

[Mika]

7. When the nationalization is complete, I'm going to start drinking Polar beer.

Mmmmm :beer:


We'll see how long it takes for the anti Polar protests/boycotts to start up in Miami.

There used to be a big protests/boycotts, here in Miami about 6 years ago, against Corona beer - because Mexico deported Cuban illegal entrants back to Cuba.

Local Miami TV covered the "controversy" intensely for weeks on end.

There were groups assembled outside of Publix and Winn Dixie stores harassing anyone with Corona in their carts, trying to force the stores to stop selling it.




Most of the liquor stores on Calle Ocho y Flagler streets had large signs 'No Corona" next to their Cuban flags.

Crazy crazy town. :crazy:

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