Sir, – You express concern about the alleged risks for Smurfit Kappa when investing in Venezuela ("Cantillon: Headache for Smurfit Kappa in Venezuela",Business, December 3rd). Nevertheless, such concerns contradict an earlier article entitled "Smurfit Kappa's revenue boosted by strong sales" (Business, November 6th), that states, "The group's operations in the Americas enjoyed a €141 million bounce in revenue and saw earnings increase by €35 million as a result of strong underlying volume and revenue growth throughout the region, in particular Venezuela."
In addition, your recent article suggests that Chavez “seized” land without reason. However, following the Venezuelan Land Act of 2001, the Venezuelan government redistributed land which was idle, in order that vital agricultural production can be stimulated. Food sovereignty is a key issue in Venezuela. Parallels can be drawn between the Venezuelan case and that of the Irish Land Acts.
Some of the lands owned by Smurfit Kappa in Venezuela were not being used productively and the government merely enforced the law. Also, the company’s eucalyptus plantation between Lara and Portuguesa states was depriving the area of water, with rivers running dry.
As the article acknowledges, the company itself has referred to the recent actions as an “audit”, something that is commonplace across the world in cases where there are concerns regarding tax, prices or employment practices. – Yours, etc,
ÁLVARO SÁNCHEZ,
Charge d’Affaires,
Embassy of the Bolivarian
Republic of Venezuela
to the UK and the Republic of
Ireland,
Embassy of Venezuela,
Cromwell Road,
London,
England.