Business summit 'success story'
By Michelle Elphage
TOP businessmen yesterday called the historic summit between the private sector and the Government a `success story' indicating that it augurs well for continued relations with the administration. "I think it was a unique opportunity for a Head of State to have afforded the business community...I think it will produce considerably good results for important private sector relations with Government, and strike a lasting partnership," Head of the Consultative Association of Guyanese Industries (CAGI), Mr. David Yankana said. "It was an excellent opportunity for serious business considerations", he told the Chronicle. Yankana said the private sector will be meeting later this week or early next week to identify representatives for committees that will be following up decisions outlined in a joint communique issued after the summit Monday at Le Meridien Pegasus Hotel, Georgetown. "I think the incentives were of interest and benefit to the private sector", he said. Executive member of the Private Sector Commission (PSC), Mr. Yesu Persaud said the meeting was a very positive step by President Bharrat Jagdeo, noting that the fresh incentives announced will go a long way to attracting new types of industries. "I think it will go a long way and it seems he intends to work closely with the private sector," Persaud offered. Both Yankana and Persaud agreed it was a good sign that President Jagdeo was able to spend the entire day meeting individual businessmen and sector groups. Almost the entire Cabinet was at the opening and initial sessions. Mr. Jagdeo on Monday declared open the summit with the private sector urging businessmen to develop new ways of thinking, so that the country's resources can be best used to the benefit of its people. Addressing the packed Savannah Suite at Le Meridien Pegasus the President announced new incentives the Government intended to bring on stream immediately to further aid private sector development. These include reducing royalties on gold to four per cent if prices fall below US$280, and to three per cent below US$265; and tax holidays on the importation of information technology items for the next five years. Head of the PSC, Mr. George Jardim called for mutual trust between the two sides at the opening ceremony. He said everything was possible if the Government could take on board the vision and needs of businessmen and provide an understanding and nurturing environment. Measures announced in the communique which followed the 12-hour summit include: * a waiver of consumption tax on local sales in the garment industry; * a joint Government/private sector committee would complete an investment code by November 30; * the Government would vigorously pursue removal of barriers that Guyana's rice faces in some Caribbean Community (CARICOM) states, and work closely to increase regional and extra-regional markets; * if appropriate the establishment of a ministerial mechanism toward the strengthening of existing administrative structures in mining; * the Guyana Manufacturers Association (GMA) would submit a concept paper on the establishment of a development bank by December 31; * the Government would house and fund the Tourism Authority for a period to be agreed on. Additional tax incentives would be given to "sector leading investments"; * a joint working group from the private and public sectors will be established to deal with land issues. The decentralisation of land by the administration would be considered; * the Small Business Act would be laid in Parliament by December 31; * the Private Sector Commission and the Guyana Bankers Association would review the money laundering legislation before its final passage in Parliament; * the stock market legislation would be given effect by December 31; * a National Certification Committee on Forestry would be put in place; * once dumping is proven in poultry, the Government would make strong representation on the matter; * the private sector is to establish a committee on crime to work with the Minister of Home Affairs; * the recent study on value-added tax would be circulated to the Private Sector Commission for review and recommendations; * the Private Sector Commission has restated its support for the establishment of the Revenue Authority; * the Government will introduce copyright legislation in Parliament; * a private sector/Government committee to be established to examine the feasibility, mobilise resources and oversee implementation of strategic large scale investments; and * the Government would reduce or waive registration fees for new companies and companies revaluing their assets. The communique said the decisions did not represent the entirety of the day's proceedings but it was agreed that a permanent secretariat would be set up to ensure implementation, follow-up agreed recommendations and co-ordinate further input into future policy initiatives.
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