There is bad news in several sectors of our economy. In the rice industry, there are reports of one company owing nearly US $20 million to its creditors and several others experiencing severe debt and cash flow problems. Export prices for rice have fallen dramatically and fuel costs have been high. In the timber industry markets are hard to find and there is even talk of closure for some companies. In the manufacturing and trading sectors, many companies are before the courts due to inability to service their debts. Indeed it is no exaggeration to say that most businesses have experienced a slump in demand and combined with high interest rates this has led to cash flow problems.
Stabroek News
July 21, 2001
Clearly a great deal more has to be done to secure new investment and to create new economic activity. The National Development Strategy provides a number of useful and valid ideas. In his presentation in the budget debate Mr Stanley Ming referred to the efforts being made in developing countries throughout the world to secure investment. These ranged from Brazil and Venezuela to India, the Philippines and Malaysia and our own Caribbean tiger Trinidad and Tobago. He referred to the very large investments there by a number of companies seeking to take advantage of cheap and abundant energy supplies.
We have to go out and promote Guyana. Go-Invest has not been doing nearly enough. The launching of the investors' road-map last week to identify and disseminate information on investment opportunities is a beginning. This provides useful information on starting a business, the acquisition of land, site development, corporate and taxation law and any incentives that are available. This must be followed up by priming the various public sector agencies involved ranging from the Lands and Surveys Commission to the Central Housing and Planning Authority to deal efficiently with would be investors. Businessmen still complain of routine delays.
And Go-Invest must itself be re-energised and lead the way by going abroad to look for investment, not waiting here for investors to arrive. It has a bad track record of dealing with investors. It makes sense, as we have suggested more than once, to have a board comprised mainly of successful businessmen who can themselves get involved in Go-Invest missions to solicit investment overseas. What investors want above all is reliable information and quick decisions. Our bureaucracy, and the political directorate, has become notorious for not providing either. This has to change and Mr da Silva has to show that he can revolutionise this agency and get it moving in the right direction.
The nation is tired of words and promises, it wants action and results. He had shown some energy and ability in his previous portfolio. Ultimately, he will be judged here by the investments that are secured through this agency.