Government investments in the domestic economy could go a far way to reduce the current level of unemployment and improve the well-being of Guyanese, opposition leader, Desmond Hoyte said yesterday.

Hoyte said that every sector of the economy has been experiencing a sharp downturn and these were signs that the economy was in serious trouble, but he called for special consideration to be given to the rice and timber sectors.

Hoyte said that if the state of villages was looked at seriously, it would be evident what could be done to improve them, alluding to the breakdown in drainage and irrigation systems which has forced farmers off their land.

The PNC REFORM leader, briefing the media yesterday, said that before the country even started looking to attract big investments, it could do so much for itself via the small and important sectors of the economy.

He said that it was not a question of how much money was spent in the drainage and irrigation sector over the years, but what the investments had yielded or whether they had filtered away into the pockets of crooks. He cited examples of infrastructure works only being completed in a matter of weeks and then breaking down.

He also shared the view that investments in the local economy were not being made in a coordinated manner and as such the benefits which should accrue from such investments are not flowing.

The PNC leader, was sceptical about the half-year report by the Bank of Guyana which said that the economy grew by 1.3%. He noted that the economy for some time now had been in the throes of a crisis. He alluded to the increasing unemployment and the job market being squeezed tighter with the number of businesses going under and facing severe cash flow difficulties.

He felt that much needed to have been done to put the economy on an even keel when the government took office, such as a policy paper on economic management and having the investment code in place. He said he still failed to see any evidence of this government building on what was there when his party demitted office and that the traditional industries were now all in disarray. He recalled that the economic recovery programme launched under his government had sought to resuscitate these traditional industries in a US$30 million project but the PPP/C government abandoned it.

He opined that the rice and timber sectors ought to be provided with the necessary tools to come out of their dire straits adding that tough situations called for tough measures. He said that if the rice industry required assistance, this should be provided, as everywhere else in the world rice was subsidised. He said if it was possible to waive financial guidelines to allow the forestry sector to survive then this should be done.

Additionally, he noted that the debt overhang was killing both industries and they needed capital injection to go forward. However, he said that the government would need to sit with the two sectors and devise a way out.

"Neither the economy nor the government administration is being skilfully managed and the country is in a state of drift," Hoyte said.

Speaking of the government's approach to the bauxite sector, he noted that the dialogue process between himself and President Bharrat Jagdeo had placed the resuscitation of bauxite high on its agenda. But he noted the problems which had plagued that process, including interference from Prime Minister Sam Hinds and the conflict of interest roles played by Robeson Benn.

Lance Carberry, PNC chief whip, opined that the government's and Hinds' efforts to keep Alcoa interested in Guyana had been against the best interests of Bermine as it was sacrificing a nationally-owned company for foreign interests. Hoyte questioned why the government was investing so much time and energy to promote Alco's interest. Carberry felt that Bermine had a viable strategy to keep it in business and if the government knew what it was doing with the Minproc management contract for Linmine, that operation would today be profitable.

Hoyte also said that the dialogue process, which began with great expectations, has lost momentum and corrective action had to be taken to resuscitate that momentum.

His statement to the media also covered the low public confidence and morale with extra judicial killings and police violence and said that the Inter?American Commission on Human Rights last week admitted a complaint on the violation of the human rights of Franz Britton who disappeared while in police custody. Those named in the report are President Bharrat Jagdeo, Home Affairs Minister, Ronald Gajraj, former commissioner of police, Laurie Lewis and superintendent Leon Fraser of Target Special Squad. Hoyte said that to date the government had failed to reply to the commission and Guyana was gaining the reputation of a rogue state.

The PNC leader also touched on the deportee situation and laid blame for the ban on the issuance of US visas to government and government related workers at the door of the government. Hoyte said that Foreign Affairs Minister Rudy Insanally inherited this mess and was not to be blamed, but could not escape responsibility for resolving the issue.

Hoyte emphasised that the essential elements of good governance were faith and credibility but cited examples against these such as the President's promise to mount an inquiry into the disturbances at Albion; an inquiry into the law revision printing contract and another into the incidents on the Corentyne in August this year which resulted in the deaths of several persons.

He felt it was sad that the opportunities for good governance were not being grasped and he said he intended to speak nationally on the state and prospects of the dialogue in the next week.