Gopaul in a comment yesterday told the Chronicle that the payout had to be made because it was unlikely that there would be a timely resolution through arbritration.

He said Fr. Malcolm Rodrigues who was nominated chairman of the tribunal declined the appointment for reasons of previous commitments, and secondly, public servants expected a payout before Christmas.

But more fundamentally, he said, the payout is in keeping with Public Service rules and regulations and the budgetary requirements.

"We deny that this has been a unilateral payout, but one aimed at relieving, and easing the burden placed on public servants at this time. It was done after every available effort was explored and we recognise what was done was in the interest of the workers", he stated.

Meanwhile a Government Information Agency (GINA) release said the five percent pay increase this year is the best the government can afford under the present state of the country's economy.

It said that was the message taken to thousands of public servants by Dr. Gopaul during a series of consultative meetings held yesterday at several Ministries which include, Education, Health, Housing, Fisheries, Crops and Livestock, Local Government, Labour and Human Services and Social Security.

The consultative meetings were launched to reassure public servants that the Government had their interest at heart and that the "door is open" for further discussions early next year.

The 2002 wage negotiations between the Guyana Public Service Union and the Government began in April this year. After 15 meetings, the two parties were unable to reach an agreement. It was agreed to take the matter to arbitration. However various disagreements continued.

Gopaul also spoke about the crime situation which led to a heavy toll on the economy and the millions of dollars spent in the bauxite industry to keep it afloat, expenditure not budgeted in the national estimates.

Urging workers to have a "degree of trust," Dr Gopaul reminded them of Government's consistency in improving wages and salaries during the last ten years.