During the 2003 budget debate Monday, he said the budget should have been more "frontal" in confronting the challenges and to stay on course, and claimed that the Government has been too focused on stabilisation, not prepared to take the risk of releasing the $50 billion that has been sterilised for stimulating investment and growth. He urged that while it is good to control inflation it is necessary to "trade off stability with growth" because the latter is imperative in the development of the national economy.

Referring to the Intermediate Savannah Project, Dev said Guyana has a comparative advantage in land, but capital is needed and the excess liquidity could be used to provide investments in such projects. He said Thailand has become the world's leading producer in pineapples by providing the necessary investments for the land.

However, Minister of Tourism, Industry and Commerce, Mr. Manzoor Nadir, in rejecting Dev's contention, argued that if the sterilised funds are released this would be "chasing" only US$500M in foreign exchange earnings, thus creating a highly inflationary situation because it would trigger greater spending by consumers. He said there must be a macro-balance.

Dev, who acknowledged that embarking on the creation of industrial estates throughout the country to boost the manufacturing sector is a good initiative, but lacking in coherence, expressed surprise that in this year's budget very little has been mentioned about the development of the estates. He further queried whether this was an indication that the Government has diverted from the policy of developing industrial estates.

Nadir disagreed with Dev and explained that a lack of funding slowed down the development of the industrial estates, noting as well that it takes a minimum of seven years to develop an industrial site. He asserted that the Government has not abandoned its policy and programme pertaining to industrial estates.

Providing an update on the situation, he said that since the issuance of 99-year leases there has been a dramatic increase in the number of plots occupied at the developed industrial sites. Sixty per cent of the plots at Eccles are occupied and by the end of this year this figure will increase to 84% and would create more than 1,000 jobs, the minister said.

With respect to the Lethem site, he said the bids for its design have been closed and the design should be completed by June paving the way for its construction to begin in the third quarter of the year.

Criticising the 10% tax on cellular phone calls, Dev said this would put greater hardship on the poorer sections of the populace, as well as increasing the transaction costs for businesses.

However, Nadir countered that the ownership of cellular phones is more of a luxury to most and said the move is also intended to broaden the tax base from taxes only paid on goods to a situation where taxes are paid on services as well. This, he said, is in keeping with the trend around the world, noting that in Canada taxes are paid both on goods and services.

He said he could not recall when last such a tax was imposed by the Government.

Concluding his presentation, Nadir expressed surprise at the Working People's Alliance/Guyana Action Party (WPA/GAP) Member of Parliament, Ms. Sheila Holder's contention that there is an absence of an economic plan. He said that the entire budget is an economic plan of action.

Responding to a claim by Ms. Holder that there has been a lack of investment in the tourism sector, he said that for last year in Georgetown alone there were 50 new hotel rooms, while in Corriverton there were 25 new rooms.

He also refuted a charge by Holder that local contractors are being bypassed in favour of foreign contractors and said that in a large number of instances local contractors did not bid, therefore could not have qualified. He also emphasised that two local contractors qualified in the bidding process for the construction of the Caribbean Community headquarters, and one of them currently has a court matter with the Government.

Dev said the Government should do more to address the issue of political stability as there is a "political nexus" with the criminal situation, claiming that buying more guns will not solve the problem.

The debate on the National Budget of $72.9 billion presented by Finance Minister, Mr. Saisnarine Kowlessar to Parliament on March 28 began Monday.

Sittings are being held at the Convention Centre of the Ocean View Hotel, Liliendaal, East Coast Demerara.