President Bharrat Jagdeo yesterday expressed support for the provisions in the current Investment Code to be included in investment legislation.
He also indicated that the Small Business Act would be sent back to be redrafted following talks with the private sector.
Jagdeo was speaking after participating in the Private Sector and Government consultations on the Draft Investment Code and the Small Business Act held at the Hotel Tower.
According to a Government Information Agency (GINA) press release, Jagdeo said, “The point that I made when we enacted the Investment code was that it had to be a simple document with a big set of guarantees. The document fulfilled those requirements but there were several other views, one is that the incentive regime should be part of the document....my contention was that this shouldn’t be so, because if you are going to include the incentive regime then you will have to move the core act. We should have a code and a guide and the guide should enshrine the incentive regime, fortunately that was accepted.”
He noted that some people from the private sector were saying that they preferred to move from an investment code to an investment law. “I agree with that, so I think we have reached a wonderful conclusion to this issue. I think it was good we had some give and take but we have settled that issue.”
Jagdeo added that significant progress had been made at the consultations in relation to the Small Business Act which he said had been in gestation for a long time. He said that the act would be taken back to the draftsmen and then tabled in Parliament.
He explained that the act sets the framework for improving the small business climate, indicating that it would deal with the removal of red tape and simplifying the regulatory and registration regimes of the small business. He added that it would also focus on greater incentives for small businesses along with marketing and training support.
The Private Sector Commission proposed the Investment Act to the government in part to attract and facilitate investment by providing legal protection. This act is also intended to increase the predictability, stability and transparency of the legal regime for investment; to promote the development of international best practices for investment and to provide a framework for fiscal incentives for investors and direct investment.