Prime Minister refutes Opposition contentions
By Chamanlall Naipaul
Guyana Chronicle
April 14, 2004
DEBATE on this year’s National Budget began in the National Assembly yesterday at the Ocean View Convention Centre, Liliendaal, East Coast Demerara, with the main Opposition People’s National Congress/Reform (PNC/R) once again boycotting the sitting.
However, the other parliamentary Opposition parties, the Working People’s Alliance/Guyana Action Party (WPA/GAP) and the Rise Organise and Rebuild (ROAR) were present.
Mrs. Sheila Holder of the WPA/GAP, who made the initial presentation, charged that the $75.6 billion budget presented by Finance Minister, Mr. Saisnarine Kowlessar lacked vision and a plan to get Guyana out of the “political and economic morass.”
She further claimed that Kowlessar’s attribution of the SARS epidemic and the September 9/11 terrorist attacks on the U.S. as reasons for Guyana’s economic decline last year, was “tantamount to disregarding the intelligence of the Guyanese people”, and accused the government of failing to deliver good governance, adding that there has been no serious effort to inquire into criminal activities, including the `death squad’ allegations.
Holder contended that the failure by the government to govern was the basis for the destabilisation of the state, and said that although the government was touting the private sector to be the “engine of growth”, it was not facilitating the private sector to do this.
Accusing the government of corrupt practices, she alleged that the delay of the implementation of the Procurement Commission aptly demonstrated that it was not serious about ending corruption. She added that the East Coast railway embankment road and the road approaching Mahaicony are other examples that demonstrate corrupt practices.
She also argued that no one was fooled by the claim of “no new taxes” in the budget as there were several indirect taxes and increases in National Insurance Scheme contributions.
However, Prime Minister Sam Hinds, refuting Holder’s contentions, described the budget as being “factual, honest and earnest”, pointing out that the contraction of the economy by 0.6% last year was due mainly to shortfalls in the production of sugar and gold.
He said that while some sectors contracted there was large growth in others, such as a 41% growth in poultry production, a 15% increase in lumber production and an increase of 20-40% in the export of non-traditional crops to North America and the UK, while the inflation rate remained stable at 4%-6%. Such an inflation rate, he argued, was good for people who are on fixed salaries.
Mr. Hinds asserted that the government has been engaged in sound macro-economic management of the economy which has been responsible for the low inflation rate. However, he argued that the government is not the cause of every problem in the business sector, offering that some businesses are better managed than others.
He conceded that there was a wide gap between needs and resources, and expressed the view that only a “sense of patriotism” can bridge the gap.
On claims that the economy has been stagnated, the Prime Minister, who has responsibility for the mining sector, said diamond mining last year produced a record 400,000 carats, noting that the mining industry is a “vehicle” for both personal and national growth. However, he observed that cause for concern in relation to STDs and the spread of HIV/AIDS is developing because of the attitude within the industry.
With respect to the bauxite industry, Mr. Hinds said that under the new Cambior management through improved technology there have already been increases in production of high grades ores, resulting in a 25% increase in income. He said that by mid-year Cambior should acquire 70% of the shares of LINMINE, the Linmine Mining Enterprise.
The Prime Minister, who also has responsibility for the electricity sector, said there was need for huge investments to cut energy losses, and this was being sought through the privatising of the company.
The telecommunications sector is suffering from lack of expansion because of the present monopoly status of the sector, but he pointed out that the government was making every effort to open it up to the free market.
Minister of Foreign Trade and International Cooperation, Mr. Clement Rohee accused the Opposition of repeating the “mantra” of lack of vision and a plan to move the economy forward, asserting that the budget debate should be focused on the principal beneficiaries and not to score political points.
“There has been too much rhetoric. We should get away from rhetoric. The time is long gone, instead we should get down to brass tacks,” Rohee exhorted.
He recalled that when the People’s Progressive Party was in opposition it made criticisms too but said these were constructive, in that alternatives were proposed to what were criticised. But this was not being done by the present opposition, he added.
Rohee argued that the people were not clamouring for the Home Affairs Minister to go but rather they want improved water, roads and agriculture, among other areas.
He said the budget is a reflection of the efforts of the government to fulfill those demands of the people, noting that since this administration assumed office in 1992 per capita income has increased from about US$200 to $US900.