Government as inflexible as an old, dying guava tree

Mar 15, 2009 AFC Column, Features / Columnists

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Extracts of the Presentation on 2009 Budget made by AFC MP, David Patterson
Mr. Speaker, this year’s budget comes at a time when the global economy is experiencing an unprecedented downturn; the full effects are still becoming apparent. Indeed the financial institutions in some countries have completely collapsed, while in other more robust economies, their Governments are in the process of implementing economic recovery packages to avert certain collapse for some of their ailing institutions.
Based on this backdrop, we, the citizens of Guyana eagerly awaited the presentation of this year’s budget, so that we would be able to gain an insight as to how this Government proposes to charter our economic course through the turbulent waters of 2009 and beyond.

Mr. Speaker, the general reaction to this year’s budget has been disappointment, there has been no reduction to personal or corporate taxes, no new incentives to create jobs, what we got instead is a “people powered” budget, a budget funded almost exclusively by the continued high taxation of the citizenry. The notion of disposable income, the dream of “saving for a rainy day” has all been washed away forever by this year’s budget.

INFLATION:
Mr. Speaker, our country continues to be plagued with rising prices for almost every conceivable commodity, yet it has been reported in this year’s budget that the inflation rate for 2008 has been pegged at 6.4%. If this is correct, then it is nothing short of a remarkable achievement since other countries in our region with more robust and diversified economies recorded higher levels of inflation, Trinidad’s inflation rate for 2008 was around 11%, Barbados’s was approximately 9% and Suriname’s was 9.5%. As we have stated on several occasions before, our method of inflation computation requires revision.

LOCAL GOVERNMENT:
The AFC continues to be denied our rightful place as a member of the local government task force by the Government. In denying us membership they hide behind such shallow reasoning that any expansion of this task force would further delay this six years and counting process. May I remind everyone that it was this same Government, when the EPA issues arose last year were clamoring and pleading for “expanded stakeholders’ participation. When it suits this government, when their backs are against a wall they open their arms, beg you to support their agenda. However on any other occasion, on other important national issues, they are as inflexible as an old, dying guava tree.

Mr. Speaker, nowhere in this year’s budget presentation have we received any updates on the status of the recently concluded Urban Development Programme, what is the status of the revaluation of the municipalities? What is the status on the proposal for the expansion of the townships?
Included in this Ministry’s Capital Works budget is the rehabilitation and expansion of the Mandela Landfill. Does the Government intend to make this landfill a multi-storey complex since this site has long reached its capacity. The residents around this site will be very interested in this proposed expansion.

HOUSING AND WATER:
Mr. Speaker, I welcome the new Minister of Housing and Water, and ask him to immediately address the rising cost of house construction, by making representation to his colleagues to zero rate certain key construction materials, such as cement, steel and roof sheeting. Such a simple measure would make constructing a home far more affordable to the average Guyanese.
By approving the New Building Society’s request to raise their lending ceiling was an acknowledgement by the Government of the rising cost of home construction. No longer can the average middle income house be constructed under the old NBS lending limit, the thirty percent increase is an accurate reflection of the rising construction costs over the last three years.

The new minister should closely examine the working of GWI, investigate the numerous complaints about low staff morale, and ascertain the reasons why previously proven personnel are leaving the company or being transferred to remote locations for no apparent reasons. Review the cases of subversions granted to Old Person Homes in the country for water usage, to ensure that these pensioners are not saddled with extremely high monthly water bills.
We would be grateful if the Minister can give this National Assembly his undertaking that GWI will no longer continue to award contracts for wells to companies that have no experience in drilling water wells, to contractors that previously executed contracts and delivered “dry wells”.

SPORTS:
Mr. Speaker, in both my 2007 and 2008 budget presentations, I questioned the approach by the Ministry of Culture, Youth and Sport on the construction of the proposed Olympic Swimming Pool, their haste in awarding a contract for a pool without suitable designs, with little or no consultation with the relevant end users. As a result two years later, with more than seventy million dollars of taxpayers monies expended; we have the region’s first Olympic Fish Pond. In most other countries, the persons responsible for such a farce would have lost their jobs, sadly our Government does not subscribe to such high standards.

PUBLIC PROCUREMENT COMMISSION
Following the Stakeholder’s consultations last year, it was agreed that a Public Procurement Commission would be established within ninety days of the agreement; we in the AFC have already submitted our nominees for this commission, as was done by the PNCR and have indicated our willingness to discuss and conclude this matter. To date, the Government has not seen it fit to even submit its list of nominees, thus stalling this process indefinitely. One can only wonder what the Government’s fear in establishing this commission is.
Perhaps they want to maintain the ability to manoeuvre around tender procedures.

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